![]() ![]() ![]() These are listed in order of liquidity, from cash (the most liquid) to land (least liquid). Asset (A)Īnything the company owns that has monetary value. Accrued ExpenseĪn expense that been incurred but hasn’t been paid is described by the term Accrued Expense. This account is on the Balance Sheet, recorded as an asset that will likely convert to cash in the short-term. Accounts Receivable (AR)Īccounts Receivable include all of the revenue (sales) that a company has provided but has not yet collected payment on. This account is recorded as a liability on the Balance Sheet as it is a debt owed by the company. ![]() Accounts Payable (AP)Īccounts Payable include all of the expenses that a business has incurred but has not yet paid. ![]() This section pertains to potentially confusing basic accounting terms that relate to the balance sheet. The Balance Sheet is one of the two most common financial statements produced by accountants. How often have you ended a call with your accountant feeling more confused than before it started? If your response is a variation of “pretty much every time,” have no fear! We’ve compiled this handy list of 42 common accounting terms, along with their common abbreviations (where appropriate) and definitions. ![]()
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