The terminology of Financial Accounting

Terminology of Financial Accounting

The terminology of Financial Accounting means that terms which are used by the accountant to communicate the financial position of the business to the owner of the business. 

Financial accounting is known as business language, So it has its own terminology for everything used in the business. So, Every commerce student or professional should know the terminology of financial accounting, because it makes easy to understand the accounting. You can divide these terms into the following categories: –

The Categories of Terminology: –

  1. Balance Sheet terms 
  2. Income Statement or Profit and loss account terms 
  3. Other general Financial Accounting terms 

1. Balance Sheet terms:

Balance Sheet terms mean those terms which are used while preparing the balance sheet of the business. These are shown below and these all terms are explained with the separate article.

Meaning of Assets 360x203 - The terminology of Financial Accounting

Assets – Meaning, Definition, Types and Examples

The assets are those valuable things or properties which the business or individual owns and get the benefits from it in ...
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Meaning of Fixed Assets 1 360x203 - The terminology of Financial Accounting

Fixed Assets – Meaning, Explained with Examples

Those assets on which the business will get benefits for a long period of time i.e. minimum of one year are ...
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Meaning of Current Asset 360x203 - The terminology of Financial Accounting

Current Asset – Meaning and Explanation with Examples

Those assets which are used or utilized within the period of one year are known as Current Asset. These are also ...
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Meaning of Fictitious Assets 360x203 - The terminology of Financial Accounting

Fictitious Assets – Meaning and Explanation

The Fictitious word, itself says "fake". So Fictitious Assets are not an asset in the true sense but this is a ...
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Meaning of Tangible Assets 360x203 - The terminology of Financial Accounting

Tangible Assets – Explained with example

Those assets which can be touch, feel, and see are called Tangible assets. in other words, all those assets which have ...
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Meaning of intangible Assets 360x203 - The terminology of Financial Accounting

Intangible Assets – Explained with example

Those assets which cannot be touch, feel, and see are called intangible assets. in other words, all those assets which don't ...
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2. Income Statement or Profit and loss account terms:

Income Statement or Profit and loss account terms means those terms which are used while preparing Income statement of the business. These are shown below and these all terms are explained with the separate article.

What is Cost of Goods Sold COGS 1 360x203 - The terminology of Financial Accounting

Cost of Goods Sold (COGS) – its Formula and example

Cost of Goods Sold (COGS) is that amount of expenses which are directly related to the process of the manufacturing of ...
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What is Expenditure 1 360x203 - The terminology of Financial Accounting

What is Expenditure – its types and examples

Expenditure means that amount which has spend or will be spent by business on the purchase of goods and to avail ...
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What is Purchase 1 360x203 - The terminology of Financial Accounting

What is Purchase? – Explanation with Examples

Purchase means getting the ownership of any goods or assets, by paying the predetermined price of them. It may be in ...
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What is sale 1 360x203 - The terminology of Financial Accounting

What is Sale? – Explanation with Examples

The sale means giving the ownership of any goods or assets, by receiving/will be received the predetermined price of them. It ...
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What are Expenses 1 360x203 - The terminology of Financial Accounting

What are Expenses – its types and examples

Expenses mean the amount spent by the business for running the business operation. The expenses are also known as Revenue Expenditure ...
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What are incomes 1 360x203 - The terminology of Financial Accounting

What are Incomes – its types and examples

Incomes mean the amount earned by the business from the business operation and other activities. Income is also known as Revenue ...
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2. Other accounting terms:

These are shown below and these all terms are explained with the separate article.

Meaning of Debit 1 1 360x203 - The terminology of Financial Accounting

What is the meaning of Debit in Accounting

Meaning of Debit is adding an amount of cash or fund into the expenses or assets accounts and subtracting from ...
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Meaning of Credit 360x203 - The terminology of Financial Accounting

What is the meaning of Credit in Accounting

Meaning of Credit is adding an amount of cash or fund into the owner's equity, liabilities or income accounts and ...
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