The process of recording, summarizing, and reporting accounting information.

A depreciation method that allocates an equal amount of the cost of a plant asset to expense during each fiscal period of the asset’s expected useful life.

A contra-asset account used to identify the total amount of depreciation recorded for the company’s assets.

A depreciation method that allocates a larger portion of the cost of a plant asset to the expense early in the asset’s life.

The allocation of the cost of assets to the fiscal periods that benefit from the asset’s use.

Accounts that record financial data about individual items of importance to a company, such as transactions for individual customers, suppliers or products.

An account that offsets another account. For example, a depreciation account that offsets an asset.

A liability account that identifies an obligation to pay suppliers in the near future.

An asset account that increases when good or services are sold on credit. It also occurs in good or services are billed monthly.

A bookkeeping or accounting account is not the same as a bank account. It is a record of increases and decreases associated with a specific resource or activity. Like Supplies is an an expense account. Consulting Income would be an income account.