Cash Transactions Flashcards
Account Payable
An expense that has been incurred but not yet paid
Account Receivable
Income that has been earned but for which no cash payment has been received
Accrued Expense
An expense that has been incurred and accumulates over time, but has not been paid
Custom Hire
An arrangement in which an operator performs one or more machinery operations for someone else for a fixed charge
Debt
An obligation to pay, such as a loan or account payable
Expenses
Cost incurred in the process of producing a commodity
Financial Statements
Often used as another term for a balance sheet, but also used as a general term for other documents relating to the financial condition of a business such as an income statement, statement of cash flows, and statement of owner equity
Interest
The amount paid to the lender for the use of borrowed money, or the opportunity cost of investing equity capital in an alternative use
Loan
A type of financial transaction where money is borrowed to finance new investments or pay for production activities for the year
Mortgage
A legal agreement by which a lender receives the right to acquire a borrowers property to satisfy a debt if the repayment schedule is not met
Prepaid Expense
A payment made for an input or service prior to the accounting period in which it will be used
Principal
The amount borrowed, or the part of the original loan that has not yet been repaid
Real Estate
Land or assets permanently attached to land
Revenue
Payments received from the sale of products and services, or from miscellaneous sources of income
Transaction Journal
A record of all financial transactions, including check and deposit numbers, dates, payees, and payers, amounts, and descriptions
