Cash accounting method an accounting method in which income and expenditures are recorded at the time the money changes hands Cost of goods the amount of money a business pays for the products it sells of for the raw materials from which it produces goods to sell Credit the arrangement by which businesses or individuals can purchase now and pay later Creditors Individuals or businesses to whom a business owes money or from whom it wants it to borrow money Current liabilities debts that must be paid within a year Debts amounts of money business or individuals owe to others Disbursement journal An accounting record for recording daily expenditures Economic forecast a prediction of what may happen in the nations economy Expenses The monies that a business spends Financial statement A summary of accounting information Fixed assets items of value a business owns that are not expected to change (buildings) Income money received by a business or an individual from outside sources for supplying goods and services to customers Income statement A financial summary that shows how much money the business has made or has lost also called the profit-and-loss statement Investors those who invest their funds in a business, may be owners or stockholders Journal a special book or computer program in which a business's transactions are recorded in the order in which they occur Ledger the accounting record for a specific department or area of the business Liabilities debts that the business owes Long-term liabilities debts that will take longer than a year to pay (mortgage) Managers individuals whose jobs involve carrying out management functions Net worth the total value of the business Operating expenses all of the expenses involved in running a business Owner's equity the amount an owner has invested in the business plus or minus profits and losses Posting transferring accounting information from a daily journal to the appropriate ledger Product mix the particular assortment of goods and services that a business offers in order to meet the needs of its markets and its company goals Profit monetary reward a business owner receives for taking the risk of investing in business income left after all expenses are paid Profit-and-loss statement income statement Return on investment Income received from an investment in a business Sales journal an accounting record used to record the businesses daily receipts Sales revenues money that comes into the business from the sale of goods and services Sales trends the direction in which sales are moving, i.e.
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