Bookkeeping Terms
Journal - Answer- Record of financial transaction from original documents ( checks, receipts, invoices)
Chart of accounts - Answer- Acts like folders where specific transactions are placed
Assets - Answer- anything of value owned by a business
Liabilities - Answer- amo...
Bookkeeping Terms
Journal - Answer- Record of financial transaction from original documents ( checks,
receipts, invoices)
Chart of accounts - Answer- Acts like folders where specific transactions are placed
Assets - Answer- anything of value owned by a business
Liabilities - Answer- amounts owed by the business
owners equity or capital - Answer- investment of the owners, and accumulation of
profit or losses
Revenue - Answer- the value resulting from sales of goods or services over a period
of time
cost of goods sold - Answer- CGS cost of products sold by the business
operating expenses - Answer- expensis associated with the opperatin of a business
(lights on, paying saleries)
3 purposes of book keeping - Answer- Record, classify, organize financial
transaction
debit - Answer- increase in assets decrease in liability
credit - Answer- decrease in assets increase in liability
5 major types of accounts - Answer- assets, liabilities, income, expense, equity
Sales and Revenue - Answer- Top Line of the income Statement the money that
comes in from customers
profits, earning and income - Answer- Bottom line of the income statement what is
left over from revenue after all the cost and expenses spent in generating that
revenue are subtracted.
Costs - Answer- money spent making a product (materials and labor)
Expenses - Answer- Money spent to develop it, sell it, account for it and manage the
whole process
Expenditures - Answer- both cost and expenses become______ when money is
actually sent to vendors to pay for them.
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