Profit :

To excess of revenues of period over its related expenses During an accounting year.

Purchases :

The total amount of goods procured by a business On credit and on cash , for use of sales.

Par value:

A value assigned to a share of stock and printed on the stock certificate

Par-value stock :

A share of stock that has an authorized value printed on the stock certificate

Partner :

Each member of a partnership.

Provision :

An amount set aside from profits in the accounts of an enterprise for a known liability, though the specific amount of the liability may not be known, or for the diminution of the value of an asset.

Partnership :

A business in which two or more persons combine their assets and skills

Partnership agreement :

A written agreement setting forth the conditions under which a partnership is to operate

Pay period :

The period covered by a salary payment

Payee of a note :

The person or business to whom the amount of a note is payable

Payroll :

The total amount earned by all employees for a pay period

Payroll register :

A business form used to record payroll information

Payroll taxes :

Taxes based on the payroll of a business

Performance report :

A report showing a comparison of projected and actual amounts for a specific period of time

Periodic inventory :

A merchandise inventory determined by counting, weighing, or measuring items of merchandise on hand

Permanent accounts :

Accounts used to accumulate information from one fiscal period to the next

Personal financial planning :

Assisting individuals in managing their personal investments

Personal property :

All property not classified as real property

Petty cash :

An amount of cash kept on hand and used for making small payments

Petty cash slip :

A form showing proof of a petty cash payment

Physical inventory :

See Periodic inventory

Plant asset record :

An accounting form on which a business records information about each plant asset

Plant assets :

Assets that will be used for a number of years in the operation of a business


The place where sales are made. On a macro level, a point of sale may be a mall, market or city.

Post-closing trial balance :

A trial balance prepared after the closing entries are posted

Postdated check :

A check with a future date on it Posting transferring information from a journal entry to a ledger account

Preferred stock :

Stock that gives stockholders preference in earnings and other rights

Prepaid expenses :

Expenses paid in one fiscal period but not reported as expenses until a later fiscal period

Price-earnings ratio :

The relationship between the market value per share and earnings per share of a stock

Principal of a note :

The original amount of a note; sometimes referred to as face amount of a note

Production-unit method of depreciation :

Calculating estimated annual depreciation expense based on the amount of production expected from a plant asset

Promissory note :

A written and signed promise to pay a sum of money at a specified time

Proprietorship :

A business owned by one person

Proving cash :

Determining that the amount of cash agrees with the accounting records

Purchase invoice :

An invoice used as a source document for recording a purchase on account transaction

Purchase order :

A completed form authorizing a seller to deliver goods with payment to be made later

Purchases allowance :

Credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customer’s accounts payable

Purchases budget schedule :

A statement prepared to show the projected amount of purchases that will be required during a budget period

Purchases discount :

A cash discount on purchases taken by a customer

Purchases journal :

A special journal used to record only purchases of merchandise on account

Purchases return :

Credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer’s accounts payable.