Glossary Flashcards
Define Accounts Payable
Amounts owing by the company for services rendered by the creditor
Also for Good’s Sold that have not been paid for and are due now or in the future
Define Accounts Receivable
Amounts owing to a company for services rendered
Also for Good’s sold that have not been paid for and are due now or in the future
Define Accrued Expenses
An estimated liability of an entity that is not yet due
Define Amortization
The systemic Expensing of a portion of the cost of intangible capital assets in such a manner as to match the expenses with the revenue of the period
Define Assets
Good’s Owned by the business for the purposes of earning income
Define Balance sheet
A statement that lists all the assets, liabilities and owners equity of a business
Define Bank Reconciliation
A calculation that matches the balance in the bank account to the bank account in the books.
Define Capital Assets
Assets that are owned by the business for the purposes of earning income.
These are not intended for sale, and expected to be continuing used
Define Costs of Goods sold
Represents the cost of inventory actually sold to the customers in the statement period
Define Cross-added
The process of adding all debit columns in a ledger or journal
Define Depreciation
The systemic expensing of a portion of the cost of tangible capital assets in such a manner as to match the expenses with the revenue of the period.
Define F.O.B
Free on Board
Define Fiscal Year
The Company’s year end
Define GST
Goods and Services Tax
Define Gross Margin
it’s the difference between sales and costs of goods sold during a given period
Define Income Statement
lists all the revenue and expenses to arrive at a net income (Loss) for the period
Define Intangible Assets
Assets that have no physical form or structure
Define Journals
Books of original entry that record transactions
Define Ledgers
a book that lists individual accounts in a way to accumulate a total of the balance in that account
Define Liabilities
to pay for current and past transactions
Define Long-Term Debt
Amounts owing by an entity are payable according to the terms of the agreement at some future date
Define Mortgage
A loan that is secured by real estate
Define NBV
Net Book Value
Define 2/10 n/30
it is used with a reason for the term such as 2/10, n/30 days. This means the company can take a discount of 2% on the invoice amount if the invoice is paid in full within 10 days of the invoice date. Otherwise, the total amount is due in 30 days.
Define PST
Provincial Sales Tax,
Define Percent
An amount expressed per 100
Define Posting
when an entry in one book is transferred to another location
Define Residual Balance
The Balance of the original cost of a capital asset
Define Retained Earnings
The Excess of Revenue over all expenses of a company that have not been paid out
Define Round or Rounding
the process of eliminating cents in a financial report
Define Share Capital
Funds invested in a corporation as permanent capital
Define Tangible Assets
Assets that have a physical form or structure. Examples are land and equipment.
Define Trial Balance
A listing of debit and credit items from ledgers in columns, to see that the total debits equal the total credits.
