Accountant a person who trained to prepare and maintain financial records. Decoding some typical accounting terms accountants and bookkeepers spend years training and studying terms. The wealthhow article below provides a glossary of accounting terms and. A record summarizing all the information pertaining to a single item in the accounting equation. Accounting 1 key terms chapter 1 flashcards quizlet.
Discover the meaning of common bookkeeping terms, words and phrases from this quick a z style guide. National accounting definition and meaning collins english. The amount of money owed by customers or clients to a business after goods or. Glossary ofinancial terms aaa rating mortgagebacked. In addition to recording financial transactions, it involves reporting, analyzing and summarizing information. The accounting cycle is a tenstep process that consists of the procedures necessary to collect, process, and report economic events in the financial statements for the reporting period the accounting equation refers to the main accounting formula that lays the. Glossary of accounting terms and definitions wealth how. Credit terms of business the supplier agrees to allow the customer to make payment some time after the delivery of the goods or services. Accounts payable money owed to creditors, vendors, etc accounts receivable money owed to a business, i. Accounting smart thesaurus cloud with synonyms and. Investorwords the most comprehensive investing glossary on the web. Archive sites where internet users can log in and download files and programs without a special username or password.
Use of accounting terminology in past years it has been aqa practice in gce accounting question papers and mark schemes to operate a dual system where the new ias international accounting standards term is given with the uk term in brackets, for example inventory stock. Harold averkamp cpa, mba has worked as a university accounting instructor, accountant, and consultant for more than 25 years. Word usage in scientific writing this listing includes some. This is used as an international standard for shipping to nauru. For this method, revenues sales and expenses cost of sales and other. Employee benefit plan authorized by internal revenue code section 401 k, whereby an employer establishes an account for each participating employee and each participant elects to deposit a portion of his or her salary into the account. A definition is a statement of the meaning of a term definitions can be classified into two large. This is the time period you want your customer to pay within. A personal computer with windows as its operating system.
Glossary of financial accounting terms pearson education. The following accounting dictionary of key accounting terms and accounting definitions decodes the language of business with easy to follow illustrations and examples. Accounting fundamentals for nonaccountants last updated 29 january 2014 page 4 of 110 accounting is the recording of financial data for all receipts, expenditures, assets, liabilities and. Weve compiled a list of the 42 most common accounting terms, along with their abbreviations where appropriate and definitions. Corporations currently operate on a fiscal year beginning on july 1st and ending june 30th. Adobe acrobat reader acrobat reader is software that allows you to view a pdf document a document that can be seen.
This manual is designed to help you successfully sift through the alphabet soup of computer terminology. The following is a list of common nonprofit accounting terminology. This book has firmly established itself over five editions as the market leading text in its field. An electronic version of a written document, in many ways similar to a document written in. Accounting terms make up the language of business used to measure business performance and profitability. Accounting data definition of accounting data by the free. Accounting data definition of accounting data by the. Use features like bookmarks, note taking and highlighting while reading accounting lingo. Accounting terms entering into the accounting field can be a little confusing at first with all of the new terminology to learn. Nonprofit accounting terminology posted on wednesday, november 04, 2015 share.
The form of balance sheet that resembles the basic format of the accounting equation, with assets on the left side and liabilities and owners equity. Over 18000 financial and investing definitions, with links between related terms. Financial statements records that outline the financial activities of a business, an individual or any other entity. Accounting process of identifying, measuring, and reporting financial information of an entity. Accounts payable amounts due for payment to suppliers of goods or services, also described as trade creditors accounts receivable amounts due from customers, also described as a trade debtors accounts financial statements prepared at the end of a period to reflect the profit of loss or the period and financial position at the end of the period. Invoice the original billing from the seller to the buyer, outlining what was purchased and the terms of sale, payment, etc.
The accounting and bookkeeping business has a language all its own. The following 86 pages are in this category, out of 86 total. A financial report that expresses a companys performance in terms of cash generated and used. Debtors ratio indicates the percentage of debtors outstanding as compared to credit sales. The balance sheet is one of the two most common financial statements produced by accountants. It terms glossary information technology definitions dataprise.
Basic accounting concepts n matching n revenues and expenses shown on the income statement must be matched for the period. Accounting terminology defined kindle edition by ryder management inc. When terms are defined as different parts of speech, the grammatical forms are not labeled but the sequence is always nouns, followed by verbs, followed by qualifiers. Dont worry as most business owners dont know or understand all the terms on this page. Accounting accounting keeps track of the financial records of a business.
Accounting terms layman explanations of bewildering. Accounting terms by hammerbcn 123 terms see translations. The place where financial entries of a similar nature are recorded, for example the sales account is where business income goes, the stationery account is where all pens. Grant date does not occur until the conclusion of the 30 day period when the. Download it once and read it on your kindle device, pc, phones or tablets. You need to understand exactly what is meant by accounting terms like these. Basic accounting terms, acronyms, abbreviations and concepts to remember.
Accounting for nonaccounting students download pdf. Accrual accounting a method in which income is recorded when it is earned and expenses are. Accounting period any period of time utilised to measure accounting performance e. Accounts payable sundry creditors short term or current financial obligations that are created through the purchase of merchandise, or obtaining of service. My accounting course accounting and business dictionary explains 1,000s of accounting terms in plain english. Glossary of financial accounting terms the definition of one word or phrase may depend on understanding another word or phrase defined elsewhere in the reference list. The systematic allocation of an intangible asset to expense over a certain period of time. The wealthhow article below provides a glossary of accounting terms and definitions that are most commonlyused. Defined contribution plan see employee benefit plan. The alphabetical layout will help you easily find the word you need. Click one of the letters above to advance the page to terms beginning with that letter.
There may be several accounting periods in an accounting cycle. Accounting and finance terms account a record of financial transactions. Typical trader credit periods range from 30 to 60 days but each agreement is different. Choose from 500 different sets of accounting terms flashcards on quizlet. Revenue sales and expenses cost of sales and other expenses are reported on the income statement only when there is an actual exchange of cash and for only the actual amount of cash received or paid out. About accounting concepts, all the accounting concepts will be discussed. Learn accounting terms with free interactive flashcards.
With accurate financial records, the equation balances. Chart of accounts in an accounting system, the list of accounts to which transactions are posted. Nonprofit accounting is a specialized industry and as such uses specific terms that those outside of the nonprofit world may not be familiar with. He is the sole author of all the materials on accountingcoach. Terms in this set 50 account form the form of balance sheet that resembles the basic format of the accounting equation, with assets on the left side and liabilities and owners equity sections on the right side. Mel king institute definitions of accounting terms for financial statements for cdcs 1.
Cash flow management is the process of tracking how much money is coming into and going out of your business. Accounts receivable ar accounts receivable ar definition. This section pertains to potentially confusing terms that relate to the balance sheet. General accounting terms and definitions accounting cycle composed of several accounting periods spanning over twelve consecutive months. Links between business accounting and national accounting. A separate list of abbreviations and acronyms follows the dictionary. Commonsized a term used to refer to a financial statement in which all items are expressed as percentages of another item in the statement. Terms might involve option to be issued with price to be determined based upon the lowest price as of the issue date or for the next 30 days after the issuance. Words in bold indicate that such a definition is available. Consolidated financial statements financial statements of a group in which assets, liabilities, equity, income, expenses and cash flows of the parent company and its.
Bookkeeping and accountancy deal with maintaining record of all the transactions that a businessindividual makes. The following is a short list with explanations of each term in laypersons language. The systematic allocation of the discount, premium, or issue costs of a bond to expense over the life of the bond. Glossary of accounting terms and definitions bookkeeping and accountancy deal with maintaining record of all the transactions that a businessindividual makes. The ebs building society partnered with the national adult literacy agency nala to develop a programme, which would help to target the growing issue of family and financial literacy. Job costing system of tracking costs associated with a job or project labor, equipment, etc and comparing with forecasted costs.
So you feel comfortable, heres a list of common accounting terms and their definitions. Mel king institute definitions of accounting terms for. A comprehensive list of accounting terms and various concepts that are defined and explained in the context of economic. Plain language definitions with sample applications. Whether you work in that department or no, there are certain accounting terms that you come across daily. Terms like revenue, expenses, gross profit, depreciation, bad debt, and fixed assets have precise definitions when used in business accounting. Thus, one should weigh the costs of complying with another accounting principle against the extra accuracy gained.
Use of accounting terminology osborne books limited. Department of economic and social affairs statistics division studies in methods series f handbook of national accounting links between no. Dont feel left out in conversations and dont be left behind because you arent sure what someone is talking about. However, there are some bits of terminology that crop up again and again. Credit sales divided by 365 equals average daily sale debtors balance divided by average daily sales equals days debtors are outstanding 16.
Understandability in accounting concept is discussed with example basic accounting. Accounting terminology guide over 1,000 accounting and. Journal a record where transactions are recorded, also known as an account. The popup bubble will not work in tabs that were open prior to installation. This is used as an international standard for shipping to naur. National accounting definition and meaning collins. This listing includes some of the most frequently troublesome words, terms, and expressions found in journal papers and manuscripts.
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