accounting equation: The equation Assets = Liabilities + Equity, which demonstrates the two-sided nature of accounting and is useful for explaining the concept of double-entry accounting (or double-entry bookkeeping).

accounting period: The time period for which financial information is being tracked in a business, such as monthly, quarterly, or annually.

accounts receivable: An account that records the amounts that customers owe to a business.

adjusting entry: A correction made to a bookkeeping account that adjusts for accounting errors or other necessary changes at the end of the accounting period.