{"id":1275,"date":"2010-10-21T17:35:47","date_gmt":"2010-10-22T01:35:47","guid":{"rendered":"http:\/\/www.generalknowledgetoday.com\/?p=1275"},"modified":"2010-10-21T17:35:47","modified_gmt":"2010-10-22T01:35:47","slug":"accounting-terms-common-terms-using-in-accountancy","status":"publish","type":"post","link":"https:\/\/generalknowledgetoday.com\/?p=1275","title":{"rendered":"Accounting Terms-Common terms using in Accountancy"},"content":{"rendered":"

Accountancy<\/strong> is the process of communicating financial information about a business entity to users such as shareholders and managers.[1]\u00a0 The communication is generally in the form of financial statements\u00a0 that show in money terms the economic resources under the control of management; the art lies in selecting the information that is relevant to the user and is reliable.<\/p>\n

Accounting<\/strong> – process of identifying, measuring, and reporting financial information of an entity<\/p>\n

Accounting Equation<\/strong> – assets = liabilities + equity<\/p>\n

Accounts Payable<\/strong> – money owed to creditors, vendors, etc.<\/p>\n

Accounts Receivable<\/strong> – money owed to a business, i.e.: credit sales<\/p>\n

Accrual Accounting<\/strong> – a method in which income is recorded when it is earned and expenses are recorded when they are incurred<\/p>\n

Asset<\/strong> – property with a cash value that is owned by a business or individual<\/p>\n

Balance Sheet<\/strong> – summary of a company’s financial status, including assets, liabilities, and equity<\/p>\n

Bookkeeping<\/strong> – recording financial information<\/p>\n

Cash-Basis Accounting<\/strong> – a method in which income and expenses are recorded when they are paid.<\/p>\n

Chart of Accounts<\/strong> – a listing of a company’s accounts and their corresponding numbers<\/p>\n

Cost Accounting<\/strong> – a type of accounting that focuses on recording, defining, and reporting costs associated with specific operating functions<\/p>\n

Credit<\/strong> – an account entry with a negative value for assets, and positive value for liabilities and equity.<\/p>\n

Debit <\/strong>– an account entry with a positive value for assets, and negative value for liabilities and equity.<\/p>\n

Depreciation<\/strong> – recognizing the decrease in the value of an asset due to age and use
\n
\nDouble-Entry Bookkeeping <\/strong>– system of accounting in which every transaction has a corresponding positive and negative entry (debits and credits)<\/p>\n

Equity<\/strong> – money owed to the owner or owners of a company, also known as “owner’s equity”<\/p>\n

Financial Accounting<\/strong> – accounting focused on reporting an entity’s activities to an external party; ie: shareholders<\/p>\n

Financial Statement <\/strong>– a record containing the balance sheet and the income statement<\/p>\n

Fixed Asset <\/strong>– long-term tangible property; building, land, computers, etc.<\/p>\n

General Ledger <\/strong>– a record of all financial transactions within an entity<\/p>\n

Income Statement –<\/strong> a summary of income and expenses<\/p>\n

Job Costing<\/strong> – system of tracking costs associated with a job or project (labor, equipment, etc) and comparing with forecasted costs<\/p>\n

Journal<\/strong> – a record where transactions are recorded, also known as an “account”<\/p>\n

Liability <\/strong>– money owed to creditors, vendors, etc<\/p>\n

Net Income <\/strong>– cash or other property that can be easily converted to cash<\/p>\n

Loan<\/strong> – money borrowed from a lender and usually repaid with interest
\n
\nNet Income <\/strong>– money remaining after all expenses and taxes have been paid<\/p>\n

Non-operating Income<\/strong> – income generated from non-recurring transactions; ie: sale of an old building<\/p>\n

Note <\/strong>– a written agreement to repay borrowed money; sometimes used in place of “loan”
\n
\nOperating Income<\/strong> – income generated from regular business operations<\/p>\n

Payroll <\/strong>– a list of employees and their wages<\/p>\n

Revenue <\/strong>– total income before expenses.<\/p>\n

Single-Entry Bookkeeping <\/strong>– system of accounting in which transactions are entered into one account<\/p>\n","protected":false},"excerpt":{"rendered":"

Accountancy is the process of communicating financial information about a business entity to users such as shareholders and managers.[1]\u00a0 The communication is generally in the form of financial statements\u00a0 that … Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1964,1268],"tags":[8924,8925,8926,8927,8928,8929,8930,547,8931,8932,8933,8934,8935,8936,8937,8938,8680,8939,8940,8941,8942,8943,8944,8945,8946,8947,8948,8949,8950,8951,8952,8953,8954,8955,8956,8957],"class_list":["post-1275","post","type-post","status-publish","format-standard","hentry","category-accountancy","category-accounting-terms","tag-accountancy","tag-accounting","tag-accounting-equation","tag-accounts-payable","tag-accounts-receivable","tag-accrual-accounting","tag-asset","tag-balance-sheet","tag-bookkeeping","tag-cash-basis-accounting","tag-chart-of-accounts","tag-cost-accounting","tag-credit","tag-debit","tag-depreciation","tag-double-entry-bookkeeping","tag-equity","tag-financial-accounting","tag-financial-statement","tag-fixed-asset","tag-general-ledger","tag-income-statement","tag-job-costing","tag-journal","tag-ledger","tag-liability","tag-loan","tag-net-income","tag-non-operating-income","tag-note","tag-operating-income","tag-payroll","tag-profit","tag-profitloss-statement","tag-revenue","tag-single-entry-bookkeeping","entry"],"_links":{"self":[{"href":"https:\/\/generalknowledgetoday.com\/index.php?rest_route=\/wp\/v2\/posts\/1275","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/generalknowledgetoday.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/generalknowledgetoday.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/generalknowledgetoday.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/generalknowledgetoday.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1275"}],"version-history":[{"count":0,"href":"https:\/\/generalknowledgetoday.com\/index.php?rest_route=\/wp\/v2\/posts\/1275\/revisions"}],"wp:attachment":[{"href":"https:\/\/generalknowledgetoday.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1275"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/generalknowledgetoday.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1275"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/generalknowledgetoday.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1275"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}