Basic/General Accounting

Items

• current account

  Type of bank account, allows you to deposit and withdraw money with easy access and convenience (most common type of bank account).
• current asset

  An asset that a company expects to convert into cash within 12 months.
• current liability

  A financial obligation that a company expects to pay within 12 months.
• current ratio

  Financial ratio that measures a company’s ability to pay its short- term liabilities with its short-term assets.
• customs duty

  The tax imposed on goods when they are transported across international borders.
• debenture

  Type of debt instrument that is not backed by any collateral.
• debit

  Means to enter a debit entry in an account. It can also mean to charge something to someone’s account.
• debt

  A financial obligation that one entity owes to another.
• debit order

  To give permission to a third party, to collect money from your bank account.
• debit reversal

  A journal entry that reverses or cancels out a previous debit entry.
• debit side

  Debits are recorded on the left-hand side of an accounting journal entry.
• receivables control account

  Is a general ledger account that summarises the total amount of money owed to a company by its customers.
• account receivable journal

  Journal that is used to record all credit sales and transactions that affect accounts receivable.
• sales return

  A reduction in the actual sales which occurs when a customer, for whatever reason, returns the products.
• sales return journal

  A journal that is used to record the goods which were returned by the customers.
• accounts receivable collection period

  Measures the average number of days it takes a company to collect payments from its customers for credit sales.
• accounts receivable collection schedule

  A report to monitor how much customers owe.
• receivable ledger

  A ledger that tracks individual customer accounts and their outstanding balances.
• decrease

  Becoming smaller or less in amount.
• deduction

  Normally a tax deduction which is a business expense that can lower the amount of tax that needs to be paid.
• deficit

  Occurs when expenses exceed income or money spent is more than money received.
• delivery expenses

  Costs incurred by a business to transport its goods from its premises to the customers.
• demand

  The consumer’s desire to purchase a particular goods or service.
• deposit slip

  A form that is used to document a deposit of cash into a bank account.
• depreciation

  Expensing or reduction in the cost/depreciable amount of a fixed asset, to reflect the consumption of the asset.