Accounting Terms

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definitions & notes only words
  1. debit entry
    an accounting entry acknowledging sums that are owing
    The transaction is recorded as a " debit entry" (Dr.) in one account, and a "credit" (Cr.) entry in the other account.
  2. credit entry
    an accounting entry acknowledging income or capital items
    A debit entry generally means that value has been added to the account, and a credit entry means that value is being subtracted from the account.
  3. trial balance
    a balance of debits and credits in double-entry bookkeeping
    From these nominal ledger accounts a Trial balance can be created.
  4. debit
    an accounting entry acknowledging sums that are owing
    The transaction is recorded as a " debit entry" (Dr.) in one account, and a "credit" (Cr.) entry in the other account.
  5. accounting system
    a bookkeeper's chronological list of related debits and credits of a business; forms part of a ledger of accounts
    It does this by ensuring that each individual financial transaction is recorded in at least two different nominal ledger accounts within the financial accounting system.
  6. ledger
    a record in which commercial accounts are recorded
    It does this by ensuring that each individual financial transaction is recorded in at least two different nominal ledger accounts within the financial accounting system.
  7. double entry
    bookkeeper debits the transaction to one account and credits it to another
    Double entry is used only in nominal ledgers.
  8. posting
    a sign posted in a public place as an advertisement
    However as can be seen from the examples of daybooks shown below, it is still necessary to check, within each daybook, that the postings from the daybook balance.
  9. income statement
    a financial statement that gives operating results for a specific period
    Finally financial statements are drawn from the trial balance, which may include:

    * the income statement, also known as the statement of financial results, profit and loss account, or P&L
    * the balance sheet, also known as the statement of financial position
    * the cash flow statement
    * the statement of retained earnings, also known as the statement of total recognised gains and losses or statement of changes in equity
  10. debit side
    account of payments owed
    The debit entry will be recorded on the debit side (left-hand side) of a nominal ledger account and the credit entry will be recorded on the credit side (right-hand side) of a nominal ledger account.
  11. entry
    the act of going in
    The two entries have equal amounts and opposite signs, so that when all entries in the accounts are summed, the total is exactly the same: the accounts balance.
  12. bookkeeping
    the activity of recording business transactions
    An example of an entry being recorded twice for double-entry bookkeeping would be a supplier's invoice for stationery costing $100.
  13. balance
    harmonious arrangement or relation of parts within a whole
    The two entries have equal amounts and opposite signs, so that when all entries in the accounts are summed, the total is exactly the same: the accounts balance.
  14. financial statement
    a document showing credits and debits
    It is the accounts in this list and their corresponding debit or credit balances that are used to prepare the financial statements.
  15. account
    a record or narrative description of past events
    It does this by ensuring that each individual financial transaction is recorded in at least two different nominal ledger accounts within the financial accounting system.
Created on June 9, 2010

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