Terminology to Master for Accounting
April 4, 2012
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Accounting is a very technical field and on a daily basis accounting professionals use industry jargon and terms without even realizing it. If you have a passion for numbers and want to pursue success in this field it would be beneficial to familiarize yourself with basic terminology. Some accounting dictionaries feature over 3,600 words, so there is no time like the present to start learning.
- Above the line – This is a broad term used for transactions, assets and other elements associated with everyday business.
- Accounts payable – An account that contains the overall balance of the Purchase Ledger.
- Burn rate – The rate at which a business spends money.
- Capital – The amount of money invested into a business as opposed to the money earned.
- Cash flow – A report that documents the flow of money in and out of a business over an extended period of time.
- Dividends – Payments to shareholders of a limited company.
- Equity – The value of a business to the business owner.
- Fiscal year – Describes the twelve months in a business’ accounting year.
- Growth and acquisition – The way in which a company can grow in terms of normal operations and through the purchase of other companies.
- Journal – Refers to a book or set of books where transactions are first entered.
- Maturity value – The projected value of an asset on the date it will become due.
- Point of sale (POS) – The place where an initial sale of goods takes place.
- Retainer – A certain amount of money that is paid to ensure a person or company is available when necessary.
- Tangible assets – Physical assets of a company including buildings, vehicles, fixtures and equipment.
- Zero based budget (ZBB) – Beginning a budget with a value of zero to make it necessary to justify every cost that increases the budget.
Want to learn more accounting terminology? Enroll in accounting classes at a school near you.
This article is presented by Briarcliffe College. Contact us today if you’re interested in developing marketable knowledge and career-relevant skills with an industry-current degree program from Briarcliffe College.