Accounting Terms and Concepts

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Credit Purchase

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When a service is performed or goods are provided but the cash is not received immediately.

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Purchases Journal

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An accounting record that summarises all transactions involving the purchase of goods on credit.

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Credit Fee

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A transaction that involves the provision of a service to a customer who pays on credit.

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Sales Journal

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An accounting record that summarises all transactions involving the provision of goods on credit.

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Statement of Account

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A statement provided to a customer that details all transactions that have occurred over a period.

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Sales Invoice

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A source document that verifies the provision of a service on credit.

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Purchase Invoice

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A source document that verifies a credit purchase of inventory on credit.

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Accounts Receivable

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A customer who owes a debt to the business for services provided on credit.

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Accounts Payable

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A supplier who provides materials to the business on credit.

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Accounts Payable Record

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A subsidiary accounting record that records each individual transaction involving accounts payable.