Accounts Payable
Amounts that a business owes

Ledger
A physical collection of related financial information, such as revenues, expenditures, accounts receivable, and accounts payable.

Cash Letter
A group of checks accompanied by a paper listing sent to a clearinghouse, a Federal Reserve Bank, or another institution. A cash letter contains a number of negotiable items, mostly checks, accompanied by a letter that lists the amounts and instructions for transmittal to another bank. May also be called a transmittal letter.

Net Income
Gross income less expenses; it represents a business's profit for a given year.

Accounts Receivable
Amounts owed to a business that the business expects to receive.

Balance Sheet
A statement listing a business's assets, liabilities, and net worth, or equity.

Cash Method Of Accounting
Accounts for income and expenses when actually received or paid.

Bad Debt
Money owed for a business debt that cannot be collected

Invoice
A written record of a transaction, often submitted to a customer or client when requesting payment.

Accounting
term that refers to the overall process of tracking your business's income and expenses, and then using these numbers in various calculations and formulas to answer specific questions about the financial and tax status of the business.