Account :

A record of financial transaction , usually refers to a specific category or type such as travel expenses account or purchase account.

Accountant :

A person who trained or prepare and maintain financial records.

Accounting period :

The period of time over which profit are calculated . Normal accounting periods are months, quarters, and years.

Accounting Cycle :

A term that describes the steps when processing transactions (analyzing, journalizing, posting, preparing trial balances, adjusting, preparing financial statements) in a manual accounting system.

Accounts Payable:

- money owed to creditors, vendors, etc for delivered goods or completed services.

Accounts Receivable :

(money owed to a business, i.e. credit sales) Claim against a DEBTOR for an uncollected amount, generally from a completed transaction of sales or services rendered.

Accrual Accounting :

A method in which income is recorded when it is earned and expenses are recorded when they are incurred, all independent of cash flow.

Accrual Basis :

Method of ACCOUNTING that recognizes REVENUE when earned, rather than when collected. Expenses are recognized when incurred rather than when paid.

Accruals :

A list of expenses that have been incurred and expensed, but not paid or a list of sales that have been completed, but not yet billed (adjusting entries for either accrued revenues or accrued expenses).

Accrued expenses :

Expenses incurred but not yet paid in cash or recorded.

Accrued Liability :

The amount a company owes for expenses or losses incurred that have not yet been paid nor recorded through a routine transaction.

Accrued revenues :

Revenues earned but not yet received in cash or recorded.

Accrual Basics :

Accrual basis is a method of accounting that recognizes revenue when earned, rather than when collected and expenses when incurred rather than when paid. The college uses the accrual basis for its accounting.

Accumulated Depreciation :

Total depreciation of a non-current (fixed) asset, deducted from original cost to give net book value.

Aging :

A process where accounts receivable are sorted out by age (typically current, 30 to 60 days old, 60 to 120 days old, and so on.) Aging permits collection efforts to focus on accounts that are long overdue

Appreciation :

An increase in value. If a machine cost $1,000 last year and is now worth $1,200, it has appreciated in value by $200. (The opposite of depreciation.)

Audit :

A careful review of financial records to verify their accuracy.

Auditors :

Third party accountants who review an entity’s financial statements for accuracy and provide a statement to that effect.