Bookkeeping
The task of recording the amount, date, and source of all business revenues and expenses. Bookkeeping is essentially the starting point of the accounting process. Only with accurate bookkeeping numbers can meaningful accounting be

Net Income
Gross income less expenses; it represents a business's profit for a given year.

Accrual Method Of Accounting
In the context of a financial audit, audit findings represent weaknesses or deficiencies in internal controls, or instances of noncompliance with applicable laws and regulations, that are presented in an audit report.

Accounts Payable
Amounts that a business owes

Ledger
A physical collection of related financial information, such as revenues, expenditures, accounts receivable, and accounts payable.

Statement
A formal written summary of outstanding invoices.

Double-Entry Accounting
A system of accounting that records each business transaction twice.

Cash Letter
A group of checks accompanied by a paper listing sent to a clearinghouse, a Federal Reserve Bank, or another institution. A cash letter contains a number of negotiable items, mostly checks, accompanied by a letter that lists the amounts and instructions for transmittal to another bank. May also be called a transmittal letter.

Cash Method Of Accounting
Accounts for income and expenses when actually received or paid.

Accrual Method Of Accounting
Accounts for income and expenses in the 12-month period earned or incurred, which is not necessarily when it is received or paid.