| A | B |
|---|
| accounting | service activity designed to accumulate, measure, and communicate financial information |
| accountant | one who is skilled at keeping business records |
| accrual-basis accounting | a system of accounting in which revenues and expenses are recorded as they are earned and incurred |
| assets | economic resources that are owned or controlled by a business |
| accounts payable | a business record of what the business owes to others |
| account | a record of a business transaction |
| bad debt | an uncollectable accounts receivable |
| balance sheet | financial statement that shows assets, liabilities and equity |
| cost of goods sold | the expense incurred to purchase or manufacture the merchandise sold |
| equity | the owned portion of a business |
| journal | an accounting record in which transactions are first entered |
| journal entry | a recording of a transaction where debits equal credits |
| overhead | expense that is not directly associated with producing a good or service |
| revenues | increases in a company's resources from the sale of goods or services |
| liabilities | everything that a business owes |
| inventory | goods held for resale |
| interest | a cost of borrowing money or a benefit of saving money |
| shareholders/stockholders | individuals or organizations that own a portion of a corporation |
| tax | a required payment of money to a government by a household or firm |
| expenses | all costs incurred by a business during its operations |
