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Glossary of Terms

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General journal:


The simplest and most flexible type of journal.


General ledger:


The book or file that contains all or groups of the company’s accounts, arranged in the order of the chart of accounts.


General ledger software:


The computer programs that direct the computer to carry out the major accounting functions.


Generally accepted accounting principles (GAAP):


The conventions, rules, and procedures that defined accepted accounting practice at a particular time.


General-purpose external financial statements:


The medium through which information gathered and process in the accounting system periodically is communicated to investors, creditors, and other interested parties outside the business.


Going concern:


The assumption, unless there is evidence to the contrary, that the business entity will continue to operate indefinitely.


Goods available for sale:


The total goods available for sale to customers during the year; beginning merchandise inventory plus net purchases.


Goods flow:


The actual physical movement of goods in the operation of the company.


Governmental Accounting Standards Board (GASB):


The board responsible for issuing accounting standards for state and local governments.


Gross margin from sales:


The revenues from sales remaining after deducting the cost of good sold. Also called gross margin or gross profit.


Gross method:


The system of recording purchases initially at the gross purchase price.


Gross profit method:


A method of inventory estimation that assumes the ratio of gross margin for a business remains relatively stable from year to year.


Gross sales:


Total sales for cash and on credit during an accounting period.