In order to discuss your business with your accountant, bookkeeper, banker, or other business associates you need to understand the accounting and bookkeeping language. The definition of some common bookkeeping and accounting terms are presented below. Your job is to provide the term.

1. The properties used in the operation or investment activities of a business. 2. Claims by creditors to the property (assets) of a business until they are paid. 3. The owner's rights to the property (assets) of the business; also called proprietorship and net worth. 4. The gross increase in owner's equity resulting from the operations and other activities of the business. 5. A decrease in owner's equity resulting from the cost of goods, fixed assets, and services and supplies consumed in the operations of a business. 6. A decrease in owner's equity resulting from withdrawals made by the owner. 7. Any event or condition that must be recorded in the books of a business because of its effect on the financial condition of the business, such as buying and selling. A business deal or agreement. 8. Type of "informal" accounting/bookkeeping system where emphasis is placed on determining the profit/loss of a business. It generally includes a daily summary of cash receipts and a monthly record of receipts and disbursements. For each transaction, only one entry is made. 9. Type of accounting/bookkeeping system that requires every transaction to be recorded in at least two places (accounts)--debit and credit. 10. An entry in the financial books of a firm that increases an asset or an expense or an entry that decreases a liability, owner's equity or income. 11. An entry in the financial books of a firm that increases a liability, owner's equity or income, or an entry that decreases an asset or an expense. 12. Process of transferring balances from bookkeeping records called journals to a "final" bookkeeping record called the general ledger. 13. A skeleton outline of an account in the shape of a T which provides the same basic data as a formal ledger account. Used as a teaching aid. 14. A separate record for each type of asset, liability, equity, revenue, and expense used to show the beginning balance and to record the increases and decreases for a period and the resulting ending balance at the end of a period. 15. Amount a business's revenues exceeds expenses. In other words, the amounts we earned were greater than our expenses. 16. Amount a business's expenses exceeds revenues. In other words, we earned less than we spent. 17. Another term for assets. 18. A book containing the accounts for all of a business's assets,liabilities, equity, revenue, and expense accounts. 19. A coded listing of all the accounts in the general ledger. 20. A preliminary record where business transactions are first entered into the accounting system. 21. Journals used to initially record special types of transactions such as sales, cash disbursements, and cash receipts in their own journal. 22. A worksheet listing of all the accounts appearing in the general ledger with the dollar amount of the debit or credit balance of each. Used to make sure the books are "in balance" -total debits and credits are equal. 23. A separate record set up to record the individual items relating to a single general ledger account (control account). 24. A business document showing the names and addresses of the buyer and the seller; the date and terms of the sale; the description, quantity, unit price, and total price of goods purchased or sold and the method of delivery. 25. A document originated by the buying business listing the quantities and condition of the goods and/or services received from a supplier. 26. A documented originated by the seller listing the goods and/or services ordered by a customer and other information such as prices and delivery dates. 27. A document originated by the purchaser (buyer) requesting the supplier to ship goods or perform services. 28. A formal record of all checks written, deposits, bank charges, and miscellaneous charges and credits. 29. A written order directing a bank to pay cash from the account of the writer (drawer). 30. The process of bringing the checkbook and bank statement balances into agreement. 31. A copy of the bank's record of the business's account showing the balance of the account at the beginning of the month, the deposits and withdrawals (mostly checks) made during the month, service charges, and the balances at the end of the month. 32. Accounting reports prepared periodically to inform the owner, creditors, and other interested parties as to the financial condition and operating results of the business. 33. The financial statement which shows the amount and nature of business assets, liabilities, and owner's equity as of a specific point in time. It is also known as a Statement Of Financial Position or a Statement Of Financial Condition. 34. The financial statement that summarizes revenues and expenses for a specific period of time, usually a month or a year. This statement is also called a Profit and Loss Statement or an Operating Statement. 35. Amounts owed to a business resulting from sales made to customers. 36. Assets a business intends on converting to cash, sell, or consume during the coming year. 37. A method of accounting that records revenues when earned and expenses when incurred.