Brooke's Books

Question 1

Accounts Payable

Answer 1

Money owed by a company to its creditors.

Question 2

Accounts Receivable

Answer 2

Money owed to a company by its debtors.

Question 3

Aging Report

Answer 3

Tells how long an invoice has been due for payment.

Question 4

Asset

Answer 4

Property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.

Question 5

Balance Sheet

Answer 5

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.

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A printed record of the balance in a bank account and the amounts that have been paid into it and withdrawn from it, issued periodically to the holder of the account.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 financial, organizational tool that provides an index of every account in an accounting system.

Question 9

Check Stub

Answer 9

A business’s record of each check written for a cash payment transaction.

Question 10

Checkbook Reconciliation

Answer 10

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.

Question 11

Checkbook Register

Answer 11

A record of transactions in a checking account.

Question 12

Checkbook Entries

Question 13

Cloud Accounting

Answer 13

The practice of using an accounting system that’s accessed through the internet.

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

A digital transfer of cash through an online payment system.

Question 16

Entrepreneur

Answer 16

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.

Question 17

Equity

Answer 17

The money value of a property or of an interest in a property in excess of claims or liens against it.

Question 18

Expense

Answer 18

The cost one is required to spend on obtaining something.

Question 19

Fiscal Year

Answer 19

A 12-month accounting period that a business uses for financial and tax reporting purposes.

Question 20

General Ledger

Answer 20

A means for keeping record of a company’s total financial accounts.

Question 21

Income/Revenue

Answer 21

The total amount of money a company generates before removing any expenses.

Question 22

In-Transit

Answer 22

The process of being transported.

Question 23

Journal Entries

Answer 23

A record of a business transaction in your business books.

Question 24

Liability

Answer 24

Debts or obligations a person or company owes to someone else.

Question 25

P.O.S.

Answer 25

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

A common measure of the degree to which a company or a particular business activity makes money.

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 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.

Question 29

Sales Discount

Answer 29

Provides customers of a business with a reduced rate on one or more of the products or services being offered.

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 which is stored the aggregate amount of sales taxes that a business has collected from customers on behalf of a governing tax authority.

Question 33

Trial Balance

Answer 33

A financial report showing the closing balances of all accounts in the general ledger at a point in time.

Question 34

Vendor

Answer 34

An individual or company that sells goods or services to someone else in the economic production chain.