| Account |
A record that summarizes transactions pertaining to an individual item. |
| Account Payable |
A liability to a vendor resulting from the purchase of goods or services on credit in the normal course of business. |
| Account Receivable |
Amount due from a customer for the sale of goods or services on credit in the normal course of business. |
| Accrued Expense Payable |
A liability account that represents an expense which has been recorded but not yet paid. |
| Accumulated Depreciation |
A contra asset account that represents the cumulative sum of depreciation expense for a particular asset. |
| Accrued Revenue Receivable |
An asset account that represents a revenue which has been recorded but not yet received. |
| Additional Paid-in Capital |
Synonym for Paid-in Capital. |
| Allowance for Depreciation |
Synonym for Accumulated Depreciation. |
| Allowance for Bad Accounts |
A contra asset account that represents the estimated amount of accounts receivable that will prove to be uncollectible. |
| Asset |
A resource expected to benefit future cash flows. |
| Bad Debt |
An account receivable that has been determined to be uncollectible. |
| Bad Debt Expense |
The cost of uncollectible credit sales. |
| Book Amount |
Synonym for Book Value. |
| Book Value |
The net balance of an account and its related contra account(s). |
| Capitalize |
To account for a cost as an asset. |
| Capital Expenditure |
A cost that improves an operating asset and is added to the asset account. |
| Capital Stock |
A unit of ownership ('share') in a corporation. |
| Carrying Amount |
Synonym for Book Value. |
| Carrying Value |
Synonym for Book Value. |
| Cash |
Currency on hand and deposits in bank checking accounts. |
| Common Stock |
Stock with voting rights that is the residual ownership rights in a corporation. |
| Contributed Capital |
The segment of Owner's' Equity that represents the amount invested by stockholders. |
| Contra Account |
An account that has a negative normal balance which offsets its related account. |
| Cost of Goods Sold |
Beginning inventory plus net purchases less the cost of ending inventory. |
| Cost of Sales |
Synonym for Cost of Goods Sold. |
| Credit |
A positive number in a liability or equity or revenue account; a negative number in an asset or expense account. |
| Credit Sales |
Synonym for Sales on Account |
| Debit |
A positive number in an asset or expense account; a negative number in a liability or equity or revenue account. |
| Deferred Revenue |
Synonym for Unearned Revenue. |
| Depreciation |
The process of allocating the acquisition cost of fixed assets to the accounting periods that used the assets. |
| Dividend |
A distribution of cash or other assets to stockholders. |
| Dividends Declared |
A contra-equity account used to record dividends that have been declared. |
| Equity |
The residual interest in assets net of liabilities. |
| Expense |
Decreases in equity that occur in the normal course of business. |
| Fixed Assets |
Tangible resources that benefit more than one accounting period. |
| Freight In |
Cost incurred to receive goods that have been purchased for sale to customers; usually included in the cost of goods sold. |
| Goodwill |
Amount by which the cost of a purchase exceeds the total fair value of the identifiable net assets acquired. |
| Gross Profit |
Net sales less the cost of sales. |
| Inventory |
Permanent account for the cost of goods that have been purchased for sale to customers. |
| Journal |
A chronological list of journal entries. |
| Liability |
An obligation or debt of an entity. |
| Long-Lived Assets |
Synonym for Fixed Assets. |
| Net Assets |
Total assets less total liabilities; synonym for total equity. |
| Net Purchases |
Purchases less purchase returns and allowances less purchase discounts plus freight in. |
| Nominal Account |
An account that is periodically closed to calculate income (loss). |
| Paid-in Capital |
Contributed capital in excess of the par value of capital stock. |
| Par value |
The face value of a share of stock; used to record amounts in capital stock accounts. |
| Permanent Account |
A balance sheet account (these are never closed). |
| Petty Cash |
An imprest fund established to control disbursements of cash. Cash on hand plus disbursement vouchers should equal the specified amount of the fund. |
| Preferred Stock |
Stock that has some type of preference over common stock; often preferred as to dividends. |
| Purchase Discounts |
A contra account used to record reductions in amounts owed to vendors due to discounts granted on purchases. |
| Purchases on Account |
Purchases on Account occur when goods or services are provided by vendors, but payment for such is not immediately made. |
| Purchase Returns and Allowances |
A contra account used to record reductions in amounts owed to vendors due to purchase returns and allowances. |
| Purchases |
Nominal account used to record the cost of goods purchased from vendors for sale to customers. |
| Real Account |
Synonym for Permanent Account. |
| Retained Earnings |
Equity that has been generated by income. |
| Revenue |
Increases in equity that occur in the normal course of business. |
| Revenue Expenditure |
A cost that maintains an operating asset in normal operating condition; accounted for as an expense of the period. |
| Reversing Entry |
A journal entry that uses the exact same accounts but with the exact opposite amounts of another journal entry. |
| Sales Discounts |
A contra account used to record reductions in amounts due from customers owing to discounts granted on sales. |
| Sales on Account |
Sales on Account occur when goods or services are provided, but payment for such is not received immediately. |
| Sales Returns and Allowances |
A contra account used to record reductions in amounts due from customers owing to sales returns and allowances. |
| Shipping Charges |
Cost incurred to deliver goods sold to customers; these are typically billed to the customer. |
| Stock Dividend |
A pro-rata distribution of stock shares to shareholders. |
| Supplies |
Account used to record goods that have been purchased for use in the business. |
| Temporary Account |
Synonym for Nominal Account. |
| Transportation In |
Synonym for Freight In. |
| Treasury Stock |
Stock that has been issued and subsequently repurchased but not retired. |
| Unearned Revenue |
A liability account that represents a revenue which has been received but not yet earned. |