Brooke's Books

Question 1

Accounts Payable

Answer 1

money owed by a company to its creditors.

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 contains details of a company’s assets or liabilities at a specific point in time

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a printed record of the balance in a bank account and the amounts that have been paid into it and withdrawn from it, issued periodically to the holder of the account.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

A chart of accounts is a list of financial accounts set up, usually by an accountant, for an organization, and available for use by the bookkeeper for recording transactions in the organization’s general ledger

Question 9

Check Stub

Answer 9

A paycheck, also spelled paycheque, pay check or pay cheque, is traditionally a paper document issued by an employer to pay an employee for services rendered.

Question 10

Checkbook Reconciliation

Answer 10

comparing the internal and bank records for a bank account, and adjusting the internal records as necessary to bring the two into alignment.

Question 11

Checkbook Register

Answer 11

a document, usually part of the general ledger, used to record financial transactions in cash.

Question 12

Closing Entries

Answer 12

Closing entries are journal entries made at the end of an accounting period to transfer temporary accounts to permanent accounts.

Question 13

Cloud Accounting

Answer 13

software is similar to traditional, on-premises, or self-install accounting software, only the accounting software is hosted on remote servers, similar to the SaaS (Software as a Service) business model.

Question 14

Deposit Ticket

Answer 14

informs the teller which bank account number to which the funds should be credited.

Question 15

EFT

Answer 15

the electronic transfer of money from one bank account to another, either within a single financial institution or across multiple institutions, via computer-based systems, without the direct intervention of bank staff.

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 year as reckoned for taxing or accounting purposes.

Question 20

General Ledger

Answer 20

the main accounting record of a company or organization.

Question 21

Income/ Revenue

Answer 21

Revenue is the total amount of income generated by the sale of goods or services related to the company’s primary operations.

Question 22

In-Transit

Answer 22

inventory items that have been purchased by the buyer and shipped by the seller; however, the goods are on the way and yet to reach the intended purchaser.

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

The point of sale or point of purchase is the time and place at which a retail transaction is completed. At the point of sale, the merchant calculates the amount owed by the customer, indicates that amount, may prepare an invoice for the customer, and indicates the options for the customer to make payment.

Question 26

Profit Margin

Answer 26

the amount by which revenue from sales exceeds costs in a business.

Question 27

Purchase Discount

Answer 27

Purchase discount is an offer from the supplier to the purchaser, to reduce the payment amount if the payment is made within a certain period of time.

Question 28

Purchase Return

Answer 28

merchandise given back to the seller from the buyer after the sale in return for a refund.

Question 29

Sales Discount

Answer 29

a reduced price offered by a business on a product or service.

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

a liability account in the balance sheet that keeps track of the sales tax collected from the customers on behalf of the governing tax authority.

Question 33

Trial Balance

Answer 33

a statement of all debits and credits in a double-entry account book, with any disagreement indicating an error.

Question 34

Vendor

Answer 34

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