Account linked with another account and having an opposite normal balance.

Cost of inventory sold to customers during a period.

Cash and other assets expected to be collected, used, or sold within one year or the company’s operating cycle.

Obligations due to be paid or settled within one year or the company’s operating cycle.

Expense created by allocating the cost of plant and equipment to periods in which they are used.

Net sales minus cost of goods sold.

Inventory losses that occur as a result of theft or deterioration.

Goods that a company owns and expects to sell to customers.

Items paid for in advance of receiving their benefits.

Liability created when customers pay in advance for products or services.

Liability created by buying goods or services on credit.

Amounts due from customers for credit sales.

Information and measurement system that identifies, records, and communicates relevant information about a company’s business activities.

Subtracts expenses from revenues to yield a net income or loss over a specified period of time.

Corporation’s distributions of assets to its owners.

Owner’s claim on the assets of a business; equals the residual interest in an entity’s assets after deducting liabilities.

Lists types and dollar amounts of assets, liabilities, and equity at a specific date.

The amount of net income left over for the business after it has paid out dividends to its shareholders.

Prescribes that revenue is recognized when earned.

Categorizes net cash provided or used during a period as operating, investing and financing activities, and reconciles beginning and ending cash and cash equivalents.

Difference between total debits and total credits (including the beginning balance) for an account.

Journal entry that affects at least three accounts.

List of accounts used by a company; includes an identification number for each account.

An entry that decreases asset and expense accounts, and increases liability, revenue, and most equity accounts.

Individuals or organizations entitled to receive payments.

An entry that increases asset and expense accounts, and decreases liability, revenue, and most equity accounts.

Ratio of liabilities to assets, used to assess debt risk.

System in which each transaction affects at least two accounts and has at least one debit and one credit.

Where transactions are entered as deibts and credits before being posted to relevant accounts.

Record containing all accounts (with amounts) for a business