Category: Accounting Terms

Become an accounting expert with our full accounting dictionary below:

Accounting Ethics

The accounting profession has a code of ethics that provides guidance to accountants on how they should conduct themselves in the workplace. The accou…

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Accounting Research

There are two main types of accounting research: primary research and secondary research. Primary research involves collecting original data through s…

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Big Four Auditors

The Big Four accounting firms are the world’s largest professional accounting and auditing organizations. The term “Big Four” accounting firms refers to…

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Bond

A bond is a debt security, in which the issuer owes the holders a debt and is obliged to pay them interest (coupons) or to repay the principal at a late…

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Bookkeeping

Bookkeeping is the process of recording, classifying, and summarizing financial transactions to provide information that is useful in making business de…

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Capital Expenditure

A capital expenditure is an outlay of cash by a company for the purposes of acquiring, improving, or maintaining long-term assets. These assets may incl…

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Chart of Accounts

The chart of accounts is a listing of all the account titles that a company has identified and made available for recording transactions in its accounti…

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Comprehensive Income

Comprehensive income is a term used in accounting to refer to the total amount of a company’s income. This includes both operational and non-operational…

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Cost Accounting

Cost accounting is the accounting process that tracks, records, and analyzes the costs associated with a company’s products or services. This informatio…

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Creative Accounting

Creative accounting is a term that is used to describe accounting practices that may be considered aggressive or unconventional. These practices can be …

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Credit

In accounting, credit refers to an accounting entry that increases a liability or equity account, or decreases an asset or expense account. A credit is …

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Credit Note

A credit note is a document that is issued by a seller to a buyer. This document indicates that the buyer has been overcharged for goods or services. Th…

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Debit Note

A debit note is an accounting document that is used to request a credit from a supplier. This type of accounting document is typically used when goods a…

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Debitcapital

Debitcapital refers to accounting entries that record increases in liabilities, expenses, and losses, or decreases in assets, equity, income, and gains….

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Deficit

A deficit is an accounting term that refers to the amount by which a company’s liabilities exceed its assets. In other words, a deficit occurs when a co…

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Depreciation

Depreciation is an accounting method of allocating such cost to expense in a systematic and rational manner to those accounting periods in which the org…

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Dual Aspect

In accounting, the dual aspect refers to the double-sided nature of every transaction. Every business transaction has two parts, and each part affects b…

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E-Accounting

E-accounting is the accounting process that uses electronic means to collect, store, and report financial data. This includes the use of computer hardwa…

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Earnings Per Share

Earnings per share (EPS) is a key metric used by investors to determine the profitability of a company. EPS is calculated by dividing a company’s net in…

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EBIT

EBIT is an accounting term that stands for “earnings before interest and taxes.” It is a measure of a company’s profitability that excludes interest and…

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EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company’s operating performance. EBITDA is often…

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Engagement Letter

An engagement letter is a formal document that outlines the terms of a business agreement. It typically includes an overview of the work to be performed…

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Entity Concept

The accounting entity concept is the idea that a business is a separate and distinct entity from its owners. This means that the business has its own fi…

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Expense

An expense is an accounting term for a cost that has been incurred by a business. An expense represents a decrease in the company’s assets or an increas…

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Financial Audit

An accounting and financial audit is an independent examination of an organization’s financial statements and accompanying disclosures. The purpose of t…

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Fixed Assets

Fixed assets are long-term physical assets that a company uses in its business. They are also known as capital assets or property, plant, and equipment …

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