I'm a third semester student in a Accounting and Management Technology program and I created this glossary to explain some of the words that are used in my program.
Accounts Payable
noun
Money owed by a company to its creditors.
Example: It still says we have to pay 6000$ in our account payable
Asset
noun
Property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.
Example: We have 2 million dollars worth of asset
Balance sheet
noun
a statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period.
Example: Can you bring the balance sheet of the year 2015. I need to check something.
Budget
noun
a financial plan that lists expected expenses and income during a particular period
Example: The manager finished working on the budget for this month.
Certified Public Accountant (CPA)
noun
CPA is a professional designation that an accountant can earn by passing the CPA exam and fulfilling the requirements for both education and work experience
Example: My cousin is a CPA
Financial statement
noun
Financial statements are written records that convey the business activities and the financial performance of a company in a document form
Example: Have you seen the financial statement of the year 2019 ? Our profit is 35% higher compared to the previous year.
General Ledger
noun
A General Ledger is the complete record of a company’s financial transactions. The GL is used in order to prepare all of the Financial Statements.
Example: Have you seen last year's general ledger, I'm looking for it.
Human Resource
noun
The department of a business or organization that deals with the hiring, administration, and training of personnel.
Example: I'm the new Human Resources director
Net income
Noun
Net Income is the dollar amount that is earned in profits.
Payroll
noun
Payroll is the account that shows payments to employee salaries, wages, bonuses, and deductions.