Search results
People also ask
What are the basic accounting terms?
What does accounting mean in simple terms?
What are the terms & concepts in the accounting basics Dictionary?
What are basic accounting concepts?
Oct 18, 2023 · Our accounting basics dictionary includes dozens of important terms. This guide includes accounting definitions, alternative word uses, explanations of related terms, and the importance of particular words or concepts to the accounting profession as a whole.
- Accounts receivable (AR) Accounts receivable (AR) definition: The amount of money owed by customers or clients to a business after goods or services have been delivered and/or used.
- Accounting (ACCG) Accounting (ACCG) definition: A systematic way of recording and reporting financial transactions for a business or organization.
- Accounts payable (AP) Accounts payable (AP) definition: The amount of money a company owes creditors (suppliers, etc.) in return for goods and/or services they have delivered.
- Assets (fixed and current) (FA, CA) Assets (fixed and current) definition: Current assets (CA) are those that will be converted to cash within one year.
Mar 12, 2024 · To help you manage your business and understand what your accountant is talking about, here’s a list of basic accounting terms: 25. Equities. Equity is the residual interest in the assets of a corporation after deducting liabilities and is referred to as owner’s equity or stockholder’s equity.
- Introduction to Accounting. This chapter provides a fresh look into accounting. We will define accounting and break the definition down into simple points; learn about the role of accounting in the financial world, its branches, areas of accounting practice, and the types and forms of business.
- Fundamental Accounting Concepts. This chapter covers the core concepts in accounting that you need to know before moving on to the more intricate topics.
- The Financial Statements. The preparation of the financial statements is the seventh step in the 9-step accounting cycle. However, we decided to present this first before getting into the whole process for you to have a picture of what we are trying to produce in an accounting system.
- Analyzing, Recording, and Classifying. This chapter deals with the first 4 steps of the 9-step accounting cycle. The first four steps actually represent the analyzing, recording, and classifying phases of accounting.
- Accrual basis accounting. Accrual basis accounting, aka accrual accounting, is when you record all revenue and expense-related items as the transaction first occurs rather than after payment is received.
- Accruals. Accruals are revenues and expenses recognized by a business before being recorded in its accounts. For example, if a company has done business with a customer but has not yet received payment, the company would mark down the expected revenue as an accrual.
- Accounting period. An accounting period is the length of time in which accounting functions are recorded and analyzed. Depending on the business, an accounting period can last weeks, quarters, or a calendar or fiscal year.
- Accounts payable. Accounts payable, aka payables, is an account in the general ledger used to track money a company owes to creditors. For example, if a company owes $4,000 on its company credit card, $4,000 would be recorded in the accounts payable account.
Jul 6, 2023 · 1. Accruals. 2. Consistency. 3. Going concern. 4. Conservatism. 5. Economic entity assumption. 6. Materiality. 7. Matching. 8. Accounting equation. 9. Accounting period. Nerdy takeaways. Using...
Some of the basic accounting terms that you will learn include revenues, expenses, assets, liabilities, income statement, balance sheet, and statement of cash flows. You will become familiar with accounting debits and credits as we show you how to record transactions.
