Glossary Flashcards Preview

Bookkeeping > Glossary > Flashcards

Flashcards in Glossary Deck (33)
Loading flashcards...
1

Define Accounts Payable

Amounts owing by the company for services rendered by the creditor

Also for Good's Sold that have not been paid for and are due now or in the future

2

Define Accounts Receivable

Amounts owing to a company for services rendered

Also for Good's sold that have not been paid for and are due now or in the future

3

Define Accrued Expenses

An estimated liability of an entity that is not yet due

4

Define Amortization

The systemic Expensing of a portion of the cost of intangible capital assets in such a manner as to match the expenses with the revenue of the period

5

Define Assets

Good's Owned by the business for the purposes of earning income

6

Define Balance sheet

A statement that lists all the assets, liabilities and owners equity of a business

7

Define Bank Reconciliation

A calculation that matches the balance in the bank account to the bank account in the books.

8

Define Capital Assets

Assets that are owned by the business for the purposes of earning income.

These are not intended for sale, and expected to be continuing used

9

Define Costs of Goods sold

Represents the cost of inventory actually sold to the customers in the statement period

10

Define Cross-added

The process of adding all debit columns in a ledger or journal

11

Define Depreciation

The systemic expensing of a portion of the cost of tangible capital assets in such a manner as to match the expenses with the revenue of the period.

12

Define F.O.B

Free on Board

13

Define Fiscal Year

The Company's year end

14

Define GST

Goods and Services Tax

15

Define Gross Margin

it's the difference between sales and costs of goods sold during a given period

16

Define Income Statement

lists all the revenue and expenses to arrive at a net income (Loss) for the period

17

Define Intangible Assets

Assets that have no physical form or structure

18

Define Journals

Books of original entry that record transactions

19

Define Ledgers

a book that lists individual accounts in a way to accumulate a total of the balance in that account

20

Define Liabilities

to pay for current and past transactions

21

Define Long-Term Debt

Amounts owing by an entity are payable according to the terms of the agreement at some future date

22

Define Mortgage

A loan that is secured by real estate

23

Define NBV

Net Book Value

24

Define 2/10 n/30

it is used with a reason for the term such as 2/10, n/30 days. This means the company can take a discount of 2% on the invoice amount if the invoice is paid in full within 10 days of the invoice date. Otherwise, the total amount is due in 30 days.

25

Define PST

Provincial Sales Tax,

26

Define Percent

An amount expressed per 100

27

Define Posting

when an entry in one book is transferred to another location

28

Define Residual Balance

The Balance of the original cost of a capital asset

29

Define Retained Earnings

The Excess of Revenue over all expenses of a company that have not been paid out

30

Define Round or Rounding

the process of eliminating cents in a financial report