Terms Introduced in the Chapter

Accounting records that are not kept strictly according to the double entry system — some transactions are recorded with proper debits and credits, while others are recorded only on one side or not at all. The degree of incompleteness may range from highly disorganised recor …

A statement showing the assets and liabilities of a firm on a particular date, prepared from incomplete records. The difference between the two sides is the capital (the balancing figure). Since the records are incomplete, the values of assets and liabilities are usually estimates rather th …