Account: A record of increases and decreases in a specific asset, liability, or owner's equity item.
Accounting: The process of identifying, recording, and communicating the economic events of an organization to interested users of the information.
Accounting equation: Assets = Liabilities + Owner's Equity.
Accounting information system: A system that involves collecting and processing transaction data, and providing financial information to interested parties.
Accounts payable ledger: A subsidiary ledger that contains accounts for each individual creditor.
Accounts receivable ledger: A subsidiary ledger that contains individual customer accounts.
Accrual basis of accounting: Accounting basis in which transactions that change a company's financial statements are recorded in the period in which the events occur. Revenues are recorded when earned. Expenses are recorded in the same period as the revenue to which they are related.
Accrued expenses: Expenses incurred but not yet paid in cash or recorded.
Accrued revenues: Revenues earned but not yet received in cash or recorded.
Acid test (quick) ratio: A measure of the company's immediate short-term liquidity, calculated by dividing the sum of cash, temporary investments, and (net) receivables by current liabilities.
Additions and improvements: Costs incurred to increase the operating efficiency, productive capacity, or expected useful life of property, plant, or equipment.
Adjusted trial balance: A list of accounts and their balances after all adjustments have been made.
Adjusting entries: Entries made at the end of an accounting period to ensure that the revenue recognition and the matching principle are followed.
Administrative expenses: Expenses that relate to general operating activities such as personnel management, accounting, and store security.
Admission by investment: Admission of a partner by an investment of assets in