Accounting Terms A–Z: Definitions, Examples, and Explanations
Explore accounting terms alphabetically and learn what each concept means, how it is classified, where it appears in the accounting process or financial statements, and how it is applied through examples, calculations, and journal entries.
Search Accounting Terms
Search the articles and accounting topics published on Accountant Compass.
Browse Accounting Terms by Letter
Select a letter to open the terms beginning with that letter.
How to Study an Accounting Term
Use this four-step method to move from a definition to practical understanding.
Read the Definition
Identify the meaning, purpose, and accounting context of the term.
Identify the Classification
Determine whether it relates to an asset, liability, equity, revenue, expense, or process.
Review the Accounting Effect
Study debit and credit effects, journal entries, calculations, and statement presentation.
Apply the Example
Use a practical example, exercise, quiz, or calculator to reinforce the concept.
Browse Terms by Accounting Category
Use these collections to explore related definitions by subject.
Asset Terms
Cash, receivables, inventory, property, equipment, intangibles, investments, and valuation.
Explore Asset Terms →Liability Terms
Payables, accrued obligations, loans, bonds, leases, payroll, taxes, and contingencies.
Explore Liability Terms →Equity Terms
Capital, common stock, paid-in capital, retained earnings, dividends, and treasury stock.
Explore Equity Terms →Revenue and Expense Terms
Sales, services, recognition, accruals, cost of goods sold, operating costs, and margins.
Explore Revenue and Expense Terms →Bookkeeping Terms
Documents, journals, ledgers, invoices, receipts, reconciliation, and transaction records.
Explore Bookkeeping Terms →Debit and Credit Terms
Normal balances, T-accounts, double-entry rules, contra accounts, and posting.
Explore Debit and Credit Terms →Financial Statement Terms
Income statement, balance sheet, cash flow, equity, comprehensive income, and analysis.
Explore Statement Terms →Financial Ratio Terms
Liquidity, profitability, solvency, efficiency, turnover, margins, and returns.
Explore Financial Ratio Terms →Popular Accounting Terms
Start with these commonly searched accounting definitions.
Accounts Payable
Amounts a business owes suppliers for purchases made on credit.
View Definition → AAccounts Receivable
Amounts customers owe a business for goods or services provided on credit.
View Definition → AAccrual Accounting
An accounting basis that recognizes economic events when they occur rather than only when cash moves.
View Definition → AAsset
An economic resource controlled by an entity as a result of past events.
View Definition → CContra Account
An account that offsets the balance of a related account.
View Definition → DDepreciation
The systematic allocation of a depreciable asset’s cost over its useful life.
View Definition → EEquity
The residual interest in assets after deducting liabilities.
View Definition → GGross Profit
Net sales minus cost of goods sold.
View Definition → LLiability
A present obligation arising from past events that may require a resource outflow.
View Definition → NNet Income
The excess of recognized revenues and gains over expenses and losses for a period.
View Definition → RRetained Earnings
Cumulative corporate earnings retained after dividends and other adjustments.
View Definition → WWorking Capital
The difference between current assets and current liabilities.
View Definition →Turn Accounting Vocabulary into Practical Knowledge
A useful accounting definition should explain more than a word. Connect each term to its classification, debit or credit behavior, journal-entry effect, financial statement location, formula, related concepts, and practical examples.
Featured Accounting Terms
These terms are selected automatically from the Accounting Terms A–Z category.
Latest Accounting Terms
The newest articles carrying the Accounting Terms A-Z label appear here automatically.
Frequently Asked Questions About Accounting Terms
What are accounting terms?
Accounting terms are words and phrases used to describe accounts, transactions, measurements, reporting methods, financial statements, controls, and business performance.
How are the terms organized on this page?
The page organizes terms alphabetically from A to Z and also provides collections for assets, liabilities, equity, bookkeeping, financial statements, and financial ratios.
Does the search box search only this page?
The search box uses Blogger’s internal search and displays matching articles and topics published on the Accountant Compass blog.
What should an accounting term article include?
A detailed term article should include a definition, classification, accounting treatment, journal-entry effect, financial statement presentation, examples, related formulas, and connected terms.
What is the difference between this page and the Accounting Dictionary?
Accounting Terms A–Z is the alphabetical browsing section. The Accounting Dictionary is the broader central hub that also organizes terms by accounting subject.
Return to the Accounting Dictionary
Use the main Accounting Dictionary to explore term collections by subject, discover featured definitions, and continue to related accounting lessons.
Explore the Accounting Dictionary