Account

A record of business transaction, used to record increases & decreases in a business'es assets, liabities and net worth.

Accounts Payable

Record of what you owe. The records of what you owe each supplier, taken together are your accounts payable, (A/P)

Accounts Receivable

Record of what is owed to you. The records of what each customer owes you, taken together are your accounts receivable (A/R)

Assets

Anything of worth the business owns. Examples: cash in the bank, accounts receivable, property, equipment, inventory for sale, securities.

Balance Sheet

Statement of what company owns and owes as of a date. Essentially a list of business's assets, liabilities and net worth.

CPP

Employers must deduct Canada Pension Plan contributions for all employees between ages 18-70, and match this with an equal amount from the business. These amounts are remitted to the Receiver General monthly.

Credit

In bookkeeping, a type of transaction. Credit entry in an asset account decreases the balance and in a liability account, a credit entry increases the balance.

Debit

Like credits, a type of transaction. Debit entry in an asset account increases the balance and in a libablity account, a debit entry decreases the balance. In accounting, every debit must be balanced by a credit

Depreciation

Wear & deterioration on equipment and fixed assets. A normal expense of doing business.

Financial Statements

Documents showing your business's financial position, usually the income statement and the balance sheet.

General Ledger

A record of all account entries.

Gross

The entire amount before any deductions

Income Statement

Document showing income (revenue, money coming in)and expenses (money paid out)Income minus expenses shows profit (retained earnings)

Inventory

Product available for sale. Also raw materials for manufacturing and work-in-progress.

Invoice

An itemized statement of goods and services bought and sold.

Net

The final amount after all deductions

Petty Cash

Normally, this is an account where tangible cash is stored for usage in purchasing or the reimbursing of inexpensive out-of-pocket expenditures.