Accounting+Terminology

Accounting+Terminology - AccountingTerm Definition...

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Accounting Terminology Accounting Term Definition Accounts Payable Also called A/P or Creditors. Accounts payable are the bills your  business owes to suppliers. See the Bills to Pay screen in Cashbook  Complete. Accounts Receivable Also called A/R or Debtors, accounts receivable are the amounts owed  to you by your customers. See the Invoicing section in Cashbook  Complete. Accrual Based  Accounting With the accrual method, you record income when the sale occurs, not  necessarily when you receive payment. You record an expense when  you receive goods or services, even though you may not pay for them  until later. Cashbook Complete uses Cash Based Accounting because it  is easier to learn and understand. Assets Things of value held by the business. Assets are balance sheet  accounts. Examples of assets are accounts receivable, furniture, fixtures  and bank accounts. See Balance Sheet Categories in the Categories  Setup. Balance Sheet Also called a statement of financial position, it is a financial "snapshot" of  your business at a given point in time. It lists your assets, your liabilities,  and the difference between the two, which is your equity, or net worth.  Found under the Cashbook menu in Cashbook Complete. Capital Money invested in the business by the owners. Also called equity. Cash Based Accounting If you use the cash method, you record income only when you receive  cash from your customers. You record an expense only when you write  the check to the vendor. Cashbook Complete uses this method of  accounting. Chart of Accounts
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Accounting+Terminology - AccountingTerm Definition...

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