Accounting Terms
Account : A Specific place within an accounting system used to record and hold financial data.
Account Payable : The account set up to record Expenses that are owed but not paid out.
Account Receivable : The account set up to record Income on sales or services that will be collected at a later date.
Accural Basis : Recognizing Income on sales or services that has not yet been collected, and recognizing Expenses that have not yet been paid out. This method puts Accounts Payable and Accounts Receivable into use.
Amortization : The Process by which the value of intangible business Assets is reduced and written off the books.
Balance sheet : The financial report that presents the year-to-date value of Assets, Liabilities, and Equity.
Bottom Line : The Net Profit or Loss.
Capital : Cash or something of value that is invested in an enterprise.
Cash Basis : The method of accounting that recognizes only the revenue that has actually been received and the Expenses that have actually been paid out.
Cash Disbursements Journal : The place in an accounting system where outgoing payments are recorded.
Cash Receipts Journal : The place in an accounting system where incoming revenue is recorded.
Chart of Accounts : The listing of accounts established to record financial data.
Credit : An offset to a debit.
Debit : An offset to a credit.
Depreciation : The reduction in value of an asset.
Entry : The method by which financial information is recorded.
Equity : The value that is retained.
Financial statements : Reports that present the financial condition of a business.
General Journal Entry : an adjustment made to accounts in the General Ledger.
General Ledger : The place in an accounting system that holds all the accounts and the entries that have been posted to them.
Gross Profit : The amount of Income remaining after direct costs have been deducted from the revenue generated by sales or services.
Income Statement : Another term for the Profit and Loss Statement.
Liabilities : Debts or Expenses.
Net Loss : The amount that exceeds the Income from sales or services after costs and Expenses have been deducted.
Net Profit : The amount of Income remaining after direct costs and Expenses have been deducted from the revenue generated by sales or services.
Profit and Loss Statement : The report that presents the Income and Expenses of a business enterprise.
Retained Earnings : The amount of profit or loss that is carried over from month to month and year to year.
Trial Balance : A report that lists all the accounts in the General Ledger, with their year-to-date balances.
Comments
Post a Comment