Balance Sheet

A financial statement produced by an organisation showing the assets balanced by the liabilities and owner’s equity of the organisation. The balance sheet is normally presented with the previous period’s (month or year) numbers side-by-side with the current period. Sometimes called a statement of financial position. See also income statement and accounting equation.

Book of Final Entry

A record book in which the money amounts of transactions, accumulated according to a previously established classification of accounts, are transferred or posted; a ledger.


A summary of projected levels of costs and revenues for an organisation. Used as a control mechanism to highlight areas of the organisation that may be getting out of control.

Book of Account

Any journal, register, or ledger which forms a part of a system of accounts. All of the books of original and final entry, and the invoices, vouchers, contracts, correspondence, and the like that result from the occurrence of transactions and the operation of a system of accounts, often shortened to books.


One engaged in bookkeeping. The term is applied to a person who does all the bookkeeping of an enterprise, or whose work is specialized, such as one who maintains the general ledger or who works on accounts receivable. A bookkeeper may also be an accountant, if, in addition he/she prepares or supervises the preparation of financial statements from the accounts, designs and modifies the methods employed, or supervises transaction recording.

Business function

Processes or functions performed while carrying out the affairs of a business. Examples include buying and selling, renting, receiving and spending cash, hiring and firing employees.

Book Profit

Profit as shown by the books of account before verification or audit or as contrasted with "economic" profit or profit determined on some other basis. Profits based on book figures, especially in cases where book figures differ from actual cost.

Book Surplus

Surplus (retained income) before giving expression to audit corrections, or before separating paid-in, earned and write-up elements. Surplus (retained income) as shown by the books, on a going-concern basis, as distinct from a figure that would result from putting the accounts on a liquidating or some noncost basis.


To record a transaction, make an entry.