| A | B |
|---|
| Bookkeeping | The steps of the accounting cycle that involve recording each business transaction; the process of analyzing financial transactions, journalizing transactions, posting to ledgers, and balancing the books |
| Credit | The arrangement by which businesses or individuals can purchase now and pay later |
| Cash accounting method | An accounting method in which income and expenditures are recorded at the time the money changes hands |
| Expenditures | The monies that a business or government spends; also known as spending or expenses |
| Cash flow statement | A financial summary with estimates as to when, where, and how much money will flow into and out of a business |
| Expenses | The monies that a business spends; also called expenditures |
| Financial accounting | A type of accounting that involves preparing and reporting financial data to external users who are not directly involved in business operations |
| Cash | Physical currency; money in notes or coins |
