20 Essential Accounting Vocabulary for Students and Beginners terms
This glossary was created to explain the key concepts and terminology used in the field of accounting. Its purpose is to provide students and readers with simple and easy definitions that make it easier to understand both the technical language and the practical applications of accounting.
Accounts Payable
Noun
Money a business owes to suppliers or creditors.
Example: The business must pay its accounts payable within 30 days.
fr: Comptes fournisseurs
Accounts Receivable
Noun
Money owed to a business by its customers.
Example: The company collected most of its accounts receivable before the deadline.
fr: Comptes clients
Asset
Noun
Anything a business owns that has value, such as cash, buildings, or equipment.
Example: The company purchased new computers, which are recorded as assets on the balance sheet.
fr: Actif
Balance Sheet
Noun
A financial statement that shows a company’s assets, liabilities, and equity at a specific point in time.
Example: The accountant prepared a balance sheet to summarize the company’s financial position.
fr: Bilan
Bookkeeping
Noun
The process of recording daily financial transactions.
Example: Good bookkeeping helps keep a business organized.
fr: Tenue de livres
Capital
Noun
The money or assets invested by the owner into the business.
Example: She contributed capital to start her new company.
fr: Capital
Cash Flow
Noun
The movement of money into and out of a business.
Example: Positive cash flow means the business is earning more than it spends.
fr: Flux de trésorerie
Crédit
Noun/Verb
An accounting entry that increases liabilities or equity and decreases assets or expenses.
Example: The loan received was entered as a credit in the ledger.
fr: Crédit
Debit
Noun/Verb
An accounting entry that increases assets or expenses and decreases liabilities or equity.
Example: The purchase of equipment was recorded as a debit to assets.
fr: Débit
Dividend
Noun
A portion of a company’s profit paid to shareholders.
Example: The company declared a dividend of $2 per share.
fr: Dividende
Equity
Noun
The owner’s share of the company after liabilities are subtracted from assets.
Example: Her equity in the business grew as profits were reinvested.
fr: Capitaux propres
Expense
Noun
Costs a business incurs to generate revenue, such as rent, salaries, or utilities.
Example: Electricity is considered an operating expense for the business.
fr: Dépense
General Ledger
Noun
The main record that contains all the accounts of a business.
Example: The accountant recorded the transaction in the general ledger.
fr: Grand livre
Income Statement
Noun
A financial report that shows revenues, expenses, and profit or loss for a specific period.
Example: The income statement showed the company made a profit this quarter.
fr: Compte de résultat
Inventory
Noun
Goods or materials a business holds for resale.
Example: The store’s inventory increased before the holiday season.
fr: Inventaire / Stock
Ledger
Noun
A book or digital record where all financial transactions are organized by account.
Example: Every sale is recorded in the ledger to keep track of transactions.
fr: Livre de comptes
Liability
Noun
A financial obligation or debt that a business owes to others.
Example: The company’s bank loan is listed as a liability
fr: Dette
Profit
Noun
The financial gain when revenue is greater than expenses.
Example: The company reported a high profit this year.
fr: Profit / Bénéfice
Revenue
Noun
The total income earned by a business from sales or services.
Example: The company’s revenue increased after launching a new product.
fr: Revenu / Chiffre d'affaires
Trial Balance
Noun
A report that lists all accounts and balances to ensure total debits equal total credits.
Example: The trial balance showed that debits and credits were equal.
