Small Business Glossary: A

accounts payable: A type of short-term operating liability of a business, in which you record the amounts owed to vendors or suppliers for the purchase of products, supplies, parts, and services that you buy on credit.

accounts receivable: The short-term asset in which you record the amounts owed to your business from sales of products and services on credit to your customers.

accrual: The process of adding periodically to an asset or debt, usually as a percentage over time.

adverse opinion: An audit opinion (usually presented by a CPA) that says that accounting statements as a whole don't present results fairly or don't conform with the generally accepted accounting principles (GAAP) of the United States.

affiliate program: An agreement by which you contract to place ads on another business's Web site and pay that business when a visitor to the business's site clicks through to or purchases something from your site.

American cut: A style of men's suit that has two or three buttons, a center-vented jacket with natural shoulders, and pants with a straight line.

amortization: The allocation of the cost of an intangible asset over its expected useful life to the business.

architecture: The relationship between your business and your brand that forms a single, understandable entity.

asset: All things owned by the business, such as cash, buildings, vehicles, furniture, and any other item that's used to run the business.

audit: A formal, often periodic examination and checking of accounts or financial records to verify their correctness.