Items

• cost price

  The price it cost to buy an item.
• credit

  A contractual agreement between two parties in which a borrower receives something of value now and agrees to pay the lender at a later date.
• credit balance

  An amount of money that a customer owes a company or institution.
• credit bureau

  A company that collects information relating to individuals’ credit ratings
• credit card

  Offers a line of credit that can be used to make purchases, balance transfers and/or cash advances and requiring that you pay back the loan amount in the future.
• accounts payable journal

  A journal that is used to record all the accounts payables (used to track debts to suppliers).
• credit side

  The right-hand side of an account.
• credit limit

  The maximum amount of money a lender will allow you to spend.
• purchases return

  When the buyer of goods for example, send the goods back to the seller.
• purchases return journal

  A journal that is used to record the goods which are returned to the suppliers.
• accounts payable schedule

  A report that lists all a company’s outstanding accounts payable balances.
• payables control account

  It is a general ledger account that summarises the total amount of money owed to payables.
• salaries payable

  Represent the amounts owed to employees for services rendered but not yet paid.
• accounts payable payment period

  A financial ratio that measures the average number of days a company takes to pay its suppliers.
• currency

  The term refers to the tangible form of money that is paper bills and coins that is used as a medium of exchange.
• 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.