Accrual
The recognition of income and expenses as they occur even if not received or paid for until later.
The recognition of income and expenses as they occur even if not received or paid for until later.
Assets
Resources which have monetary value.
Balance Sheet
A statement of financial condition of a business at a certain date showing its assets, liablitiies, and capital.
A statement of financial condition of a business at a certain date showing its assets, liablitiies, and capital.
Chart of Accounts
Systematic arrangement of the accounts for a business, generally listed according to assets, liabilities, capital, income, cost and expenses.
Systematic arrangement of the accounts for a business, generally listed according to assets, liabilities, capital, income, cost and expenses.
COD
Cash (or collect) on delivery.
Cash (or collect) on delivery.
Cost-Plus Pricing
The practice of determining selling price by adding a profit factor to costs.
The practice of determining selling price by adding a profit factor to costs.
EOY
End of Year
End of Year
Expense
Expenditure for operating cost of a present or past period.
Expenditure for operating cost of a present or past period.
FIFO
First in, first out, term used in costing of inventory; oldest acquesitions are disposed of first.
First in, first out, term used in costing of inventory; oldest acquesitions are disposed of first.
Gross Profit
Net sales less cost of goods sold.
Net sales less cost of goods sold.
Income
Money or money equivalent earned or accrued during an accounting period, increasing the total of previously existing net assets, and arising from sales and rentals of any type of goods or services, commissions, interest, gifts, recoveries from damage, and windfalls from any outside source; a generic term.
Money or money equivalent earned or accrued during an accounting period, increasing the total of previously existing net assets, and arising from sales and rentals of any type of goods or services, commissions, interest, gifts, recoveries from damage, and windfalls from any outside source; a generic term.
Liability
An amount owed by one perosn (debtor) to another person (or creditor).
An amount owed by one perosn (debtor) to another person (or creditor).
Net Profit
Net revenue minus expenses and costs.
Net revenue minus expenses and costs.
Profit and Loss Statement (P&L)
The difference between income and expenses of a business for a period and the profit (or loss) resulting therefrom.
Sole Proprietorship
A business owned by one person.
A business owned by one person.
**All words and definitions taken from the American Institute of Proffessional Bookkeepers 'Dictionary of 500 most common bookkeeping & accounting terms.
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