accounting entry
Học thuậtThân thiện
Definition
Noun: A formal, written record documenting a single financial transaction within a bookkeeping or accounting system. It is the fundamental building block of an accounting ledger, representing an event that changes a company's financial position.
Usage
An accounting entry is used to capture the financial effect of a business activity. Each entry must follow the double-entry bookkeeping principle, meaning it records equal amounts of debits and credits to different accounts. It serves as the official, auditable documentation for every transaction.
Examples
- The bookkeeper made an accounting entry to record the purchase of new office supplies.
- Every sale must be supported by a corresponding accounting entry in the general ledger.
- The auditor reviewed the accounting entry for the asset purchase to verify its accuracy.
Advanced Usage
- Compound Journal Entry: A single accounting entry that involves more than two accounts (e.g., one debit to "Cash" and credits to both "Sales Revenue" and "Sales Tax Payable").
- Adjusting Entry: A special type of accounting entry made at the end of an accounting period to allocate revenues and expenses to the correct period, such as for accrued expenses or prepaid revenues.
- Reversing Entry: An optional accounting entry made at the beginning of a new accounting period to reverse certain adjusting entries from the previous period, simplifying the recording of subsequent transactions.
Variants and Related Words
- Journal Entry: A very common synonym for accounting entry, often used interchangeably. It specifically refers to the initial recording of a transaction in the journal before it is posted to the ledger.
- Ledger Entry: Refers to the accounting entry after it has been posted (transferred) from the journal to the general ledger.
- Double Entry: The foundational system in which every accounting entry has equal debit and credit sides.
- Bookkeeping Entry: A more general term synonymous with accounting entry, emphasizing the recording process.
Synonyms
- Journal Entry
- Bookkeeping Entry
- Ledger Entry
- Transaction Record
Related Phrases
- To make/post an entry: The action of recording an accounting entry.
- You need to make an entry for the invoice received yesterday.
- To correct an entry: The action of fixing an error in a previously recorded accounting entry.
- The discrepancy was due to a misclassified account, so we had to correct the original entry.
Noun
- a written record of a commercial transaction