What are the terms in accounting?

They are entered chronologically. Liability – Liabilities are the obligations of an entity, usually financial in nature. Liquid Asset – Consist of cash and other assets that can be easily converted to cash. Loan – A monetary advance from a lender to a borrower. Master Account – A Master Account has subsidiary accounts.

What are the 5 accounting terms?

Basic accounting terms, acronyms, abbreviations and concepts to remember

  • Accounts receivable (AR)
  • Accounting (ACCG)
  • Accounts payable (AP)
  • Assets (fixed and current) (FA, CA)
  • Asset classes.
  • Balance sheet (BS)
  • Capital (CAP)
  • Cash flow (CF)

What are the 3 definitions of accounting?

According to Bierman and Drebin:” Accounting may be defined as identifying, measuring, recording and communicating of financial information.”

What is the accounting equation terms?

The three elements of the accounting equation are assets, liabilities, and shareholders’ equity. The formula is straightforward: A company’s total assets are equal to its liabilities plus its shareholders’ equity.

How many accounting terms are there?

Five main types of accounts appear in a COA: assets, equity, expenses, liabilities, and revenues.

How do you write accounting equations?

The basic accounting equation is: Assets = Liabilities + Owner’s equity.

What is the basic accounting?

In a nutshell, basic accounting records and reveals cash flows and operations. It divides all business transactions into credits and debits. The definitions of these are somewhat counterintuitive in financial accounting: Debits increase asset or expense accounts and decrease liability or equity accounts.

What are the 7 types of accounting?

Here are some of the different areas of accounting and what they entail.

  • Financial accounting.
  • Management accounting.
  • Governmental accounting.
  • Public accounting.
  • Cost accounting.
  • Forensic accounting.
  • Tax accounting.
  • Auditing.