It is very hard to imagine business without accounting. Glossary of financial accounting terms the definition of one word or phrase may depend on understanding another word or phrase defined elsewhere in the reference list. General accounting terms and definitions state of west virginia. Glossary of purchasing and warehouse inventory terms. Medical savings accounts msa savings accounts designated for outofpocket medical expenses. In operation, the branch account on the home office books will be debited when the home office account on the branch books is credited, and vice versa. 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. A current asset resulting from selling goods or services on credit on account.
Related party transactions a term used to define the close relationship between. Basic accounting terminologies include all those important terms which are frequently used while studying financial accounting. Any and all persons designated and authorized to transact business on behalf of an account. Glossary of purchasing and warehouse inventory terms standard terminology and definitions relating to purchasing and warehouse inventory systems access spacean aisle used to gain access to facings, slots or stacks. This is in contrast to a user, which is an entity contained within the account. Glossary of governmental budgeting and accounting terms and definitions definitions accounting period. In an msa, employers and individuals are allowed to contribute to a savings account on a pretax basis and carry over the unused funds at the end of the year. Englishkhmer glossary of accounting and auditing terminology author. Bookkeepers use specific terms and phrases everyday as they track and record financial transactions from balance sheets and income statements to accounts payable and receivable.
General accounting terms and definitions accounting cycle composed of several accounting periods spanning over twelve consecutive months. Pdf account payable an amount due for payment to a supplier of goods or. Accounts payable sundry creditors short term or current financial obligations that are created through the purchase of merchandise, or obtaining of service. Gao05734sp a glossary of terms used in the federal. 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. Read the following definitions carefully and make sure that you understand exactly what is meant by each of these accounting terms. A service that oversees, measures, and evaluates financial information for decision making purposes.
The core of the glossary has been built around the technical terms used in current world health organization who and other. Basic accounting terms are very important for accounting s beginner to understand it. Invoice terms such as a net 30 days or b 210, n30 signify that a sale was made on account and was not a cash sale. 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. This accounting glossary isnt an ordinary dictionary that you find in the back of one of your accounting textbooks. This az pocket guide to understanding financial terms is just one of the achievements of ebss partnership with nala. The glossary gives a short definition of each technical term. Glossary of ifrs terms term description standard a ccounting policies the speci. Lineitem a specific account that categorizes or groups common expenditures.
Accounting period any period of time utilised to measure accounting performance e. Basic accounting concepts n matching n revenues and expenses shown on the income statement must be matched for the period. An account on which funds may not be withdrawn until a lien is satisfied and a court order or other legal process makes the account available for withdrawal e. Corporations currently operate on a fiscal year beginning on july 1st and ending june 30th.
Accounting period expenditure and revenue measurement within a predetermined time frame. Accounting terminology paul martin chartered accountant ltd. The equation that is the basis of the balance sheet. For example, an employee receiving a raise may reply with the words cool beans, upon receiving the news.
All budgetary transactions are recorded in accounts, but not all accounts are budgetary in nature. Glossary of reinsurance terminology term definition accident year experience reinsurance experience calculated by matching the total value of all losses occurring during a 12month period with premiums earned for the same period. Having launched it originally in 2004 we have now updated it with modern terminology to meet with the increasing demand for the book. Harold averkamp cpa, mba has worked as a university accounting instructor, accountant, and consultant for more than 25 years. Using this definition, accounting can be seen to be about the identification and recording of business transactions as a way of assisting the management and planning of a business. Glossary of financial accounting terms pearson education. Chartstring what is typically called an account or thought of by most people as an account is called a chartstring in peoplesoft ps. Ecoa codes with definitions association with account currently active association terminated as of date reported. Terminology and definitions accounting this manual begins by defining the basic terms used in accounting functions. The nysscpa has prepared a glossary of accounting terms for accountants and. Just because you passed an audit, it does not mean that your company is in good financial shape. Basic accounting terms, acronyms, abbreviations and concepts to remember. Does accounting terminology have your head spinning. Words in bold indicate that such a definition is available.
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. Some accounts do not directly affect the budget but are used purely for accounting purposes. Accounting terminology guide over 1,000 accounting and. To learn more about accounts receivable, see our accounts receivable and bad debts expense outline. The aws account has permission to do anything and everything with all the aws account resources. The terms defined on this page have all appeared in past cpa exam questions, so they are worth knowing if you are studying for the auditing exam. Money owed by the business debts, accounts payable a. The definition of one word or phrase may depend on understanding another word or phrase defined elsewhere in the reference list. There is no need to memorize each term and its definition verbatim, but you should at least know what each terms means along with.
The amount of money owed by customers or clients to a business after goods or. This accounting terminology checklist outlines the terminology, concepts and conventions that are accepted within the accounting profession. Glossary of accounting terms and definitions wealth how. Accounts payable amounts due for payment to suppliers of goods or services, also described as trade creditors accounts receivable amounts due from customers, also described as a trade debtors accounts financial statements prepared at the end of a period to reflect the profit of loss or the period and financial position at the end of the period.
This dictionary provides a basic vocabulary of terms used in accounting, from personal finance and investments to company accounts, balance sheets and stock. Accountable stockmaterials designated for inventory and some control of issue andor access. The wealthhow article below provides a glossary of accounting terms and definitions that are most commonlyused. Click one of the letters above to advance the page to terms beginning with that letter. A period at the end of which and for which financial statements are prepared. My accounting dictionary is written completely in everyday, non accounting language, so you can understand it. A group of closely related clerical operations which comprise a subjunction of a system. Public record glossary account conditions explanation bk 7petit petition chapter 7 bankruptcy. Sometimes used with a stronger meaning of understating assets. 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. It just means that your books are a fair representation of what. Accounting terminology gives the complete description of the terms that are used and it is important to know the accounting terminology before delving into the subject. The contract governing your openend credit account, it provides information on changes that may occur to the account.
Banking terms and concepts are many and can sometimes be difficult to figure out, even for the industry professionals. I also explain each accounting term in detail and give examples of each, so you can understand the concepts behind. In many cases this is expanded with an explanation of the theoretical background to the concepts involved and the practical context in which the term is used. Accounting concepts accounting concepts are the principles that guide the preparation of accounting information. However, since banking is a significant part of our business and personal life, it is useful for consumers to learn some common banking terms. Weve compiled a list of the 42 most common accounting terms, along with their abbreviations where appropriate and definitions. Page 2 gao05734sp budget glossary terms and definitions account a separate financial reporting unit for budget, management, andor accounting purposes. Acquisition costs all expenses directly related to acquiring insurance or reinsurance. A slang term used to refer to something favorable that has happened in business. Formal record that represents, in words, money or other unit of measurement. It is this books purpose to present the working vocabulary of accounting todaydefining new terminology as it affects the accounting profession, while updating. Accounting is a very necessary subject in the field of commerce. A record that holds the results of financial transactions.
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