Sage 50 Accounts For Dummies® 2nd Edition

Appendix

Glossary

Aged Creditors report: A report showing all balances owed to creditors, categorised into debts owed for 30 days, 60 days and 90 days or older.

Aged Debtors report: A report showing all outstanding balances owed to a business, categorised into amounts owed for 30 days, 60 days and 90 days or older.

Asset: Item a business owns. (See current asset; fixed asset.)

Audit trail: A list of all the transactions that occur in Sage in chronological order. Each transaction is identified by its own transaction number.

Balance Sheet: A financial report that shows a snapshot of the financial status of a business at a point in time. It identifies the business’s assets and liabilities and shows how those assets and liabilities have been funded through retained profits or invested capital.

Capital: Money invested into a business by owners or share holders.

Cash flow: The amount of cash flowing in and out of the business.

Chart of Accounts: A list of all the nominal accounts used to analyse assets, liabilities, income and expenses. It drives the format of the Profit and Loss account and Balance Sheet.

Cost: Items of expense in the accounts, such as wages costs. See direct cost.

Credit: A bookkeeping entry that increases the value of a liability or income and decreases the value of an asset or expense. It is always shown on the right side of a journal.

Creditor: Person or company to whom a business owes money.

Creditor ledger: See supplier ledger.

Current asset: An asset with ...