Sage Instant Accounts For Dummies

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 that 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 these assets and liabilities have been funded through retained profits or invested capital.
• Capital: Money invested into a business by owners or shareholders.
• 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 costs.
• Credit: A bookkeeping entry that increases the value of a liability or income and decreases the value of an asset or expense. A credit 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.
• Customer ledger: