Discover the meaning of common bookkeeping terms, words and phrases from this quick a z style guide. This dictionary provides a basic vocabulary of terms used in accounting, from personal finance and investments to company accounts, balance sheets and stock. Mel king institute definitions of accounting terms for financial statements for cdcs 1. 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. The crossreferenced term will appear in small capitals either in the body of the entry or subentry or at the end. Glossary of accounting terms and definitions wealth how. Accounting accounting keeps track of the financial records of a business. Every profession uses its own language with its own definitions and context. Below are some simple accounting basic terms every small business owner should knoweven if you have an accountant that takes care of all that stuff accounting basic definition. Corporations currently operate on a fiscal year beginning on july 1st and ending june 30th. The guide is an important resource that will help to create a much greater understanding of.
Accounting financial statements terms and definitions. Barrons updated and expanded dictionary of accounting terms is an az reference that defines more than 2,500 accounting, auditing, compliance, and taxrelated terms in a way everyone can understand. Bookkeeping and accountancy deal with maintaining record of all the transactions that a businessindividual makes. That way, when you start your degree journey, youll. It builds on the environmental accounting glossary prepared in 20 by wassim youssef, volunteer of the said division. These costs are not affected by fluctuations in sales, production or the market. 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. For example, a company will have a cash account in which every transaction involving cash is recorded. Mel king institute definitions of accounting terms for the financial statements used in accounting are a concise summary of financial transactions over an accounting period, summarizing a companys operations, financial position, and cash flows.
Let us walk you through all the basics that you need know. Most comprehensive financial dictionary with over popular financial terms. Cash flow management is the process of tracking how much money is coming into and going out of your business. The equation that is the basis of the balance sheet. With accurate financial records, the equation balances. An amount entered on the lefthand side of an account. My accounting course accounting and business dictionary explains 1,000s of accounting terms in plain english. The alphabetical layout will help you easily find the word you need.
Accounting equation the relationship between assets, liabilities and ownership interest. If a reasonable person would conclude after considering the possibility of further undetected misstatements that the misstatement either individually or when aggregated with other misstatements would clearly be immaterial to the financial statements. 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. Accrual basis is a method of accounting that recognizes revenue when earned, rather than when collected and. Select a letter below to view all accounting terms that begin with that letter. Accounting seeks to assure that every individual or company pays or is paid the correct amount. Fixed expenses stay consistent from monthtomonth, yeartoyear. Basic accounting concepts n matching n revenues and expenses shown on the income statement must be matched for the period. Accounting the practice or profession of maintaining financial records, noting expenses or revenue, and determining how much one owes or is owed. Terminology and definitions accounting this manual begins by defining the basic terms used in accounting functions. Basic accounting terms are very important for accountings beginner to understand it. Page 1 of 5 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.
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 foundation of doubleentry. Dictionary of accounting and budget terms abatement the cancellation of part or all of a receipt or expense previously recorded. Common accounting terminology glossary alphabetical order. Accountants use terminology foreign to many outside of this profession. He is the sole author of all the materials on accountingcoach. Accounting meaning in the cambridge english dictionary. A company selling merchandise on credit will record these sales in a sales account and in an accounts receivable account. To add to your understanding of a term, related or contrasting terms are sometimes crossreferenced. Accounting termsaccounting dictionaryaccounting glossary. An actual budget deficit occurs if actual public spending exceeds actual tax revenues. Accounting theory is a set of assumptions and methodologies used in the study and application of financial reporting principles. In addition to recording financial transactions, it involves reporting, analyzing and summarizing information. Mel king institute definitions of accounting terms for. In compliance with this section, the accounting standards and procedures for counties manual was issued in 1961.
Complete economics dictionary to earn in tax revenues over the financial year. Budget surplus this financial situation occurs if a government plans to spend more than it forecasts to. A form of corporation, allowed by the irs for most companies with 35 or fewer shareholders, which enables the company to enjoy the benefits of incorporation but be taxed as if it were a partnership. Learn more in the cambridge englishchinese traditional dictionary. For a more in depth discussion of each accounting term, simply click the link associated with each term. An aggregation of actions performed within an organization that is useful for purposes. Click one of the letters above to advance the page to terms beginning with that letter. The balance of an account in which the total dollar amount of credits exceeds the total amount of debits. Glossary of financial accounting terms pearson education. Lets learn some accounting basic terms basic accounting. Appropriations are made by the state legislature in the annual budget.
Debtors ratio indicates the percentage of debtors outstanding as compared to credit sales. 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. Complete economics dictionary complete economics dictionary. Harold averkamp cpa, mba has worked as a university accounting instructor, accountant, and consultant for more than 25 years. The nysscpa has prepared a glossary of accounting terms for accountants and journalists who report on and interpret financial information. A record that holds the results of financial transactions. Basic accounting terms, acronyms, abbreviations and concepts to remember. Find definitions for small business accounting terms. Plain language definitions with sample applications. Accounting termsaccounting dictionaryaccounting glossary largest online accounting dictionary over 4,200 accounting terms. Having launched it originally in 2004 we have now updated it with modern terminology to meet with the increasing demand for the book. Glossary of selected governmental accounting and financial terminology page 2 specified.
Chartstring what is typically called an account or thought of by most people as an account is called a chartstring in peoplesoft ps. General accounting terms and definitions accounting cycle composed of several accounting periods spanning over twelve consecutive months. A glossary dictionary of common accounting and bookkeeping terms is provided to aid you in understanding accounting and bookkeeping terminology. Consolidated financial statements financial statements of a group in which assets, liabilities, equity, income, expenses and cash flows of the parent company and its.
Accounts payable amounts due and owing to persons, business firms, governmental units or others for goods or services purchased and received but unpaid as of june 30. To help with this, weve compiled an assortment of basic financial terms and acronyms and created a simple accounting glossary for beginners. Accounting explained in 100 pages or less mike piper. Clear and concise article style description with practical examples. Universities, high schools, and other educational institutions may select this site as a primary or secondary textbook for use in their curriculum university. Invoiceberry is an online invoicing software for small businesses, sole traders and freelancers. Accounting period expenditure and revenue measurement within a predetermined time frame. 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. A service that oversees, measures, and evaluates financial information for decision making purposes. A record in the general ledger that is used to collect and store similar information. Understanding the financial condition of the business and the accounting principles used to determine. 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. Englishkhmer glossary of accounting and auditing terminology author.
In addition, a test is provided to test your knowledge of accounting terms. Accounting definition of accounting by the free dictionary. A separate list of abbreviations and acronyms follows the dictionary. Basic accounting terminologies include all those important terms which are frequently used while studying financial accounting. Financial statements records that outline the financial activities of a business, an individual or any other entity. A pdf version of the glossary is also provided to download for those wanting a hard copy. It is this books purpose to present the working vocabulary of accounting todaydefining new terminology as it affects the. There are several different types of accounting, each of which reports revenue and earnings differently from. Governmental accounting terms glossary auditorcontroller. This az pocket guide to understanding financial terms is just one of the achievements of ebss partnership with nala. Accounting terminology guide over 1,000 accounting and. 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. The essential accounting dictionary sphinx dictionaries kate mooney.
Accounting is the process of documenting the financial transactions of your business in a way that you or other interested parties can analyze and make sound. The practice or profession of maintaining the financial records of a business, including bookkeeping as well as the preparation of statements concerning the assets, liabilities, and operating results. This typically includes expenses like salaries, rent and so forth. Credit sales divided by 365 equals average daily sale debtors balance divided by average daily sales equals days debtors are outstanding 16. 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.