FABM TERMS

• Account Payable


  Amount owed to a CREDITOR for delivered goods or completed services
• Account Receivable


  Claim against a DEBTOR for an uncollected amount, generally from a completed transaction of sales or services rendered
• Accountant


  Person skilled in the recording and reporting of financial transactions
• Accounting


  Recording and reporting of Financial transactions, including the origination of the transaction and its recognition processing, and Summarizing the FINANCIAL STATEMENTS
• Accounting Cycle


  The sequence of steps followed in the accounting process measure business transactions and transform the measurement into FINANCIAL STATEMENTS for a specific period
• Accrual Basis


  Method of Accounting that recognize REVENUE when earned rather than when collected Expenses and recognized when incurred rather than when collected
• Amortization


  Gradual and periodic reduction of any amount, such as the periodic write down of a BOND premium the Lost of an intangible Asst or periodic payment of MORTGAGES or other DEBT
• Asset


  An economic resource that is expected to be of benefit in the future. Probable future economic behefit obtained as a result of past transaction or events Anything of value to which the firm has a legal claim. Any owned tangible or intangible object having
• Audit


  A professional examination of a company's financial statement by a professional accountant or group to determine that the statement has been presented fairly and prepared using generally Accepted accounting Principals (GAAP)
• Bank Reconciliation


  A process by which an accountant determines whether and why there is a difference between the balance shown on the bank statement and the balance of the cash account in the Firm's General Ledger
• Bank Statement


  A periodic statement, usually monthly that a bank sends to the holder of a checking account showing the balance in the account at the beginning, during, and at the end of the month
• Bookkeeping


  The process of recording financial transactions and Keeping Financial records
• Budget


  Financial plan that serves as an estimate of future cost REVENUES or both
• Capital Expenditure


  Outlay of money to acquire or improve capital assets such as buildings and machinery
• Cash


  Asset account on a balance sheet representing paper currency and coins, negotiable money orders and checks, bank balances, and certain short term government securities
• Cash Basis - Method of bookkeeping by which REVENUES and EXPENDITURES are recorded when they are received and paid
• Credit - Entry on the right side of an DOUBLE-ENTRY BOOKKEEPING system that represents the reduction of an ASSET or an Expenses or the addition to a LIABILITY or REVENUE
• Debit - Entry on the left side of a DOUBLE-ENTRY BOOKKEEPING system that represents the addition of a ASSET or expense or the reduction to a LIABILITY or REVENUE
• Defferral - the postponement of the date that an expense already paid or incurred, or of a REVENUE already received is entered in the LEDGER
• Deficit - Financial shortage that occurs when LIABILITIES exceed ASSETS
• Depreciation - Expense allowance made for wear and tear on an asset over its estimated useful life.
• Equity - Residual Interest in the Assets of an entity that remains after deducting liabilities. Also, the amount of a business total assets less total liabilities. Also the third section is a Balance sheet, the other two being assets and liabilities
• Expense - Something spent on a specific item or for a particular purpose.
• Fair Market value - Price of which property would change hands between a buyer and a seller without any compulsion to buy or sell, and both having reasonable knowledge of the relevant Facts.
• Finance - the science of management of money and other Financial Assets
• Financial Statements - Presentation of Financial data including Balance sheets, Income statements and statements of cash flow, or any supporting statement that is intended to communicate on entity's financial position in time and it's results of entity's Financial operation us for a period then ended.
• Fiscal Year - Period of 12 consecutive months chosen by an entity as its Accounting period which may or may be a calendar year.
• Fixed Assets

  Tangible Long-term Assets used in operation of time, the continuing a business that are unlikely to change for a long
• Asset


  Any tangible Asset with a life of more than one here used in an entity's operations
• Forecast


  Prospective Financial statements that are an entity's expected Financial position results of operations, and cash flows
• Fund Accounting


  Method of Accounting and Presentation whereby Assets and Liabilities are grouped according to the purpose for which they are used. Generally used by government entities and not-for-profits
• General Ledger


  Collection of all Asset, Liability, owners' Equity Revenue, and expense accounts
• Generally Accepted Accounting Principles (GAAP)


  Conventions, rules, and procedures necessary to define accepted accounting practice at a particular time, the highest level of such principles is set lay the Financial Accounting Standards Board (FASB)
• Going Concern


  Assumption that a business can remain in operation long enough for all of its current plans to be carried out
• Goodwill


  Premium paid in the acquisition of an entity over the Fair value of its identifiable tangible and intangible Assets less Liabilities assumed
• Inflation


  Rise in the prices of goods and services, as happens when spending increases relative to the supply of goods on the market
• Intangible Asset


  Asset having no physical existence such as trademarks and patents
• Inventory


  Tangible property held for vale, or materials used in a production process to make a product
• Journal Entry


  A notation in the GENERAL JOURNAL. It records a single transaction
• Ledger


  Any book of accounts containing the summaries of debit and credit entries