This timeline represents the accounting process. "Read more" to understand the main difference between Journal and Ledger before we discuss the Trial Balance.

Expenses are payments all businesses will have to make for a number of benefits and services they receive but which do not directly provide an asset owned by the business.
Discount is an expense which many firms incur in order to encourage prompt payment from their debtors.
Bad debt is the expense incurred when debtors fail to pay their debts.
Depreciation is the expense incurred when one of the fixed assets owned by a business falls in value.
Incomes are such receipts of money which come from sources other than sales of stock.
Discount received is a reduction in the amount that has to be paid rather than an actual physical receipt of money.

Can you think of words to use to describe a person’s mood or appearance, unwitting rudeness or stubbornness? 

The previous lesson discussed words that mean “purposely rude,” but there are also a few words, in the English language, that describe unwitting rudeness: Uncouth, unseemly and boorish. Beyond words that describe rudeness, are adjectives that describe something or someone stubborn or difficult. These words are: Intractable, intransigent, obstinate, and obdurate. Can you think of words to use to describe a person’s mood or appearance?

Many businesses are involved in buying and selling. The stock accounts of these businesses are therefore going to be very busy indeed, with large numbers of transactions to be entered. To keep things simple, four additional accounts are used to record the different events that change the amount of stock. These are: purchases account, purchases returns account, sales account and sales returns account. They may be thought of as subdivisions of the stock account.