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--- accounting_terms [2013/01/11 18:47 (11 years ago)] – fixed no line break after each entry rcunanan
+++ accounting_terms [2020/07/07 17:48 (4 years ago)] (current) – kevin
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-ACCOUNTING TERMINOLOGY
+====== Accounting Terminology ======
+Accounting is the process of identifying, measuring, and reporting financial information of a business entity.  The following terms are used commonly in accounting.
-*[[Accounting - process of identifying, measuring, and reporting financial information of an entity]]
+  * Accounting Equation - assets = liabilities + equity
+  * Accounts Payable - money owed to creditors, vendors, etc.
-Accounting Equation - assets = liabilities + equity
+  * Accounts Receivable - money owed to a business, i.e.: credit sales
+  * Accrual Accounting - a method in which income is recorded when it is earned and expenses are recorded when they are incurred
-Accounts Payable - money owed to creditors, vendors, etc.
+  * Asset - property with a cash value that is owned by a business or individual
+  * Balance Sheet - summary of a company's financial status, including assets, liabilities, and equity
-Accounts Receivable - money owed to a business, i.e.: credit sales
+  * Bookkeeping - recording financial information
+  * Cash-Basis Accounting - a method in which income and expenses are recorded when they are paid.
-Accrual Accounting - a method in which income is recorded when it is earned and expenses are recorded when they are
+  * Chart of Accounts - a listing of a company's accounts and their corresponding numbers
-incurred
+  * Cost Accounting - a type of accounting that focuses on recording, defining, and reporting costs associated with specific operating functions
+  * Credit - an account entry with a negative value for assets, and positive value for liabilities and equity.
-Asset - property with a cash value that is owned by a business or individual
+  * Debit - an account entry with a positive value for assets, and a negative value for liabilities and equity.
+  * Depreciation - recognizing the decrease in the value of an asset due to age and use
-Balance Sheet - summary of a company's financial status, including assets, liabilities, and equity
+  * Double-Entry Bookkeeping - a system of accounting in which every transaction has a corresponding positive and negative entry (debits and credits)
+  * Equity - money owed to the owner or owners of a company, also known as "owner's equity"
-Bookkeeping - recording financial information
+  * Financial Accounting - accounting focused on reporting an entity's activities to an external party; ie: shareholders
+  * Financial Statement - a record containing the balance sheet and the income statement
-Cash-Basis Accounting - a method in which income and expenses are recorded when they are paid.
+  * Fixed Asset - long-term tangible property; building, land, computers, etc.
+  * General Ledger - a record of all financial transactions within an entity
-Chart of Accounts - a listing of a company's accounts and their corresponding numbers
+  * Income Statement - a summary of income and expenses
+  * Job Costing - a system of tracking costs associated with a job or project (labor, equipment, etc) and comparing with forecasted costs
-Cost Accounting - a type of accounting that focuses on recording, defining, and reporting costs associated with
+  * Journal - a record where transactions are recorded, also known as an "account"
-specific operating functions
+  * Liability - money owed to creditors, vendors, etc
+  * Liquid Asset - cash or other property that can be easily converted to cash
-Credit - an account entry with a negative value for assets, and positive value for liabilities and equity.
+  * Loan - money borrowed from a lender and usually repaid with interest
+  * Net Income - money remaining after all expenses and taxes have been paid
-Debit - an account entry with a positive value for assets, and negative value for liabilities and equity.
+  * Non-operating Income - income generated from non-recurring transactions; ie: sale of an old building
+  * Note - a written agreement to repay borrowed money; sometimes used in place of "loan"
-Depreciation - recognizing the decrease in the value of an asset due to age and use
+  * Operating Income - income generated from regular business operations
+  * Payroll - a list of employees and their wages
-Double-Entry Bookkeeping - system of accounting in which every transaction has a corresponding positive and negative
+  * Profit - see "net income"
-entry (debits and credits)
+  * Profit/Loss Statement - see "income statement"
+  * Revenue - total income before expenses.
-Equity - money owed to the owner or owners of a company, also known as "owner's equity"
+  * Single-Entry Bookkeeping - a system of accounting in which transactions are entered into one account
-Financial Accounting - accounting focused on reporting an entity's activities to an external party; ie: shareholders
-Financial Statement - a record containing the balance sheet and the income statement
-Fixed Asset - long-term tangible property; building, land, computers, etc.
-General Ledger - a record of all financial transactions within an entity
-Income Statement - a summary of income and expenses
-Job Costing - system of tracking costs associated with a job or project (labor, equipment, etc) and comparing with forecasted costs
-Journal - a record where transactions are recorded, also known as an "account"
-Liability - money owed to creditors, vendors, etc
-Liquid Asset - cash or other property that can be easily converted to cash
-Loan - money borrowed from a lender and usually repaid with interest
-Net Income - money remaining after all expenses and taxes have been paid
-Non-operating Income - income generated from non-recurring transactions; ie: sale of an old building
-Note - a written agreement to repay borrowed money; sometimes used in place of "loan"
-Operating Income - income generated from regular business operations
-Payroll - a list of employees and their wages
-Profit - see "net income"
-Profit/Loss Statement - see "income statement"
-Revenue - total income before expenses.
-Single-Entry Bookkeeping - system of accounting in which transactions are entered into one account