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# Glossary - Accounting Terms **Sales invoice:** A business form prepared when goods or services are sold on account, describing the goods/services, price, and other information. **Sales journal:** A special columnar journal recording sales on account. **Service business:** A business selling ser...

# Glossary - Accounting Terms **Sales invoice:** A business form prepared when goods or services are sold on account, describing the goods/services, price, and other information. **Sales journal:** A special columnar journal recording sales on account. **Service business:** A business selling services, not products. **Share certificate:** (also known as stock certificate) Document indicating a person's share in a venture. **Shareholder:** A person owning shares in a company. **Sole proprietorship:** A business whose equity belongs entirely to one person. **Solvency ratio:** (also known as Liquidity ratio) A ratio used to assess a company's ability to pay its debts. **Source document:** A business paper (e.g., invoice) that is the original record of a transaction. **Statement of account:** A detailed record of a customer's account (usually monthly). **Statement of distribution of net income:** Document showing how income is divided among partners. **Statement of partners' capital:** Document detailing changes in partner capital accounts for a fiscal period. **Stock-in-trade:** Goods handled by a merchandising business (also Merchandise inventory). **Straight-line method of depreciation:** A depreciation method where depreciation is evenly distributed over the asset's life. **Subsidiary ledger:** A separate ledger for similar accounts (e.g., accounts receivable, accounts payable), providing detailed information for a particular general ledger account. **Synoptic journal:** A multi-columned journal with special columns for frequently occurring items and general columns for less frequent items. **T4 slip:** A formal document prepared by employers for employees, showing payroll data for the year, including gross pay and deducted income tax. Used for income tax return. **Taking off a trial balance:** Comparing the total values of debit and credit accounts in a ledger to ensure they balance. **Taxable earnings:** An employee's pay after deductions for Canada Pension Plan, employment insurance, and registered pension plans. **Temporary account (Nominal account):** An account accumulating data for a single fiscal period (e.g., revenue, expense, drawings). **Terms of Sale:** Conditions of a sale agreed upon by buyer and seller, including payment terms and possible discounts. **Three-column account (Balance column account):** A commonly used account with columns for debits, credits, and the balance. **Timecard:** A card recording employee start and end times for each day (often weekly). **Times interest earned ratio:** A ratio showing the company's ability to cover interest expenses from net earnings. **Time period concept:** (See GAAP Appendix) **Total personal exemption:** A regulated amount that can be deducted from earnings for income tax purposes. **Transaction:** (See Business transaction) **Transaction log:** A document with detailed information about each transaction from a point-of-sale terminal. **Transposition error:** A mistake in transferring figures by interchanging digits. The difference in a trial balance due to this error is always a multiple of 9. **Trend analysis:** A document presenting financial data as percentages over multiple periods to identify trends. **Trial balance:** A listing of all account balances, designed to ensure debit and credit balance equality.