record in which transactions affecting individual assets, liabilities, owners' equity, revenues, and expenses are recorded
accounts payable
liability representing an amount payable to another entity, usually because of the purchase of merchandise or services on credit.
accounts receivable
asset representing a claim against another entity, usually arising from selling goods or services on credit.
accounting equation
Assets = Liabilities + Owners' equity (A = L + OE). The fundamental relationship represented by the balance sheet and the foundation of the bookkeeping process.
accrual accounting
Accounting that recognizes revenues and expenses as they occur, even though the cash receipt from the revenue or the cash disbursement related to the expense may occur before or after the event that causes revenue or expense recognition.
accrued liabilities
Amounts that are owed by an entity on the balance sheet date.
accumulated depreciation
The sum of the depreciation expense that has been recognized over time. Accumulated depreciation is a contra asset that is subtracted from the cost of the related asset on the balance sheet.
additional paid-in capital
The excess of the amount received from the sale of stock over the par value of the shares sold.
assets
Probable future economic benefits obtained or controlled by an entity as a result of past transactions or events
balance sheet
The financial statement that is a listing of the entity's assets, liabilities, and owners' equity at a point in time. Sometimes this statement is called the statement of financial position
balance sheet equation
Another term for the accounting equation.
cash
An asset on the balance sheet that represents the amount of cash on hand and balances in bank accounts maintained by the entity.
common stock
The class of stock that represents residual ownership of the corporation.
