Accounts Receivable(AR), quite the opposite of Accounts Payable(AP), stands for money owed to your business by your customers after goods or services have been delivered but not yet paid for. The Alternative Minimum Tax(AMT) is a tax calculation designed by the IRS to ensure that high-income earners pay at least a minimum amount of tax. Allowance for Loan and Lease Losses (ALLL) is a reserve set aside by a financial institution to estimate uncollectible loan amounts. These abbreviations encapsulate complex concepts in short, memorable forms and are essential for anyone involved in accounting or finance. The amount of money an accountant earns depends on theirqualifications. Looking for the correct spelling and meaning of the word accounting?
Understanding English Verb Tenses
Under this system, in every transaction an account is debited and other account is credited. The crux of accountancy lies in finding out which of the two accounts are affected by a particular transaction and out of these two accounts which account is to be debited and which account is to be credited. Financial Information should be based on facts which can easily be verified. Financial information can be verifiable if it is based on original source documents.
AP – Accounts Payable
These costs might include underwriting, commissions, promotional, and miscellaneous acquisition expenses. A capitalization table(CT) is essentially a spreadsheet that analyzes a company’s percentages of ownership, equity dilution, and equity value in each round of investment by founders, investors, and other owners. Consolidated Financial Statements (CONS) are the combined financial statements of a parent company and its subsidiaries, providing an overall look at the financial health of the entire group. Certified Management Accountant(CMA) is a professional certification credentialing demonstrating abilities in management accounting fields.
GNP – Gross National Product
Also refers to the person who does the annual financial statements and tax calculations. The abbreviation for accountant, ACCT, is a helpful shorthand used in many financial and business situations. It simplifies communication, saving time and making documents easier to read. Whether you are a small business owner or working in corporate finance, understanding this abbreviation helps you stay efficient and clear in your work. Historically, accountants have been essential to various civilizations, including ancient Mesopotamia, where they tracked grain, livestock, and taxes for rulers.
Cumulative Loss Factor(CLF), often used in banking sectors, measures & standardizes the severity of loss borrowers experience during default. Credit Default Swaps(CDS) are financial instruments used as a how do you spell accounting hedge and speculation against debt default. Base erosion and profit shifting (BEPS) refer to tax avoidance strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations. Anti-Money Laundering (AML) refers to various regulations set up to prevent illegal practices of generating income through illicit activities. Adjusted for Taxes (AIT) means that the given figures have been modified to account for the effects of taxation. An American Depositary Receipt (ADR) signifies ownership in shares of foreign stocks that trade on U.S. exchanges as domestic equities.
● Assets
- The Consumer Price Index (CPI) measures average changes in prices consumers pay for a ‘standard’ package of goods and services over time.
- A capitalization table(CT) is essentially a spreadsheet that analyzes a company’s percentages of ownership, equity dilution, and equity value in each round of investment by founders, investors, and other owners.
- When a business is given an invoice by an overseas supplier in a foreign currency, it has to be converted into the local currency when being entered into the accounts.
- Unfortunately, no objectively verifiable method has been developed for universal application.
- A loss occurs when the gross profit of a business is less than the expenses the business has to pay to keep the business running.
- Quotes are usually only valid for a certain time frame – a few weeks or months.
By mastering these abbreviations, you empower yourself with a valuable toolkit to interpret financial jargon and gain a profound comprehension of the complex dynamics of finance. Earnings Before Interest and Taxes (EBIT) represents a company’s profit before deducting interest and taxes. Value Added Tax (VAT) is an indirect tax levied on goods and services consumed. It applies to each production stage based on each location’s value added. Variable expenses are costs that change in direct proportion to the output volume or activity level.
STG Word Meaning, Definition, Uses, and Examples
The losses occur when the business has to pay more to the supplier than the original conversion. Funds withdrawn from a business by the business owner for https://www.bookstime.com/ their personal use. A trained and qualified person who does the bookkeeping process mentioned above.
How do you abbreviate the word Accountability?
These systems can be cloud based and available on demand via application or browser, or available as software installed on specific computers or local servers, often referred to as on-premise. HR and accounting departments typically handle payroll, the total compensation a company pays its employees for a specific time period. Diversification mixes many different investments and assets in one portfolio, allowing individuals or businesses to spread out risk and protect themselves from financial ruin if any investments or assets fail. An accounting method where revenue and expenses are recorded as they are earned, regardless of when the money is received or paid.
- These are sales invoices that have been written off because the payments are overdue and never likely to be paid.
- This contracting approach incentivizes contractors to build high-quality, cost-effective facilities in the long run.
- DBA stands for “doing business as.” It’s a legal term used when the name under which a business operates differs from its registered legal name.
- If you are ever unsure about which word to use, consult a style guide, and keep in mind that collectable may be the preferred form for a non-U.S.
- Companies create trial balances to ensure the mathematical accuracy of their bookkeeping systems entries.
- Cash flow is the total amount of money that comes into and goes out of a business.
The process of sorting and entering financial data into a bookkeeping system. Also refers to the finalizing of end of year accounts, producing financial statements and calculating tax payable by a certified practicing accountant. An index of the financial accounts in a company’s general ledger, a chart of accounts provides a picture of Travel Agency Accounting all the financial transactions a company has conducted in a specific accounting period. In accounting, the transactions are recorded at the historical cost. Accordingly, the assets of the business are shown at cost in the balance sheet.
