Glossary
437
A
Account
— A record that allows detailed
information to be tracked about the values of
individual items.
Accountants
— Individuals who prepare
financial information to ensure that internal
and external users have the information they
need to make informed decisions.
Accounting
— A system to identify, measure
and communicate all the financial activities of
an individual or a business.
Accounting Cycle
—The steps required to
complete the financial statements.
Accounting Equation
— Double entry
accounting is based on this equation: Assets =
Liabilities + Owner’s Equity.
Accounting Ethics
—The standards by
which the actions are judged as being honest
versus dishonest, right or wrong, fair or unfair.
Accounting Period
—The time frame in
which the financial statements are prepared.
Accounting Standards for Private
Enterprises (ASPE)
— Accounting standards
developed by the AcSB followed by private
enterprises.
Accounts Payable
—When a company
owes a supplier for a product or service, the
money owed is recorded as a liability called
accounts payable.
Accounts Receivable
—The money owed
to the company when the company provides
payment terms to sell its products or services
to its customers.
Accrual - Based Accounting
— Revenue
and expenses are recorded in the period in
which they occur, regardless of when cash
payment is received or paid.
Accruals
— An accrual can add or subtract
to net worth or equity for an accounting
period and helps in recognizing how much
you are worth at a point in time.
Accrued Expenses
— Accrued expenses are
expenses that have been incurred but have
not yet been recorded.
Accrued Revenue
— Accrued revenue is
revenue that has been earned but not yet
recorded.
Accumulated Depreciation
— In the case
of property, plant and equipment (PPE), the
contra asset account is called accumulated
depreciation.
Accumulated Surplus (deficit)
— Some
government institutions refer to net worth or
equity as accumulated surplus (deficit).
Adjusted Trial Balance
—The trial balance
after the adjustments are made.
Adjusting Entries
— Journal entries made
at the end of the accounting period to record
assets, liabilities, equity, revenue and expenses
according to revenue and expense recognition.
Asset
— An asset is something you own that
will benefit you now and in the future.
Glossary
