Bookkeeping

Amounts owed to suppliers for goods or services already received, usually recorded as a current liability until paid.

Subsidiary ledger that tracks amounts owed to each supplier and supports the accounts payable control account.

Amounts owed by customers for goods or services already delivered, usually recorded as a current asset until collected.

Subsidiary ledger that tracks amounts owed by each customer and supports the accounts receivable control account.

Expense recognized before payment because the cost has already been incurred in the current period.

Contra-asset estimate that reduces gross receivables to the amount a business realistically expects to collect.

Structured list of accounts a business uses to classify transactions consistently across its ledger and financial statements.

General-ledger summary account whose balance should agree with the detail total in its related subsidiary ledger.

Master accounting record that holds the balance and activity of each account used to produce financial statements.

Record of an accounting transaction showing the accounts affected and the debits and credits used to capture it.

Advance payment recorded as an asset at first and expensed later as the related benefit is used.

Detailed ledger supporting a general-ledger control account such as receivables, payables, or inventory.

Listing of ledger account balances in debit and credit columns, used to check posting accuracy before statements are finalized.

Removal of a recorded amount from the books when a receivable, asset, or identified balance is no longer expected to provide value.