accounting glossary

20 terms

The profession of an accountant consists of managing monetary activities, budgeting various tasks, handling telephone calls with several suppliers and clients, as well as producing financial statements throughout a financial year with brand-new technologies. Being an accountant is therefore considered an "office" job where you must be productive and sociable in order to achieve the best performance for your employers and provide the best service to your colleagues, clients, and suppliers.

Accounting entity: An accounting entity is a business for which a separate set of accounting records is maintained. The organization should engage in clearly identifiable economic activities, control economic resources, and be segregated from the personal transactions of it officers, owners, and employees.
Accounting fees: The fees that become payable and the expenses and disbursements that are reimbursable to any accounting firm for services rendered in connection with the Statement on Auditing Standards
Amortization: Amortization refers to the process of reducing debt through periodic payments or the systematic write-off of intangible asset costs over a set period.
Asset: In accounting terms, an asset refers to any resource owned or controlled by an entity that is expected to provide future economic benefits. Assets can be either tangible or intangible.
Balance sheet: A balance sheet is a financial statement that shows what a company owns, what it owes, and the amount invested by shareholders at a specific point in time.
Business to business (B2B): Business-to-business (B2B) refers to trade and commercial activity where a business sees other businesses as its customer base.
Capital: In finance and accounting, 'capital' refers to various forms of assets, interests, or financial contributions that play a critical role in the functioning of an entity or the production process, enhancing productivity and enabling operations.
Client account: Means the unique personalized account of the Client consisting of all Completed Transactions, Open Positions and Orders on the Platform, the Balance of the Client money and deposit/withdrawal transactions of the Client money. It is understood that the Company may use the term Trading Account or Account on its Website or communications, which shall mean your Client Account.
Consolidation: The process of combining and adjusting financial information from the individual financial statements of a parent undertaking and its subsidiaries to prepare consolidated financial statements, which present financial information for the group as a single economic entity.
Consumer products: Products that are bought by individuals or households for personal use.
Credit: A term used in accounting to indicate an entry made on the right-hand side of an account ledger, typically representing a decrease in assets or an increase in liabilities and equity.
Debit: A debit is an entry on the left-hand side of an account in double-entry bookkeeping that increases assets or recorded expenditures of an organization. In the context of a bank account, a debit indicates an outflow of funds.
Equity statement: The statement of owner’s equity reports the changes in company equity. The changes that are generally reflected in the equity statement include the earned profits, dividends, inflow of equity, withdrawal of equity, net loss, and so on.
Income statement: An income statement or profit and loss (P&L) account is one of the financial statements of a company and shows the company's revenues and expenses during a particular period.
Liabilities: A liability is an obligation that a company needs to settle in the future, generally in the form of economic benefits such as money. Liabilities often result from past transactions and play a crucial role in a company's financial health by representing what it owes.
Net profit: It is the amount of money that a company has after all of its expenses are paid. You can think of net profit like your paycheck: It’s the money left after all taxes and benefits are subtracted.
Overdue account: Overdue Account means the situation where a Debt has not been paid on the Due Date and according to the terms as set forth in the Transport Contract.
Payment term: Payment terms are crucial in streamlining business-to-business (B2B) sales interactions. Unlike consumer transactions, in which payments often occur upfront and with an immediate exchange for goods, B2B deals typically involve a delay between the delivery of the product and the actual payment. This delay is based on a promise to pay later, which can offer flexibility to your customers but also creates opportunities for payment challenges.
supplier account: It means all of the Accounts generated by a Borrower or a Domestic Subsidiary to any particular Account Debtor or its Affiliates, to the extent such Borrower or Domestic Subsidiary has entered a Supplier Agreement with respect to any of such Account Debtor's Accounts.
Trial balance: A trial balance serves as a crucial tool in bookkeeping, ensuring that the totals of all debit and credit balances from the ledgers match.