journal: The book where documents (checks, etc) are first recorded into the bookkeeping system. Computers have changed the method of bookkeeping but not the underlying concepts. There still must be a way to track figures from the financial statements back to original documents.

journal entry: The process of recording in a journal the original documents, such as checks. Also the entry of adjustments to correct account balances at the end of an accounting period such as monthly, quarterly, or yearly.

joint tenancy with right of survivorship (JTROS): A type of ownership of property where each owner has an undivided ownership. When one of the joint tenants dies, his or her interest passes to the surviving joint tenants. Before you decide to transfer property or to change the form of ownership of property you already own, consult with your attorney as to what form of ownership is best for you. See also tenants in common.

joint and several liability: An obligation where the makers are both individually and jointly liable. This allows the creditor to sue one or all for payment of an obligation. On a joint income tax return, a husband and wife are usually jointly and severally liable. The IRS can collect any tax due from either or both spouses. See innocent spouse relief.

joint and survivor life insurance: An insurance policy in which the benefits are only paid after the death of both of the insured parties.

joint return: This is an income tax filing status for married couples. If your state of residence recognizes common-law marriages, the IRS will allow the use of a joint return. Your marital status on December 31st of a given year will govern your tax filing status for that year. If each spouse has separate income, a joint return can result in a marriage tax penalty (more tax than if they were two single taxpayers).

joint venture: A joint venture is somewhat like a partnership, but is usually formed by two or more persons for a single purpose as opposed to most partnerships that are formed for ongoing business. For income tax purposes, it may be treated as either a corporation or a partnership.

journal: An accounting record in which transactions are first entered; provides a chronological record of all business activities.

journal entry: A recording of a transaction where debits equal credits; usually includes a date and an explanation of the transaction.

junk bonds: Bonds issued by companies in weak financial condition with large amounts of debt already outstanding; these bonds yield high rates of return because of the high risk.

just-in-time (JIT) inventory: An inventory system that allows for the elimination of inventory stockpiles and inefficiency and waste; raw materials arrive "just in time" for production and finished goods "just in time" for sale.