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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. They maintain financial records, analyze data, offer financial insights, ensure compliance, prepare reports, support audits, provide financial advice, and utilize technology to optimize ...
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This A-to-Z glossary defines key accounting terms you need...
- Foundations
Accounting is the language of business. Managers communicate...
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- ● 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 · Technical Accounting This accounting principles and national financial reporting standards to inform decisions on topics such as mergers, acquisitions, divestitures, and capital investments. Technical accounting also helps companies assess their financial position to ensure accurate financial reports.
Our comprehensive list offers clear and concise definitions of the fundamental terms that shape businesses and drive financial reporting. From understanding assets and liabilities to deciphering income statements, this glossary will enhance your knowledge and empower you to make informed financial decisions.
Bookkeeping TermsDescription Of Bookkeeping TermsMoney owed from a customer for a sales ...AccountingProcess of keeping the business financial ...AccountsThe financial statement of a business in ...Accounts PayableMoney owed to a supplier from bills or ...Jul 9, 2024 · More technical definitions also specify two important technicalities: First, assets result from past business activities. Second, they will or are expected to generate future economic value. Assets come in many types and classes. Types include current and noncurrent, operating and nonoperating, physical, and intangible.
- In its most basic sense, accounting describes the process of tracking an individual or company's monetary transactions. Accountants record and anal...
- Basic accounting concepts used in the business world cover revenues, expenses, assets, and liabilities. These elements are tracked and recorded in...
- Introduction to accounting frequently identifies assets, liabilities, and capital as the field's three fundamental concepts. Assets describe an ind...
- Certified public accountants and management accountants are two of the profession's most common specializations. Management accountants are also kn...
Jun 5, 2014 · The definitions provided here are not technical and impenetrable, but instead informal and explanatory. So, for example, while several of the definitions are similar to those in international accounting standards, they differ wherever a more relaxed use of language helps to convey meaning.
Oct 4, 2021 · Not sure what the terminology your accountant uses actually means? Here is an A-Z list of the most common accountancy terms and their meanings.
