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

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a printed record of the balance in a bank account and the amounts that have been paid into it and withdrawn from it, issued periodically to the holder of the account.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

Answer 7

financial transaction between two or more parties that involves the exchange of goods, money, or services

Question 8

Chart off Accounts

Answer 8

a list of all the accounts you must use to record financial transactions in your general ledger

Question 8

Check stub

Answer 8

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

Question 9

Checkbook reconciliation

Answer 9

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 10

Checkbook register

Answer 10

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

Question 11

Closing entries

Answer 11

a journal entry made at the end of accounting periods that involves shifting data from temporary accounts on the income statement to permanent accounts on the balance sheet.

Question 12

Cloud accounting

Answer 12

Cloud computing is the on-demand availability of computer system resources, especially data storage and computing power, without direct active management by the user. Large clouds often have functions distributed over multiple locations, each of which is a data center.

Question 13

Deposit ticket

Answer 13

A deposit slip is a form supplied by a bank for a depositor to fill out, designed to document in categories the items included in the deposit transaction. The categories include type of item, and if it is a cheque, where it is from such as a local bank or a state if the bank is not local.

Question 14

EFT

Answer 14

No defintion

Question 15

Entrepreneur

Answer 15

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

Question 16

Equity

Answer 16

the quality of being fair and impartial.

Question 17

Expense

Answer 17

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

Question 18

Fiscal year

Answer 18

a year as reckoned for taxing or accounting purposes.

Question 19

General ledger

Answer 19

In bookkeeping, a general ledger is a bookkeeping ledger in which accounting data are posted from journals and aggregated from subledgers, such as accounts payable, accounts receivable, cash management, fixed assets, purchasing and projects.

Question 20

Income/revenue

Answer 20

the total amount of income generated by the sale of goods or services related to the company’s primary operations

Question 21

In-transit

Answer 21

in the process of being transported.

Question 22

Journal entries

Answer 22

A journal entry is the act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company’s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit.

Question 23

Liability

Answer 23

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

Question 24

P.O.S.

Answer 24

The point of sale or point of purchase is the time and place at which a retail transaction is completed. At the point of sale, the merchant calculates the amount owed by the customer, indicates that amount, may prepare an invoice for the customer, and indicates the options for the customer to make payment.

Question 25

Profit margin

Answer 25

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

Question 26

Purchase discount

Answer 26

Purchase discount is an offer from the supplier to the purchaser, to reduce the payment amount if the payment is made within a certain period of time. For example, a purchaser bought a $100 item, with a purchase discount term 3/10, net 30. If he pays within 10 days, he will only need to pay $97.

Question 27

Purchase return

Answer 27

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

Question 28

Sales discount

Answer 28

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

Question 29

Sales return

Answer 29

merchandise sent back by a buyer to the seller.

Question 30

Sales tax liability

Answer 30

funds collected from customers to be distributed to state and local tax agencies by businesses.

Question 31

Sales tax payable

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

Trial balance

Answer 32

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

Question 33

Vendor