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a printed record of the balance in a bank account and the amounts that have been paid into it and withdrawn from it, issued periodically to the holder of the account.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

an index of all the financial accounts in the general ledger of a company.

Question 9

Check Stub

Answer 9

the part of a check that is kept by the payee with information such as the check number, date, and amount

Question 10

Checkbook Reconciliation

Answer 10

a summary of banking and business activity that reconciles an entity’s bank account with its financial records.

Question 11

Checkbook Register

Answer 11

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

Question 12

Closing Entries

Answer 12

a journal entry made at the end of the accounting period.

Question 13

Cloud Accounting

Answer 13

a system that allows multi-user access and safe online or remote server storage

Question 14

Deposit Ticket

Answer 14

a form supplied by a bank for a depositor to fill out, designed to document in categories the items included in the deposit transaction

Question 15

EFT

Answer 15

the deposit to the bank account by means of wire, direct deposit, ACH or other electronic means.

Question 16

Entrepreneur

Answer 16

someone who is the directing force behind a business venture.

Question 17

Equity

Answer 17

a company’s book value, which is the difference between liabilities and assets on the balance sheet.

Question 18

Expense

Answer 18

a cost that businesses incur in running their operations

Question 19

Fiscal Year

Answer 19

a period of 12 months that a company uses for its accounting purposes

Question 20

General Ledger

Answer 20

a bookkeeping ledger in which accounting data are posted from journals and aggregated from sub ledgers, such as accounts payable, accounts receivable, cash management, fixed assets, purchasing and projects

Question 21

Income/Revenue

Answer 21

the amount of money brought into the company, typically by selling goods, products, or services.

Question 22

In-Transit

Answer 22

merchandise and other types of inventory that have left the shipping dock of the seller, but not yet reached the receiving dock of the buyer.

Question 23

Journal Entries

Answer 23

the act of keeping or making records of any transactions either economic or non-economic.

Question 24

Liability

Answer 24

something a person or company owes, usually a sum of money

Question 25

P.O.S.

Answer 25

A point of sale (POS) is 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

the difference between the total cost to run your business and the total revenue it brings in.

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

Question 29

Sales Discount

Answer 29

a reduction in the price of a product or service that is offered by the seller, in exchange for early payment by the buyer

Question 30

Sales Return

Answer 30

merchandise sent back by a buyer to the seller.

Question 31

Sales Tax Liability

Answer 31

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 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 bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal

Question 34

Vendor