50 Words Associated with Accounting A to Z Accounting Terms


Accounting is important for businesses to work smoothly. Important activities like investing and collecting, reporting, and analyzing financial data rely on the principles and procedures of accounting. What are the 50 words associated with accounting?

This article is for people or students who want to understand the most common accounting terms. We will specifically explain at least 50 words associated with accounting.

50 Words Associated with Accounting / A to Z Accounting Terms

Below is a list of accounting terms with their meaning. These 50 words associated with accounting are ordered from A to Z.

A to Z Accounting Terms List:

  • Accountancy

Accountancy is another word for accounting. It refers to the work or profession of an accountant.

  • Accountant

A person who performs accounting for a career. The types of activities vary significantly. Some accountants are clerks who do bookkeeping functions, and some are business advisors to large companies.

  • Assets

Resources or items of value owned by a company.

  • Auditing

Examination of financial statements to ensure accuracy and compliance.

  • Audit fee

a fee charged by an auditor for auditing a company’s accounts.

  • Auditor

A person who audits.

  • Audit programme

A listing of all the steps to be taken when auditing a company’s accounts

  • Budget

A financial plan that outlines expected revenues and expenses over a specific period.

  • Bookkeeper

A person whose job is to keep an accurate record of the accounts of a business.

  • Balance

(1) The net amount left in an account after adding the increases and deducting the decreases. (2) The situation in which debits equal credits.

  • Balance sheet

A listing of the assets, liabilities, and equity of an entity at a point in time, usually the end of a month, quarter, or year. It is one of the four financial statements required in a full financial report. The balance sheet tells the reader what the entity owns (assets) and what the entity owes (liabilities) at that moment. The difference between the two is equity.

  • Capital

Cash or other types of funds available for use in business. Accountants recognize different subcategories of capital.

  • Working capital

Working capital defines the sum that remains after subtracting current liabilities from current assets.

  • Equity capital

Equity capital specifies the money paid into a business by investors in exchange for stock in the company.

  • Debt capital

Debt capital covers money obtained through credit instruments such as loans.

  • Capital loss

The decrease in the value of a capital asset that the owner of the asset realizes when the asset is sold.

  • Cash flow

The movement of cash into and out of a business.

  • Deduction

Money that is removed from our earnings to pay for tax, national insurance, etc., is called a deduction.

  • Depreciation

The reduction in the value of an asset over time.

  • Dividends

Payments made to shareholders from a company’s profits.

  • Equity

The residual interest in the assets of an entity after deducting liabilities; often referred to as net worth or shareholders’ equity.

  • Expenditure

The money that people receive for working is income. However, the money that they spend is known as expenditure.

  • Financial Statements

Reports that summarize the financial activities and position of a business.

  • Gross

Gross is an adjective used to describe an employee’s earnings before tax, national insurance, etc.,
have been taken away.

  • GAAP (Generally Accepted Accounting Principles)

Standardized guidelines for financial accounting.

  • IFRS (International Financial Reporting Standards)

Global accounting standards used by many countries.

  • Liabilities

Debts or obligations that a company owes to others.

  • Loss

The negative difference between revenue and expenses.

  • Net Income

The total revenue minus total expenses over a specific period.

  • Payroll

The total amount a company pays to its employees.

  • Product life cycle

The time between the beginning of a product and its discontinuance. A product life cycle is similar to the lifetime of a person from birth to death.

  • Profit

A general term that means the amount of earnings or the excess of revenue over expenses.

  • Profitability

A company’s capacity to earn income. Profitability can relate to performance in the past or to predictions for the future.

  • Strategic plan

The document that identifies an entity’s purpose and activities or accomplishments for the next five or more years. A strategic plan sets priorities for financial resources.

  • Taxation

The process of imposing levies on individuals or entities by a government.

  • Tax avoidance

The structuring of economic behaviors so that the least amount of tax is paid by the taxpayer. Tax avoidance uses every legal means to reduce tax payments. Contrast with tax evasion, which uses illegal means to avoid paying taxes.

  • UAA

Uniform Accountancy Act.

  • Uncollectible account

A debt from a customer that the company decides will not be paid. The company removes the account from the total of accounts receivable.

  • Understatement

A form of financial statement fraud that states liabilities or expenses at less than the actual amount to reach some desired financial target.

  • Underwriting

The process of evaluating and assuming risk for insurance or securities.

  • Weighting

A weighting is an additional amount of money paid to an employee to compensate him/her for living in an expensive area.

  • Working capital

An analytical instrument for assessing short-term liquidity. Calculated by subtracting current liabilities from current assets, the working capital formula reveals the surplus of liquid assets accessible for operational needs.

  • XBRL

Extensible Business Reporting Language.

  • Yellow Book

The colloquial expression “Yellow Book” refers to Government Auditing Standards, which serve as the guidelines for auditing government programs, activities, and functions. These standards are encapsulated within the Yellow Book.

  • Zero defects

A situation in which all products conform to specified requirements, either precisely at the specified value or falling within a designated range of the specified value.

Other Accounting Vocabulary Words

Here is another list of accounting vocabulary words with meaning:

  • Cash Receipt

Money received from a customer for a billing, deposit, retainer, or donation. Also, money returned from a vendor.

  • Trust Accounting

Maintaining accounting records for assets and/or liabilities that you are the custodian of. These would be assets and liabilities that are owned by your clients, but you manage for them.

  • Income

Money earned by a business.

  • Income Statement

A financial statement summarizing revenues, expenses, and profits over a specific period.

  • Revenue

Total income generated by a business.

  • Accrual Accounting

Recording revenue and expenses when they are earned or incurred, not when cash is exchanged.

  • Internal Control

Procedures to safeguard a company’s assets and ensure accuracy in financial reporting.

  • Financial Ratios

Comparisons of financial data to assess a company’s performance.

  • Cash Accounting

Recording transactions only when cash is exchanged.

  • Fiscal Year

A 12-month accounting period for financial reporting.

  • Profit Margin

The difference between the cost of making something and the price it’s sold for.

  • Ledger Balance

The amount of money in an account after all transactions are recorded.

  • Financial Advisor

A person who gives advice on managing money.

  • Overspending

Spending more money than planned.

  • Rise (n)

An increase.

  • Rise (v) = Raise (US)

To move upwards or to become higher.

  • Proprietor

A person who owns the business.

  • Depreciation

Decrease in book value of an asset due to its use or obsolescence.

  • Discount

A reduction in the price of goods sold or in amount.

25 Accounting Terms in Example Sentences

The table below shows a number of accounting vocabulary in sentences.

Accounting TermsAccounting Terms in Sentences
AccountancyWe are accountancy students. We study accountancy.
Balance A balance is the amount of money you have in your bank account.
PayrollThe office has a weekly payroll of £10,000.
RevenuesOil revenues have risen with the rise in the dollar.
Rise (v)Prices have risen by ten percent.
Rise (n)There has been a 10 percent rise in inflation.
DeductionTax deductions have been made.
GrossInvestments show a gross profit of 30 %.
Net profitNet profit is the money you are left with after taxes, costs, etc., have been taken away.
RevenueOur company’s annual revenue rose by 25 %.
Stock optionsSome companies offer their employees stock options, which means that the employees can buy stocks at a price lower than the normal price.
WeightingI was offered an annual salary of 50000 dollars and a 5000-dollar New York weighting.
Income vs ExpenditureIncome is another word for the money that people receive for working. The money that they spend is known as expenditure.
Proprietor Enquiries should be made to the proprietor.
DiscountOur company is offering a 10 % discount on all laptops these two months.
Accounting Terms in Sentences

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