value received
VALUE RECEIVED. This phrase is usually employed in a bill of exch
ange or promissory note, todenote that a consideration has been
given for it.
2. The expression value received, when put in a bill of exchang
e, will bear two interpretations:the drawer of the bill may be pre
sumed to acknowledge the fact that he has received value of the
payee; 3 M. & S. 351; or when the bill has been made payable to
the order of the drawer, it impliesthat value has been received b
y the acceptor. 5 M. & S. 65. In a promissory note, the expression
imports value received from the payee. 5 B. & C. 360.
[MASS NOUN] Finance
Used on a bill of exchange to indicate that the bill is a means of
paying for goods or services to the value of the bill.
For Value Received
Definition from Nolo’s Plain-English Law Dictionary
A phrase used in a promissory note, bill of exchange, or other
contract to show that some consideration (money or other value)
has been given in exchange for whatever the contract requires.
Introduction to the Accounting Equation
From the large, multi-national corporation down to the corner
beauty salon, every business transaction will have an effect on a
company's financial position. The financial position of a company
is measured by the following items:
1. Assets (what it owns)
2. Liabilities (what it owes to others)
3. Owner's Equity (the difference between assets and
liabilities)
The accounting equation (or basic accounting equation) offers us
a simple way to understand how these three amounts relate to
each other. The accounting equation for a sole proprietorship is:
The accounting equation for a corporation is:
Assets are a company's resources—things the company owns.
Examples of assets include cash, accounts receivable, inventory,
prepaid insurance, investments, land, buildings, equipment, and
goodwill. From the accounting equation, we see that the amount
of assets must equal the combined amount of liabilities plus
owner's (or stockholders') equity.
Liabilities are a company's obligations—amounts the company
owes. Examples of liabilities include notes or loans payable,
accounts payable, salaries and wages payable, interest payable,
and income taxes payable (if the company is a regular
corporation). Liabilities can be viewed in two ways:
(1) as claims by creditors against the company's assets, and
(2) a source—along with owner or stockholder equity—of the
company's assets.
Owner's equity or stockholders' equity is the amount left over
after liabilities are deducted from assets:
Assets - Liabilities = Owner's (or Stockholders') Equity.
Owner's or stockholders' equity also reports the amounts
invested into the company by the owners plus the
cumulative net income of the company that has not been
withdrawn or distributed to the owners.
If a company keeps accurate records, the accounting equation
will always be "in balance," meaning the left side should always
equal the right side. The balance is maintained
becauseevery business transaction affects at least two of a
company's accounts. For example, when a company borrows
money from a bank, the company's assets will increase and its
liabilities will increase by the same amount. When a company
purchases inventory for cash, one asset will increase and one
asset will decrease. Because there are two or more accounts
affected by every transaction, the accounting system is referred
to as double-entry accounting.
A company keeps track of all of its transactions by recording
them in accounts in the company'sgeneral ledger. Each account
in the general ledger is designated as to its type: asset, liability,
owner's equity, revenue, expense, gain, or loss account.
We created a visual tutorial to demonstrate how a variety of
transactions will affect the accounting equation and the financial
statements. It is available in AccountingCoach PROalong with
exam questions that pertain to the accounting equation.
What is the 'Accounting Cycle'
The accounting cycle is the name given to the collective process
of recording and processing the accounting events of a company.
The series of steps begin when a transaction occurs and end with
its inclusion in the financial statements. Additional accounting
records used during the accounting cycle include the general case, you look for errors and make corrections
ledger and trial balance. called adjustments, which are tracked on a worksheet.

The Eight Steps of the Accounting Cycle
As a bookkeeper, you complete your work by completing the
tasks of the accounting cycle. It’s called a cycle because the
accounting workflow is circular: entering transactions,
manipulating the transactions through the accounting cycle,
closing the books at the end of the accounting period, and then
6.
starting the entire cycle again for the next accounting period.
The accounting cycle has eight basic steps, which you can see in
the following illustration. These steps are described in the list
below.
1. Transactions
Adjustments are also made to account for the depreciation
of assets and to adjust for one-time payments (such as
insurance) that should be allocated on a monthly basis to
more accurately match monthly expenses with monthly
revenues. After you make and record adjustments, you take
another trial balance to be sure the accounts are in balance.
Adjusting journal entries
You post any corrections needed to the affected accounts
once your trial balance shows the accounts will be balanced
once the adjustments needed are made to the accounts.
You don’t need to make adjusting entries until the trial
balance process is completed and all needed corrections

Financial transactions start the process. Transactions can and adjustments have been identified.

include the sale or return of a product, the purchase of 7. Financial statements

supplies for business activities, or any other financial
You prepare the balance sheet and income statement using
activity that involves the exchange of the company’s assets,
the corrected account balances.
the establishment or payoff of a debt, or the deposit from
or payout of money to the company’s owners. 8. Closing the books

2. Journal entries
The transaction is listed in the appropriate journal,
maintaining the journal’s chronological order of
transactions. The journal is also known as the “book of
You close the books for the revenue and expense accounts
and begin the entire cycle again with zero balances in those
accounts.
As a businessperson, you want to be able to gauge your profit or

original entry” and is the first place a transaction is listed.
3. Posting
The transactions are posted to the account that it impacts.
These accounts are part of the General Ledger, where you
can find a summary of all the business’s accounts.
loss on month by month, quarter by quarter, and year by year
bases. To do that, Revenue and Expense accounts must start with
a zero balance at the beginning of each accounting period. In
contrast, you carry over Asset, Liability, and Equity account
balances from cycle to cycle.

4. Trial balance

At the end of the accounting period (which may be a month,

quarter, or year depending on a business’s practices), you
calculate a trial balance.

5. Worksheet

Unfortunately, many times your first calculation of the trial

balance shows that the books aren’t in balance. If that’s the