Ledger

A ledger is a bookkeeping or accounting journal that is used to record financial transactions. Transactions are recorded in chronological order and typi…

Internal Audit

An Internal audit is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It help…

International Accounting Standards

There is no single definition of “international accounting standards”, but they generally refer to accounting standards that have been adopted by countr…

International Federation of Accountants

The International Federation of Accountants (IFAC) is an accounting organization that develops and promotes international standards in accounting and re…

Intangible Asset

An intangible asset is an identifiable non-monetary asset without a physical existence. Examples of intangible assets include patents, copyrights, and t…

Historical Cost

Historical cost is an accounting term that refers to the original price of an asset. This original price becomes the asset’s historical cost. Historical…

Institute of Management Accountants

The Institute of Management Accountants (IMA) is the world’s leading organization dedicated to empowering management accounting and finance professional…

Governmental Accounting Standards Board

The Governmental Accounting Standards Board (GASB) is the independent, not-for-profit organization that establishes accounting and financial reporting s…

Gross Income

Gross income is defined as the total amount of money earned in a year before taxes and other deductions are taken out. It’s important to know your gross…

Indian Accounting Standards

The Indian accounting standards are a set of accounting standards developed by the Institute of Chartered Accountants of India (ICAI). The ICAI is respo…

Goodwill

Goodwill is an accounting concept that refers to the value of a business that is not directly attributable to its physical assets or tangible intangible…

Governmental Accounting

Governmental accounting is the accounting used by government agencies in order to track their spending and income. This accounting is different from sta…

Forensic Accounting

Forensic accounting is the application of accounting principles and procedures to collect, analyze, and interpret financial evidence for use in legal pr…

Going Concern

The accounting term “going concern” refers to a business’s ability to continue operating indefinitely. A going concern is not in danger of liquidation o…

General Ledger

The general ledger is the accounting record of all financial transactions for a company. It includes all accounts that are used to record debit and cred…

Fund Accounting

Fund accounting is an accounting system that is used by nonprofits and other organizations to track their financial activities. This accounting method d…

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 …

Environmental Accounting

Environmental accounting is the process of accounting for the environmental costs and benefits of an organization’s activities. This can include measuri…

Financial Audit

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

Financial Accounting

Financial accounting is the process of recording, classifying, and summarizing financial transactions to provide information that is useful in making bu…

EBITDA

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

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…

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…

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…

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…

Double-Entry Bookkeeping System

The double-entry bookkeeping system is a method of accounting that records transactions as both debits and credits. In other words, for each transaction…

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…

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…

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…

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…

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…

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 …

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…

Diluted Earnings Per Share

Diluted earnings per share (diluted EPS) is a measure of the profit attributable to each ordinary share that would be paid if all convertible securities…

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…