Glossary of Terms
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- Balance:
- The difference in total dollars between the total debit footing and the total credit footing of an account. Also called account balance.
- Balance sheet:
- The financial statement that shows the assets, liabilities, and owner’s equity of a business at a point in time. Also called a statement of financial position.
- Bank reconciliation:
- A procedure to account for the difference between the cash balance that appears on the bank statement and the balance of the Cash account in the depositor’s record.
- Bank statement:
- A statement that shows the balance in a bank account at the beginning of the month, the deposits, the checks paid, other debits and credits during the month, and the balance at the end of the month.
- Batch processing:
- The form of data processing in which processing tasks are scheduled in a logical order.
- Beginning inventory:
- Merchandise (for sale to customers) on hand at the beginning of an accounting period.
- Bonding:
- The process of carefully checking an employee’s background and insuring the company against theft by that person.
- Bookkeeping:
- The process of recording financial transactions and keeping financial records.
- Breakeven point:
- The point at which total revenues equal total costs.
- Budgetary control system:
- An integrated set of techniques and procedures to help management plan and control costs.
- Business transactions:
- Economic events that affect the financial position of a business entity.