My name is Laura, and I am currently in my second year in the Accounting program at Cégep de Thetford. This glossary is intended for me, and for anyone who wants to review or remember the definitions of basic accounting terms.
accounts payable
noun
Money a company owes to suppliers.
Example: Accounts payable must be paid on time.
en: comptes fournisseurs
accounts receivable
noun
Money owed to a company by customers.
Example: Accounts receivable increased this month.
en: comptes clients
asset
noun
Something a company owns that has value.
Example: The company owns several assets, including buildings and equipment.
en: actif
balance sheet
noun
A financial statement showing assets, liabilities, and equity.
Example: The balance sheet shows the company’s financial position.
en: bilan
cash
noun
Money available in bills, coins, or bank accounts.
Example: The company has enough cash to pay its bills.
en: encaisse
credit
noun / verb
An entry recorded on the right side of an account.
Example: Revenue is recorded as a credit.
en: crédit
debit
noun / verb
An entry recorded on the left side of an account.
Example: The accountant recorded a debit to cash.
en: débit
equity
noun
The value of the owner’s interest in a business.
Example: Equity increases when the company earns profits.
en: capitaux propres
expense
noun
Money spent to operate a business.
Example: Rent is a monthly expense.
en: dépense
fiscal year
A 12-month accounting period used by a business.
Example: The fiscal year ends in March.
en: exercice financier
income statement
noun
A report showing revenue, expenses, and profit or loss.
Example: The income statement shows net income.
en: état des résultats
inventory
noun
Goods available for sale.
Example: The store has a large inventory.
en: stock
journal
noun
A record of daily business transactions.
Example: Transactions are first recorded in the journal.
en: journal comptable
ledger
noun
A record of daily business transactions.
Example: Transactions are first recorded in the journal.
en: grand livre
liability
noun
Money that a company owes to others.
Example: Loans are recorded as liabilities on the balance sheet.
en: passif
loss
noun
When expenses are greater than revenue.
Example: The company reported a loss last year.
en: perte
net income
noun
Profit after all expenses are deducted.
Example: Net income increased this year.
en: revenu net
profit
noun
The money left after expenses are paid.
Example: The business made a profit this year.
en: profit
revenue
noun
Money earned from selling goods or services.
Example: The company’s revenue increased this year.