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