Bookkeeping Vocab Exam Questions
and Answers
credit balance - Answer -a condition that occurs when the total of the credits in an
account is larger than the total of the debits in that account.
debit balance - Answer -a condition that occurs when the total of the debits in an
account is larger than the total of the credits in that account.
Adjustment - Answer -A change in a posted account
Balance - Answer -The costs minus the payments.
asset - Answer -Anything of value that is owned
liability - Answer -a debt; something disadvantageous
Collections - Answer -Payments collected by the bank and added to the customer's
bank account in the form of a credit memorandum
Posting - Answer -transferring information from a journal entry to a ledger account
day sheet - Answer -used to list or post each day's financial transactions: charges,
payments, adjustments, and credits
patient ledger - Answer -a report that lists the financial activity in each patient's account
bank deposit - Answer -a claim on a bank that obliges the bank to give the depositor his
or her cash when demanded
bank statement - Answer -A report of deposits, withdrawals, and bank balances sent to
a depositor by a bank
receipt - Answer -A business form giving written acknowledgement for cash received
petty cash - Answer -an amount of cash kept on hand and used for making small
payments
Accounts Receivable - Answer -The total amount of money owed to a business.
Accounts Payable - Answer -money owed by a company to its creditors.
and Answers
credit balance - Answer -a condition that occurs when the total of the credits in an
account is larger than the total of the debits in that account.
debit balance - Answer -a condition that occurs when the total of the debits in an
account is larger than the total of the credits in that account.
Adjustment - Answer -A change in a posted account
Balance - Answer -The costs minus the payments.
asset - Answer -Anything of value that is owned
liability - Answer -a debt; something disadvantageous
Collections - Answer -Payments collected by the bank and added to the customer's
bank account in the form of a credit memorandum
Posting - Answer -transferring information from a journal entry to a ledger account
day sheet - Answer -used to list or post each day's financial transactions: charges,
payments, adjustments, and credits
patient ledger - Answer -a report that lists the financial activity in each patient's account
bank deposit - Answer -a claim on a bank that obliges the bank to give the depositor his
or her cash when demanded
bank statement - Answer -A report of deposits, withdrawals, and bank balances sent to
a depositor by a bank
receipt - Answer -A business form giving written acknowledgement for cash received
petty cash - Answer -an amount of cash kept on hand and used for making small
payments
Accounts Receivable - Answer -The total amount of money owed to a business.
Accounts Payable - Answer -money owed by a company to its creditors.
