Accounting 101
This is a snapshot of a company's financial position, showing assets, liabilities, and equity.
What is a "Balance Sheet"?
This is money owed to a company by its customers or clients.
What are "Accounts receivable"?
This is the 12-month period used for financial reporting and tax purposes.
What is the "Fiscal Year"?
These are debts or obligations a company owes to others.
What are "Liabilities"?
This is a summary of a company's revenues, expenses, and profits over a specific period.
What is an "Income statement"?
This is an investigation to verify the accuracy of financial statements.
What is an "Audit"?
This activity creates and sends bills or invoices to customers for goods or services provided.
What is invoicing?
This is everything a company owns, including cash, property, and goods.
What are "Assets"?
This is the person in a company who checks that the accounting procedures are accurate.
What is the "internal auditor"?
This is the report that tracks the movement of cash in and out of a business.
What is a "Cash Flow Statement"?
This is an accountant who ensures the company is paying the correct amount of money owed to the government.
What is the "Tax accountant"?
This is the person who is engaged to check the accounting procedures of a company and/or the correctness of the financial statement, but who is employed by another company.
What is the "External Auditor"?
These are the reports that summarize a company's financial performance, including the balance sheet, income statement, and cash flow statement.
What are Financial Statements?
This is the person who oversees and supports the bookkeepers or accountants in the finance department, especially in large firms.
What is the "CFO"?
This is the money owed by a company to its suppliers or creditors.
What are "accounts payable"?
A list of all accounts and their balances to ensure they are in balance.
What is a "Trial Balance"?
This is the evaluation of another business's financial health when considering acquisitions or mergers.
What is "Corporate Finance"?
This is the application of accounting principles to legal matters, such as fraud investigations.
What is "Forensic Accounting"?
This is a record of money owed to a company by its customers.
What is a "Debtors Ledger"?