Generally accepted accounting principles gaap definition. This is a report and opinion, by an independent person or firm, on an organisations financial records. Results when a businesss income is greater than its expenses. The oilfield glossary schlumberger oilfield glossary. Bookkeeping and accountancy deal with maintaining record of all the transactions that a businessindividual makes. An accounting standard is a principle that guides and standardizes accounting practices. Public agency financial management frequently involves terms that are unfamiliar to nonexperts, the definitions of which also involve other unfamiliar.
List of key accounting terms and definitions if you want to start a business, get better at running your business, or get an accounting job, you need to know some essential financial accounting terms and concepts. Mel king institute definitions of accounting terms for. Accounting definitions basic accounting terms to know. The wealthhow article below provides a glossary of accounting terms and definitions that are most commonlyused. One of the basic financial statements that is generally accepted accounting principles gaap required as part of a complete set of financial statements prepared in conformity with. Glossary financial and banking terms adjusted results. From 401ks to zerosum investments, the glossary is an evolving reference for investors and. The science of the management of money and other financial assets. The following glossary is designed to help nonfinance experts understand some of the terminology used in public agency financial management. Fais public utility finance and accounting seminars seminars for professionals concerned with electric, gas and water companies financial accounting institute p.
Accounting activities related to orderly recordkeeping of financial information recording daily transactions preparing financial statements paying bills preparing payroll checks preparing tax forms auditing financial records examining financial records for accuracy and compliance with regulations reconciling the. A set of rules and guidelines developed by the accounting industry for companies to follow when reporting financial data. A record that holds the results of financial transactions. A nongaap financial measure used to assess each of the. Jul 20, 2016 pdf 58kb ahold glossary of financial and legal terms. In this course, and in practice, there are many terms that are used that the listener is expected to know. Background the reserve for outstanding and ibnr claims is an important item in the financial statement of a general insurance company, and actuaries are now being used.
Accounting standards these are set rules by which financial statements must adhere to ensure uniformity and consistency in financial reporting. The technique used to report sales, expenses, and profits. Accounts payable sundry creditors short term or current financial obligations that are created through the purchase of merchandise, or obtaining of service. Glossary of notforprofit financial and accounting terms. Accounting equation the relationship between assets, liabilities and ownership interest. A term referring to the refund of previously paid prop erty taxes due to the overvaluation of property. Accounting helps keep a track of the financial position of the business and forms the basis for good financial planning. The following is a list of some of the more common lingo that will get you by with basic bookkeeping and provide a foundation for future accounting concepts. Official promulgations, known as statements of financial accounting standards, by the financial accounting standards board fasb which are part of generally accepted accounting principles gaap in the united states. The institute of actuaries has prepared and published this claims reserving manual in the hope that it will help both actuaries and others interested in claims reserving practices. The forbes financial glossary defines hundreds of finance terms to help you decode the puzzle. As cloud accounting providers, we feel strongly about eliminating jargon and making accounting simple and accessible for everyone.
The american institute of certified public accountants has defined the financial accounting as the art of recording, classifying and summarising in as significant manner and in terms of money. The examination of documents, records, reports, systems of internal control, accounting and financial procedures, and other evidence for one or more of the following purposes. To help with this, weve compiled an assortment of basic financial terms and acronyms and created a simple accounting glossary for beginners. Glossary of utility finance and accounting terms financial. Generally accepted accounting principlesthe standards and rules that accountants follow while recording and reporting financial activities creditor a person or business to whom a liability is owed.
Accounting methods inlude cash basis accounting and accrual basis accounting. The financial statement showing the financial position of an enterprise by summarizing its assets, liabilities, and owners equity at a point in time or specific date. Accounting accounting keeps track of the financial records of a business. The amount is set out in the companys memorandum of association. Consolidated financial statements financial statements of a group in which assets, liabilities.
Accounting recording and reporting of financial transactions, including the origination of the transaction, its recognition, processing, and. List of key accounting terms and definitions investorguide. Results when a businesss expenses are greater than its income. Medicare financial status, budget impact, and sustainabilitywhich concept is which, actuarial report on the financial outlook for medicaid, estimated impact of health care reform proposals, analysis of volumeandintensity response to a price change for physicians. This az pocket guide to understanding financial terms is just one of the achievements of ebss partnership with nala. Financial statements records that outline the financial activities of a business, an individual or any other entity. Accounting is recording and reporting of financial transactions, including the origination of the transaction, its recognition, processing, and summarization in the. Glossary of financial accounting terms pearson education.
Phone 2015680249 glossary of utility finance and accounting terms used in our seminars. The propensity to be\nblown around by the wind can depend upon the clothing that is worn, so that winter clothing such\nas floppy coats can. The consignee is acting as an agent in an attempt to sell the goods. Accounting glossary center for nonprofit excellence. The asb collaborates with accounting standard setters from other countries and the international. The nysscpa has prepared a glossary of accounting terms for accountants and journalists who report on and interpret financial information. Articles of incorporation also referred to as articles of. Larger depreciation expense in earlier years and smaller depreciation expense in later years. In operation, the branch account on the home office books will be debited when the home office account on the branch books is credited, and vice versa. The schlumberger oilfield glossary is an evergreen, instant reference that takes up no space on your bookshelf and offers many special features. Common accounting terminology glossary alphabetical order.
With accurate financial records, the equation balances. Sometimes described as a snapshot of the business in financial or dollar terms. Plain language definitions with sample applications. Glossary of accounting terms and definitions wealth how.
Financial statement of a business that reports the revenue, expenses and the net income loss of a business for the fiscal period. Although the consignee is temporarily holding the goods, the inventory is not an asset on his books. That is, the amount outstanding debt is a total that includes resources originally advanced plus interest accrued to date minus any repayments. Phone 2015680249 glossary of utility finance and accounting terms used in our seminars letters in parenthesis, preceding the definition, identify the sources used in compiling the glossary. Accounting glossary freeagent get a handle on what your accountant is on about with our easy az of accounting and bookkeeping terms especially for freelancers and small business owners. The basis of accounting under which revenues are recorded when earned and expenditures are recorded as soon as they result in liabilities for benefits received. Accounting terminology guide over 1,000 accounting and. The generally accepted accounting principles gaap is a group of accounting. Accounting introduction naccounting is the art of identifying, measuring, recording, and communicating economic information about an organisation or other entity, in. Mel king institute definitions of accounting terms for financial statements for cdcs 1. Following these rules is especially critical for all publicly traded companies.
Authorised share capital this is the highest amount of share capital that a company can issue. It categorizes net cash provided or used during a period as operating, investing and financing activities. In this spirit, weve compiled this handy guide to the most commonly used accounting terms for your reference. An easy az of accounting and bookkeeping terms for small business owners. In addition to recording financial transactions, it involves reporting, analyzing and summarizing information. Glossary of terms glossary of terms annual percentage rate apr the interest rate charged, expressed as a percent per year, for the use of credit assets possessions that have economic value some of which may provide an economic andor financial return atm automated teller machine. Glossary of defined terms ipsas 1 to ipsas 12 ifac. If a sale occurs, the consignee deducts from the selling price his commission and related expenses, remitting the balance to the consignor. It builds on the environmental accounting glossary prepared in 20 by wassim youssef, volunteer of the said division. This glossary does not include terms defined in the cash basis ipsas, financial reporting under the. Knowing accounting terminology will make bookkeeping easier. Accounting standards developed by the asb are contained in financial reporting standards frss.
These standards are set by the regulatory body in the particular state. Having launched it originally in 2004 we have now updated it with modern. A contract between sba and the borrower that spells out the terms and conditions of the loan. Here is a glossary of financial and accounting terms used in the field of trade business credit. Money owed to suppliers of goods and services delivered on open. Accounting period this is the time period over which financial statements are prepared, and is usually one year. Accounting period any period of time utilised to measure accounting performance e. Contribute to ukwahalflife development by creating an account on github. Accounting definitions and basic accounting terms to know as a small business owner.
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