Brooke's Books Flashcards
Accounts Payable
Amounts due to vendors or suppliers for goods or services received that have not yet been paid for.
Accounts Receivable
The funds that customers owe your company for products or services that have been invoiced.
Aging Report
A record of overdue invoices, accounts receivable, or unused credit memos by periodic date changes.
Asset
A useful or valuable thing, person, or quality.
Balance Sheet
A financial statement that reports a company’s assets, liabilities, and shareholder equity.
Bank Statement
A printed record of the balance in a bank account and the amounts that have been paid into it and withdrawn from it, issued periodically to the holder of the account.
Business Transaction
A financial transaction between two or more parties that involves the exchange of goods, money, or services.
Chart of Accounts
An index of all the financial accounts in the general ledger of a company.
Check Stub
A paper document attached to a physical check or included in a wages envelope.
Checkbook Reconciliation
Making sure the records you’ve kept for all your spending and income match what the bank says on your physical or online statement.
Checkbook Register
The journal that records all the checks, cash and cash outlay during an accounting period.
Closing Entries
A journal entry made at the end of the accounting period.
Cloud Accounting
A system that allows multi-user access and safe online or remote server storage.
Deposit Ticket
A list of currency and checks provided by the bank as proof a deposit was made
EFT
EFT stands for ‘electronic funds transfer’. So, it refers to any payment that’s processed electronically. For example, credit card payment processing is a form of EFT.
Entrepreneur
A person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so.
Equity
The value of the shares issued by a company.
Expense
The cost required for something; the money spent on something.
Fiscal Year
A one-year period that companies and governments use for financial reporting and budgeting.
General Ledger
An accounting record of all financial transactions in your business.
Income/Revenue
Money received, especially on a regular basis, for work or through investments.
In-Transit
Your package is on its way to its final destination.
Journal Entries
A record of a business transaction in your business books.
Liability
The state of being responsible for something, especially by law.
P.O.S.
A point of sale (POS) is a place where a customer executes the payment for goods or services and where sales taxes may become payable.
Profit Margin
Gauges the degree to which a company or a business activity makes money, essentially by dividing income by revenues.
Purchase Discount
A deduction that a payer can take from an invoice amount if payment is made by a certain date.
Purchase Return
When the buyer of merchandise, inventory, fixed assets, or other items sends these goods back to the seller.
Sales Discount
A reduction in the price of a product or service that is offered by the seller, in exchange for early payment by the buyer.
Sales Return
Merchandise sent back by a buyer to the seller.
Sales Tax Liability
Funds collected from customers to be distributed to state and local tax agencies by businesses.
Sales Tax Payable
One or more liability accounts that contain the current balance of taxes owed to government entities.
Trial Balance
A report that lists the balances of all general ledger accounts of a company at a certain point in time.
Vendor
A person or company offering something for sale, especially a trader in the street.
