Accounting Glossary

The fundamental principle in accounting that forms the basis for financial statements.

The accounting treatment of income taxes, including deferred tax assets and liabilities.

The process of recognizing the loss in value of inventory that is no longer salable or usable.

The accounting treatment of stock options and other employee stock-based compensation.

Money owed to suppliers.

Money owed by customers.

Measures how efficiently a company collects its receivables.

Revenue and expenses recognized when earned or incurred.

Expenses incurred but not yet paid.

Income earned but not yet received.

The total depreciation expense recorded for a fixed asset.

Earnings before interest, taxes, depreciation, amortization, and certain non-cash adjustments.

Gross income minus certain deductions.

Estimate of uncollectible accounts receivable.

Spreading the cost of intangible assets over their useful lives.

A table showing the periodic amortization of a loan or debt.

A resource owned by a business.

A snapshot of a company's financial position at a specific point in time.

Comparing a company's bank statement with its cash records.

The cost of an asset minus its accumulated depreciation.

The sales volume at which a company's total revenue equals its total costs.

A financial plan for a future period.

The difference between actual and budgeted amounts.

Costs incurred in operating a business.