A system of recording financial transactions where every transaction is recorded with corresponding debits and credits.
Double-entry bookkeeping
The stock of goods held by a business for sale
Inventory
A document that serves as proof of payment
Receipt
Expenses paid in advance but not yet incurred, or revenue received in advance but not yet earned.
Deferrals
Costs incurred in the operation of a business.
Expenses
Expenses incurred but not yet paid, or revenue earned but not yet received.
Accruals
A book or computer file that summarizes all of the company's accounts.
Ledger
The systematic allocation of the cost of a tangible asset over its useful life.
Depreciation
Income generated from the sale of goods or services.
Revenue
A bill sent to a customer for goods or services provided
Invoice
An entry that increases an asset or expense account, or decreases a liability or equity account.
Debit
A chronological record of all financial transactions.
Journal
Money owed to the company by its customers.
Accounts Receivable
The difference between a company's revenue and expenses.
Profit and Loss
The systematic allocation of the cost of an intangible asset over its useful life.
Amortization
Money owed by the company to its suppliers or creditors.
Accounts Payable:
An entry that decreases an asset or expense account, or increases a liability or equity account.
Credit