Accounting terminologies and their meanings pdf
File Name: accounting terminologies and their meanings .zip
- Management Accounting Terminology
- Category:Accounting terminology
- The Top 25 Accounting Terms for Business Owners and Students Alike
Management Accounting Terminology
Accounting — the process of recording, assessing, and communicating financial transactions — helps individuals and organizations understand their financial health. Accountants do this work by keeping track of expenses, profits, and losses, making use of this accounting formula:. Effective accountants ensure that their organizations understand their legal obligations and financial performance, and that they can develop budgets and plan for the future. Managers use accounting information to make decisions related to buying or selling, investing, and pricing. The following guide includes basic accounting terms, definitions, and industry acronyms. Business owners can use this accounting dictionary to better understand their financial records and when working with accountants or accounting software.
In this compilation, we highlight some of the most commonly used accounting terms, with precise and very easy to understand definitions. A section of General Ledger with similar entries. Accounts Payable commonly known as AP refers to all accrued expenses in a business that has not been cleared yet. When a business offers sales without receiving payment upon supply, it is recorded in accounts receivable. In a business, the Accounts Receivable — Net is the total debt owed to it, minus the total debt that may not be paid.
Provided by James R. Martin, Ph. Activity cost - Cost associated with different types, or levels of activities. Unit level, batch level, product level, customer level and business level. Appraisal Cost - The cost of testing and inspecting both the materials and finished products.
There may be several Accounting Periods in an Accounting Cycle. See also Accounting Cycle. Allocation - A method of separating an asset=s value or.
The Top 25 Accounting Terms for Business Owners and Students Alike
The following 87 pages are in this category, out of 87 total. This list may not reflect recent changes learn more. From Wikipedia, the free encyclopedia.