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Account
A device for recording the changes (increases or decreases) in the fundamental accounting elements.
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Account Balance
The difference between the total debits and the total credits in an account.
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Accounting
A language of business employed to communicate financial information based upon analyzing, recording, classification, summarization, reporting and interpretation of financial data.
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Accounting Cycle
The process involved in journalizing, posting to the ledger, taking a trial balance, preparing statements, making adjusting entries, and preparing a post-closing trial balance.
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Accounting equation
Assets = Liabilities + Owner's Equity
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Accounts Payable
An unwritten promise to pay creditors for property, such as merchandise, supplies or equipment, purchased on credit, or for services rendered.
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Accounts Receivable
An unwritten promise by a customer to pay, at a later date, for goods sold or services rendered.
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Accrual Accounting
Recording in each fiscal period applicable expenses, whether paid or not, and income earned, whether collected or not.
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