Amortization
Amortization is the systematic allocation of intangible asset costs or loan principal reduction over predetermined time periods.
Accounting, in plain language.
Find a definition, explore an example and connect the terms behind your financial work.
58 results
No matching results. Try another term or clear the filters.
Assets & funding
Asset
Asset is a resource owned by a company that generates economic value and provides future benefits.
Capital
Capital is financial resources, assets, or wealth that organizations use to generate revenue and fund business operations.
Cash Flow
Cash Flow is the net movement of money into and out of a business during a specific period.
Compound Interest
Compound Interest is earnings calculated on both the initial principal and accumulated interest from previous periods.
Current Assets
Current assets are resources that companies convert to cash within 12 months during normal business operations.
Current Liabilities
Current Liabilities are debts and financial obligations that companies must settle within one year or one operating cycle.
Depreciation
Depreciation is the systematic allocation of an asset's cost over its useful life.
Equity
Equity represents ownership value in assets after subtracting liabilities.
Interest
Interest is the cost of borrowing money or the return earned on invested capital.
Leverage
Leverage is the strategic use of existing resources, capabilities, or advantages to achieve greater impact or returns.
Liability
Liability is a financial obligation or debt that a business owes to external parties.
Net Worth
Net Worth is the total value of assets minus total liabilities.
Working Capital
Working Capital is the difference between current assets and current liabilities that measures short-term financial liquidity.
Payables & receivables
Accounts Payable
Accounts Payable is money a company owes to suppliers and vendors for goods or services received but not yet paid.
Accounts Receivable
Accounts receivable is money customers owe a company for goods or services delivered on credit.
Credit
Credit is the ability to borrow money or access goods and services with the promise to pay later.
Days sales outstanding (DSO)
Days sales outstanding estimates how many days of credit sales are represented by accounts receivable.
Invoice
Invoice is a commercial document that requests payment for goods or services delivered.
Planning & controls
Audit
Audit is a systematic examination and evaluation of an organization's processes, systems, or performance against established standards.
Budget
Budget is a financial plan that allocates resources across specific time periods and activities.
Cost Analysis
Cost Analysis is the systematic evaluation of expenses associated with business activities, projects, or strategic initiatives.
Expenses
Expenses are costs that organizations incur during business operations to generate revenue and maintain competitive positioning.
Finance
Finance is the management of money, investments, and capital allocation to maximize value and achieve strategic objectives.
Financial Analytics
Financial Analytics is the systematic examination of financial data to extract actionable insights for strategic decision-making.
Internal Auditing
Internal auditing is an independent evaluation process that assesses organizational controls, risk management, and governance processes.
Provision
Provision is a financial allocation set aside for expected future expenses or liabilities.
Variance
Variance is the difference between planned and actual performance results.
Records & close
Accounting
Accounting is the systematic recording, measuring, and communication of financial information.
Accounting Period
Accounting Period is a specific timeframe used to measure, record, and report financial performance and position.
Accrual
Accrual is a revenue or expense recognized when incurred, regardless of when cash payment occurs.
Accrual accounting
Accrual accounting records revenue when earned and expenses when incurred, rather than waiting for cash to change hands.
Bookkeeping
Bookkeeping is the recording and organization of a business's financial transactions.
Chart Of Accounts
Chart of Accounts is a structured listing of all financial accounts used to categorize and track business transactions.
General Ledger
General Ledger is a comprehensive accounting record that consolidates all financial transactions across business accounts.
Ledger
Ledger is a systematic record-keeping system that tracks and documents all financial transactions within an organization.
Month-end close
Month-end close is the process of completing, checking and finalizing accounting records for a month.
Reconciliation
Reconciliation compares accounting records with supporting records and investigates differences.
Statements & performance
Balance Sheet
Balance Sheet is a financial statement that shows a company's assets, liabilities, and equity at a specific point in time.
Cash Flow Statement
Cash Flow Statement is a financial document that tracks the actual cash inflows and outflows from operating, investing, and financing activities during a specific reporting period.
EBITDA
EBITDA is a financial metric that measures company profitability before interest, taxes, depreciation, and amortization expenses.
Financial Statement
Financial Statement is a formal record that communicates business financial activities and position.
Financial statements
Financial statements are formal reports of a business's financial position, performance and cash flows.
Gross Income
Gross Income is the total revenue generated before deducting expenses, taxes, and other financial obligations.
Gross Profit
Gross Profit is revenue minus cost of goods sold.
Income
Income is money received by individuals, businesses, or organizations from operations, investments, or other revenue-generating activities.
Income Statement
Income Statement is a financial document that reports revenues, expenses, and net income.
Margin
Margin is the difference between revenue and costs expressed as a percentage of revenue.
Net Income
Net Income is the profit remaining after deducting all expenses, taxes, and costs from total revenue.
Net Profit
Net profit is the remaining income after deducting all business expenses, taxes, and costs from total revenue.
Operating Income
Operating Income is profit generated from core business operations before interest and taxes.
P&L
P&L is a financial statement that summarizes revenues, costs, and expenses during a specific period.
Profit
Profit is the financial gain that remains after subtracting total expenses from total revenue.
Profit And Loss Statement
Profit and Loss Statement is a financial report that shows a company's revenues, expenses, and net income over a specific period.
Revenue
Revenue is the total amount of income generated by a business from its operations before deducting expenses.
Tax & standards
ASC 606
ASC 606 is the US GAAP topic for revenue from contracts with customers.
Adjusted Gross Income
Adjusted gross income (AGI) is an individual’s total income minus allowable adjustments for US federal income tax.
Generally accepted accounting principles (GAAP)
GAAP refers to the accounting principles and standards used to prepare financial reports in a particular jurisdiction.