Tyler Lynch

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Understanding definitions is the first step. The glossary listed below can be very advantageous when trying to create an accounting foundation.

Accountant - The person in charge of keeping the financial records.
Accounting Journal - A diary of accounting transactions shown in chronological order.
Accrual based Accounting Adjustments- income is recorded when you invoice a customer; expenses are recorded when a vendor invoices you.
Adjusting Entry Documentation - Records justifying reasons for particular adjusting entries
Asset - Something that you own expressed in money terms.
Audit Trail - The capability to see how transactions were entered into the accounting system.
Balance Sheet - The financial statement that tells you your financial status at a point in time.
Budget - A plan for financial operations in the future. Can be compared with actual results.
Cash Activities Statement - The financial statement that tells you where the cash came and went.
Cash based accounting - income is recorded when a customer pays you; expenses are recorded when you pay a vendor.
Cash Receipts Journal - Chronological listing of where the money deposits came from.
Cash Spending Journal - Chronological listing of where the cash was spent.
Chart of Accounts - The list of accounting categories used by a business.
Check Writer -The person in charge of paying for expenses and payroll.
Current Asset - An asset that will become cash in the next 12 months (Inventory).
Current Liability - A liability that you will pay in the next 12 months (accounts payable).
Deposit Manager - The individual in charge of making deposit into the bank accounts.
Double Entry Accounting - Accounting system that rules each transaction has a plus and minus side that add up to zero.
Editing Transactions - Reviewing a list of accounting journal entries before they are posted.
Financial Reports - Any report that tells you something useful about the money soup.
General Ledger - Lists of accounting transactions sorted by category.
Income Statement - The financial statement that tells you how you did over a period of time.
Intangible Property - An asset that you can't touch ( the right to the name Disney).
Liability - Something that you owe expressed in money terms.
Net Worth - Assets minus Liabilities.
Payroll Records - Detailed analyses of employees' payroll and income tax withholdings
Posting Transactions - Recording accounting entries into the general ledger after editing.
Real Property - Buildings and other Real Estate.
Tangible Personal Property - An asset that you can touch and move (a railroad car).
Trial Balance - A snapshot of the category account balances at a particular date.