INTUIT Academy Bookkeeping Glossary
Questions And Correct Answers (Verified
Answers) | Graded A+ | New Update 2025-2026
Account reconciliation - ANSWERS 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 - ANSWERS 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 - ANSWERS Money a business owes to others for goods or
services; a liability
Accounts payable reconciliation - ANSWERS 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 receivable - ANSWERS Money that is owed to a business for
providing a good or service; an asset
,Accounts receivable aging report - ANSWERS 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 - ANSWERS 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 - ANSWERS 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
Accounts uncollectible - ANSWERS Receivables, loans, or other debt that will
not be paid by a debtor
Accrual - ANSWERS 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 - ANSWERS 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 - ANSWERS The total amount of depreciation
expense that has been allocated for an asset since the asset was put into use
, Adjusted trial balance - ANSWERS Listing of the ending balances in all
accounts after adjusting entries have been prepared
Adjusting entries - ANSWERS Creating new entries to record depreciation and
accrual adjustments; these are provided to bookkeepers by a CPA or accountant
Amortization - ANSWERS The structure process of paying both the principal
and interest over a period of time
Assets - ANSWERS Anything the business owns of value or a resource of value
that has the potential to be transformed into cash
Average cost method (AVCO) - ANSWERS Inventory value is based on the
average cost of all materials purchased during the reporting period
Bad debt - ANSWERS The term used for any loans or outstanding balances that
a business deems uncollectible
Bad debt expenses - ANSWERS 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 - ANSWERS A financial statement that reports a business's
assets, liabilities, and equity at a specific point in time
Questions And Correct Answers (Verified
Answers) | Graded A+ | New Update 2025-2026
Account reconciliation - ANSWERS 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 - ANSWERS 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 - ANSWERS Money a business owes to others for goods or
services; a liability
Accounts payable reconciliation - ANSWERS 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 receivable - ANSWERS Money that is owed to a business for
providing a good or service; an asset
,Accounts receivable aging report - ANSWERS 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 - ANSWERS 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 - ANSWERS 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
Accounts uncollectible - ANSWERS Receivables, loans, or other debt that will
not be paid by a debtor
Accrual - ANSWERS 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 - ANSWERS 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 - ANSWERS The total amount of depreciation
expense that has been allocated for an asset since the asset was put into use
, Adjusted trial balance - ANSWERS Listing of the ending balances in all
accounts after adjusting entries have been prepared
Adjusting entries - ANSWERS Creating new entries to record depreciation and
accrual adjustments; these are provided to bookkeepers by a CPA or accountant
Amortization - ANSWERS The structure process of paying both the principal
and interest over a period of time
Assets - ANSWERS Anything the business owns of value or a resource of value
that has the potential to be transformed into cash
Average cost method (AVCO) - ANSWERS Inventory value is based on the
average cost of all materials purchased during the reporting period
Bad debt - ANSWERS The term used for any loans or outstanding balances that
a business deems uncollectible
Bad debt expenses - ANSWERS 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 - ANSWERS A financial statement that reports a business's
assets, liabilities, and equity at a specific point in time
