H & H Business Solutions

Home | Services | Utility Allowance Reporting | Contact | Glossary | TigerDirect| Links

Account Balance	The net of credits and debits for an account at the end of a reporting period.
Account Reconciliation	The process of ensuring that the beginning balance plus the sum of all entries on an account statement equals the ending balance. After deposits, interest received, and credits are added and automatic withdrawals, outstanding checks, negotiated checks, and account charges are subtracted, if the resulting balance equals the ending balance on the statement, the account is reconciled.
Accounting	The function of compiling and providing financial information primarily by reports referred to as financial statements. Accounting includes bookkeeping, systems design, analysis and interpretation of accounting information.
*Accounts Payable*	Obligations to pay for goods or services that have been acquired on open accounts from suppliers. Accounts Payable is a current liability in the Balance Sheet.
*Accounts Receivable*	Amounts due the company on account from customers who have bought merchandise or received services. Accounts Receivable is a current asset in the Balance Sheet.
*Accrual Basis*	The method of keeping accounts which shows all expenses incurred and income earned for a given period of time, even though such expenses and income may not actually have been paid or received in cash during the same period of time.
*Accrued Expense*	An expense incurred, but not yet paid.
*Accrued Revenue*	Revenue earned, but not yet collected.
*Adjusted Gross Income (AGI)*	The amount of income subject to federal income taxes. To determine AGI, subtract deductions (e.g., business expenses or IRA contributions) from gross income (employment income, interest income, dividends, and capital gains).
*Bad Debts*	Accounts receivable that are uncollectible used in accrual method accounting.
*Balance*	Amount arrived at by adding all debits and subtracting all credits to ensure total debits equal the total credits.
*Balance Sheet*	Statement, at a particular point in time, of the financial position of a business or organization. This is generally divided into three parts: assets, liabilities and ownership, or equity. Also known as Statement of Financial Position.
*Bank Overdraft*	Balance of a bank account when funds withdrawn exceed funds deposited.
*Bank Reconciliation*	Analysis that accounts for the difference between the balance shown on the bank statement and the balance shown in the accounting records on a given date.
*Bookkeeping*	The recording of financial transactions electronically or manually. The record-keeping part of the accounting process.
*Budget*	A report of projected income and expenses for a given period.
*Cancelled Check*	A check that has cleared the bank and is returned to the depositor with his monthly statement.
*Cash Basis*	An accounting method that counts cash inflows or outflows when they are actually expended or received (as opposed to accrual basis).
*Cash Flow*	The aggregate of all cash inflows and outflows. This can be expressed as positive or negative cash flow.
*Check*	A written, signed, and dated instrument that allows for the transfer of money from a bank account to a payee.
*Check Register*	A form of cash payments journal which is used to record deposits and expenditures in and out of a bank account.
*Debit*	An entry recording an increase to an asset or expense or a reduction to a liability, revenue or owner's equity. Debits are recorded in the left-hand column of an account or a two-column book. Opposite of credit.
*Debt*	A legal obligation to deliver a product, service or amount of money.
*Deposit*	Funds used as collateral for the delivery of a good, such as a security deposit. It can also refer to the transfer of funds to another party for safekeeping, such as a deposit into a bank account.
*Direct Deposit*	The transfer of funds refund directly to a bank account.
*Earned Income*	The sum of income pertaining to wages, salaries, tips, self-employed net earnings and any other income received for personal services.
*Earned Income Credit*	A refundable tax credit low-income workers can file for, even if no income tax was withheld from the worker's pay.
*File A Return*	To file a return is to send in your completed tax forms. All your tax information appears on the return, including income and tax liability.
*Filing Status*	Your filing status determines your tax bracket and amount of taxes you must pay. Factors such as marital status affect your filing status.
*Fiscal Year*	A period of one year for which financial statements are prepared that may, or may not, coincide with the calendar year. Any twelve-month period used by a business as its accounting period.
*General Journal*	Journal in which transactions are recorded for which specific journals are not provided. For example: adjustments and corrections. In a small operation the general journal may be the only book of original entry.
*General Ledger*	All the financial accounts and statements of a business, including debits, credits and balances.
*Gross Income*	Gross income is the total of all receipts and gains minus the inventory cost of the business in a given time period. For example, people who use the barter system are required to include whatever they've bartered for as part of their gross income.
*Gross Monthly Income*	Total monthly income from all sources before taxes and other expenses.
*Household Income*	The combined income of all household members from all sources. These sources include wages, commissions, bonuses, Social Security and other retirement benefits, unemployment compensation, disability, interest and dividends.
*Income*	The amount of money a person receives from all sources. These sources include wages, commissions, bonuses, Social Security and other retirement benefits, unemployment compensation, disability, interest and dividends.
*Income Statement*	A financial statement summarizing revenues, expenses, gains and losses for a stated period of time. The income statement is also known as a profit & loss statement, statement of earnings, statement of income or statement of operations.
*Income Tax*	These are taxes on income, both earned income, such as salaries, wages, tips or commissions, and unearned income, such as interest from savings accounts or dividends if you hold stock. Individuals and businesses are subject to income taxes.
*Interest Income*	Fully-taxable income earned in the form of interest which accumulates from cash temporarily held in savings accounts, certificates of deposits, or other investments.
*Invoice*	Document for goods purchased or services rendered showing details such as quantities, prices, dates, shipping details, order numbers, terms of sale, etc.
*Ledger*	A book of final entry containing all the accounts of a business or all the accounts of a particular type. Some examples are general ledgers and accounts receivable ledgers.
*Net Income*	Total revenue minus total costs, expenses and taxes.
*Net Worth*	The amount of asset value exceeding total liabilities.
*Notary Public*	A public officer who can authenticate signatories on documents and take depositions or oaths, authorized by a particular state or jurisdiction. Banks, insurance agencies, legal offices and government buildings often have notaries public on staff.
*Note Payable (Promissory Note)*	Written promise made by one party to another to pay a specific amount on demand or by a definite date.
*Note Receivable*	Written promise by one party to make payment to another party at a specified date.
*Ordinary Income*	Income derived from normal business activities, such as wages and salary, as opposed to capital gains.
*Overhead*	Fixed costs not directly applicable to the production of a product. For example, costs of lighting and heating a factory.
*Past Due*	A payment that has not been received by the end of the lender's grace period. Creditors may assess late fees for past due payments or report the account holder to a credit reporting agency.
*Payable*	An obligation to pay a sum at a future date.
*Posting*	Process whereby transactions are transferred from a journal to a general ledger or subsidiary ledger.
*Profit*	The excess of total revenue over total expenses for a period of time.
*Receivable*	An amount to be received at a future date.
*Revenue*	Money that a company receives from the sale of goods and services, before expenses and taxes.
*Savings Account*	A account with a bank, or savings and loan company, that pays interest on money deposited.
*Taxable Income*	A taxpayer's gross income minus all allowable adjustments.
*Trial Balance*	The listing and totaling of all balances in a ledger to verify that total debits equal total credits.
*Utility Allowance (UA)*	Includes an estimate of the average of any utilities that a resident must pay to live in a unit.
*Withholding Allowance*	An allowance an individual claims on a W-4 Form. It is mainly used to assist an employer in calculating the amount of income tax to withhold from an employee's paycheck. The more allowances you wish to claim, the less income tax will be withheld from your paycheck. You can claim one allowance for yourself, one for your spouse, and one for each of your dependents.
*Write-off*	To transfer an item that was an asset to an expense account. For example, to transfer an uncollectable account receivable to bad debts expense.