Accounting Know-How
Transaction
A business activity such as a scale or purchase
Accounting Cycle
A process or series of steps that businesses complete to maintain their financial records effectively
Income Statement
A summary that shows how much money a business has made or lost
Cash Flow a Statement
A summary with estimates as to when, where, and how much money will come into and go out of a business
Ledger
Accounting record for a specific department or area of the business Statement
Bookkeeping
Actually recording the business's financial transactions
Assets
Anything of value the business owns
Credit
Arrangement by businesses to buy now and pay later
Source Documents
Checks, receipts, invoices, and other items representing a business's financial transactions
Cash
Currency and coins
Liabilities
Debts that the business owes
Creditors
Individuals to whom a business owes money
Stockholders
Individuals who own shares of stock in a business
Profit
Monetary reward a business owner receives for taking the risk of investing in business
Income
Money received by a business from outside sources
Expenses
Monies that a business spends
Accounting
Process of keeping financial records
Balance Sheet
Report of a business's financial condition at a particular moment
Accounting Standards
Rules that accountants must follow when preparing financial staements
Investors
Those who invest their funds in a business