Accounting Definitions Basic Accounting Terms to Know

Accounting Definition

Amount pershareset in the ARTICLES OFINCORPORATIONof a CORPORATION to be entered in the CAPITAL STOCKSaccountwhere it is left permanently and signifies a cushion ofEQUITYcapital for the protection of CREDITORS. Type of incorporatedorganizationin which nostockholderorTRUSTEEshares in profits or losses and which usually exists to accomplish some charitable, humanitarian, or educational purpose. Activities that occur only periodically, the data involved are generally not part of the routine flow of transactions. Method used in evaluating investments whereby thenetpresent valueof allCASHoutflows and cash inflows is calculated using a givenDISCOUNT RATE, usuallyrequired rate of return. BONDissued by a government or public body, theINTERESTon which is typically exempt from federal taxation. Public place where products or services are bought and sold, directly or through intermediaries.

Management accounting focuses on the measurement, analysis and reporting of information for internal use by stakeholders. Sage Fixed Assets Track and manage your business assets at every stage. Sage 300cloud Streamline accounting, inventory, operations and distribution. Sage Intacct Advanced financial management platform for professionals with a growing business.

Regulated Investment Company (RIC)

In this post, we will attempt to answer both questions, while also providing tips for simple accounting software you can use to streamline your business’s bookkeeping and some additional resources. Accounting Definition However, as your finances become more complex, you’ll quickly discover spreadsheets don’t grow well with your business. In a spreadsheet every financial transaction must be updated manually.

Accounting Definition

The beginning point for the determination ofincome, including income from whatever sources derived. Assumption that a business can remain in operation long enough for all of its current plans to be carried out. A validtransferof property from one taxpayer to another without consideration or compensation. Standards set by theAMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS which concern theAUDITOR’S professional qualities and judgment in the performance of his or herAUDITand in the actual report. Collection of allASSET,LIABILITY, ownersEQUITY, REVENUE, andexpenseaccounts. A form that specifies the number of EXEMPTIONS claimed by each employee and that gives the employer the authority to withhold money for an employee’sFEDERAL INCOME TAXESand FederalInsuranceContributions Act taxes.

Financial Leverage

This is, therefore, an important aspect of the accounting process; without it, records would have limited, if any, value. Accounting is the art of recording, classifying, https://quick-bookkeeping.net/ and summarizing transactions and events. In the first place, we maintain the records of transactions by writing various accounting books like journals and ledgers, etc.

Accounting Definition

ABONDthat gives the bondholders a pledge of certaincompanyassets as a guarantee of repayment. Agency authorized by the United States Congress to regulate the financial reporting practices of most public corporations. In order to be considered aRICa CORPORATION must make an irrevocable electiontaxelection in order to be treated as one.

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