accounting

/əˈkaʊntɪŋ/

/əˈkaʊntɪŋ/

Other forms: accountings

Accounting is the act of computing something, usually by dealing with numbers. If you were very good at math in high school, you might think about going into accounting.

You can see the word count within accounting, which is one way to remember that the word has to do with keeping track of numbers — usually in relation to financial transactions. Balancing your checkbook is a form of accounting. Large firms often hire accountants to keep track of their earnings and spending. Accounting can also more generally mean explaining. Someone who decides to wear shorts to the prom is likely going to have some serious accounting to do!

Definitions of accounting

1. noun

   a system that provides quantitative information about finances
   types:

   balance of international payments, balance of payments

   a system of recording all of a country's economic transactions with the rest of the world over a period of one year

   current account

   that part of the balance of payments recording a nation's exports and imports of goods and services and transfer payments

   type of:

   system, system of rules

   a complex of methods or rules governing behavior
2. noun

   the occupation of maintaining and auditing records and preparing financial reports for a business
   synonyms: accountancy

   types:

   cost accounting

   keeping account of the costs of items in production

   bookkeeping, clerking

   the activity of recording business transactions

   inventory accounting

   accounting that controls and evaluates inventory

   costing

   cost accounting

   single entry, single-entry bookkeeping

   a simple bookkeeping system; transactions are entered in only one account

   double entry, double-entry bookkeeping

   bookkeeper debits the transaction to one account and credits it to another

   FIFO, first in first out

   inventory accounting in which the oldest items (those first acquired) are assumed to be the first sold

   LIFO, last in first out

   inventory accounting in which the most recently acquired items are assumed to be the first sold

   type of:

   business, job, line, line of work, occupation

   the principal activity in your life that you do to earn money
3. noun

   a statement of recent transactions and the resulting balance
   synonyms: account, account statement

   types:

   capital account

   (finance) an account of the net value of a business at a specified date

   capital account

   (economics) that part of the balance of payments recording a nation's outflow and inflow of financial securities

   profit and loss, profit and loss account

   an account compiled at the end of an accounting period to show gross and net profit or loss

   suspense account

   an account used temporarily to carry doubtful receipts and disbursements or discrepancies pending their analysis and permanent classification

   expense account, travel and entertainment account

   an account to which salespersons or executives can charge travel and entertainment expenses

   type of:

   financial statement, statement

   a document showing credits and debits
4. noun

   a bookkeeper's chronological list of related debits and credits of a business; forms part of a ledger of accounts
   synonyms: accounting system, method of accounting

   types:

   control account

   an account that shows totals of amounts entered in a subsidiary ledger

   accounting entry, entry, ledger entry

   a written record of a commercial transaction

   credit side

   account of payments received; usually the right side of a financial statement

   debit side

   account of payments owed; usually the left side of a financial statement

   accrual basis

   a method of accounting in which each item is entered as it is earned or incurred regardless of when actual payments are received or made

   cash basis

   a method of accounting in which each item is entered as payments are received or made

   pooling of interest

   an accounting method used in the merging of companies; the balance sheets are added together item by item; this method is tax-free

   audit, audited account

   an inspection of the accounting procedures and records by a trained accountant or CPA

   limited review, review

   (accounting) a service (less exhaustive than an audit) that provides some assurance to interested parties as to the reliability of financial data

   financial audit

   an attestation that the client's financial statement is accurate

   adjusting entry

   an accounting entry made at the end of an accounting period to allocate items between accounting periods

   credit, credit entry

   an accounting entry acknowledging income or capital items

   debit, debit entry

   an accounting entry acknowledging sums that are owing

   limited audit

   an audit of limited scope (limited in time span or confined to particular accounts etc.)

   analytical review

   an auditing procedure based on ratios among accounts and tries to identify significant changes

   type of:

   register

   a book in which names and transactions are listed
5. noun

   a convincing explanation that reveals basic causes
   “he was unable to give a clear accounting for his actions”

   type of:

   account, explanation

   a statement that makes something comprehensible by describing the relevant structure or operation or circumstances etc.