A record that holds the results of financial transactions. Pdf account payable an amount due for payment to a supplier of. 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. A chronological arranged in order of time of occurrence list of debits and credits relating to a specified asset, liability, expense, or income of a business and forming part of the ledger an account in a ledger is a unique location for accumulating similar categories of transaction. That way, when you start your degree journey, youll. The world of accounting uses many terms to define different actions, circumstances and classifications for preparing financial statements with the most accurate information possible.
This dictionary provides a basic vocabulary of terms used in accounting, from personal. The alphabetical layout will help you easily find the word you need. Governmental accounting terms glossary auditorcontroller. Glossary of selected governmental accounting and financial terminology page 1 a accounting system. Glossary of utility finance and accounting terms used in our seminars letters in parenthesis, preceding the definition, identify the sources used in compiling the glossary. The account travel expenses would be used to summarize and add up all the. Basic accounting terms are very important for accountings beginner to understand it. A general journal is used to enter period end adjusting and closing entries and other special transactions not entered in the other journals.
Click one of the letters above to advance the page to terms beginning with that letter. It is this books purpose to present the working vocabulary of accounting todaydefining new terminology as it affects the accounting profession, while updating. Readers guide glossary of terms accrual basis of accounting all flows of resources and thus all changes in net assets during the year are recorded regardless of whether they involve cash flowing in or out of the government. Harold averkamp cpa, mba has worked as a university accounting instructor, accountant, and consultant for more than 25 years. Accounting introduction naccounting is the art of identifying, measuring, recording, and communicating economic information about an organisation or 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.
Accounting termsaccounting dictionaryaccounting glossary largest online accounting dictionary over 4,200 accounting terms. Accounting glossary freeagent get a handle on what your accountant is on about with our easy az of accounting and bookkeeping terms especially for freelancers and small business owners. Mel king institute definitions of accounting terms for. He is the sole author of all the materials on accountingcoach. Glossary of business terms adjective adj headwords for adjectives followed by information in square brackets only before a noun and not before a noun show any restrictions on where they can be used. Accounting period expenditure and revenue measurement within a predetermined time frame. It also lists creditors who have been owed money for the longest period. Chartstring what is typically called an account or thought of by most people as an account is called a chartstring in peoplesoft ps. The wealthhow article below provides a glossary of accounting terms and. Noun n the codes c and u show whether a noun, or a particular sense of a noun, is countable an agenda, two agendas or uncountable. The systematic allocation of an intangible asset to expense over a certain period of time.
Basic accounting terms, acronyms, abbreviations and concepts to remember. The total structure of records and procedures which discover, record, classify, and report information on the financial position and operations of a governmental unit or any of its funds, balanced account groups, and organizational components. That part of the accounting system which contains the balance sheet and income statement accounts used for recording transactions. Accounting terminology guide over 1,000 accounting and. Mel king institute definitions of accounting terms for financial statements for cdcs 1. Statement of change in owners equity financial statement of a business that reports the changes that have occurred in the owners equity. Please find a simple glossary of accounting terms we use. To help with this, weve compiled an assortment of basic financial terms and acronyms and created a simple accounting glossary for beginners.
Accounting accounting keeps track of the financial records of a business. The following is a list of common nonprofit accounting terminology. If you want to start a business, get better at running your business, or get an accounting job, you need to know some essential financial accounting terms and concepts. These terms are relevant to the owners of all business entities, whether you run a large corporation or a sole proprietorship. Discover the meaning of common bookkeeping terms, words and phrases from this quick a z style guide. Accounting the systematic recording, reporting, and analysis of financial transactions. 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. Income statement financial statement of a business that reports the revenue, expenses and the net income loss of. Glossary of accounting terms and definitions wealth how. With accurate financial records, the equation balances.
Glossary of cost accounting terms established in sffas 4, managerial cost accounting concepts and standards for the federal government activity the actual work task or step performed in producing and delivering products and services. Let us walk you through all the basics that you need know. Everything you need to know about tax and compliance. Credit sales divided by 365 equals average daily sale debtors balance divided by average daily sales equals days debtors are outstanding 16. Plain language definitions with sample applications. Assets anything of value owned by the business cash accounts receivable office equipment building real estate.
Method of reporting financial activity of a business financial transactions recorded in an orderly fashion. 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. Accounting financial statements terms and definitions. Aged debtors report an aged debtors report lists amounts owed to a business by trade debtors and analyses how long the amounts have been due. In addition to recording financial transactions, it involves reporting, analyzing and summarizing information. The nysscpa has prepared a glossary of accounting terms for accountants and journalists who report on and interpret financial information. Account a systematic arrangement that shows the effect of transactions and other events on a specific element asset, liability, and so on. Once you have a good understanding of our glossary of business terms, take time to learn the seven accounting formulas every.
Consolidated financial statements financial statements of a group in which assets, liabilities, equity, income, expenses and cash flows of the parent company and its. Governmental accounting terms glossary california code 30200 requires the state controller to prescribe uniform accounting procedures for counties. Typical trader credit periods range from 30 to 60 days but each agreement is different. 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. Financial accounting a term usually applied to external reporting by a. Words in bold indicate that such a definition is available. A glossary dictionary of common accounting and bookkeeping terms is provided to aid you in understanding accounting and bookkeeping terminology. Credit terms creditors crossfoot current assets current liabilities.
An area of management accounting which deals with the costs of a business in terms of enabling the management to manage the business more effectively. The concept that many transactions and events are to be measured and reported at acquisition cost. Account current a monthly statement from the company reflecting premiums written and commissions deducted by the agency for agency bill policies. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Glossary of forensic accounting terms and explanation of. Where a company bases its pricing policy solely on the costs of manufacturing. A control procedure to establish and verify the correct. A debenture is the safest form of share and is usually tied to an asset. Corporations currently operate on a fiscal year beginning on july 1st and ending june 30th. The equation that is the basis of the balance sheet. Basic accounting terminologies include all those important terms which are frequently used while studying financial accounting.
Capital stock having no preferences generally in terms of dividends, voting rights or distributions. Find definitions for small business accounting terms. In addition, a test is provided to test your knowledge of accounting terms. A financial statement that summarizes the revenues, expenses, and results of operations for a specified period of time. Accounting terminology can be quite a mouthful and hard to remember, especially if you dont have much prior experience with financial or. Were here to help with this handy list that defines the most common accounting terms. California family law code 760 defines community property as except as otherwise provided by statute, all property, real or personal, wherever situated, acquired by a married person during the marriage while domiciled in this state is community property. Accounting termsaccounting dictionaryaccounting glossary.
Debtors ratio indicates the percentage of debtors outstanding as compared to credit sales. Short term or current financial obligations that are created through the purchase of. Accounting glossary of terms account a record of debit and credit entries to cover transactions involving a particular item, client or concern on the general ledger. A pdf version of the glossary is also provided to download for those wanting a hard copy. The practice of bookkeeping when income is recorded when earned and expenses are. Check out these basic accounting terms and start to commit them to memory. An aggregation of actions performed within an organization that is useful for purposes of activitybased costing. Credit terms of business the supplier agrees to allow the customer to make payment some time after the delivery of the goods or services. Since then the manual has been changed and updated as required. The wealthhow article below provides a glossary of accounting terms and definitions that are most commonlyused. Whether you are an analyst, business person or accounting student, audit the records of a corporation, a business manager, or balance your own checkbook, you will find the ventureline accounting dictionary of accounting terms of immeasurable assistance. Financial statement presentation in which the current amounts and the corresponding amounts for previous periods or dates also are shown. Accounting terms accounting terms and howtos for beginners. The chronological, daytoday transactions of a business are recorded in sales, cash receipts, and cash payment journals.
Accounting terminology paul martin chartered accountant ltd. The systematic allocation of the discount, premium, or issue costs of a bond to expense over the life of the bond. D days sales in inventory days sales in receivables days sales uncollected debenture debit debit memorandum debtors declining amortization depletion deposit slip depreciation direct inventory costing method direct write off discount on bonds payable discount period. Basic accounting concepts n matching n revenues and expenses shown on the income statement must be matched for the period.
An amount entered on the lefthand side of an account. An easy az of accounting and bookkeeping terms for small business owners. The accounting and bookkeeping terms are put together here to help you understand basic accounting jargon or buzz words. The following is a glossary of words and phrases crucial to the accounting profession. Activity a summary level budget organization which has a specific purpose or intention. Accounting terms entering into the accounting field can be a little confusing at first with all of the new terminology to learn.
Nov, 2019 these terms are relevant to the owners of all business entities, whether you run a large corporation or a sole proprietorship. A financial statement that presents a firms assets, liabilities, and owners equity at a particular point in time. As cloud accounting providers, we feel strongly about eliminating jargon and making accounting simple and accessible for everyone. Financial statements records that outline the financial activities of a business, an individual or any other entity. Nonprofit accounting is a specialized industry and as such uses specific terms that those outside of the nonprofit world may not be familiar with. A set of performance measures that are congruent with assessing improvement in financial, customer, and business process outcomes. In compliance with this section, the accounting standards and procedures for counties manual was issued in 1961.
Glossary ofinancial terms aaa rating mortgagebacked. Once you have a good understanding of our glossary of business terms, take time to learn the seven accounting formulas every business owner should know. Terminology and definitions accounting this manual begins by defining the basic terms used in accounting functions. The definition of one word or phrase may depend on understanding another word or phrase defined elsewhere in the reference list. Readers guide glossary of terms accrual basis of accounting. Glossary of financial accounting terms pearson education. Dont feel left out in conversations and dont be left behind because you arent sure what someone is talking about. Invoiceberry is an online invoicing software for small businesses, sole traders and freelancers. Accounting terminology can be quite a mouthful and hard to remember, especially if you dont have much prior experience with financial or management accounting. General accounting terms and definitions accounting cycle composed of several accounting periods spanning over twelve consecutive months. Nonprofit accounting terminology posted on wednesday, november 04, 2015 share. Whether you are an analyst, business person or accounting student, audit the records of a corporation, a business manager, or balance your own checkbook, you will find the ventureline accounting dictionary of accounting terms of. Select a letter below to view all accounting terms that begin with that letter. A service that oversees, measures, and evaluates financial information for decision making.