Encyclopedia

Journal Entry. The way updates and changes are made to a company’s books. Every Journal Entry must consist of a unique identifier (to […]

Liabilities. Amounts a company owes to other people or organizations.

Limited Liability Company. A legal entity based upon State law (not Federal) where members may not be personally liable for the company’s debts […]

Long-Term Liabilities. Amounts a company owes which are payable a year or more from now.

Net Income. Equals all Revenues less all Expenses.

Other Assets. Assets that are neither Current nor Fixed.

Overhead. Expenses of running the business excluding Cost of Goods Sold. For example, Overhead often includes Rent, and admin Salaries.

Receipt. A document that proves payment was made. A business provides a receipt when selling its product or service. A business receives a […]

Revenue. Revenue is any money earned by the business, often for providing goods or services, before deducting any expenses.

Subchapter S corporation. A Corporation that has elected to be taxed in a way that avoids the double taxation of any dividend payments.