Brooke's Books

Question 1

Accounts Payable

Answer 1

Amounts due to vendors or suppliers for goods or services received that have not yet been paid for.

Question 2

Accounts Recievable

Answer 2

The funds that customers owe your company for products or services that have been invoiced.

Question 3

Aging Report

Answer 3

A record of overdue invoices, accounts receivable, or unused credit memos by periodic date changes.

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 financial statement that reports a company’s assets, liabilities, and shareholder equity.

Question 6

Bank Statement

Answer 6

A list of all transactions for a bank account over a set period, usually monthly.

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

Paper document attached to a physical check or included in a wages envelope.

Question 10

Checkbook Reconciliation

Answer 10

Making sure the records you’ve kept for all your spending and income match what the bank says on your physical or online statement.

Question 11

Checkbook Register

Answer 11

A document, usually part of the general ledger, used to record financial transactions in cash.

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

Electronic funds transfer

Question 16

Entrepreneur

Answer 16

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

Question 17

Equity

Answer 17

The value of the shares issued by a company.

Question 18

Expense

Answer 18

Offset (an item of expenditure) as an expense against taxable income.

Question 19

Fiscal Year

Answer 19

A year as reckoned for taxing or accounting purposes.

Question 20

General Ledger

Answer 20

The main accounting record of a company or organization.

Question 21

Income/Revenue

Answer 21

Revenue is the total amount of income generated by the sale of goods and services related to the primary operations of the business.

Question 22

In-Transit

Answer 22

In the process of being transported

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

A thing for which someone is responsible, especially a debt or financial obligation.

Question 25

P.O.S.

Answer 25

Point of sale

Question 26

Profit Margin

Answer 26

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

Question 27

Purchase Discount

Answer 27

An offer from the supplier to the purchaser, to reduce the payment amount if the payment is made within a certain period of time.

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

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

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

Question 34

Vendor