What Are Accounting Records? Accounting records are all of the documentation and books involved in the preparation of financial statements or records relevant to audits and financial reviews. Accounting records include records of assets and liabilities, monetary transactions, ledgers, journals, and any supporting documents such as checks and invoices. Key Takeaways Accounting records are all
What Is Accounting Software? Accounting software is a computer program that assists bookkeepers and accountants in recording and reporting a firm’s financial transactions. The functionality of accounting software differs from product to product. Larger firms may choose to implement a customized solution that integrates a vast amount of data from many different departments. Small firms
What Is Accounting Valuation? Accounting valuation is the process of valuing a company’s assets and liabilities in accordance with Generally Accepted Accounting Principles (GAAP) for the purposes of financial reporting. Key Takeaways Accounting valuation assesses a company’s assets versus its liabilities for financial-reporting purposes.Accounting valuation is critical to the creation of accurate financial statements.Accounting valuation
What Is an Account Manager? An account manager is an entry- to mid-level employee who is responsible for the day-to-day management of a particular customer’s account within a business. An account manager is often more interested in the client satisfaction aspect of a business relationship instead of explicitly trying to generating sales. Key Takeaways An
What Is an Account Number? An account number is a unique string of numbers and, sometimes, letters and other characters that identify the owner of an account and grant access to it. In the U.S., the Social Security number was the primary identifier until its vulnerability to identity theft forced the practice to be abandoned.
What Are Accounts Payable (AP)? Accounts payable (AP), or “payables,” refer to a company’s short-term obligations owed to its creditors or suppliers, which have not yet been paid. Payables appear on a company’s balance sheet as a current liability. Another, less common usage of “AP,” refers to the business department or division that is responsible
What Is an Accounts Payable Subsidiary Ledger? An accounts payable subsidiary ledger is an accounting ledger that shows the transaction history and amounts owed to each supplier and vendor. An accounts payable (AP) is essentially an extension of credit from a supplier that gives a business (the buyer in the transaction) time to pay for the
What Are Accounts Receivable (AR)? Accounts receivable (AR) are the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers. Accounts receivable are listed on the balance sheet as a current asset. Any amount of money owed by customers for purchases made on credit
What Is an Accordion Feature? An accordion feature is an option that a company can buy that gives it the right to increase its line of credit with a lender. Companies typically purchase an accordion feature in anticipation of the need for more working capital for possible expansion opportunities. If such opportunities do not materialize
What Is Accountability? Accountability is an acceptance of responsibility for honest and ethical conduct towards others. In the corporate world, a company’s accountability extends to its shareholders, employees, and the wider community in which it operates. In a wider sense, accountability implies a willingness to be judged on performance. Key Takeaways Accountability is the acceptance
