Check out businessrelated terms that will help shape your business. A comprehensive listing of all the accounting terms used on the website. The basis of accounting under which revenues are re corded when earned and expenditures are recorded as soon as they. Having launched it originally in 2004 we have now updated it with modern. Financial accounting is primarily concerned with the preparation of financial statements whereas management accounting covers areas such as interpretation of financial statements, cost accounting, etc. Financial statements using the adjusted trial balance key terms. An alphabetical glossary of financial and business terms, plus their definitions.
It participates with the financial accounting standards board fasb and the. Dod financial management regulation volume 1, definitions. Modules are distinguished by the fact that their functions and systems of internal controls are embodied in the accounting system. It participates with the financial accounting standards board fasb and the government accounting standards board gasb in establishing accounting principles. The nysscpa has prepared a glossary of accounting terms for accountants and journalists who report on and interpret financial information. In the context of financial accounting, the term consolidate often. A record that holds the results of financial transactions.
Accounting terminology guide over 1,000 accounting and finance terms. The wealthhow article below provides a glossary of accounting terms and definitions that are most commonlyused. Accounts payable accounts payable refers to the amount the snp owes, but has not yet paid, for goods delivered and services. Glossary of business financial terms 1 glossary of business financial terms accrual basis accounting. Statement of federal financial accounting concepts 2.
Accounting officer the senior official ultimately responsible for all spending of a government department or arms length body. A merger is a financial activity that is undertaken in a large variety of industries. Although the consignee is temporarily holding the goods, the inventory is not an asset on his books. Accounting period any period of time utilised to measure accounting performance e. Accounting terminology guide over 1,000 accounting and. Principles of accounting is designed to meet the scope and. A contract between sba and the borrower that spells out the terms and conditions of the loan. Pro features log in course outline take the tour pro features log in. Use the glossary for business advice and read about common business definitions, complex financial formulas, and realworld business scenarios that you may come across. In other words, two or more companies are consolidated into one company. A service that oversees, measures, and evaluates financial information for. As cloud accounting providers, we feel strongly about eliminating jargon and making accounting simple and accessible for everyone in this spirit, weve compiled this handy guide to the most commonly used accounting terms for your reference glossary of accounting terms. Financial accounting summary chapters 1 to 6 pdf studeersnel. Discover the definition of financial words and phrases.
Learn about essential financial business terms with the sage advice glossary. My accounting course accounting and business dictionary explains 1,000s of accounting terms in plain english. Financial literacy programme a nalaebs partnership. The term generally accepted accounting principles has a specific meaning for accountants and.
Accounting helps keep a track of the financial position of the business and forms the basis for good financial planning. Glossary of important business, economic, and financial history terms by robert e. Glossary of accounting terms and definitions wealth how. The kudoz open glossary is a browsable glossary of terms translated via the kudoz term help network. As such, modules are fully integrated subsystems of an accounting system, and they are inventoried and. Accounting date organisations prepare their annual accounts covering a period of 12 months. Fasab handbook of federal accounting standards and other. The consignee is acting as an agent in an attempt to sell the goods. A term referring to the refund of previously paid prop erty taxes due to the overvaluation of property. The great recession and the years following it have brought business and financial terms more frequently to the pages of nonspecialist newspapers.
Dod financial management regulation volume 1, definitions c. Wright, director of the thomas willing institute for the study of financial markets, institutions, and regulations and the nef family chair of political economy, augustana college sd this work is not ed. A complete or partial cancellation of a levy imposed by a government. Glossary of defined terms this glossary contains the defined terms from australian accounting standards. Working on this glossary, we went through many authoritative glossaries to pick up the useful contemporary words for the readers of this.
For example, an employee receiving a raise may reply with the words cool beans, upon receiving the news. This glossary focuses in particular on financial terms relevant to the uk government. This glossary is for anyone who wants and needs to learn the terms related to the field of money and banking. A service that oversees, measures, and evaluates financial information for decision making purposes. Corporations currently operate on a fiscal year beginning on july 1st and ending june 30th. From 401ks to zerosum investments, the glossary is an evolving reference for investors and. Results when a businesss expenses are greater than its income. The accounting officer for a government department is usually the permanent secretary. Governmental accounting terms glossary auditorcontroller. A merger is an agreement that unites two existing companies into one new company. The american institute of certified public accountant has defined financial accounting as. To consolidate consolidation is to combine assets, liabilities, and other. Accounts payable sundry creditors short term or current financial obligations that are created through the purchase of merchandise, or obtaining of service.
References are by standard and paragraph number or appendix reference. A merger is the combination of two companies into one by either closing the old entities into one new entity or by one company absorbing the other. Horizontal mergers occur when two businesses in the same industry combine into one. Similarly, the accounting discussions in this glossary are those relevant to the preparation of these reports and are not intended to constitute a comprehensive presentation on bank accounting.
Essential accounting dictionary isdc accounting college. A record of spending and income, provided by a bank, post office or building society. This az pocket guide to understanding financial terms is just one of the achievements of ebss partnership with nala. Glossary of financial accounting terms pearson education. Accounting is the process of systematically recording, measuring, and communicating information about financial transactions. There are several types of mergers and also several reasons why companies complete mergers. A glossary of personal finance terms you need to know. Your pocket guide to understanding financial terms. Accounting activities related to orderly recordkeeping of financial information recording daily transactions preparing financial statements paying bills preparing payroll checks preparing tax forms auditing financial records examining financial records for accuracy and compliance with regulations reconciling the. A systematic way of recording and reporting financial transactions for a business or organization. Often, to satisfy the information needs of various individuals, it is necessary to combine and. An actuary is an expert on pension scheme assets and liabilities, life expectancy and probabilities for insurance purposes the likelihood of things happening.
The accounting period can be any length of time, and the length may be determined by the reason financial results are required, for example, providing. Accounting glossary freeagent get a handle on what your accountant is on about with our easy az of accounting and bookkeeping terms especially for freelancers and small business owners. Phone 2015680249 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. The equation that is the basis of the balance sheet. Results when a businesss income is greater than its expenses. Financial statement of a business that reports the revenue, expenses and the net income loss of a business for the fiscal period. Accounting standards developed by the asb are contained in financial reporting standards frss. Amortization gradual and periodic reduction of any amount, such as the periodic writedown of a bond premium, the cost of an intangible asset or periodic payment of mortgages or other debt. If a sale occurs, the consignee deducts from the selling price his commission and related expenses, remitting the balance to the consignor. Both these types of accounting are examined in the following paragraphs. This section contains various accounting terms, definitions, explanations, and examples that you may use to guide you in your accounting studies or profession.
In a pooling of interests, two entities merge through an exchange of common stock and. One of the main financial statements along with the balance sheet, the statement of cash flows, and the statement of stockholders equity. Accounting period expenditure and revenue measurement within a predetermined time frame. An easy az of accounting and bookkeeping terms for small business owners. General accounting terms and definitions accounting cycle composed of several accounting periods spanning over twelve consecutive months. At its highest level, accounting sets up the basics of record keeping and and a process to track financial accounts according to the following classifications. Bookkeeping and accountancy deal with maintaining record of all the transactions that a businessindividual makes. In the world of business and finance there is a lot of jargon, or normal everyday words but with different meanings. A slang term used to refer to something favorable that has happened in business. An accounting period sometimes also referred to as a financial period, period of account or accounting reference period is a period of time for which a business prepares financial results. The official notification issued by the financial accounting standards board of a new or modified accounting rule. Financial accounting standards board fasb accounting standards codification is referred to as the asc. The forbes financial glossary defines hundreds of finance terms to help you decode the puzzle.