A peek in the accounting terminology

Accumulated Depreciation 

Total depreciation pertaining to an asset or group of assets from the time the assets were placed in services until the date of the financial statement or tax return. This total is the contra account to the related asset account.  

Fraud

The use of one's occupation for personal enrichment through the deliberate misuse or misapplication of employing an organization's resources or assets. This can include the fraudulent conversion and obtaining of money or property by false pretenses. 

Inventory 

Tangible property held for sale, or materials used in a production process to make a product. 

Tax 

Charge levied by a governmental unit on income, consumption, wealth, or other basis. 

Partnership 

Relationship between two or more people based on a written, oral, or implied agreement whereby they agree to carry on a trade or business for profit and share the resulting profits. Unlike a corporation's shareholders, the partnership's general partners are liable for the debts of the partnership. (See general partnership, limited liability partnership, limited partnership.) 

Investment 

Expenditure used to purchase goods or services that could produce a return to the investor. 

Loss 

Excess of expenditures over revenue for a period or activity. Also, for tax purposes, an excess of basis over the amount realized in a transaction. (See net income.) 

Letter of Credit

 

Conditional bank commitment issued on behalf of a customer to pay a third party in accordance with certain terms and conditions. The two primary types are commercial letters of credit and standby letters of credit. 

Franchise 

Legal arrangement whereby the owner of a trade name, the franchiser, contracts with a party that wants to use the name on a non-exclusive basis to sell goods or services, the franchisee. Frequently, the franchise agreement grants strict supervisory powers to the franchiser over the franchisee which, nevertheless, is an independent business. 

Depreciation 

Expense allowance made for wear and tear on an asset over its estimated useful life. (See accelerated depreciation and straight-line depreciation.) 

Inventory

          Stocks of goods held for manufacture or for resale

Provision 

         A liability of uncertain timing or amount.

Just now, you read some of the words that we use in the field of accounting. Accounting is a science of numbers and finance. You will crunch numbers and analyze the income, profits, sales amounts and loss of either individuals or businesses and help them accordingly make the good decisions in relation to the results. I chose Accounting because it interested me and because I am good with numbers. I also wanted to follow the path that my cousin took, which I could see was very successful.

For more resources related to this field or study, or to analyze the vocabulary in any text program-related or field-related article, go to FieldRelated.com.

Analyze your text for field-related vocabulary with FieldRelated.com