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This comprehensive accounting glossary defines essential accounting terms.
Explore commonly used Accounting terms.
Money owed by a company to its creditors.
Money owed to a company by its debtors.
An accounting method where revenue and expenses are recorded when they are earned or incurred, not when cash is exchanged.
The process of gradually writing off the initial cost of an asset over a period.
A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.
The recording of financial transactions and events.
An estimate of income and expenditure for a set period.
The total amount of money being transferred into and out of a business, especially as affecting liquidity.
The direct costs attributable to the production of the goods sold by a company.
An entry recording a sum received, listed on the right-hand side or column of an account.
Assets that are expected to be converted to cash or used within a year.
An entry recording an amount owed, listed on the left-hand side or column of an account.
The reduction in the value of an asset over time, particularly due to wear and tear.
A portion of a company's earnings distributed to shareholders.
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