Basic/General Accounting

Items

• accountability

  Being responsible or answerable for something. Example: An accountant is responsible for the accuracy and integrity of the financial statements of an entity.
• accountant

  A professional who performs accounting functions.
• accounting

  The process of keeping track of all financial transactions (Recording, classifying and summarising of financial transactions) so that users of financial statements are provided with information that is useful.
• account

  A record in an accounting system that tracks the financial activities of a specific asset, liability, equity, revenue or expense.
• accounting equation

  The relationship between Assets, Equity and Liabilities (The foundation of the double-entry accounting system).
• accrued

  To increase or accumulate over time. Accumulated in regular or increasing amounts over time. Way of making provision for at the end of a financial period.
• accrued expenses

  Expenses that have been incurred by a company but have not yet been paid.
• accrued income

  Income that has been earned but not yet received and is typically recognised in the accounting period in which it is earned, regardless of when it is received.
• accruals

  Accruals are accounting entries that are made to record revenues and expenses that have been earned or incurred but have not yet been received or paid.
• accumulated

  Increase gradually or gather over a period of time.
• accumulated depreciation

  Total amount an asset has been depreciated over a period of time (Expensing a fixed asset, to reflect the consumption of its economic benefits).
• acid test ratio

  Involves assessing a company’s financial position to see whether it has enough funding to cover its current debt.
• acquisition

  The act of buying or obtaining an asset.
• administrative expenses/costs

  Costs to maintain entity’s daily operations/regular operations.
• advance

  Something that is carried out ahead of time. A payment made in advance, even before the product or service is delivered.
• analysis

  The process of breaking down something and evaluating and examining it to understand how it works.
• age analysis

  A list of entity’s accounts receivables categorised per month to evaluate entity’s accounts receivables and to analyse the age of the debt.
• allowance

  Represents the estimated amount of accounts receivable that will not be paid at the end of a period.
• amortisation

  The systematic allocation of the depreciable amount of an asset over its useful life.
• amount due

  The amount owed to a seller or provider of goods or services.
• appropriation account

  Is a type of ledger account used to record the allocation and use of funds.
• arrears

  Money that is owed, should have been paid earlier.
• asset

  Asset is something valuable that a business owns, it can be used to make money, converted into cash or provide a future benefit.
• asset disposal

  The disposal of a fixed asset (other long-term asset) and the removal thereof from the company’s accounting records.
• auction

  A public sale of goods or property, sold to the highest bidder.