Vocabulary

Question 1

Accounts Payable

Answer 1

Money owed by a company to its creditors

Question 2

Accounts receivable

Answer 2

Money owed by a company to its debtors

Question 3

Aging Report

Answer 3

How long an invoice has been due for payment

Question 4

Asset

Answer 4

a useful or valuable thing, person, or quality.

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a printed record of the balance in a bank account and the amounts that have been paid into it and withdrawn from it, issued periodically to the holder of the account.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 check stub is a business’s record of each check written for a cash payment transaction.

Question 10

Checkbook Reconciliation

Answer 10

an accounting process that compares two sets of records to check that figures are correct and in agreement

Question 11

Checkbook Register

Answer 11

where you record all of the check and cash transactions your business has 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

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

Deposit Ticket

Answer 15

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

Question 16

EFT

Answer 16

a digital transfer of cash through an online payment system.

Question 17

Entrepreneur

Answer 17

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

Question 18

Equity

Answer 18

the quality of being fair and impartial.

Question 19

Expense

Answer 19

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

Question 20

Fiscal Year

Answer 20

a year as reckoned for taxing or accounting purposes.

Question 21

General Ledger

Answer 21

the main accounting record of a company or organization.

Question 22

Income/Revenue

Answer 22

money received, especially on a regular basis, for work or through investments: income, especially when of a company or organization and of a substantial nature.

Question 23

In-Transit

Answer 23

in the process of being transported.

Question 24

Journal Entries

Answer 24

a record of a business transaction in your business books

Question 25

Liability

Answer 25

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

Question 26

P.O.S.

Answer 26

the place where a transaction takes place between a customer and a merchant.

Question 27

Profit Margin

Answer 27

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

Question 28

Purchase Discount

Answer 28

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

Question 29

Purchase Return

Answer 29

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

Question 30

Sales Discount

Answer 30

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

Question 31

Sales Return

Answer 31

merchandise sent back by a buyer to the seller.

Question 32

Sales Tax Liability

Answer 32

the total amount of tax debt owed to a government by an individual, corporation, or other entity

Question 33

Sales Tax Payable

Answer 33

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 34

Trial Balance

Answer 34

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

Question 35

Vendor

Answer 35

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