Meaning Of Some Words

Book•keep•er

Is a person whose job is to keep the financial records for a business

balance sheet

A condensed statement that shows the financial position of an entity on a specified date (usually the last day of an accounting period).

Among other items of information, a balance sheet states (1) what assets the entity owns, (2) how it paid for them, (3) what it owes (its liabilities), and (4) what is the amount left after satisfying the liabilities. Balance sheet data is based on a fundamental accounting equation (assets = liabilities + owners' equity), and is classifiedunder subheadings such as current assets, fixed assets, current liabilities, Long-term Liabilities. With income statement and cash flow statement, it comprises the set of documents indispensable in running a business. An audited balance sheet is often demanded by investors, lenders, suppliers, and taxation authorities; and is usually required by law. To be considered valid, a balance sheet must give a true and fair view of an organization's state of affairs, and must follow the provisions of GAAP in its preparation. Also called statement of condition, statement of financial condition, or statement of financial position.

financial statement

Summary report that shows how a firm has used the funds entrusted to it by its stockholders (shareholders) and lenders, and what is its current financial position. The three basic financial statements are the (1) balance sheet, which shows firm's assets, liabilities, and net worth on a stated date; (2) income statement (also calledprofit & loss account), which shows how the net income of the firm is arrived at over a stated period, and (3) cash flow statement, which shows the inflows and outflows of cash caused by the firm's activities during a stated period. Also called business financials.

procedure

A fixed, step-by-step sequence of activities or course of action (with definite start and end points) that must be followed in the same order to correctly perform a task. Repetitive procedures are called routines. See also method.

accuracy

1.General: Freedom from error (correctness), or closeness to truth or fact, resulting from exercise of painstaking care or due diligence. Accuracy depends on how the data is collected, and is usually judged by comparing several measurements from the same or different sources.

2.Accounting: (1) A financial statement item is judged accurate when all account balances included in it are correct in (a) value, (b) presentation, and (c) disclosure of material information. (2) An account balance is judged accurate when all elements included in it (such as assets, costs, equities, liabilities, reserves)

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