Back to Encyclopedia

Accounting

Cash Flow

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
Read More

Cash Flow Statement

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
Read More

Cash-Basis Accounting

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.
Read More

Accountant

Definition: A person whose work it is to inspect, keep or adjust accounts
Read More

Accounting

Definition: A business's bookkeeping system that tracks the money coming in vs. the money going out
Read More

Accounts Payable

Definition: A company's outstanding debts, or liabilities, to vendors for purchases of goods and services made on credit
Read More

Accounts Receivable

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
Read More

Accrual Accounting

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
Read More

First In, First Out (FIFO)

Definition: An accounting system used to value inventory for tax purposes. Under FIFO, inventory is valued at its most recent cost.
Read More

Balance Sheet

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.
Read More

Bankruptcy

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 7).
Read More

Income Statement

Definition: A financial document generated monthly and/or annually that reports the earnings of a company by stating all relevant revenues (or gross income) and expenses in order to calculate net income. Also referred to as a profit and loss statement.
Read More

Billing

Definition: To invoice customers for payment
Read More

Expense Report

Definition: A report that tracks expenses incurred during the course of performing necessary job functions. Examples include charges for gas, meals, parking or lodging.
Read More

Operating Expenses

Definition: The selling and general and administrative expenses incurred by a business
Read More

Last In, First Out (LIFO)

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 inflation
Read More

Popular Articles

Five Things To Watch in Cannabis In 2020

Vaping crackdown, more states coming to market, and the SAFE Banking Act
Growth Strategies

Why You Need to Pick Up the Phone to Close That Deal

It may seen counterintuitive, but in 2020, email won't get it done.
Growth Strategies

4 Reasons Most Enterprise-Level Businesses (Still) Don't Get Digital Adoption

Even larger, more established companies struggle to understand its importance. Make sure yours isn't one of them.

77,000 People Buy Adult-Use Cannabis On First Day Of Illinois Sales

That translates into about $3.2 million worth of weed sold in just one day -- sales ended up reaching $20 million within two weeks.

Entrepreneur Media, Inc. values your privacy. In order to understand how people use our site generally, and to create more valuable experiences for you, we may collect data about your use of this site (both directly and through our partners). By continuing to use this site, you are agreeing to the use of that data. For more information on our data policies, please visit our Privacy Policy.