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Accounts Payable
Amounts a business must pay in the future.
Adjusting Entries
Journal entries made to update accounts for the items that were not recorded during the accounting period.
Financial Statements
Periodical reports of a firm's financial position or operating results
Journal
The record of original entry
Normal Balance
The increase side of an account
Balance Sheet
A formal report of a business's financial condition on a certain date.
Credit
An entry on the right side of the account
General Ledger
A permanent, classified record of all accounts used in a firm's operation: a record of final entry.
Journalizing
Recording transactions in a journal
On Account
An arrangement to allow payment at a later date
Capital
Financial investment in a business
Debit
An entry on the left side of the account
Income Statement
A formal report of business operations covering a certain period of time
Liabilities
Debts or obligations of a business
Owner's Equity
The financial interest of the owner of the business
Chart of accounts
A list of accounts used by a business to record it's financial transactions
Deprecation
Allocation of the cost of a long-term asset to operations during its expected useful life
Interest
The fee charged for the use of money
Loss
Permanent Account
An account that is kept open from one accounting period to the next
Assets
Property owned by a business
Expense
An outflow of cash, use of other assets, or incurring of a liability
Invoice
A customer billing for merchandise bought on credit
Markup
A price increase above the original mark-on
T Account
A type of account, resembling a T, used to analyze the effects of a business transaction