Definition: A person whose work it is to inspect, keep or adjust accounts
Definition: A business's bookkeeping system that tracks the money coming in vs.
the money going out
Definition: A company's outstanding debts, or liabilities, to vendors for
purchases of goods and services made on credit
Definition: The money due from all customers for merchandise or services
delivered on credit. The total figure would be shown on the balance
sheet as an asset
Definition: Accounting method that records revenues and expenses when they are
incurred, regardless of when cash is exchanged. The term "accrual"
refers to any individual entry recording revenue or expense in the
absence of a cash transaction
Definition: A financial statement that lists the assets, liabilities and equity
of a company at a specific point in time and is used to calculate
the net worth of a business. A basic tenet of double-entry
book-keeping is that total assets (what a business owns) must equal
liabilities plus equity (how the assets are financed). In other
words, the balance sheet must balance. Subtracting liabilities from
assets shows the net worth of the business A basic tenet of
double-entry bookkeeping is that total assets (what a business
owns) must equal liabilities plus equity (how the assets are
financed). In other words, the balance sheet must balance.
Definition: A legal state of insolvency. A company deemed to be in this
condition may choose protection under the law to allow a chance to
reorganize (Chapter 11) or liquidate in an orderly fashion (Chapter
Definition: To invoice customers for payment
Definition: The difference between the available cash at the beginning of an
accounting period and that at the end of the period. Cash comes in
from sales, loan proceeds, investments and the sale of assets and
goes out to pay for operating and direct expenses, principal debt
service, and the purchase of asset
Definition: A financial statement that reflects the inflow of revenue vs. the
outflow of expenses resulting from operating, investing and
financing activities during a specific time period
Definition: An accounting system that doesn't record accruals but instead
recognizes income (or revenue) only when payment is received and
expenses only when payment is made. There's no match of revenue
against expenses in a fixed accounting period, so comparisons of
previous periods aren't possible.
Definition: A report that tracks expenses incurred during the course of
performing necessary job functions. Examples include charges for
gas, meals, parking or lodging.
Definition: An accounting system used to value inventory for tax purposes.
Under FIFO, inventory is valued at its most recent cost.
Definition: A document generated monthly and/or annually that reports the
earnings of a company by stating all relevant income and all
expenses that have been incurred to generate that income. Also
referred to as a profit and loss statement.
Definition: An accounting method for inventory and cost of sales in which the
last items produced or purchased are assumed to be sold first;
allows business owner to value inventory at the less expensive cost
of the older inventory; typically used during times of high
Definition: The selling and general and administrative expenses incurred by a