Accounting Vocabulary

This could be cash, inventory, or accounts receivable.

• Liabiities

• Assets (Fixed and current)

• Cash flow

• Accounts payable

The amount of money a company owes creditors (suppliers, etc.) in return for goods and/or services they have delivered.

• Liabiities

• Assets (Fixed and current)

• Cash flow

• Accounts payable

The amount of money owed by customers or clients to a business after goods or services have been delivered and/or used.

• Liabiities

• Assets (Fixed and current)

• Accounts receivable

• Accounts payable

A systematic way of recording and reporting financial transactions for a business or organization.

• Equity

• Assets (Fixed and current)

• Accounts receivable

• Accounting

Is assets minus liabilities.

• Equity

• Assets (Fixed and current)

• Accounts receivable

• Accounting

A complete record of the financial transactions over the life of a company.

• Bookkeeping

• General ledger

• Assets

• Debit

What is the formula of the Balance sheet?

• Assets minus equity = liabilities

• Assets = Liabilities + equity

• Equity + Assets + Liabilities

• Equity - Assets + Liabilities

Is the amount of funds left in a bank account after all debits and credits have been calculated.

• Transaction

• Equity

• Balance

• Credit

In this ledger, transactions are recorded chronologically.

• Transactions

• Equity

• Balance

• Journal

Each transaction must affect two or more accounts to keep the basic accounting equation in balance.

• Liabilities

• Double entry accounting

• Balance

• Journal