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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]] ​
 +
 Accounting Equation - assets = liabilities + equity Accounting Equation - assets = liabilities + equity
 +
 Accounts Payable - money owed to creditors, vendors, etc. Accounts Payable - money owed to creditors, vendors, etc.
 +
 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
 +
 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
 +
 Bookkeeping - recording financial information Bookkeeping - recording financial information
 +
 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. 
 +
 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.
 +
 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.
 +
 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" ​
 +
 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 ​
 +
 Financial Statement - a record containing the balance sheet and the income statement Financial Statement - a record containing the balance sheet and the income statement
 +
 Fixed Asset - long-term tangible property; building, land, computers, etc. Fixed Asset - long-term tangible property; building, land, computers, etc.
 +
 General Ledger - a record of all financial transactions within an entity ​ General Ledger - a record of all financial transactions within an entity ​
 +
 Income Statement - a summary of income and expenses 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 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"​ Journal - a record where transactions are recorded, also known as an "​account"​
 +
 Liability - money owed to creditors, vendors, etc Liability - money owed to creditors, vendors, etc
 +
 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
 +
 Loan - money borrowed from a lender and usually repaid with interest Loan - money borrowed from a lender and usually repaid with interest
 +
 Net Income - money remaining after all expenses and taxes have been paid  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 ​ 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" ​ Note - a written agreement to repay borrowed money; sometimes used in place of "​loan" ​
 +
 Operating Income - income generated from regular business operations ​ Operating Income - income generated from regular business operations ​
 +
 Payroll - a list of employees and their wages Payroll - a list of employees and their wages
 +
 Profit - see "net income" ​ Profit - see "net income" ​
 +
 Profit/Loss Statement - see "​income statement" ​ Profit/Loss Statement - see "​income statement" ​
 +
 Revenue - total income before expenses. Revenue - total income before expenses.
 +
 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
  
accounting_terms.txt · Last modified: 2013/01/11 18:47 by rcunanan