Accounting Vocabulary
accounting
The action or process of keeping financial accounts.
ledger
A book or collection of accounts in which business transactions are recorded.
Glossary Reference
Technical terms for recording, reporting, and analyzing financial transactions.
accounting
The action or process of keeping financial accounts.
ledger
A book or collection of accounts in which business transactions are recorded.
journal
A record of daily events or thoughts; a diary.
debit
An entry recording a sum owed, typically in accounting.
credit
An arrangement to receive goods, services, or money in advance with the promise to pay later.
trial balance
A statement that lists balances of all accounts in a double-entry bookkeeping system, showing that total debits equal total credits.
balance sheet
A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.
income statement
A financial statement that summarizes revenues, expenses, profits, and losses for a specific period.
cash flow statement
A financial document that summarizes the cash inflows and outflows of a business over a specific period.
journal entry
A written record of personal thoughts, experiences, and reflections, often kept regularly in a book or digital format.
general ledger
A general ledger is a comprehensive record of all financial transactions over the life of an organization.
fiscal period
A specific duration of time used for accounting and financial reporting purposes.
accrual
The accumulation or increase of something over time, often used in financial contexts.
depreciation
A reduction in the value of an asset over time, typically due to wear and tear.
amortization
The process of gradually reducing a debt or the cost of an asset over time through scheduled payments.
reconciliation
The act of restoring friendly relations between parties or making two or more things compatible.
subledger
A subsidiary ledger that contains detailed information on a specific account, such as accounts receivable or accounts payable.
variance analysis
Variance analysis is a quantitative tool used to evaluate performance by comparing actual and budgeted figures.
financial ratios
Quantitative measures used to assess the financial health and performance of a company.
bookkeeping
The act of recording financial transactions and maintaining financial records.
List Mastery
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