Accounting terminologies

Capitalized Expense - Accumulated expenses that are expensed over time. They function in the same way as income accounts. Cash-Basis Accounting - Records when cash is received through revenues and disbursed for expenses. Degrees Business Blog Current:

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A K is a savings vehicle that allows an employee to defer some of their compensation into an investment-based retirement account.

Basic Accounting Terminology for College Students: 20 Key Terms to Know

A list of all your General Ledger accounts and their current balances. An example might be the sale of unused equipment.

This is called the closing entry. Seen on the Profit and Loss and represented as 5-xxxx accounts in your Chart of Accounts. Export General Employee Info. Cash might be the master account for a list of depository accounts at banks. Supplies are not inventory for sale; rather they are used to carry aaccounting business activities.

This is typically a liability account.

Represents the cumulative net income or loss of a business since its inception. Fixed Asset - Used for a long period of time, e.

Category:Accounting terminology

Fill out the form to receive information about: The ROI is calculated by dividing the net profit by the cost of the investment. Cost of goods sold COGS definition: The accounting software uses an Accrual based accounting system.

Non-operating Income - Income not generated from the business.

Here are ten accounting term definitions to get you started to effectively communicate with your online accounting services provider. Asset - Items of value that are owned. Shareholder equity comes from the start-up capital of the business plus retained earnings amassed over time. Audit Trail - Allow financial transactions to be traced terminologgies their source.

Here all business transactions are recorded, including sales, credit purchases, office expenses and income losses. An Accountant generally only needs the Total Income. Inventory Valuation - the method to set the book value of unsold inventory: ZIP Code Please enter your five digit zip code.

Please try again later. Departmental Accounting - Shows individual departments' income, expenses and net profit. She hopes to engage and intrigue current and potential students.

Accounting Terms

What Do Accountants Do? Receipts is the total amount of cash collected in business transactions over the course of one day. General ledger The general ledger is the side of the bookkeeping ledger that contains the balance sheet and the income statement accounts.

Balance Sheet Accounts are used to produce a summary of financial balances of a company as of a specific date. By requesting information, I authorize Rasmussen College to contact me by email, phone or text message at the ter,inologies provided.

Basic Accounting Terminology for College Students: 20 Key Terms to Know

Accrual Accounting - Records financial transactions when they occur rather than when cash changes hands. Trial balance Trial balance definition: The amount of money a company owes creditors suppliers, etc.

Non-Cash Expense - Does not require cash outlay, e.

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