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

Balence 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

printed record of the balance in a bank account and the amounts that have been paid into it and withdrawn from it, issued periodically to the holder of the account.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

Buisness transaction

Answer 7

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

was a paper document attached to a physical check or included in a wages envelope

Question 10

Checkbook consiliation

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 entried

Answer 12

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

Question 13

Cloud accounting

Answer 13

is the practice of using an accounting system that’s accessed through the internet

Question 14

Deposit ticket

Answer 14

A deposit slip is a small paper form that a bank customer includes when depositing funds into a bank account.

Question 15

EFT

Answer 15

Electronic funds transfer is the electronic transfer of money from one bank account to another, either within a single financial institution or across multiple institutions, via computer-based systems, without the direct intervention of bank staff.

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 quality of being fair and impartial.

Question 18

Expense

Answer 18

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

Question 19

Fisical 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

money received, especially on a regular basis, for work or through investments.

Question 22

In transit

Answer 22

: in the process of being transported. Some of the goods were lost in transit.

Question 23

Journal entries

Answer 23

A journal entry is usually printed and stored in a binder of accounting transactions, with backup materials attached that justify the entry.

Question 24

Laibility

Answer 24

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

Question 25

P.O.S.

Answer 25

point of sale; point of service

Question 26

Profit margin

Answer 26

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

Question 27

Purchase discount

Answer 27

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.

Question 28

Purchase return

Answer 28

merchandise given back to the seller from the buyer after the sale in return for a refund.

Question 29

Sales discount

Answer 29

A sales discount is a reduced price offered by a business on a product or service.

Question 30

Sales return

Answer 30

A sales return is merchandise sent back by a buyer to the seller.

Question 31

Sales tax liability

Answer 31

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

Question 32

Sales tax payable

Answer 32

The Sales Tax Payable is 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 balence

Answer 33

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

Question 34

Vendor

Answer 34

a person or company whose principal product lines are office supplies and equipment.