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. The accounting and bookkeeping business has a language all its own. Accounting terminology flashcards create, study and. The nysscpa has prepared a glossary of accounting terms for accountants and journalists who report on and interpret financial information. That way, when you start your degree journey, youll already feel like youre a step ahead and speaking the language. The term cost is often used when referring to the valuation of a good or service acquired.
The concept that many transactions and events are to be measured and reported at acquisition cost. All these documents point to a new business model in our world of increasing scarcities. Below are common terms and definitions that pertain to budgets. The world of accounting uses many terms to define different actions, circumstances and classifications for preparing financial statements with the most accurate information possible. Choose from 500 different sets of basic accounting terms terminology flashcards on quizlet. Accounting financial statements terms and definitions. We hope that the following list of definitions is useful to you.
The systematic allocation of the discount, premium, or issue costs of a bond to expense over the life of the bond. Every profession uses its own language with its own definitions and context. This az pocket guide to understanding financial terms is just one of the achievements of ebss partnership with nala. The bureau of consumer financial protection is a u.
The employer becomes contingently obligated on the grant date to issue equity instruments or transfer assets to an employee who renders the requisite service. That part of the accounting system which contains the balance sheet and income statement accounts used for recording transactions. This typically includes expenses like salaries, rent and so forth. The text in this chapter is intended to clarify business related concepts. The ebs building society partnered with the national adult literacy agency nala to develop a programme, which would help to target the growing issue of family and financial literacy.
Thisis intended for those who have had little or no accounting experience or training. Cfis principles of accounting book is free, available for anyone to download as a pdf. Financial statements records that outline the financial activities of a business, an individual or any other entity. Accounting definition is the system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results. The practice or profession of maintaining the financial records of a business, including bookkeeping as well as the preparation of statements concerning the assets, liabilities, and operating results. Understanding the financial condition of the business and the accounting principles used to determine the financial condition is critical for business owners. The systematic allocation of an intangible asset to expense over a certain period of time. Accounting definition of accounting by merriamwebster. Accounting book pdf principles, bookkeeping, statements.
Total amount paid in by stockholders for the shares they purchased. The information system that identifies, records, and communicates the economic events of an organization to interested users. If you want to start a business, get better at running your business, or get an accounting job, you need to know some essential financial accounting terms and concepts. Terminology and definitions accounting this manual begins by defining the basic terms used in accounting functions. Dont feel left out in conversations and dont be left behind because you arent sure what someone is talking about. Mel king institute definitions of accounting terms for. A contract between sba and the borrower that spells out the terms and conditions of the loan. Financial literacy programme a nalaebs partnership. Lets learn some accounting basic terms basic accounting. Mel king institute definitions of accounting terms for financial statements for cdcs 1. The cash flow on the financial statements is the cash from operating activities.
An abridged or estimated invoice sent by a seller to a buyer in advance of a shipment or delivery of goods. Chartstring what is typically called an account or thought of by most people as an account is called a chartstring in peoplesoft ps. This accounting terminology checklist outlines the terminology, concepts and conventions that are accepted within the accounting profession. Consolidated financial statements financial statements of a group in which assets, liabilities, equity, income, expenses and cash flows of the parent company and its. Absolute advantage the ability of a country or region to produce a good or service at a lower. Glossary of forensic accounting terms and explanation of. Your pocket guide to understanding financial terms. A financial statement that summarizes the revenues, expenses, and results of operations for a specified period of time. A report which the bank produces listing in date order all the money received and all the money paid out of the bank account, ending with the balance of cash in the account. Accounting equation the relationship between assets, liabilities and. Most of the terms require far longer statements to explain them fully but we have tried to make them as simple as possible. Financial accounting i about the tutorial this tutorial will help you understand the basics of financial accounting and its associated terminologies. From general transaction recording conventions to the full accounting cycle and finally to important accounts, the book. Its used to organize similar transactions together.
Click one of the letters above to advance the page to terms beginning with that letter. The guide is an important resource that will help to create a much greater understanding of. Audience this tutorial has been designed to help beginners pursuing education in financial accounting or business management. Accounting period expenditure and revenue measurement within a predetermined time frame.
It is not intended nor can it replace formal legal advice. For accounting or bookkeeping definitions ac, we have selected those terms that we feel best apply to small businesses. When cost is used in this sense, a cost is an asset. Basic accounting terms, acronyms, abbreviations and concepts to remember. A pdf version of the glossary is also provided to download for those wanting a hard copy. Fixed expenses stay consistent from monthtomonth, yeartoyear. The nysscpa has prepared a glossary of accounting terms for accountants and. When the benefits of the acquisition the goods or services acquired expire, the cost becomes an expense or loss. Check out the accounting terms below and find out what that last conversation was about. Short term or current financial obligations that are created through the purchase of. Dont worry as most business owners dont know or understand all the terms on this page. Complete economics dictionary complete economics dictionary.
Accountings definition of accountings by the free dictionary. Below are some simple accounting basic terms every small business owner should knoweven if you have an accountant that takes care of all that stuff accounting basic definition. Financial statements documents presenting accounting information which is. Complete economics dictionary complete economics dictionary a abnormal profit the surplus of revenue over costs enjoyed by a monopoly that is in excess of profit the same firm could expect to earn if it faced competition for its market.
Air conditioning contractors of america association, inc. 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. Accounting terminology guide over 1,000 accounting and. Before taking any actions relating to your business, always consult your accountant or a business lawtax attorney. It is by no means a definitive list and will probably grow during the history of this site. Accounting terminology paul martin chartered accountant ltd. Page 1 of 5 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 total structure of records and procedures which discover, record, classify, and report information on the financial position and operations of a governmental unit or any of its funds, balanced account groups, and organizational components. Article accounting terminology paul martin chartered. Read about bookkeeping, accounting principles, financial statements, with 66 pages of lessons and tutorials. Glossary of defined terms ipsas 1 to ipsas 12 ifac.
Sector accounting standards ipsass on issue as at december 31, 2006. Accounting period any period of time utilised to measure accounting performance e. An aggregation of actions performed within an organization that is useful for purposes. Taking cash and checkscheques to the bank to deposit into the business bank account. Learn basic accounting terms terminology with free interactive flashcards. Accountants use terminology foreign to many outside of this profession. These codes identify broad budget categories at a higher level than actual activity.
The concept and definitions of this glossary are derived from the following publications. Read the following definitions carefully and make sure that you understand exactly what is meant by each of these accounting terms. The definitions in this glossary are developed by the naic research and actuarial department staff based on various insurance references. Accounting terminology can be quite a mouthful and hard to remember, especially if you dont have.
Having launched it originally in 2004 we have now updated it with modern terminology to meet with the increasing demand for the book. Check out these basic accounting terms and start to commit them to memory. Plan gl codes are sometimes referred to as plan account codes or plan cost elements. This glossary contains all terms defined in the 24 accrual basis international public. Accounting basics important disclaimer important note. Consumer glossary national association of insurance. Invoicing customers for goods or services they have purchased from the business. Pdf account payable an amount due for payment to a supplier of goods or. This page provides a glossary of insurance terms and definitions that are commonly used in the insurance business. The amount of money owed by customers or clients to a business after goods or services have been delivered andor used. So you feel comfortable, heres a list of common accounting terms and their definitions. Accounts receivable ar accounts receivable ar definition. As cloud accounting providers, we feel strongly about eliminating jargon and making accounting simple and accessible for everyone. Edit on github journal a journal is like a folder in which you record all transactions of the same type.
A glossary dictionary of common accounting and bookkeeping terms is provided to aid you in understanding accounting and bookkeeping terminology. Microsoft word article accounting terminology author. Accounts payable sundry creditors short term or current financial obligations that are created through the purchase of merchandise, or obtaining of service. A service that oversees, measures, and evaluates financial information for decision making purposes. Accounting definition of accounting by the free dictionary. As cloud accounting providers, we feel strongly about eliminating jargon and making accounting simple and. Accounting is the process of documenting the financial transactions of your business in a way that you or other interested parties can analyze and make sound. Entering into the accounting field can be a little confusing at first with all of the new terminology to learn. A taxpayer, whether business or individual, must file a request on a form. These costs are not affected by fluctuations in sales, production or the market. Basic accounting concepts n matching n revenues and expenses shown on the income statement must be matched for the period.