Nglossary of accounting terms and definitions pdf merger

Let us walk you through all the basics that you need know. The glossary contains definitions of accounting, reporting, and auditing terms that are. To successfully manage a companys bookkeeping or accounting, knowledge of terminology is a must. Glossary of terms this glossary contains definitions of selected terms used in this document and additional terms and interpretative data as necessary for common understandings concerning financial accounting procedures of the cobb county school district. Several terms, which are not primarily financial accounting terms, have. In other words, two or more companies are consolidated into one company. An accounting entry that may either decrease assets or increase liabilities and equity on the companys balance sheet, depending on the transaction.

The alphabetical layout will help you easily find the word you need. Grow your business get more funding expand to new locations merge and acquire businesses become a. There are some differences between these two accounting methods which are discussed in the following page. Glossary of forensic accounting terms and explanation of. When terms are defined as different parts of speech, the grammatical forms are not labeled but the sequence is always nouns, followed by verbs, followed by qualifiers.

Articles business list of key accounting terms and definitions list of key accounting terms and definitions if you want to start a business, get better at running your business, or get an accounting job, you need to know some essential financial accounting terms and concepts. Glossary of financial accounting terms the definition of one word or phrase may depend on understanding another word or phrase defined elsewhere in the reference list. Mel king institute definitions of accounting terms for financial statements for cdcs 1. Find definitions for small business accounting terms. Accounting definitions and basic accounting terms to know as a small business owner. In a recent deal the authors were involved with in the southeast, a small firm was offered three different deals from the same buyer. For example, you may hear the terms revenues and receipts used interchangeably in casual office conversation. Over 18000 financial and investing definitions, with links between related terms. Mergers and acquisitions terms 338h10 election a section 338h10 election allows an acquiring corporation to treat its acquisition of the stock of a subsidiary corporation or an s corporation as an acquisition of assets followed by a taxfree liquidation, often resulting in a steppedup basis for such assets. Please find a simple glossary of accounting terms we use.

The joining of one or more companies into a new entity. Corporations currently operate on a fiscal year beginning on july 1st and ending june 30th. Posted by alexmoss august 8, 2017 august 14, 2017 leave a comment on glossary of accounting terms and definitions. Gj a book or original entry in a doubleentry system. This document defines terminology related to financial statements and disaster business loan applications. An area of public accounting ranging from development of accounting and computer systems to support services for marketing projects and merger and acquisition activities.

Merger two organisations agree to work together in a situation where. Plain language definitions with sample applications. Accounts payable sundry creditors short term or current financial obligations that are created through the purchase of merchandise, or obtaining of service. Terminology and definitions accounting this manual begins by defining the basic terms used in accounting functions. Accountingwords investorwords the best investing glossary on the web. Mel king institute definitions of accounting terms for. This glossary contains the defined terms from australian accounting standards. In accounting an amalgamation, or consolidation, refers to the combination of financial statements. Discover the meaning of common bookkeeping terms, words and phrases from this quick a z style guide. Glossary of utility finance and accounting terms used in our seminars letters in parenthesis, preceding the definition, identify the sources used in compiling the glossary. Even though you may be familiar with some of them, it is important to know their exact meanings otherwise you may find yourself becoming confused.

Amalgamation when two or more separate companies join together to form one company so that their pooled resources generate greater common prosperity than if they remain. There may be several accounting periods in an accounting cycle. Bookkeeping and accountancy deal with maintaining record of all the transactions that a businessindividual makes. Dont feel left out in conversations and dont be left behind because you arent sure what someone is talking about. The world of accounting uses many terms to define different actions, circumstances and classifications for preparing financial statements with the most accurate information possible. Entering into the accounting field can be a little confusing at first with all of the new terminology to learn. In a pooling of interests, two entities merge through an exchange of. The following is a glossary which defines terms used in mergers, acquisitions, and takeovers of companies, whether private or public acquisition when one company is taking over controlling interest in another company. An act designed to improve quality and transparency in financial reporting and independent audits and accounting services for public companies, to create a public company accounting oversight board, to enhance the standardsetting process for accounting practices, to strengthen the independence of firms that audit public companies, to increase. To determine the compliance with applicable laws and regulations of a governmental units financial transactions. General accounting terms and definitions accounting cycle composed of several accounting periods spanning over twelve consecutive months. Whether youre fresh out of school or an executive in need of a definition, our terminology guide will provide you sufficient information regarding the accounting terms and definitions.

Get an answer for what is the definition of accounting. When using the doubleentry accounting method there will be two recorded entries for every transaction. Reversing entry is a rectifying entry, which is made to correct an original mistake in recording. Accounting equation the relationship between assets, liabilities and ownership interest. Chapter 1 part one identifying accounting terms 22 terms. The consignee is acting as an agent in an attempt to sell the goods. Accounting period expenditure and revenue measurement within a predetermined time frame. In addition to exploring our extensive sample accounting resumes and sample accounting job descriptions, you can also browse our accounting terms guide. Harold averkamp cpa, mba has worked as a university accounting instructor, accountant, and consultant for more than 25 years. Glossary of financial accounting terms pearson education. Words in bold indicate that such a definition is available. Consolidated financial statements financial statements of a group in which assets, liabilities, equity, income, expenses and cash flows of the parent company and its.

The wealthhow article below provides a glossary of accounting terms and definitions that are most commonlyused. Glossary of accounting terms and definitions direct holder. Financial statements records that outline the financial activities of a business, an individual or any other entity. Glossary of business financial terms small business administration. Knowing accounting terminology will make bookkeeping easier. Accounting cycle the sequence of steps followed in the accounting process to measure business transactions and transform the measurements into financial statements for a specific period. Glossary of accounting terms and definitions wealth how. Accounting terminology guide over 1,000 accounting and. Merger and acquisition accounting is done either by the purchase or pooling of interests methods. Glossary of mergers, acquisitions, and takeovers wikipedia.

Glossary of management accounting terms the definition of one word or phrase may depend on understanding another word or phrase defined elsewhere in the reference list. He is the sole author of all the materials on accountingcoach. Glossary of notforprofit financial and accounting terms. If a sale occurs, the consignee deducts from the selling price his commission and related expenses, remitting the balance to the consignor. Glossary of accounting word html accounting glossary. Mergers and acquisitions of accounting firms the cpa journal.

Accounting terminology can be quite a mouthful and hard to remember, especially if you dont have much prior experience with financial or. Accounting definitions basic accounting terms to know. Accounting helps keep a track of the financial position of the business and forms the basis for good financial planning. A debenture is the safest form of share and is usually tied to an asset.

Cash equivalents shortterm, highly liquid investments that are. Anything is possible with regard to the terms of a mergerbut there will need to be an offsetting adjustment for the deal to make sense to the other party. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Accounting terms accounting terms and howtos for beginners. Duncan williamson, times educational supplement, december 2004. Although the consignee is temporarily holding the goods, the inventory is not an asset on his books. Glossary of terms australian accounting standards board. A merger is the combination of two companies into one by either closing the old entities into one new entity or by one company absorbing the other.

Chartstring what is typically called an account or thought of by most people as an account is called a chartstring in peoplesoft ps. Modern accounting systems tend to use open ended accounting. The expenditure might be for a significant long term asset capital expenditure, a short term asset prepaid insurance, a reduction in. A separate list of abbreviations and acronyms follows the dictionary. Check out the accounting terms below and find out what that last conversation was about. A record that holds the results of financial transactions. Accounting period any period of time utilised to measure accounting performance e. Get key bookkeeping and accounting terms to better manage your clients. The nysscpa has prepared a glossary of accounting terms for accountants and. Revenue expenditure is the total cost that is incurred on revenue generating activities.