In accounting, to accrue means to record an expense or revenue in the company’s financial statements even if no cash transactions have taken place. Accrued items include revenues earned or expenses incurred but not yet received or paid.
In finance and accounting, the term 'book' may refer to preliminary indications of interest in underwriting securities, a record maintained by a specialist of buy and sell orders, the action of giving accounting recognition to transactions, or collectively, the journals, ledgers, and other accounting records of a business.
A Book of Account refers to the formal record maintained by a business entity to document its financial transactions. These records are essential for bookkeeping and accounting, ensuring that all financial activities are accurately tracked and reported. Books of account typically include journals, ledgers, and other financial documents that reflect the business's financial performance and position.
A Book-Keeper is a person responsible for recording the financial transactions and maintaining the books of account for a business. This role is vital for the accurate and efficient tracking of all financial events in an organization.
Book-keeping is the meticulous recording and organization of a business's financial transactions. It provides a foundation for critical financial statements such as the profit and loss account and the balance sheet.
A bookkeeper is a professional responsible for recording financial transactions and maintaining accurate financial records for an organization. Bookkeepers use accounting systems to track expenses, income, and other monetary movements, aiding in the financial management of a business.
In bookkeeping, the term 'brought forward' (b/f) describes an amount that is the total of the corresponding column on the previous page, helping ensure continuity and accuracy in financial records.
A Cash Payments Journal is a specialized accounting book or log used to record all cash disbursements made by a business in a sequential manner.
A Cash Receipts Journal is a specialized accounting ledger used to record all cash inflows received by a business, such as payments from customers, cash sales, and other receipts. Each entry is chronologically organized to ensure accurate tracking and reconciliation.
A day book utilized for recording payments of cash from an organization's bank account, often integrated with a cash-receipts journal to form a complete cash book.
A cashbook is an accounting book used to record all cash receipts and cash disbursements, and its balance ties closely to the cash account in the general ledger, which is reflected on the balance sheet.
A check stub is a portion of a check that is retained for record-keeping purposes and includes details related to the payment.
A continuous audit is an in-depth examination of financial records conducted on a recurring basis throughout the accounting period, aimed at detecting and correcting mistakes and improper accounting practices before the reporting year-end.
A comprehensive record-keeping system to maintain the transactions associated with a company's cost accounting. It facilitates detailed tracking of costs and aids in financial control and reporting.
Double-entry accounting, also known as double-entry bookkeeping, is a system of financial records used in business whereby equal debits and credits are recorded for each transaction, ensuring the accounting equation (Assets = Liabilities + Owner's Equity) remains balanced.
A financial expense is an outlay of funds recorded in a company's financial records, rather than cost records. Common examples include interest paid on borrowed funds and directors' fees.
A journal entry is a detailed record of a business transaction in accounting, consisting of debits and credits and supporting a specific accounting period.
A ledger is a collection of accounts of a similar type, traditionally maintained in a large book or, in modern systems, as computer records. Common types of ledgers include the nominal ledger, debtors' ledger, and creditors' ledger.
A ledger account is a record in a ledger where all the financial transactions pertaining to a specific person, item, or activity (such as a debtor or stock item) are documented.
A memorandum entry in accounting is a record in the ledger that does not form part of the double-entry bookkeeping system. These entries are used to provide additional details or supporting information without affecting the financial statements.
A paper trail encompasses the physical or digital documentation that records the sequence of activities and transactions, serving as a crucial mechanism for tracking and verifying the authenticity of business processes and financial records.
Perpetual audit refers to a continuous, ongoing examination and verification of a company's financial records and inventory levels. This method ensures real-time accuracy and aids in early detection of discrepancies or fraud.
A perpetual inventory system continuously tracks and records the amount of inventory in stock, allowing companies to maintain accurate and up-to-date inventory records at all times.
A personal ledger is an accounting record containing a summary of all transactions related to individuals or specific entities such as debtors and creditors.
A Registered Book-keeper is a professional certified by the International Association of Book-keepers (IAB), ensuring competency in managing financial records accurately and ethically.
A sales account is used to record both cash and credit sales transactions that take place as a result of the sale of goods or services.
The Sales Journal, also known as the Sales Day Book, is a specialized accounting ledger used to record credit sales transactions. It helps businesses maintain accurate and organized financial records, facilitating the tracking and analysis of accounts receivable.
The sold ledger, often referred to as the debtors' ledger, captures all transactions involving sales made on credit. It helps businesses keep track of amounts owed by customers and ensures proper management of accounts receivable.
Solicitors' Accounts are specialized financial records prepared under the Solicitors' Accounts Rules, emphasizing the separation of client funds from the solicitor firm's own funds to ensure transparency and trust.
The accounting book in which the movements of inventories are recorded. The stock ledger records the receipts and issues of material as well as the balance in hand, in terms of both material quantities and values.
Stock reconciliation is a crucial process in inventory management that ensures the actual stock count aligns with recorded inventory levels, thus maintaining accurate financial records and aiding in effective business operations.
Testchecking is a procedure used in auditing to verify the accuracy of certain items in financial records, allowing the auditor to form an opinion about the entire account.
A three-column cash book is an extended form of the cashbook which includes columns for discounts allowed and received in addition to cash and bank transactions.
A computer file used to record both external and internal transactions, crucial for maintaining accurate and up-to-date financial records. Transaction files are frequently compared to standing data files in accounting systems.
A trial balance is a bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns. This process helps ensure the accuracy of the company’s financial records and is a critical step in the accounting cycle.
A two-column cash book that records receipts and payments made but does not record discounts allowed or discounts received.
A voucher register is a book or electronic record used to list vouchers, generally in chronological and numerical order. Vouchers are original documents serving as evidence for a business transaction.
A substantive test in an audit to verify that the underlying records accurately represent the transactions entered into by the audited business.
