Lesson 2: General Purpose Financial Statements

Glossary - Know Your Words

Accounting is the language of business. To become proficient in accounting, it's essential to understand the terminology associated with each concept. Every lesson introduces specific terms, and we encourage you to take the necessary time to study each one carefully. Our glossary allows you to learn definitions in the context of related terms. It's a simple yet powerful tool that our university students have trusted for years to master accounting.

Accounts Payable
Accounting Period
Accounts Receivable
Assets
Balance Sheet
Basic Accounting Equation
Calendar Year
Capital Contributions
Capitalize
Cost of Goods Sold
Current Assets
Current Liabilities
Deficits
Dividends
Earnings
Earnings Per Share
Expenses
Financial Position
Financial Statements
Fiscal Year
General Purpose Financial Statements
Income
Income Statement
Interest
Inventory
Liabilities
Long-term Assets
Long-Term Liabilities
Net Income
Net Loss
Note Payable
Notes to the Financial Statements
Owners' Equity
Profits
Results of Operations
Retained Earnings/Deficits
Revenues
Statement of Cash Flows
Statement of Owners' Equity
Statement of Retained Earnings/Deficits
Supplies