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Accounting 101

Larry Thomas

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Journal A business that sells to the final user, the consumer
Retailer What a company owes to its creditors
Profit Business owned by two or more persons
Principal Reports company assets, liabilities and owner equity
Partnership An amount of money paid to an employee at a specified rate per hour worked
Balance Sheet The amount of money being borrowed on a Promissary Note
Accounts Payable Income earned from the sale of goods and services
Accountant Goods bought for resale to customers
Inventory Items of value that are owned or controlled by a business
Revenue The items of merchandise a business has in stock
Equity An entry to the right side of the T account
Sole Proprietorship The fee charged for the use of money
Property A business owned by one person
Assets A person who handles a broad range of accounting jobs
Dividend A form that serves as a record of cash received
Interest An entry to the left side of the T account
Debit The total financial claims to the assets or property of a business
Accounts Receivable A return on the investments by stockholder of a corporation
Credit Property or items of value owned by a company
Wage A chronological record of all the transactions of a business
Merchandise The total amount of money owed to a business
Receipt The amount of revenue earned above the expenses incurred to operate a business

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