Accounting is basically the backbone of any business—it helps keep track of money, makes sure everything adds up, and guides important decisions. This glossary is here to break down key accounting terms in a simple and clear way, so whether you're a student, a professional, or just curious about finance, you'll find it useful. From balance sheets to taxes, these definitions will help you get a better grip on the world of accounting. I’m Jinane, and I put this together to make learning these concepts a little easier for everyone!
account
noun
A record or statement of financial expenditure and receipts relating to a particular period or purpose.
Example: Planning for sustainable communities will need to take the issues mentioned into ACCOUNT, in order to try and develop and improve for future generations.
fr: compte
accountant
noun
A person whose job is to keep, inspect, and analyse financial accounts.
Example: Michael Storfer (Director)- an investor of Fresh Breath and an experienced chartered ACCOUNTANT.
fr: comptable
accounting Cycle
noun
The accounting cycle is a standard, 8-step process that tracks, records, and analyzes all financial activity and transactions within a business.
Example: The eight steps of the accounting cycle are as follows: identifying transactions, recording transactions in a journal, posting, the unadjusted trial balance, the worksheet, adjusting journal entries, financial statements, and closing the books.
fr: cycle comptable
affiliate
noun
Officially attach or connect (a subsidiary group or a person) to an organization.
Example: Advertising Haymarket Business Interactive () can design, develop and execute advertising campaigns for us using its industry-standard ad-serving platform. It has its own network of targeted B2B sites. Paid advertising on other sites To get results from banner ads, we need to spend a great deal of money, and we need to be prepared to refine both the banners and their placement on an ongoing basis.
fr: filiale
Assets
noun
Property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.
Example: Free-range has benefits in terms of welfare and achievable prices, but is an expensive method of production. Battery production is the best in terms of costs, but is not able to be practiced in the future.
fr: actifs
audit
noun
balance sheet
noun
A statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period.
Example: The BALANCE SHEET depicts the financial situation of a business at a particular point in time.
fr: bilan
bookkeeping
noun
The activity or occupation of keeping records of the financial affairs of a business.
Example: Recording a $500 cash sale involves debiting the cash account and crediting revenue.
fr: comptabilité
budget
noun
An estimate of income and expenditure for a set period of time.
Example: SEN2 is a new product, thus a BUDGET $4000 needs to be spent on advertising to make consumers aware of the product.
fr: budget
capital
noun
Wealth in the form of money or other assets owned by a person or organization or available or contributed for a particular purpose such as starting a company or investing.
Example: 'Schemes A and B would add to traffic congestion; scheme C would not, but it would require a bigger investment of CAPITAL.
fr: capital
cash flow
noun
The total amount of money being transferred into and out of a business, especially as affecting liquidity.
Example: Free CASH FLOW: 'Free CASH FLOW' is an important measure to shareholders.
fr: flux de trésorerie
credit
noun
Example: Customer Database Amazon.co.uk holds a large volume of personal data about its customers on its customer database, including names, contact details, and CREDIT debit card details.
fr: crédit
debit
noun
An entry recording an amount owed, listed on the left-hand side or column of an account.
Example: Such www sites are designed to get users' logins, passwords or DEBIT credit card numbers and then misuse them.
fr: débit
expenses
noun
The cost required for something; the money spent on something.
Example: Hidden Dirty-Surplus EXPENSES - These are EXPENSES that are not recorded in the financial statements at all.
fr: dépenses
income statement
noun
An income statement shows a company's revenues, expenses and profitability over a period of time. It's also sometimes called a profit-and-loss (P&L) statement or an earnings statement. It shows the following: revenue from selling products or services.
Example: This will mean there is an improvement in the stated profit before tax from a loss of £6.8 million to be reinstated on the interim report (25) as a loss of £1.6 million.
fr: état des résultats
liabilities
noun
Liabilities are what a business owes. It could be money, goods, or services. They are the opposite of assets, which are what a business owns. Businesses regularly owe money, goods, or services to another entity.
Example: Question 5 In 2005, net borrowings were as follows: Net current LIABILITIES: £2,615m Creditors falling due after more than one year: £4,531m Provisions for LIABILITIES and charges: £750m Total: £7,896m In 2004, net borrowings were as follows: Net current LIABILITIES: £2,391m Creditors falling due after more than one year: £4,368m Provisions for LIABILITIES and charges: £593m Total: £7,352 So total net borrowings have increased from £7,352m to £7,896m between 2004 and 2005.
fr: passif
net loss
noun
A net loss occurs when a company's expenses are higher than its total revenue.
Example: Within the reaction there is no NET LOSS or gain of DNA so the reaction is said to be conservative.
fr: perte nette
net profit
noun
The actual profit after working expenses not included in the calculation of gross profit have been paid.
Example: At the end of year 31 st March 2005 I would advise ordinary shareholders to hold their shares as Renold Plc is implementing plenty of measures to counteract the high steel prices, by lowering operating costs and subsequently increasing the NET PROFIT.
fr: bénéfice net
revenue
noun
Income, especially when of a company or organization and of a substantial nature.
Example: There is a risk that managers may increase the use of activities that create costs in order to maximise sales REVENUE which might impact the profit centre's performance.
fr: revenu
tax
noun
A compulsory contribution to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions.
Example: Introducing a value added TAX on fat is one of many suggestions designed to curve obesity levels, addressing the issue by attempting to reduce the amount of fat in people's diets through increasing the price of foods containing high levels of saturated fats.
