This az pocket guide to understanding financial terms is just one of the achievements of ebss partnership with nala. The same idea applies to accounts payable by adjusting the amounts posted to each asset or expense, for example. Important terms and principles cost accountants should know. An invoice is generated for goods and services sold, increasing sales and creating an amount due an accounts receivable. You should consult a professional accountant andor the accounting professions official pronouncements for specific situations and for more complete information. Having launched it originally in 2004 we have now updated it with modern terminology to meet with the increasing demand for the book. Of course, there are those accounting terms that dont pertain to a particular financial statement. What accountants do we have said that accounting consists of these functions. 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. Glossary of accounting terms and definitions wealth how. A record that holds the results of financial transactions. An accounting software package typically contains numerous integrated modules for example. Discover the meaning of common bookkeeping terms, words and phrases from this quick a z style guide.
Financial accounting is charged with the primary responsibility of external reporting. Harold averkamp cpa, mba has worked as a university accounting instructor, accountant, and consultant for more than 25 years. However, it is formally defined by the american accounting association as the classification and recording of monetary transactions, the presentation and interpretati on of the results of those transactions in order to assess performance. For example, you may hear the terms revenues and receipts used interchangeably in casual office conversation. Basic accounting terminologies include all those important terms which are frequently used while studying financial accounting. Choose from 500 different sets of accounting terms flashcards on quizlet. The guide is an important resource that will help to create a much greater understanding of. An asset is something that you own, that has value, and will generate a future benefit. For companies that use accrual accounting, their system looks like this. Just as liabilities and stockholders equity are on the right side or credit side of the accounting equation, the liability and equity accounts in the general ledger have their balances on the right side. An accounting period is designated in all financial statements income statement, balance sheet, and statement of cash flows. 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 alphabetical layout will help you easily find the word you need. Bookkeeping terms and basic accounting definitions.
Learn accounting terms with free interactive flashcards. Accounting terminology guide over 1,000 accounting and. Click one of the letters above to advance the page to terms beginning with that letter. If youre looking for a free download links of dictionary of accounting terms barrons business dictionaries pdf, epub, docx and torrent then this site is not for you.
Jul 01, 2019 accounting is a system meant for measuring business activities, processing of information into reports and making the findings available to decisionmakers. 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. Dont feel left out in conversations and dont be left behind because you arent sure what someone is talking about. An aggregation of actions performed within an organization that is useful for purposes of activitybased costing.
Accounting attempts to recognize noncash events and circumstances as they occur. General accounting terms and definitions accounting cycle composed of several accounting periods spanning over twelve consecutive months. Check out the accounting terms below and find out what that last conversation was about. Corporations currently operate on a fiscal year beginning on july 1st and ending june 30th. Accrual is concerned with expected future cash receipts and payments. When using the doubleentry accounting method there will be two recorded entries for every transaction. The american institute of certified public accountant has defined financial accounting as. Terms language deutsch english uk english usa espanol francais fr francais qcca bahasa indonesia italiano nederlands polski portugues br turkce ti. A more formal definition of accounting is the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of a financial character and interpreting the results thereof. All of the following accounting terms have precise definitions when used in business. Accounting termsaccounting dictionaryaccounting glossary. 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 equation that is the basis of the balance sheet. Payroll accounting standard costing accounting pronouncements organizations accountingcoach.
The examination of documents, records, reports, systems of internal control, accounting and financial procedures, and other evidence for one or more of the following purposes. A priority listing made up of statements of accounting principles issued by the aicpa american institute of certified public accountants and fasb financial. Basic accounting terms are very important for accountings beginner to understand it. To decrease an asset account balance you credit the account, that is, you enter the amount on the right side. Basic accounting principles business environment 64 the results disclosed in the financial statements will be uniform and comparable. Accounts payable sundry creditors short term or current financial obligations that are created through the purchase of merchandise, or obtaining of service.
Accounting introduction naccounting is the art of identifying, measuring, recording, and communicating economic information about an organisation or other entity, in. Accounting terms accounting dictionary accounting glossary largest online accounting dictionary over 4,200 accounting terms. The documents, which communicate these findings about the performance of an organisation in monetary terms, are called financial statements. The worldview of accounting and accountants may certainly involve some unhelpful characters poring over formidable figures stacked up in indecipherable columns. However, a short and sweet description of accounting does exist. List of key accounting terms and definitions investorguide. Gj a book or original entry in a doubleentry system. Accounting accounting is a difficult term to define. A service that oversees, measures, and evaluates financial information for decision making purposes. If youre looking for an overview of the most important terms and principles for. Many accountants will tell you that cost accounting is the most difficult accounting subject to learn. Entering into the accounting field can be a little confusing at first with all of the new terminology to learn. Thats because cost accounting has many terms that are not used in other areas of accounting financial accounting and management accounting, to name a few.