Accounting Dictionary

Author: Suhaib AhmadPublished Date: Last Update:
Accounting Terms, Definitions, Examples, and Explanations

Accounting Dictionary: A Complete A–Z Learning Hub

Find clear definitions and practical explanations for accounting, bookkeeping, financial statement, auditing, tax, cost accounting, managerial accounting, and financial ratio terms. Browse alphabetically, explore terms by topic, or search for a specific concept.

Accounting Dictionary A to Z learning hub

What Is an Accounting Dictionary?

An accounting dictionary is a structured reference that explains accounting terminology in clear language. It helps students, bookkeepers, accountants, business owners, and financial statement users understand definitions, classifications, formulas, journal-entry effects, reporting locations, and practical examples.

Browse Accounting Terms A–Z

Select a letter to open the related accounting terms and definitions.

Browse Accounting Terms by Topic

Use topic-based collections to find related terms faster.

Basic Accounting Terms

Core concepts such as accounts, transactions, balances, periods, recognition, and measurement.

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Asset Terms

Cash, receivables, inventory, property, equipment, intangibles, investments, and valuation terms.

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Liability Terms

Payables, accruals, loans, bonds, leases, payroll obligations, taxes, and contingencies.

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Equity Terms

Owner capital, common stock, paid-in capital, retained earnings, dividends, and treasury stock.

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Revenue Terms

Sales, service revenue, recognition, deferred revenue, accrued revenue, gains, and net sales.

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Expense Terms

Operating expenses, cost of goods sold, depreciation, accruals, prepayments, and period costs.

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Bookkeeping Terms

Source documents, journals, ledgers, reconciliations, receipts, invoices, and transaction records.

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Debit and Credit Terms

Normal balances, T-accounts, double-entry rules, contra accounts, and posting terminology.

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Journal Entry Terms

Simple, compound, adjusting, closing, reversing, opening, and specialized entries.

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Ledger and Trial Balance Terms

General ledger, subsidiary ledgers, posting, control accounts, balances, and trial balances.

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Financial Statement Terms

Income statement, balance sheet, cash flow, equity, comprehensive income, and disclosure terminology.

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Financial Ratio Terms

Liquidity, profitability, solvency, efficiency, turnover, margin, and return measures.

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Cost Accounting Terms

Direct costs, indirect costs, overhead, job costing, process costing, standards, and variances.

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Managerial Accounting Terms

Budgets, cost behavior, contribution margin, break-even, relevant costs, and decisions.

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Auditing Terms

Audit evidence, risk, materiality, controls, assertions, procedures, and audit opinions.

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Tax Terms

Taxable income, deductions, credits, withholding, payroll taxes, sales tax, and tax liabilities.

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Essential Accounting Terms

Start with these frequently used accounting concepts and definitions.

A

Accounts Payable

Amounts owed to suppliers for goods or services purchased on credit.

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A

Accounts Receivable

Amounts customers owe for goods or services provided on credit.

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A

Accrued Expense

An expense recognized before the related cash payment is made.

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A

Accrued Revenue

Revenue recognized before the related cash is collected.

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A

Amortization

The systematic allocation of an intangible asset or financial amount over time.

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A

Asset

A present economic resource controlled by an entity as a result of past events.

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B

Book Value

The carrying amount of an asset, liability, or equity item in the accounting records.

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C

Capital Expenditure

Spending that acquires or improves a long-term asset and is generally capitalized.

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C

Contra Account

An account that offsets the balance of a related account.

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C

Current Asset

An asset expected to be realized, sold, or used within the operating cycle or short term.

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C

Current Liability

An obligation expected to be settled within the operating cycle or short term.

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D

Debit

An entry recorded on the left side of an account.

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D

Depreciation

The systematic allocation of a depreciable asset’s cost over its useful life.

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E

Equity

The residual interest in assets after deducting liabilities.

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E

Expense

A decrease in economic benefits that reduces equity, excluding owner distributions.

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G

Goodwill

An acquisition-related intangible asset reflecting benefits not separately recognized.

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G

Gross Profit

Net sales minus cost of goods sold.

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L

Liability

A present obligation arising from past events that may require a resource outflow.

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N

Net Income

The excess of recognized revenues and gains over expenses and losses for a period.

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R

Retained Earnings

Cumulative corporate earnings retained after dividends and other adjustments.

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R

Revenue

Income generated from ordinary activities such as sales or services.

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T

Trial Balance

A list of ledger account balances used to compare total debits and credits.

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U

Unearned Revenue

A liability arising when cash is received before the related revenue is earned.

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W

Working Capital

Current assets minus current liabilities.

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How to Use the Accounting Dictionary

Use the dictionary as a reference, study tool, and starting point for deeper accounting lessons.

1

Search the Term

Use the search box or choose the first letter of the accounting term.

2

Read the Definition

Identify the term’s meaning, account type, purpose, or reporting role.

3

Review the Example

Study calculations, journal entries, statement presentation, or practical use.

4

Continue the Topic

Open the related guide, Hub Page, exercise, calculator, or financial statement lesson.

Build a Strong Accounting Vocabulary

Accounting terms become easier when definitions are connected to account types, debit and credit rules, journal entries, financial statement locations, formulas, and practical examples. Use each definition as the starting point for deeper study.

Featured Accounting Dictionary Terms

These terms are selected automatically from the Accounting Dictionary category.

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Latest Accounting Dictionary Entries

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Frequently Asked Questions About the Accounting Dictionary

What is an accounting dictionary?

An accounting dictionary is a reference that explains accounting and financial terminology through definitions, examples, formulas, classifications, and related concepts.

Who should use an accounting dictionary?

It is useful for accounting students, bookkeepers, accountants, business owners, financial statement users, exam candidates, and anyone learning financial terminology.

How are the terms organized?

Terms can be organized alphabetically from A to Z and by subject, including assets, liabilities, equity, bookkeeping, financial statements, ratios, auditing, and tax.

Does each term need its own article?

Important terms benefit from individual articles containing the definition, classification, accounting treatment, examples, related journal entries, financial statement presentation, and connected terms.

What should I study after reading a definition?

Continue to the related Hub Page or detailed guide, then apply the concept through examples, journal entries, exercises, quizzes, or calculators.

Continue with Accounting Basics

After reviewing accounting definitions, continue with Accounting Basics to study the accounting equation, account types, assets, liabilities, equity, revenue, expenses, debits, credits, and double-entry accounting.

Continue to Accounting Basics

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