Bookkeeping Vocab Flashcards
Assets
Anything of value that a business or individual owns
Liability
An amount owed by a business (a debt)
Accounts receivable (A/R)
A list of the individuals or business that owe money to a company
Accounts payable (A/P)
A list detailing all money owed by a business (the practices expenses)
Day sheet
A daily record of financial transactions and services rendered
Debit
A charge added to an existing balance
Credit
A payment subtracted from an existing balance
Balance
The difference between debit and credit
Collections
Attempted recovery of a past-due credit obligation or debt by a collection department or agency
Bank deposit slip
A document that shows the amount of money deposited into a person’s or business’s bank account
Bank statement
A record of all transactions for a bank account over a set period, usually monthly
Receipt
A business form giving written acknowledgement for money received
Petty cash
An amount of cash kept on hand and used for making small payments
Petty cash log
A form for keeping track of petty cash- it should include who is using the fund, the date, description of use, the amount that was used and the balance after use
Personal check
A check written from a personal checking account
Certified check
A personal check that the bank guarantees for certified to be good
Cashiers check
A check bought from a bank with payment guaranteed by the bank
Payor
The person who writes the check to another
Payee
The person to whom the check is written (they endorse the back)
Endorsement
A signature or equivalent stamp that authorizes payment or other financial transaction
Credit card
A card that allows you to purchase goods on credit
Debit card
A card issued by a bank allowing the holder to transfer money electronically to another account when making a purchase
Flexible spending account
A payroll-tax-free spending account for qualified medical or dental expenses
