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.

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.

2. Other accounting terms:

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