When it comes down to accounting these are very crucial terms that a student must know. Any student trying to get a degree in accounting will need to know these terms like the back of their hand after all this will be their job so it is important to know the lingo that accounts use.

 

Accounting Equation: There are many different kinds of equations for accounting but the basics are assets equal's equities and also another one is assets equal's liabilities plus the equity of the owner. Details on such equations are also explained if you click here.

 

Accounts: This is the system that will record down all of the different kinds of actions and activities the business does that has an effect on the revenue, expense, and also the equity of the business.

 

Accounts Payable: This is basically a fancy term for debt or credit that the business has with supplies or even with the government.

 

Accounts Receivable: This is basically the money that the customer owes to the business after they have used a service or purchased a product.

 

Accrual Basis Accounting: This is recording every transaction at the moment it has occurred.

 

Assets: This means the property that has value that the business actually owns.

 

Balance Sheet: This is well show the condition of the business's finances on certain dates.

 

Cash Flow: This is when the money will either come into the company or flow out of the company.

 

Chart of Accounts: This will list down all of the different kinds of working capital accounts that are in the system.

 

Credit: This is to either increase liabilities or the equity of an account.

 

Debit: This is used to improve assets.

 

Direct Costs: This is the money that is involved in materials and also labor.

 

Double Entry Accounting: This will maintain the company's balance sheet.

 

Equity: This is what the company owns and it is shown by the money that comes into the company because of different claims.

 

Expense: This is the money that is sent out to pay for overhead such as paying the paychecks of employees, paying suppliers, paying vendors, and even paying the government taxes.

 

Financial Statements: This is a term that refers to both the income statement and also the balance sheet.

 

General Ledger: This will show all of the improvements and also the decreases in every single account of the business.

 

Gross Profit: This is the actual profit the business will earn after subtracting all of the other costs of actually selling the items or services.

 

Income Statement: This will simply show every single change that occurs in the equity. Bookkeeping is part of the accounting stuff, so you must also work with them and read this: http://dictionary.reference.com/browse/bookkeeping.