Accounts Payable (AP)
Money your business owes to vendors and suppliers for goods or services received.
Finance & Accounting
FAS Glossary: Financial Accounting System
Accounting and finance terms used in ledgers, reporting, taxation and period-end closing.
24 terms · Updated 12 November 2026
A4 terms
Accounts Receivable (AR)
Money customers owe your business for goods or services already delivered.
Accrual Accounting
Recording income and expenses when they are earned or incurred, not when cash changes hands.
Audit Trail
A time-stamped log of who created or changed a record and when, supporting transparency and audits.
B3 terms
Balance Sheet
A statement showing what a business owns (assets), owes (liabilities) and its owners' equity on a given date.
Bank Reconciliation
Matching bank statement entries with your books to find and fix differences.
Budget
A financial plan estimating income and expenses for a future period, used to compare against actuals.
C4 terms
Cash Flow Statement
A report showing how cash moved in and out of the business through operating, investing and financing activities.
Chart of Accounts
An organized list of all accounts used to record transactions, grouped as assets, liabilities, income and expenses.
Cost Center
A department or unit whose costs are tracked separately, such as HR or IT.
Credit Note
A document issued to reduce the amount a customer owes, for example after a return or pricing correction.
D2 terms
Debit and Credit
The two sides of every accounting entry. Total debits must always equal total credits.
Depreciation
Spreading the cost of a fixed asset over its useful life as an expense each period.
F3 terms
FAS
Financial Accounting System. Software that records financial transactions and produces statements and reports.
Financial Year Closing
The process of finalizing accounts at year end and carrying forward balances to the new year.
Fixed Asset
A long-term item such as machinery, vehicles or buildings that a business uses for several years.
G2 terms
General Ledger (GL)
The central record of all financial transactions, from which financial statements are prepared.
GST
Goods and Services Tax. An indirect tax in India that is calculated, recorded and filed through the accounting system.
I1 term
Invoice
A bill issued to a customer, or received from a vendor, listing items, amounts and taxes due.
J1 term
Journal Entry
A record of a financial transaction showing which accounts are debited and credited.
P1 term
Profit and Loss Statement
A report of income and expenses over a period, showing the net profit or loss.
T2 terms
TDS
Tax Deducted at Source. Tax withheld by the payer when making certain payments and deposited with the government.
Trial Balance
A list of all ledger balances used to check that total debits equal total credits.
V1 term
Voucher
A document or entry that records a transaction such as a payment, receipt, journal or contra.
No matching terms found.
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