Accountant's Equation: The equation that is the basis of the Balance Sheet: Assets = Liabilities + Owners' Equity. Once you have a good understanding of our glossary of business terms, take time to learn the seven accounting formulas every business owner should know. Cash Basis Accounting: Cash basis accounting is a simple method of keeping track of revenue and expenses––revenue is recorded when the customer makes payment and expenses are recorded when paid out.It is most often used by sole proprietorships and small businesses that don't maintain inventory. The Top 25 Accounting Terms for Business Owners and Students Alike. Glossary of Accounting Terms Account: A record that holds the results of financial transactions. If the customer has credit terms, the revenue is not recorded until full payment is … If you can't separate an asset from liability, you need to learn the basic accounting principles. An enhancing quality of accounting such that even though different companies may use different accounting methods, there is still sufficient basis for valid comparison compensated absences Term to describe paid time off; vacations, sick leave, etc. Accounting: A service that oversees, measures, and evaluates financial information for … These terms are relevant to the owners of all business entities, whether you run a large corporation or a sole proprietorship.