Glossary of Accounting Terms

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Index of Accounting Terms - A

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Accounting Icon representing financial analysis and reporting
Accounting Related Terms: Financial Accounting, Managerial Accounting, Corporate Accounting, Public Accounting, Accountancy What is accounting? Accounting is the systematic process of recording, summarizing, analyzing, and reporting financial transactions for decision-making.
Icon representing the steps in the accounting cycle.
Accounting Cycle Related Terms: Bookkeeping Cycle, Financial Reporting Cycle What is the Accounting Cycle? The series of steps businesses follow to identify, analyze, record, summarize, and report their financial transactions for an accounting period.
Icon representing the accounting equation
Accounting Equation Related Terms: Balance Sheet Equation, Fundamental Accounting Equation What is the Accounting Equation? The basic accounting principle that states a company's total assets are equal to the sum of its liabilities and equity (Assets = Liabilities + Equity).
Accounting Principles icon representing foundational rules in accounting
Accounting Principles Related Terms: GAAP, IFRS, financial reporting standards, accrual basis, matching principle, consistency principle, revenue recognition, accounting standards, financial statement guidelines, core accounting concepts What is Accounting Principles? The fundamental rules, concepts, and guidelines that govern the preparation and presentation of financial statements. These principles, such as GAAP (Generally Accepted Accounting Principles) or IFRS (International Financial Reporting Standards), ensure financial information is consistent, comparable, and reliable across entities.
Icon representing accounting software interface.
Accounting Software Related Terms: Bookkeeping Software, Financial Software, QuickBooks, Xero What is Accounting Software? Computer programs that help businesses record, process, and report their financial transactions, like QuickBooks Online, Xero, or FreshBooks.
Accounts Payable Icon representing bills or invoices due for payment
Accounts Payable Related Terms: A/P, Payables, Trade Payables, Pay Creditors, Pay Vendors, Money Owed to Others What is Accounts Payable? Accounts Payable represents the short-term liabilities a business owes to its suppliers or vendors for goods and services received but not yet paid for.
Accounts Receivable Icon representing money coming in or invoices sent to customers
Accounts Receivable Related Terms: A/R, Receivables, Trade Receivables, Debtors, Money Owed to Us What is Accounts Receivable? Accounts Receivable represents the money owed to a business by its customers for goods or services that have been delivered or used but not yet paid for.
Icon representing accrual-based accounting
Accrual Accounting Related Terms: Accrual Basis What is Accrual Accounting? An accounting method that recognizes revenues when earned and expenses when incurred, regardless of when cash is exchanged.
Icon representing expenses incurred but not yet paid
Accrued Expenses Related Terms: Accrued Liabilities, Unpaid Expenses What are Accrued Expenses? Expenses that a business has incurred but has not yet paid for as of the reporting date.
Icon representing revenue earned but not yet received
Accrued Revenue Related Terms: Earned Revenue, Unbilled Revenue, Accrued Income What is Accrued Revenue? Revenue that has been earned by a business but for which the cash payment has not yet been received.
Accumulated Depreciation icon representing the total depreciation of an asset
Accumulated Depreciation Related Terms: Depreciation expense, book value, net book value, contra-asset account, asset lifespan, depreciation methods, fixed asset accounting, how to calculate accumulated depreciation, asset valuation What is Accumulated Depreciation? The cumulative amount of depreciation expense recognized for a tangible asset since its acquisition. It is a contra-asset account, meaning it reduces the gross amount of fixed assets reported on the balance sheet, reflecting the portion of the asset's cost that has been allocated to expense over time.
Adjusting Entries icon representing updates to accounts at period end
Adjusting Entries Related Terms: Accrual accounting, deferrals, prepayments, accrued expenses, accrued revenues, unearned revenue, matching principle, accounting cycle, period-end adjustments, types of adjusting journal entries What is Adjusting Entries? Journal entries made at the end of an accounting period to record revenues and expenses that have not been recorded but belong to the period, or to update accounts for items like deferrals and accruals. They ensure that financial statements accurately reflect the company's financial position and performance according to the accrual basis of accounting.
Icon representing the expensing of intangible assets
Amortization Related Terms: Expense Allocation, Intangible Asset Depreciation What is Amortization? The process of gradually writing off the initial cost of an intangible asset over its useful life.
Asset Impairment icon representing a reduction in asset value
Asset Impairment Related Terms: Asset Write-Down, Asset Devaluation, Impairment loss, write-down, carrying amount, recoverable amount, fair value, goodwill impairment, long-lived assets, asset valuation, IAS 36, ASC 360, causes of asset impairment What is Asset Impairment? A significant and unexpected decline in the recoverable value of an asset, where its carrying amount on the balance sheet exceeds the amount that can be recovered through its use or sale. When an asset is impaired, the company must write down the asset's value, recognizing an impairment loss.
Asset Tracking Icon representing the management or tracking of physical assets like equipment or buildings
Asset Tracking Related Terms: Fixed Asset Management, Property, Plant, and Equipment (PP&E) Tracking, Capital Asset Management What is Asset Tracking? Asset tracking is the process of monitoring and recording the movement, maintenance, and depreciation of a company's physical assets.
Asset Turnover Ratio icon representing efficiency in asset use for sales
Asset Turnover Ratio Related Terms: Efficiency ratios, financial ratios, net sales, average total assets, operational efficiency, asset utilization, DuPont analysis, how to improve asset turnover, industry comparison asset turnover What is Asset Turnover Ratio? A financial metric that measures the efficiency with which a company uses its assets to generate sales revenue. It is calculated by dividing net sales by average total assets. A higher ratio generally indicates better performance and more efficient use of assets.
Asset Icon representing valuable company resources, such as coins, buildings, or equipment
Assets Related Terms: Company Resources, Economic Resources, Holdings, Possessions, Property What is an Asset: Assets are resources with economic value that a company owns or controls with the expectation that they will provide future benefit
Audit Protection Icon representing a shield or protection against scrutiny, such as a magnifying glass over financial documents
Audit Protection Related Terms: Audit Defense, Tax Audit Support, IRS Audit Help, Protect from Audit, Audit Assistance What is Audit Protection? Audit protection encompasses services and strategies aimed at preparing for, managing, and minimizing the risks and burdens associated with financial or tax audits.

Accounting and Bookkeeping
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