INTUIT ACADEMY BOOKKEEPING GLOSSARY
Account reconciliation - Answer -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
Accountant - Answer -A person who keeps track of business transactions and financial
records to issue financial statements and determine how a business is doing on a
financial level
Accounts payable - Answer -Money a business owes to others for goods or services; a
liability
Accounts payable reconciliation - Answer -Compare statements or invoices provided by
vendors to the accounts 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
Accounts uncollectible - Answer -Receivables, loans, or other debt that will not be paid
by a debtor
Accrual - Answer -An entry to record a future revenue or expense in the current period,
even if money hasn't been paid or received yet
Accrual accounting - Answer -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
Accumulated depreciation - Answer -The total amount of depreciation expense that has
been allocated for an asset since the asset was put into use
Adjusted trial balance - Answer -Listing of the ending balances in all accounts after
adjusting entries have been prepared
Adjusting entries - Answer -Creating new entries to record depreciation and accrual
adjustments; these are provided to bookkeepers by a CPA or accountant
Amortization - Answer -The structure process of paying both the principal and interest
over a period of time
Assets - Answer -Anything the business owns of value or a resource of value that has
the potential to be transformed into cash
Average cost method (AVCO) - Answer -Inventory value is based on the average cost
of all materials purchased during the reporting period
, Bad debt - Answer -The term used for any loans or outstanding balances that a
business deems uncollectible
Bad debt expenses - Answer -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
Balance sheet - Answer -A financial statement that reports a business's assets,
liabilities, and equity at a specific point in time
Balances (account balances) - Answer -A total amount in an account at any given time
Bank deposit receipt (slip) - Answer -A bank form used to document the money the
customer intends to deposit into their bank account
Accounts receivable - Answer -Money that is owed to a business for providing a good
or service; an asset
Accounts receivable aging report - Answer -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
Accounts receivable doubtful - Answer -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
Accounts receivable reconciliation - Answer -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
Bank reconciliation - Answer -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
Bill - Answer -Record to show what business owes vendor for goods/ services
Book balance - Answer -The ledger balance as of a certain date
Bookkeeper - Answer -A person who documents transactions, manages accounts, and
records financial data
Account reconciliation - Answer -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
Accountant - Answer -A person who keeps track of business transactions and financial
records to issue financial statements and determine how a business is doing on a
financial level
Accounts payable - Answer -Money a business owes to others for goods or services; a
liability
Accounts payable reconciliation - Answer -Compare statements or invoices provided by
vendors to the accounts 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
Accounts uncollectible - Answer -Receivables, loans, or other debt that will not be paid
by a debtor
Accrual - Answer -An entry to record a future revenue or expense in the current period,
even if money hasn't been paid or received yet
Accrual accounting - Answer -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
Accumulated depreciation - Answer -The total amount of depreciation expense that has
been allocated for an asset since the asset was put into use
Adjusted trial balance - Answer -Listing of the ending balances in all accounts after
adjusting entries have been prepared
Adjusting entries - Answer -Creating new entries to record depreciation and accrual
adjustments; these are provided to bookkeepers by a CPA or accountant
Amortization - Answer -The structure process of paying both the principal and interest
over a period of time
Assets - Answer -Anything the business owns of value or a resource of value that has
the potential to be transformed into cash
Average cost method (AVCO) - Answer -Inventory value is based on the average cost
of all materials purchased during the reporting period
, Bad debt - Answer -The term used for any loans or outstanding balances that a
business deems uncollectible
Bad debt expenses - Answer -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
Balance sheet - Answer -A financial statement that reports a business's assets,
liabilities, and equity at a specific point in time
Balances (account balances) - Answer -A total amount in an account at any given time
Bank deposit receipt (slip) - Answer -A bank form used to document the money the
customer intends to deposit into their bank account
Accounts receivable - Answer -Money that is owed to a business for providing a good
or service; an asset
Accounts receivable aging report - Answer -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
Accounts receivable doubtful - Answer -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
Accounts receivable reconciliation - Answer -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
Bank reconciliation - Answer -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
Bill - Answer -Record to show what business owes vendor for goods/ services
Book balance - Answer -The ledger balance as of a certain date
Bookkeeper - Answer -A person who documents transactions, manages accounts, and
records financial data
