Business Accounting Terms Flashcards
1
Q
Recognizes transactions at time of sale
A
Accrual method accounting
2
Q
Only recognizes completed transactions
A
Cash method accounting
3
Q
Money your business owes to others (open bills for vendors)
A
Accounts Payable (A/P)
4
Q
Money owed to your business
A
Accounts Received (A/R)
5
Q
Anything your company owns that has value
A
Assets
6
Q
A snapshot of how much your business is worth on a particular day
A
Balance sheet
7
Q
Requires two entries for every transaction, listing debits and credits
A
Double-entry bookkeeping
8
Q
Anything considered a debt or financial obligation
A
Liabilities
9
Q
Reports earnings, expenses, and net profits for a specific period
A
Profit and loss statement
10
Q
Expenses tied to sales
A
Cost of Goods Sold
