Vocabulary

Question 1

Fiscal Year

Answer 1

An Accounting period used by businesses and organizations to budget, forecast, and report their finances

Question 2

Account

Answer 2

The Place where financial entries of a similar nature are recorded

Question 3

Chart of Accounts

Answer 3

The Collection of accounts that you use to track the flow of money in QB

Question 4

Income

Answer 4

Money that customers pay your business in exchange for products or services

Question 5

Expense

Answer 5

Money that your business spends on services or consumable goods

Question 6

Cost of Goods Sold (COGS)

Answer 6

Direct costs involving the selling of the company’s goods and services

Question 7

Sole Proprietorship

Answer 7

Most common business structure

Question 8

Assets

Answer 8

Everything the Co. Owns. Cash, Inventory, Buildings, equipment, vehicles

Question 9

Liabilities

Answer 9

Everything the co. owes. Vendor bills, cc balance, bank loans

Question 10

Equity

Answer 10

Claims owners have on the assets

Question 11

Accounting equation

Answer 11

Assets=Liability+Equity

Question 12

Balance Sheet

Answer 12

Business financial health. What your business owns and owes. Assets=Liability+Equity

Question 13

Income Statement

Answer 13

Summarizes financial transactions for a particular time period Revenues-COGS-expenses=Profit (or loss)

Question 14

Current Asset

Answer 14

Use in the next 12 months

Question 15

Long-Term Asset

Answer 15

Lifespan of more than 12 months

Question 16

Backup

Answer 16

A copy of your QB files and data saved to another location, ideally other than your computer hard drive

Question 17

QBB

Answer 17

The file extension for Quickbooks Back up file

Question 18

Portable files

Answer 18

Compressed version of your existing co file

Question 19

QBM

Answer 19

The file extension for Quickbooks for portable co. file

Question 20

Accountants Copy File

Answer 20

Copy of co. file to give your accountant, and you are still able to work in the current file at the same time

Question 21

QBX

Answer 21

The file extension for accountants copy file

Question 22

Remote Access

Answer 22

A way to remotely access QB via the internet. Must use 3rd party service

Question 23

Multiple users

Answer 23

Number of licenses that you purchased

Question 24

Multi-User Mode

Answer 24

If you want to have multiple users access the file at the same time

Question 25

IIF File

Answer 25

The file extension for a file exported from QB

Question 26

Seperation of Duties

Answer 26

Assigning responsibility for the custody of assets to different people to prevent theft/fraud

Question 27

Administrator

Answer 27

A QB user who can access all areas of the co. file and make any changes

Question 28

Internal Controls

Answer 28

A system for safeguarding assets in a business

Question 29

Closing Date

Answer 29

The date that you close the books for a particular accounting period

Question 30

Condense Data Process

Answer 30

Replaces transactions with summary entries