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accounting_terms [2010/10/27 14:51] charlene |
accounting_terms [2013/01/11 18:47] (current) rcunanan fixed no line break after each entry |
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*[[Accounting - process of identifying, measuring, and reporting financial information of an entity]] | *[[Accounting - process of identifying, measuring, and reporting financial information of an entity]] | ||
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Accounting Equation - assets = liabilities + equity | Accounting Equation - assets = liabilities + equity | ||
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Accounts Payable - money owed to creditors, vendors, etc. | Accounts Payable - money owed to creditors, vendors, etc. | ||
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Accounts Receivable - money owed to a business, i.e.: credit sales | 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 | + | |
+ | Accrual Accounting - a method in which income is recorded when it is earned and expenses are recorded when they are | ||
+ | incurred | ||
Asset - property with a cash value that is owned by a business or individual | Asset - property with a cash value that is owned by a business or individual | ||
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Balance Sheet - summary of a company's financial status, including assets, liabilities, and equity | Balance Sheet - summary of a company's financial status, including assets, liabilities, and equity | ||
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Bookkeeping - recording financial information | Bookkeeping - recording financial information | ||
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Cash-Basis Accounting - a method in which income and expenses are recorded when they are paid. | Cash-Basis Accounting - a method in which income and expenses are recorded when they are paid. | ||
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Chart of Accounts - a listing of a company's accounts and their corresponding numbers | Chart of Accounts - a listing of a company's accounts and their corresponding numbers | ||
- | Cost Accounting - a type of accounting that focuses on recording, defining, and reporting costs associated with specific operating functions | + | |
+ | 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. | Credit - an account entry with a negative value for assets, and positive value for liabilities and equity. | ||
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Debit - an account entry with a positive value for assets, and negative value for liabilities and equity. | Debit - an account entry with a positive value for assets, and negative value for liabilities and equity. | ||
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Depreciation - recognizing the decrease in the value of an asset due to age and use | Depreciation - recognizing the decrease in the value of an asset due to age and use | ||
- | Double-Entry Bookkeeping - system of accounting in which every transaction has a corresponding positive and negative entry (debits and credits) | + | |
+ | Double-Entry Bookkeeping - 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" | Equity - money owed to the owner or owners of a company, also known as "owner's equity" | ||
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Financial Accounting - accounting focused on reporting an entity's activities to an external party; ie: shareholders | Financial Accounting - accounting focused on reporting an entity's activities to an external party; ie: shareholders | ||
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Financial Statement - a record containing the balance sheet and the income statement | Financial Statement - a record containing the balance sheet and the income statement | ||
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Fixed Asset - long-term tangible property; building, land, computers, etc. | Fixed Asset - long-term tangible property; building, land, computers, etc. | ||
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General Ledger - a record of all financial transactions within an entity | General Ledger - a record of all financial transactions within an entity | ||
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Income Statement - a summary of income and expenses | Income Statement - a summary of income and expenses | ||
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Job Costing - system of tracking costs associated with a job or project (labor, equipment, etc) and comparing with forecasted costs | Job Costing - system of tracking costs associated with a job or project (labor, equipment, etc) and comparing with forecasted costs | ||
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Journal - a record where transactions are recorded, also known as an "account" | Journal - a record where transactions are recorded, also known as an "account" | ||
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Liability - money owed to creditors, vendors, etc | Liability - money owed to creditors, vendors, etc | ||
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Liquid Asset - cash or other property that can be easily converted to cash | Liquid Asset - cash or other property that can be easily converted to cash | ||
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Loan - money borrowed from a lender and usually repaid with interest | Loan - money borrowed from a lender and usually repaid with interest | ||
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Net Income - money remaining after all expenses and taxes have been paid | Net Income - money remaining after all expenses and taxes have been paid | ||
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Non-operating Income - income generated from non-recurring transactions; ie: sale of an old building | Non-operating Income - income generated from non-recurring transactions; ie: sale of an old building | ||
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Note - a written agreement to repay borrowed money; sometimes used in place of "loan" | Note - a written agreement to repay borrowed money; sometimes used in place of "loan" | ||
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Operating Income - income generated from regular business operations | Operating Income - income generated from regular business operations | ||
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Payroll - a list of employees and their wages | Payroll - a list of employees and their wages | ||
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Profit - see "net income" | Profit - see "net income" | ||
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Profit/Loss Statement - see "income statement" | Profit/Loss Statement - see "income statement" | ||
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Revenue - total income before expenses. | Revenue - total income before expenses. | ||
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Single-Entry Bookkeeping - system of accounting in which transactions are entered into one account | Single-Entry Bookkeeping - system of accounting in which transactions are entered into one account | ||