This glossary of common financial terms was created and is used by the bureau for translating consumer education materials from english to spanish. Accounting glossary center for nonprofit excellence. Accounting period any period of time utilised to measure accounting performance e. Accounting attempts to recognize noncash events and circumstances as they occur. An aggregation of actions performed within an organization that is useful for purposes of activitybased costing. Accounting period time period for which financial statements are. Revised march 30, 2010 2 accounting glossary the following glossary is a condensed version of the new york society of cpas accounting terms glossary. A taxpayer, whether business or individual, must file a request on a form. The users of information generated by financial accounting, like bankers, financial institutions, regulatory authorities, government, investors, etc. Discover the meaning of common bookkeeping terms, words and phrases from this quick a z style guide.
The basis of accounting under which revenues are recorded when earned and expenditures are recorded as soon as they result in liabilities for benefits received. In this spirit, weve compiled this handy guide to the most commonly used accounting terms for your reference. Accrual is concerned with expected future cash receipts and payments. Foreword adult basic education, the organisations are working together to help tackle financial literacy and to address the issue of access to financial products and services for those with literacy and numeracy difficulties. 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.
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 concepts surrounding them. Typical financial statement accounts with debitcredit rules and disclosure conventions. Money owed by the business debts, accounts payable a. This accounting terminology checklist outlines the terminology, concepts and conventions that are accepted within the accounting profession. But there are still legal phrases that baffle nonlawyers. Learn basic accounting terms with free interactive flashcards. Once you become familiar with some of these terms and concepts, you will feel comfortable navigating through the explanations, quizzes, puzzles. This glossary is intended to assist you in understanding commonly used terms and concepts when reading, interpreting, and evaluating scholarly research in the social sciences.
A priority listing made up of statements of accounting principles issued by the aicpa american institute of certified public accountants and fasb financial. It builds on the environmental accounting glossary prepared in 20 by wassim youssef, volunteer of the said division. Glossary of business financial terms 1 glossary of business financial terms accrual basis accounting. Appendix 1 glossary of terms type text 74 aircraft aircraft means a device that is used or intended to be used for flight in the air. Expense is used to refer to payments in proprietary or businesslike funds such as internal service funds. Some terms associated with the income statement include. Poverty defined with respect to an absolute material standard of living. Glossary of accounting terms and definitions wealth how. Financial accounting is charged with the primary responsibility of external reporting.
Accounting accounting is a difficult term to define. The wealthhow article below provides a glossary of accounting terms and definitions that are most commonlyused. The bureau is publically sharing it in an effort to further the accessibility of financial information to limited english proficient persons. Doubleentry bookkeeping method of recording financial transactions in which each transaction is entered in two or more accounts and involves. At the end of this booklet is a glossary of all the relevant accounting terms that will help you understand the science of accounting. The firm undertakes work for clients in respect of audit, accounts preparation, tax and.
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. As cloud accounting providers, we feel strongly about eliminating jargon and making accounting simple and accessible for everyone. Understanding the terminology will help you understand the concepts and their relevance to you, and more importantly, they will help you analyze and run your small business. The a to z guide to legal phrases plain english campaign. The cfpbs glossary of english spanish financial terms. This dictionary provides a basic vocabulary of terms used in accounting, from personal. Bookkeeping and accountancy deal with maintaining record of all the transactions that a businessindividual makes. Read the following definitions carefully and make sure that you understand exactly what is meant by each of these accounting terms. Also included are general words and phrases defined within the context of how they apply to research in the social and behavioral sciences.
The explanations in this guide are not intended to be straight alternatives. Cash method of accounting method of recognizing revenue and expenses when cash is received or disbursed rather than when earned or incurred. Accounting terminology guide over 1,000 accounting and. The basis of accounting under which revenues are re corded when earned and expenditures are recorded as soon as they. Bookkeepers working for smaller businesses might do some basic accounting duties. Glossary of selected governmental accounting and financial terminology page 1 a accounting system. In governmental accounting, the terms expenditure and expense both mean the use of governmental resources. Accounts payable sundry creditors short term or current financial obligations that are created through the purchase of merchandise, or obtaining of service. Gj a book or original entry in a doubleentry system. However, it is formally defined by the american accounting association as the classification and recording of monetary transactions, the presentation and interpretati on of the results of those transactions in order to assess performance. Once you have a good understanding of our glossary of business terms, take time to learn the seven accounting formulas every business owner should know.
Terms for the updated glossary have been compiled from other entities, including the federal housing finance agency, department of. Basic accounting principles business environment 64 the results disclosed in the financial statements will be uniform and comparable. This az pocket guide to understanding financial terms is just one of the achievements of ebss partnership with nala. Definitions have also been provided for many terms from related business. However knowing what these terms mean is critical to understanding the performance of your business. 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. The tasks that bookkeepers and accountants do vary between businesses. Learn about common it terms, technical jargon and information technology definitions in our comprehensive glossary. The purpose of this glossary is to promote familiarity with this terminology for those who do not work with tax issues every day. Theres often overlap, and the duties may change a lot from one business to another.
A record that holds the results of financial transactions. Entries have been drawn from all areas within accounting including financial. Change in accounting method contractors are required to adopt a method of accounting for contract income. Consolidated glossary this glossary is a compilation of all terms presented in statements of federal financial accounting standards. Expenditure is usually used to refer to payments in governmental funds such as general funds and special revenue funds. Financial statements documents presenting accounting information which. That part of the accounting system which contains the balance sheet and income statement accounts used for recording transactions. 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. In any one given accounting period, you should try to match the revenue you are reporting with the expenses it took to generate that revenue in the same time period, or over the periods in which you will be receiving benefits from that expenditure. Account a fiscal and accounting entity with a selfbalancing set of general ledger codes in which cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, are recorded and. A term referring to the refund of previously paid prop erty taxes due to the overvaluation of property.
This glossary contains nontechnical descriptions of all the terms in economics for everyone highlighted in small capitals. What follows is a collection of some of the most common accounting terms, written out with short definitions. The bureau created a glossary translating common financial terms into spanish in october 2015 and has updated it in 2018 with additional terms. The nysscpa has prepared a glossary of accounting terms for accountants and journalists who report on and interpret financial information. Also included are general words and phrases defined within the context of how they apply to. Italicized terms within the definitions are themselves defined elsewhere in the glossary, for crossreference. An aggregation of actions performed within an organization that is useful for purposes. When using the doubleentry accounting method there will be two recorded entries for every transaction. A service that oversees, measures, and evaluates financial information for decision making purposes. Account a fiscal and accounting entity with a selfbalancing set of general ledger codes in which cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, are recorded and segregated for the purpose of carrying on specific. Footnote additional information that offers insight to financial statement. The equation that is the basis of the balance sheet.
Generally, the least preferred method of contract financing. The use of ascii also allows for data files generated by one type of program i. Glossary of acquisition terms advance payments for a payment made before any performance of work under a noncommercialitem noncommercial contract. You will encounter these basic terms again and again when researching accounting software or studying accounting concepts, and i hope that this quick guide will clear up muddy waters and keep the peanuts voices at bay. The firm undertakes work for clients in respect of audit, accounts preparation, tax. 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. Here is big red books definition of common accounting terminology. Accounting terminology can be quite a mouthful and hard to remember, especially if you dont have much prior experience with financial or management accounting.
We have written this a to z guide to help you to understand some of the terms you will come across when you buy a house, go into business, take out insurance, invest your money and do all. Bookkeeping terms and basic accounting definitions. These terms are relevant to the owners of all business entities, whether you run a large corporation or a sole proprietorship. Financial accounting i about the tutorial this tutorial will help you understand the basics of financial accounting and its associated terminologies. Method of reporting financial activity of a business financial transactions recorded in an. A comprehensive listing of all the accounting terms used on the website. It terms glossary information technology definitions. Accounting fundamentals for nonaccountants last updated 29 january 2014 page 2 of 110 who needs to know about basic accounting fundamentals in a tribal nation. The alphabetical layout will help you easily find the word you need.
All tribal nations need to be able to provide accurate, current, and complete disclosure of finances under federal awards. Audience this tutorial has been designed to help beginners pursuing education in financial accounting or business management. Short term or current financial obligations that are created through the purchase of. We have attempted to include the major terms and abbreviations used when discussing taxation issues. Choose from 500 different sets of basic accounting terms flashcards on quizlet. Introduction to accounting basics this explanation of accounting basics will introduce you to some basic accounting principles, accounting concepts, and accounting terminology. Glossary of research terms organizing your social sciences. An accounting entry that may either decrease assets or increase liabilities and equity on the companys balance sheet, depending on the transaction. The basics of construction accounting workshop glossary. Accounting terminology paul martin chartered accountant ltd.