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From understanding assets and liabilities to deciphering income statements, this glossary will enhance your knowledge and empower you to make informed financial decisions. If you cannot find the bookkeeping terms or definitions you need, please contact us, and we will try and add them.
- Accounts Payable. Accounts Payable refers to the money a company owes to its creditors or suppliers for goods and services purchased on credit. It represents a liability on the company's balance sheet until payment.
- Balance Sheet. The Balance Sheet is a financial statement that provides a snapshot of a company's financial position at a specific time. It presents the company's assets, liabilities, and shareholders' equity, enabling stakeholders to assess its financial health.
- Cash Flow. Cash Flow represents the movement of cash into and out of business over a specific period. It provides insights into a company's ability to generate cash and meet its financial obligations.
- Depreciation. Depreciation is the systematic allocation of the cost of a tangible asset over its useful life. It reflects the asset's value decrease due to wear and tear, obsolescence, or other factors.
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.
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This glossary includes those terms that business owners will encounter when interpreting their accounts or reviewing their financial information with their accountant.
- Amortization: Amortization is a method of spreading an intangible asset's cost over the course of its useful life. Intangible assets are non-physical assets that are essential to a company, such as a trademark, patent, copyright, or franchise agreement.
- Assets: Assets are items you own that can provide future benefit to your business, such as cash, inventory, real estate, office equipment, or accounts receivable, which are payments due to a company by its customers.
- Asset Allocation: Asset allocation refers to how you choose to spread your money across different investment types, also known as asset classes. These include
- Balance Sheet: A balance sheet is an important financial statement that communicates an organization’s worth, or “book value.” The balance sheet includes a tally of the organization’s assets, liabilities, and shareholders’ equity for a given reporting period.
a decision based only on a specific rule or rules and not on any other consideration: The case was dismissed on a technicality and will be retried at a later date. (Definition of technicality from the Cambridge Academic Content Dictionary © Cambridge University Press) Examples of technicality. technicality.
May 12, 2023 · Accountancy is the practice of recording and analyzing financial data, while accounting is the process of using that data to make business decisions. Accountants create financial statements, manage assets and liabilities, produce company performance reports, and monitor internal controls.
