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

Receipt
A written record of a transaction.

Blue Book
This is the term commonly used to describe the Government Finance Officers Association publication Governmental Accounting, Auditing and Financial Reporting. Initially, the blue book was the authoritative source for GAAP for state and local governments.

Bad Debt
Money owed for a business debt that cannot be collected

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.

Accounts Receivable
Amounts owed to a business that the business expects to receive.

Statement
A formal written summary of outstanding invoices.

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.

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