DETAILED ANSWERS|LATEST
UPDATE!!!!2025/2026|GUARANTEED PASS|GRADED
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 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
1
,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
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
2
, 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
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
3
UPDATE!!!!2025/2026|GUARANTEED PASS|GRADED
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 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
1
,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
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
2
, 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
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
3
