Search results
Interested in accounting, but you keep seeing terms unfamiliar to you? This A-to-Z glossary defines key accounting terms you need to know. Accountants possess a wide range of skills critical for financial management and reporting.
- Log In
Interested in accounting, but you keep seeing terms...
- Foundations
Accounting is the language of business. Managers communicate...
- Log In
- Balance Sheet. The balance sheet is a financial statement that provides a snapshot of a company’s financial position at a specific point in time. It presents the company’s assets (what it owns), liabilities (what it owes), and shareholders’ equity (the difference between assets and liabilities).
- Income Statement. The income statement, also known as the profit and loss statement or P&L, summarizes a company’s revenues, expenses, gains, and losses over a specific period.
- Cash Flow Statement. The cash flow statement tracks the inflow and outflow of cash within a company during a specific period. It categorizes cash flows into three main activities: operating, investing, and financing.
- Statement of Retained Earnings. The statement of retained earnings, sometimes called the statement of owner’s equity, shows the changes in a company’s retained earnings over a specific period.
A term that describes the steps when processing transactions (analyzing, journalizing, posting, preparing trial balances, adjusting, preparing financial statements) in a manual accounting system.
- ● Accounts Payable
- ● Accounts Receivable
- ● Accounting Period
- ● Accruals
- ● Accrual-Basis Accounting
- ● Assets
- ● Balance Sheet
- ● Capital
- ● Cash-Basis Accounting
- ● Certified Public Accountant
Money a business owes to its suppliers, vendors, or creditors for goods or services bought on credit; considered a short-term debt. Accounts payable is a crucial concept for any business operating with credit—every time a business purchases from a supplier on credit, an accounting entry is made in accounts payable.
The opposite of accounts payable; money owed to a business by its customers, for goods or services delivered. Accounts receivable refers to money your customers owe for goods or services purchased from you in the past. This money is typically recorded as an asset on your balance sheet; they live under the ‘current assets’ portion on your balance sh...
An accounting period is a period during the fiscal orcalendar yearin which accountants perform functions such as gathering and aggregating data and creating financial statements. The financial statements made during these periods are important for attracting potential investors or procuring loans from banks.
A record-keeping adjustment that recognizes business expenses and revenues before exchanges of money take place.
An accounting method where revenue and expenses are recorded as they are earned, regardless of when the money is received or paid. Mutually exclusive with cash-basis accounting.
Resources with economic value. Assets can reduce expenses, generate cash flow, or improve sales for businesses.
A financial statement providing a picture of an organizations’ liabilities, assets, and shareholders’ equity at a specific moment in time. Compare thebalance sheet vs. income statement.
A person’s or organization’s financial assets. Capital may include funds in deposit accounts or money from financing sources.
Under the cash method, income is considered constructively received the moment it is credited to a business’s account, made available without restriction, or received by an authorized agent acting on behalf of the company.
Certified public accountants (CPAs) are accounting professionals certified to practice public accounting by the American Institute of Certified Public Accountants.
May 12, 2023 · Accounting can be a complex and confusing topic, with unfamiliar terms and phrases that often leave people scratching their heads. To help remove some of the mystery behind accounting language, this article will provide definitions and explanations for some of the most common Accounting Terms & Phrases.
Oct 4, 2021 · Accounting – a process whereby any and all financial transactions are reported and recorded. Accounts receivable – the amount of money that’s due from debtors and this usually applies after a sale or service has been completed.
People also ask
What is a line item in accounting?
What is included in the accounting terminology guide?
What are some examples of accounting terms?
What is a “Sume” in accounting?
Jul 9, 2024 · How to Use This Guide to Accounting Terms. Presented in alphabetical order, this glossary of accounting terms covers essential basics and key concepts. You can look up individual terms, or read the guide from start to finish for a quick crash course in accounting fundamentals.
