Bad Debt
Money owed for a business debt that cannot be collected

Double-Entry Accounting
A system of accounting that records each business transaction twice.

Account
A collection of financial information grouped according to customer or purpose.

Balance Sheet
A statement listing a business's assets, liabilities, and net worth, or equity.

Base Adjustment
Adjustments made to the initial base level budget to reflect total base level funding available to the agency. The list of acceptable base level technical and policy adjustments are included in the biennial budget instructions. Adjustments are generally made on a technical or policy basis. Examples of technical adjustments are one-time appropriations and program sunsets. Examples of policy adjustments are salary increases and space rental changes.

Net Income
Gross income less expenses; it represents a business's profit for a given year.

Statement
A formal written summary of outstanding invoices.

Accrual Method Of Accounting
Accounts for income and expenses in the 12-month period earned or incurred, which is not necessarily when it is received or paid.

Cash Method Of Accounting
Accounts for income and expenses when actually received or paid.

Invoice
A written record of a transaction, often submitted to a customer or client when requesting payment.