Brooke's Books Flashcards
Accounts Payable
Money owed by a company to its creditors.
Accounts Receivable
Money owed to a company by its debtors.
Aging Report
Tells how long an invoice has been due for payment.
Asset
Property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.
Balance Sheet
A statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period.
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A printed record of the balance in a bank account and the amounts that have been paid into it and withdrawn from it, issued periodically to the holder of the account.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
A financial, organizational tool that provides an index of every account in an accounting system.
Check Stub
A business’s record of each check written for a cash payment transaction.
Checkbook Reconciliation
Comparing bank to cash balances, looking at the bank statement, IDing your cash book, adjusting the bank balance and book balance and recording the reconciliation.
Checkbook Register
A record of transactions in a checking account.
Checkbook Entries
Cloud Accounting
The practice of using an accounting system that’s accessed through the internet.
Deposit Ticket
A list of currency and checks provided by the bank as proof a deposit was made.
EFT
A digital transfer of cash through an online payment system.
Entrepreneur
Someone who has an idea and who works to create a product or service that people will buy, as well as an organization to support that effort.
Equity
The money value of a property or of an interest in a property in excess of claims or liens against it.
Expense
The cost one is required to spend on obtaining something.
Fiscal Year
A 12-month accounting period that a business uses for financial and tax reporting purposes.
General Ledger
A means for keeping record of a company’s total financial accounts.
Income/Revenue
The total amount of money a company generates before removing any expenses.
In-Transit
The process of being transported.
Journal Entries
A record of a business transaction in your business books.
Liability
Debts or obligations a person or company owes to someone else.
P.O.S.
A place where a customer executes the payment for goods or services and where sales taxes may become payable.
Profit Margin
A common measure of the degree to which a company or a particular business activity makes money.
Purchase Discount
A deduction that a payer can take from an invoice amount if payment is made by a certain date.
Purchase Return
When a buyer (either a business or an individual) returns goods that they bought to the seller for a refund or store credit, depending on the seller’s policy.
Sales Discount
Provides customers of a business with a reduced rate on one or more of the products or services being offered.
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
A liability account in which is stored the aggregate amount of sales taxes that a business has collected from customers on behalf of a governing tax authority.
Trial Balance
A financial report showing the closing balances of all accounts in the general ledger at a point in time.
Vendor
An individual or company that sells goods or services to someone else in the economic production chain.
