A ratio that shows the average length of time it takes a company to receive payment for credit sales. Tax imposed to back up the regular income tax imposed on CORPORATION and individuals to assure that taxpayers with economically measured income exceeding certain thresholds pay at least some income tax. Used to measure a company’s ability to collect cash from credit customers. Recording and reporting of financial transactions, including the origination of the transaction, its recognition, processing, and summarization in the FINANCIAL STATEMENTS.

Our accounting basics dictionary includes dozens of important terms. This guide includes accounting definitions, alternative word uses, explanations of related terms, and the importance of particular words or concepts to the accounting profession as a whole. Corporate AccountingFinancial AccountingPublic AccountingCorporate accounting refers to handling the accounts of a single company or working for a single employer.

Current Asset

Person skilled in the recording and reporting of financial transactions. They need complete financial and other data in order to analyze the performance of the business enterprises. This is necessary to undertake a comprehensive evaluation of the performance of the undertakings so that they can advise their clients appropriately.


Because, the organizations record the money equivalents of their business transactions. For instance, assume that P Company purchased 1,000 units of material S at Rs.10 per unit. Prof. R. N. Carter has defined Book-Keeping as the science and art of correctly recording, in the books of accounts, all those business transactions that result in the transfer of money or money’s worth. One of the essential and primary functions of Accounting is recording the voluminous and heterogeneous business transactions that have taken place during an accounting period. Earlier the objective of accounting was to ascertain the profit or loss and financial position of business.

Internal Revenue Service (IRS)

The base of computare is putare, which «variously meant to prune, to purify, to correct an account, hence, to count or calculate, as well as to think». Professional-and-business services, which includes many white-collar jobs in accounting, consulting and architecture, also hired at a fast pace, Friday’s Labor Department report showed. The study describes how, in accounting and many other business settings, the majority of the senior professionals that can serve as mentors are male.

Professional accounting qualifications include the Chartered Accountant designations and other qualifications including certificates and diplomas. In Scotland, chartered accountants of ICAS undergo Continuous Professional Development and abide by the ICAS code of ethics. In England and Wales, chartered accountants of the ICAEW undergo annual training, and are bound by the ICAEW’s code of ethics and subject to its disciplinary procedures. Employment in professional and business services – a catchall category that includes office jobs in accounting, law and other white-collar firms – has soared by 1.4 million during the pandemic.

Retail Method

This is the private sectorstandard-setting body governing the independence of AUDITORs from their public companyclients. It came about from discussions between theAICPA, otheraccountingrepresentatives and the SEC. The sum ofbeginning inventoryand thenetcost ofpurchasesduring aperiod; the totalgoods available for saleto customers during anaccountingperiod.

  • Periodin a business cycle when economic activity picks up and the gross national product grows, leading into the expansion phase of the cycle.
  • The study of the ways goods and services are produced, transported, sold, and used.
  • People, who have financial stake in an economic organisation such as a business entity, are naturally interested in its welfare.

accountingpayers meeting statutory requirements MUST file various returns on the prescribed forms. And they must be filed timely or the y may not be considered as filed. Independent, private, non-governmental authority for the establishment ofACCOUNTINGprinciples in the United States. UnderlyingACCOUNTINGdata and other corroborating information that support theFINANCIAL STATEMENTS. Raising the money by issuing shares ofCOMMON STOCKorPREFERRED STOCK.

Examples of Full Accounting in a sentence

It records the day-to-day events relating to business, in terms of money in various books of account. Additionally, it communicates the results of business operations to management, shareholders, creditors, banks, financial institutions etc. As a language of business, accounting serves an important means of communication between the business and its constituent parts. The reports, statements, etc., are meant for submission to different stakeholders (both internal and external parties/stakeholders) to help them in their decision-making process.

current assets