INTUIT Academy Bookkeeping Glossary Questions and Answers
1. Account reconciliationANSWER Compare two sets of records at the end of a particular accounting period;
Verify that account balances are correct, identify discrepancies, and make adjustments to the account as required in
order to record the correct values in the books
2. AccountantANSWER A person who keeps track of business transactions and financial records to issue
financial state- ments and determine how a business is doing on a financial level
3. Accounts payableANSWER Money a business owes to others for goods or services; a liability
4. Accounts payable reconciliationANSWER Compare statements or invoices provided by vendors
to the ac- counts payable in the books; Verify there are no discrepancies in the amount a vendor is charging for
the goods or services received, and the amount recorded in the books matches the amount charged by the
vendor
5. Accounts receivableANSWER Money that is owed to a business for providing a good or service; an asset
6. Accounts receivable aging reportANSWER A periodic report that categorizes a business's accounts
receivable according to the length of time an invoice has been outstanding; It is used as a gauge to determine the
financial health and reliability of a business's customers
7. Accounts receivable doubtfulANSWER Considered a "contra asset," because it reduces the amount of
an asset, in this case the accounts receivable; The allowance, sometimes called a bad debt reserve, represents
management's estimate of the amount of accounts receivable that will not be paid by customers
8. Accounts receivable reconciliationANSWER Compare the outstanding customer invoices and
balances to the accounts receivable as entered in the general ledger; Verify amounts, uncover errors and
irregularities, and identify fraudulent activity
9. Accounts uncollectibleANSWER Receivables, loans, or other debt that will not be paid by a debtor
10. AccrualANSWER An entry to record a future revenue or expense in the current period, even if money hasn't
been paid or received yet
11. Accrual accountingANSWER Revenues and expenses are reported or recognized on financial reports
when they are earned or incurred, rather than when the payment is made or received
12. Accumulated depreciationANSWER The total amount of depreciation expense that has been allocated
for an asset since the asset was put into use
13. Adjusted trial balanceANSWER Listing of the ending balances in all accounts after adjusting entries
have been prepared
14. Adjusting entriesANSWER Creating new entries to record depreciation and accrual adjustments; these are
provided to bookkeepers by a CPA or accountant
15. AmortizationANSWER The structure process of paying both the principal and interest over a period of time
, INTUIT Academy Bookkeeping Glossary Questions and Answers
16. AssetsANSWER Anything the business owns of value or a resource of value that has the potential to be
transformed into cash
17. Average cost method (AVCO)ANSWER Inventory value is based on the average cost of all materials
purchased during the reporting period
18. Bad debtANSWER The term used for any loans or outstanding balances that a business deems uncollectible
19. Bad debt expensesANSWER recognized when a receivable is no longer collectible because a customer is
unable to fulfill their obligation to pay an outstanding debt due to bankruptcy or other financial problems; allowance
for doubtful accounts on the balance sheet is also known as a provision for credit losses
20. Balance sheetANSWER A financial statement that reports a business's assets, liabilities, and equity at a
specific point in time
21. Balances (account balances)ANSWER A total amount in an account at any given time
22. Bank deposit receipt (slip)ANSWER A bank form used to document the money the customer intends to
deposit into their bank account
23. Bank reconciliationANSWER Compare the books to the statement issued by the bank; Compare every
transaction in the bank statement to the business's internal records (including bank deposit slips and canceled
checks) to verify both records are matching
24. BillANSWER Record to show what business owes vendor for goods/ services
25. Book balanceANSWER The ledger balance as of a certain date
26. BookkeeperANSWER A person who documents transactions, manages accounts, and records financial data
27. BudgetANSWER A forecast of revenue and expenses for a future period of time
28. C CorpANSWER A business structure that is owned by one or more shareholders, but they do not carry any
personal liability
29. CapitalANSWER The financial monies the business uses for operations and growth, such as cash, debt, or equit
30. Capital contributionANSWER The money or assets given to the business by the owner or partners
31. CashANSWER Assets that exist in cash form or can be immediately converted into cash
32. Cash paymentsANSWER The collection of money, typically from a customer, which increases (debits)
the cash balance recognized on a business's balance sheet
33. Cash salesANSWER Refers to transactions where the customer pays for the goods or services immediately with
cash, check, or a credit or debit card
34. Cash-basis accountingANSWER Revenues and expenses are reported or recognized on financial reports
when the payment is received or made, rather than when work is performed
35. Chart of accountsANSWER Lists all of the accounts and sub-accounts used to categorize transactions
1. Account reconciliationANSWER Compare two sets of records at the end of a particular accounting period;
Verify that account balances are correct, identify discrepancies, and make adjustments to the account as required in
order to record the correct values in the books
2. AccountantANSWER A person who keeps track of business transactions and financial records to issue
financial state- ments and determine how a business is doing on a financial level
3. Accounts payableANSWER Money a business owes to others for goods or services; a liability
4. Accounts payable reconciliationANSWER Compare statements or invoices provided by vendors
to the ac- counts payable in the books; Verify there are no discrepancies in the amount a vendor is charging for
the goods or services received, and the amount recorded in the books matches the amount charged by the
vendor
5. Accounts receivableANSWER Money that is owed to a business for providing a good or service; an asset
6. Accounts receivable aging reportANSWER A periodic report that categorizes a business's accounts
receivable according to the length of time an invoice has been outstanding; It is used as a gauge to determine the
financial health and reliability of a business's customers
7. Accounts receivable doubtfulANSWER Considered a "contra asset," because it reduces the amount of
an asset, in this case the accounts receivable; The allowance, sometimes called a bad debt reserve, represents
management's estimate of the amount of accounts receivable that will not be paid by customers
8. Accounts receivable reconciliationANSWER Compare the outstanding customer invoices and
balances to the accounts receivable as entered in the general ledger; Verify amounts, uncover errors and
irregularities, and identify fraudulent activity
9. Accounts uncollectibleANSWER Receivables, loans, or other debt that will not be paid by a debtor
10. AccrualANSWER An entry to record a future revenue or expense in the current period, even if money hasn't
been paid or received yet
11. Accrual accountingANSWER Revenues and expenses are reported or recognized on financial reports
when they are earned or incurred, rather than when the payment is made or received
12. Accumulated depreciationANSWER The total amount of depreciation expense that has been allocated
for an asset since the asset was put into use
13. Adjusted trial balanceANSWER Listing of the ending balances in all accounts after adjusting entries
have been prepared
14. Adjusting entriesANSWER Creating new entries to record depreciation and accrual adjustments; these are
provided to bookkeepers by a CPA or accountant
15. AmortizationANSWER The structure process of paying both the principal and interest over a period of time
, INTUIT Academy Bookkeeping Glossary Questions and Answers
16. AssetsANSWER Anything the business owns of value or a resource of value that has the potential to be
transformed into cash
17. Average cost method (AVCO)ANSWER Inventory value is based on the average cost of all materials
purchased during the reporting period
18. Bad debtANSWER The term used for any loans or outstanding balances that a business deems uncollectible
19. Bad debt expensesANSWER recognized when a receivable is no longer collectible because a customer is
unable to fulfill their obligation to pay an outstanding debt due to bankruptcy or other financial problems; allowance
for doubtful accounts on the balance sheet is also known as a provision for credit losses
20. Balance sheetANSWER A financial statement that reports a business's assets, liabilities, and equity at a
specific point in time
21. Balances (account balances)ANSWER A total amount in an account at any given time
22. Bank deposit receipt (slip)ANSWER A bank form used to document the money the customer intends to
deposit into their bank account
23. Bank reconciliationANSWER Compare the books to the statement issued by the bank; Compare every
transaction in the bank statement to the business's internal records (including bank deposit slips and canceled
checks) to verify both records are matching
24. BillANSWER Record to show what business owes vendor for goods/ services
25. Book balanceANSWER The ledger balance as of a certain date
26. BookkeeperANSWER A person who documents transactions, manages accounts, and records financial data
27. BudgetANSWER A forecast of revenue and expenses for a future period of time
28. C CorpANSWER A business structure that is owned by one or more shareholders, but they do not carry any
personal liability
29. CapitalANSWER The financial monies the business uses for operations and growth, such as cash, debt, or equit
30. Capital contributionANSWER The money or assets given to the business by the owner or partners
31. CashANSWER Assets that exist in cash form or can be immediately converted into cash
32. Cash paymentsANSWER The collection of money, typically from a customer, which increases (debits)
the cash balance recognized on a business's balance sheet
33. Cash salesANSWER Refers to transactions where the customer pays for the goods or services immediately with
cash, check, or a credit or debit card
34. Cash-basis accountingANSWER Revenues and expenses are reported or recognized on financial reports
when the payment is received or made, rather than when work is performed
35. Chart of accountsANSWER Lists all of the accounts and sub-accounts used to categorize transactions
