English word for accounting - explained in english - a way to improve your English skill

account payable A liability backed by the general reputation and credi accounting The information system that measures business activiti accounting equation The most basic tool of accounting: Assets = Liabilitie assets An economic resource that is expected to be of benefit balance sheet List of an entity's assets, liabilities, and owner's e board of directors Group elected by the stockholders to set policy for a capital Another name for the owner's equity of a business. cash Money and any medium of exchange that a bank accepts a common stock The most basic form of capital stock.

corporation A business owned by stockholders. A corporation is a l cost principle Principle that states that assets and services should current assets An asset that is expected to be converted to cash, sol current liabilities A debt due to be paid within 1 year or within the enti dividents Distributions (usually cash) by a corporation to its s entity An organization or a section of an organization that, expenses Decrease in retained earnings that results form operat fair value The amount that a business could sell an asset for, or financial accounting The branch of accounting that provides information to financial statements Business documents that report financial information a financing activities Activities that obtain from investors and creditors th fixed assets Another name for property, plant, and equipment.

Accounting guidelines, formulated by t

generally accepted accounting principles (GAAP)

going-concern concept Holds that the entity will remain in operation for the income statement A financial statement listing an entity's revenues, ex Investing activities Activities that increase or decrease the long-term ass liabilities An economic obligation (a debt) payable to an individu limited liability company A business organization in which the busines (not the long-term debt A liability that falls due beyond 1 year from the date management accounting The branch of accounting that generates information fo merchandise inventory The merchandise that a company sells to customers, als net earnings Another name for net income.

net income Excess of total revenues over total expense. Also call net loss Excess of total expenses over total revenues.

net profit Another name for net income.

note payable A liability evidenced by a written promise to make a f objectivity principle Another name for the reliability principle.

operating activities Activities that create revenue or expense in the entit owners' equity The claim of the owners of a business to the assets of paid-in capital The amount of stockholders' equity that stockholders h partnership An association of 2 or more persons who co-own a busin plant assets Another name for property, plant, and equipment. property, plant and equipment Long-lived assets, such as land, buildings, and equipm proprietorship A business with a single owner.

reliability principle The accounting principle that ensures that accounting retained earnings The amount of stockholders' equity that the corporatio revenues Increase in retained earnings from delivering goods or shareholder Another name for stockholder.

stable-monetary-unit concept The reason for ignoring the effect of inflation in the statement of cash flows Reports cash receipts and cash payments classified acc statement of financial position Another name for the balance sheet.

account The record of the changes that have occurred in a part accrued liability A liability of an expense that has not yet been paid b cash Money and any medium of exchange that a bank accepts a

chart of accounts List of a company's accounts and their account numbers credit The right side of an account.

debit The left side of an account.

journal The chronological accounting record of an entity's tra ledger The book of accounts and their balances.

posting Copying amounts from the journal to the ledger. prepaid expense A category of miscellaneous assets that typically expi transaction Any event that has a financial impact on the business trial balance A list of all the ledger accounts with their balances. account format A balance-sheet format that lists assets on the left a accrual An expense or a revenue that occurs before the busines accrual accounting Accounting that records the impact of a business event accrued expense An expense incurred but not yet paid in cash

accrued revenue A revenue that has been earned but not yet received in accumulated depreciation The cumulative sum of all depreciation expense from th adjusted trial balance A list of all the ledger accounts with their adjusted book value (of a plant asset)The asset's cost mimus accumulated depreciation

cash-basis accounting Accounting that records only transactions in which cas classified balance sheet A balance sheet that shows current assets separate fro closing the books The process of preparing the accounts to begin recordi closing entries Entries that transfer the revenue, expense, and divide contra account An account that always has a companion account and who current assets An asset that is expected to be converted to cash, sol current liabilities A debt due to be paid within one year or within the en current ratio Current assets divided by current liabilities. Measure debt ratio Ratio of total liabilities to total assets. States the deferral An adjustment for which the business paid or received depreciation the cost of a plant asset over its useful life

liquidity Measure of how quickly an item can be converted to cas long-term assets An asset that is not a current asset

matching principle The basis for recording expense. Directs accountants t multi-step income statement An income statement that contains subtotals to highlig operating cycle Time span during which cash is paid for goods and serv permanent accounts Asset, liability, and stockholders' equity accounts th plant assets Long-lived assets, such as land, buildings, and equipm prepaid expense A category of miscellaneous assets that typically expi report format A balance-sheet format that lists assets at the top, f revenue principle The basis for recording revenues; tells accountants wh single-step income statement An income statement that lists all the revenues togeth temporary accounts The revenue and expense accounts that relate to a limi time-period concept Ensures that accounting information is reported at reg unearned revenue A liability created when a business collects cash from audit A periodic examination of a company's financial statem bank collections Collection of money by the bank on behalf of a deposit bank reconciliation A document explaining the reasons for the difference b bank statement Document showing the beginning and ending balances of budget A quantitative expression of a plan that helps manager check Document instructing a bank to pay the designated pers controller The chief accounting officer of a business

deposits in transit A deposit recorded by the company but not yet by its b electronic fund transfer (EFT)System that transfers cash by electronic communication inprest system A way to account for petty cash by maintaining a const

internal control Organizational plan and related measures adopted by an nonsufficient funds (NSF) A 'hot' check, one for which the payer's bank account outstanding checks A check issued by the company and recorded on its book petty cash Fund containing a small amount of cash that is used to treasurer In a large company, the person in charge of writing ch

general reputation and credit standing of the debtor.

t measures business activities, processes that information into reports and financial statements, and communi ounting: Assets = Liabilities + Owner's Equity.

is expected to be of benefit in the future.

, liabilities, and owner's equity as of a specific date. Also called the statement of financial position. holders to set policy for a corporation and to appoint its officers.

's equity of a business.

change that a bank accepts at face value.

ital stock.

olders. A corporation is a legal entity, an "artificial person" in the eyes of the law.

assets and services should be recorded at their actual cost.

to be converted to cash, sold, or consumed during the next 12 months, or within the business's normal operati in 1 year or within the entity's operating cycle if the cycle is longer than a year.

h) by a corporation to its stockholders.

on of an organization that, for accounting purposes, stands apart from other organizations and individuals as ngs that results form operations; the cost of doing business; opposite of revenues.

could sell an asset for, or the amount that a business could pay to settle a liability.

hat provides information to people outside the firm.

port financial information about a business entity to decision markers.

m investors and creditors the cash needed to launch and sustain the business; a section of the statement of c plant, and equipment.

mulated by the Financial Accounting Standards Board, that govern how accounting is praciticed.

remain in operation for the foreseeable future.

ing an entity's revenues, expense, and net income or net loss for a specific period. Also called the statemen r decrease the long-term assets available to the business; a section of the statement of cash flows.

debt) payable to an individual or an organization outside the business.

which the busines (not the owner) is liable for the company's debts.

beyond 1 year from the date of the financial statements.

hat generates information for the internal decision makers of a business, such as top executives.

pany sells to customers, also called inventory.

ver total expense. Also called net earings or net profit.

ver total revenues.

written promise to make a future payment.

bility principle.

enue or expense in the entity's major line of buiness; a section of the statement of cash flows. Operation ac a business to the assets of the business. Also called capital, stockholders' equity, or net assets.

' equity that stockholders have contributed to the corporation. Also called contributed capital.

e persons who co-own a business for profit.

plant, and equipment.

land, buildings, and equipment, used in the operation of the business. Also called plant assets or fixed ass

hat ensures that accounting records and statements are based on the most reliable data availble. Also called ' equity that the corporation has earned through profitable operation and has not given back to stockholders. ngs from delivering goods or services to customers or clients.

e effect o

f inflation in the accountin

g records, based on the assumption that the dollar's purchasing power i cas

h payments classified according to the entity's major activities: operation, investing, and financing.

that have occurred in a particular asset, liability, or stockholders' equity during a period. The basic summa that has not yet been paid by the company.

change that a bank accepts at face value.

ts and their account numbers.

ng record of an entity's transactions.

heir balances.

ournal to the ledger.

s assets that typically expire or get used up in the near future. Examples include Prepaid Rent, Prepaid Insu cial impact on the business and can be measured reliably.

ccounts with their balances.

t lists assets on the left and liabilities and stockholders' equity on the right

at occurs before the business pays or receives cash. An accrual is the opposite of a deferral

e impact o

f a business event as it occurs, regardless of whether the transaction affected cash

t yet paid in cash

rned but not yet received in cash

depreciation expense from the date of acquiring a plant asset

ccounts with their adjusted balances

umulated depreciation

ly transactions in which cash is received or paid

current assets separate from long-term assets, and current liabilities separate from long-term liabilities he accounts to begin recording the next period's transactions. Closing the accounts consists of journalizing revenue, expense, and dividends balances from these respective accounts to the Retained Earnings account

a companion account and whose normal balance is opposite that of the companion account

to be converted to cash, sold, or consumed during the next 12 months, or within the business's normal operati in one year or within the entity's operating cycle if the cycle is longer than a year

current liabilities. Measures a company's ability to pay current liabilities with current assets

to total assets. States the proportion of a company's assets that is financed with debt

e business paid or received cash in advance. Examples include prepaid rent, prepaid insurance, and supplies over its useful life

item can be converted to cash

rent asset

pense. Directs accountants to identify all expenses incurred during the period, to measure the expense, and t ontains subtotals to highlight important relationships between revenues and expenses

h is paid for goods and services that are sold to customers who pay the business in cash

kholders' equity accounts that are not closed at the end of the period

land, buildings, and equipment, used in the operation of the business. Also called fixed assets

s assets that typically expire or get used up in the near future. Examples include prepaid rent, prepaid insu t lists assets at the top, followed by liabilities and stockholders' equity below

venues; tells accountants when to record revenue and the amount of revenue to record

ists all the revenues together under a heading such as Revenues and Gains. Expense appear in a separate categ counts that relate to a limited period and are closed at the end of the period are temporary accounts. For a formation is reported at regular intervals

business collects cash from customers in advance of earning the revenue. The obligation is to provide a prod a company's financial statements and the accounting systems, controls, and records that produce them.

bank on behalf of a depositor

reasons for the difference between a depositor's records and the bank's records about the depositor's cash ning and ending balances of a particular bank account listing the month's transactions that affected the acco of a plan that helps managers coordinate the entity's activities

k to pay the designated person or business the specified amount of money

er of a business

company but not yet by its bank

by electronic communication rather than by paper documents

cash by maintaining a constant balance in the petty cash account, supported by the fund (cash plus payment t

lated measures adopted by an entity to safeguard assets, encourage adherence to company policies, promote ope ch the payer's bank account has insufficient money to pay the check. NSF checks are cash receipts that turn o any and recorded on its books but not yet paid by its bank

ount of cash that is used to pay minor amounts

rson in charge of writing checks

atements, and communicates the results to decision makers. t of financial position.

he business's normal operating cycle if longer than a year. nizations and individuals as a separate economic unit.

ection of the statement of cash flows.

s praciticed.

od. Also called the statement of operations.

ment of cash flows.

top executives.

of cash flows. Operation activities affect the income statement. ity, or net assets.

ibuted capital.

ed plant assets or fixed assets.

data availble. Also called the objectivity principle.

given back to stockholders.

dollar's purchasing power is relatively stable.

nvesting, and financing.

ng a period. The basic summary device of accounting.

id Rent, Prepaid Insurance, and Supplies.

f a deferral

affected cash

from long-term liabilities

ts consists of journalizing and posting the closing entries to set the balances of the revenue, expense, and tained Earnings account

he business's normal operating cycle if longer than a year

current assets

id insurance, and supplies

o measure the expense, and to match them against the revenues earned during the same period

ed fixed assets

e prepaid rent, prepaid insurance, and supplies

e appear in a separate category called Expenses or perhaps Expenses and Losses

e temporary accounts. For a corporation, the Dividents account is also temporary

igation is to provide a product or a service in the future

s that produce them.

bout the depositor's cash

tions that affected the account

he fund (cash plus payment tickets) totaling the same amount

ompany policies, promote operational efficiency, and ensure accurate and reliable accouting records re cash receipts that turn out to be worthless

evenue, expense, and dividends accounts to zero. Also called closing the accounts ame period

accouting records