Brooke's Books

Question 1

Accounts Payable

Answer 1

Amounts due to vendors or suppliers for goods or services received that have not yet been paid for.

Question 2

Accounts Receivable

Answer 2

The funds that customers owe your company for products or services that have been invoiced.

Question 3

Aging Report

Answer 3

A record of overdue invoices, accounts receivable, or unused credit memos by periodic date changes.

Question 4

Asset

Answer 4

A useful or valuable thing, person, or quality.

Question 5

Balance Sheet

Answer 5

A financial statement that reports a company’s assets, liabilities, and shareholder equity.

Question 6

Bank Statement

Answer 6

A printed record of the balance in a bank account and the amounts that have been paid into it and withdrawn from it, issued periodically to the holder of the account.

Question 7

Business Transaction

Answer 7

A financial transaction between two or more parties that involves the exchange of goods, money, or services.

Question 8

Chart of Accounts

Answer 8

An index of all the financial accounts in the general ledger of a company.

Question 9

Check Stub

Answer 9

A paper document attached to a physical check or included in a wages envelope.

Question 10

Checkbook Reconciliation

Answer 10

Making sure the records you’ve kept for all your spending and income match what the bank says on your physical or online statement.

Question 11

Checkbook Register

Answer 11

The journal that records all the checks, cash and cash outlay during an accounting period.

Question 12

Closing Entries

Answer 12

A journal entry made at the end of the accounting period.

Question 13

Cloud Accounting

Answer 13

A system that allows multi-user access and safe online or remote server storage.

Question 14

Deposit Ticket

Answer 14

A list of currency and checks provided by the bank as proof a deposit was made

Question 15

EFT

Answer 15

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.

Question 16

Entrepreneur

Answer 16

A person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so.

Question 17

Equity

Answer 17

The value of the shares issued by a company.

Question 18

Expense

Answer 18

The cost required for something; the money spent on something.

Question 19

Fiscal Year

Answer 19

A one-year period that companies and governments use for financial reporting and budgeting.

Question 20

General Ledger

Answer 20

An accounting record of all financial transactions in your business.

Question 21

Income/Revenue

Answer 21

Money received, especially on a regular basis, for work or through investments.

Question 22

In-Transit

Answer 22

Your package is on its way to its final destination.

Question 23

Journal Entries

Answer 23

A record of a business transaction in your business books.

Question 24

Liability

Answer 24

The state of being responsible for something, especially by law.

Question 25

P.O.S.

Answer 25

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.

Question 26

Profit Margin

Answer 26

Gauges the degree to which a company or a business activity makes money, essentially by dividing income by revenues.

Question 27

Purchase Discount

Answer 27

A deduction that a payer can take from an invoice amount if payment is made by a certain date.

Question 28

Purchase Return

Answer 28

When the buyer of merchandise, inventory, fixed assets, or other items sends these goods back to the seller.

Question 29

Sales Discount

Answer 29

A reduction in the price of a product or service that is offered by the seller, in exchange for early payment by the buyer.

Question 30

Sales Return

Answer 30

Merchandise sent back by a buyer to the seller.

Question 31

Sales Tax Liability

Answer 31

Funds collected from customers to be distributed to state and local tax agencies by businesses.

Question 32

Sales Tax Payable

Answer 32

One or more liability accounts that contain the current balance of taxes owed to government entities.

Question 33

Trial Balance

Answer 33

A report that lists the balances of all general ledger accounts of a company at a certain point in time.

Question 34

Vendor

Answer 34

A person or company offering something for sale, especially a trader in the street.