Accounting terms

TB or trial balance

A trial balance is a listing of the balances for each account in your financial reports. Use the Trial Balance report at the end of an accounting period (usually month-end) to compare debit and credit balances in the general ledger to ensure that they are equal.

P&L or profit and loss statement

Also known as an income statement, a profit and loss statement displays basic financial information that measures income relative to expenses for a specified period of time. Use this statement to help evaluate profitability and make adjustments as needed.

BS or balance sheet

A balance sheet contains subtotals for current and long-term assets and liabilities and for owner’s equity accounts. The total assets should always equal the total liabilities plus owner’s equity. Use the Balance Sheet report to review the basic financial position of your company, in a cash or accrual basis.

COA or chart of accounts

The chart of accounts is a list of ledger account names and associated numbers arranged in the order in which they normally appear on financial statements. The typical order is as follows: assets, liabilities, owners' equity (stockholders' equity for a corporation), revenue, and expenses.

GL or general ledger

The general ledger is the listing of entries for all accounts that appear on a company's financial reports.

JE or journal entry

A journal entry is a group of several related transactions with offsetting debit and credit amounts. The total of transactions for a journal entry equals zero to indicate it is in balance.

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Project and pay terms