Accounting - Accounting involves reporting, analyzing and summarizing information.
Accounts Payable - Accounts Payable are amounts payable to creditors.
Accounts Receivable - Assets of a business and represent money owed to a business by others.
Accrual Accounting - Records financial transactions when goods are received without payment, an Accounts Payable is recorded.
Amortization - Reduces intangibles through equal depreciation.
Asset - Items owned by the business.
Audit Trail - Transactions to be traced to their source.
Balance Sheet - Provides position of a business' assets, liabilities, and equity on a given date.
Bookkeeping - Recording of financial transactions.
Budgeting - Budgeting involves planning of financial resources
Capital Stock - Total amount of common and preferred stock issued by a company.
Cash Flow - cash generated or spent by an entity.
Cash-Basis Accounting - Records when cash is received through revenues and disbursed for expenses.
Chart of Accounts - An organization's list of accounts used to record financial transactions.
Closing the Books/Year End Closing - Closing the Books at the end of the annual period .
Cost Accounting - Used internally to determine the cost of product and operations.
Depreciation - The decrease in an asset's value over time.
Dividends - Profits returned to the shareholders of a corporation.
Double-Entry Bookkeeping - Requires entries of debits and credits.
Equity - Represents the value of company ownership.
Financial Statement - includes balance sheet, income statement and cash flow statement
Fixed Asset - e.g. - furniture or buildings.
General Ledger - Where transactions are recorded.
Goodwill - Intangible asset a business has created
Inventory Valuation - A valuation method to calculate the value of inventories
Inventory - Inventory consists of raw materials, work in progress, and finished goods.
Invoice - An Invoice shows the amount of money owed for goods or services received.
Job Costing - Job Costing records a particular job.
Journal - The first place financial transactions are entered. They are entered chronologically.
Liability - Liabilities are the obligations of an entity, usually financial in nature.
Liquid Asset - Consist of cash and other assets that can be easily converted to cash.
Loan - A monetary advance from a lender to a borrower.
Master Account - A Master Account has subsidiary accounts. Accounts Receivable could be a master account for various individual receivable accounts.
Payroll - An account listing employees and any wages and salaries due them.
Posting - Refers to the recording of ledger entries.
Profit - Profit is revenue minus expenses. Reductions for taxes, interest, and depreciation are included.
Profit/Loss Statement - A financial report issued by a company on a regular basis that discloses earnings, expenses and net profit for a given time period.
Reconciliation - The act of proving an account balances; debits and credits equal. An example of reconciling an account is to verify that the bank statement matches the checkbook balance, making allowances for outstanding checks and deposits.
Revenue - The actual amount of money a company brings in during a particular time period; gross income.
Shareholder Equity - A company’s total assets less its total liabilities; owner’s equity; net worth. Shareholder equity comes from the start-up capital of the business plus retained earnings amassed over time.
Single-Entry Bookkeeping - An accounting process that uses on one entry, instead of debit and credit entries. Small businesses using cash accounting system benefit from the ease of this system, which is much like keeping a checkbook.