While this isn't a complete dictionary of accounting terms, these basic terms and definitions will give you a foundation to help you get started. These terms are commonly used in business accounting software.
Account
The records of resources, who owns the resources, what transactions have taken place and what claims have been made on those resources.
Account Payable
The record of the amount of resources owed to a creditor.
Account Receivable
The record of the amount of resources owed by a debtor, not yet collected.
Audit
The process of evaluating the records of specific financial transactions to ensure compliance to an established set of rules.
Auditor
The person who conducts an audit of financial records, seeking to establish compliance or non-compliance to established rules.
Bad Debt
Money that is not collected or has been deemed uncollectable.
Balance
The amount of resources recorded in an account at any specific point in time, recording the subtraction of debited money and the addition of credited money.
Bankruptcy
A legal process through which the debts of a debtor are reckoned or wiped clean, accompanied by a specific disciplinary or resolution plan, overseen and established by a judge.
Cash Flow
The record of money coming in and out of an account for a specific amount of time.
Collateral
An asset available to back up a loan issued by a financial institution.
Credit
In double-entry bookkeeping records, the amount entered on the right hand side of the column that stands for any addition of resources.
Creditor
Lender or lending institution.
Debit
In double-entry bookkeeping records, the amount entered on the left hand side of the column that stands for any subtraction of resources.
Debtor
Term describing the person or entity that owes resources to a creditor.
Equity
The amount of money accrued after an asset has been assessed, considering all liabilities and appreciation in value have been taken into account.
Fiduciary
The person who is accountable for responsible administration of financial matters owned by another party.
Kiting
The process of writing a check even though the bank account does not have sufficient funds, assuming deposits will cover the amount owed before the bank clears the check.
Liquid Assets
Resources available as cash.
Mark To Market
Adjustment of the value of an asset such that it reflects the price it could be sold for on the open market at any time.
 | If you're interested in potential accounting careers, you'll be delighted to learn there are many jobs you can get with a degree in accounting. Jobs range from being a financial planner to a certified public accountant. |
 | Forensic accounting is a popular career choice, since you'll get to use your mathematics skills just like any other accountant, but you'll also get to do investigative work. |
 | Managerial accounting is a valuable part of running any business. If you get a job as a managerial accountant, you will be responsible for keeping the managers of an organization aware of the financial goings-on of the company at large. |
Cost accounting is a method of evaluating costs, profits and everything in between when it comes to running a business, and you can use that information to help leaders of your company make decisions. |
Accounting ethics is a code of conduct that guides those in the profession to behave in a respectful, controlled and moral way. Clients need to have confidence in the business practices of professional accounting firms. |
