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Accounting dictionary

Learn about common accounting terms and phrases

A

  1. Accountancy
  2. Accounting equation
  3. Accounting principles
  4. Accounting system
  5. Accounting year
  6. Accounts payable
  7. Accounts receivable
  8. Accrual accounting
  9. Accruals
  10. Administration
  11. Aged debtors report
  12. Allowable expenses
  13. Amortisation
  14. Annual accounting VAT scheme
  15. Annual Investment Allowance (AIA)
  16. Annual report
  17. Appreciation
  18. Arbitrage
  19. Articles of association
  20. Assets
  21. Audit
  22. Audit trail
  23. Auditor's report
  24. Australian Business Number (ABN)
  25. Australian Company Number (ACN)
  26. Average cost
  27. Average Revenue Per User (ARPU)

B

  1. B Corp
  2. B2B
  3. B2C
  4. Bad debt account
  5. Bad debt reserve
  6. Balance sheet
  7. Bank balance
  8. Bank fees
  9. Bank reconciliation
  10. Bank statement
  11. Bankruptcy
  12. Barriers to entry
  13. Barriers to exit
  14. Base period
  15. Benefits in kind
  16. Bond
  17. Bonus
  18. Book value
  19. Bookkeeping
  20. Break-even point
  21. Brick and mortar
  22. Bridging software
  23. Budget
  24. Business angel
  25. Business name
  26. Business structure
  27. Buying rate
  28. By-products

C

  1. C-Suite
  2. Capital
  3. Capital allowance
  4. Capital Gains Tax
  5. Capital investment
  6. Card machine
  7. Card payment
  8. Card reader
  9. Carrying cost
  10. Cash
  11. Cash accounting
  12. Cash accounting VAT scheme
  13. Cash budget
  14. Cash discount
  15. Cash flow
  16. Cash flow forecast
  17. Cash on delivery (COD)
  18. Chargeback
  19. Charity
  20. Chart of accounts
  21. Chip and PIN
  22. CIS
  23. Click and mortar
  24. Closing balance
  25. Cloud
  26. Cold-calling
  27. Collateral
  28. Commission
  29. Community interest company (CIC)
  30. Companies Act 2006
  31. Company registration number (CRN)
  32. Company tax
  33. Conservatism principle
  34. Consistency principle
  35. Consumables
  36. Consumer
  37. Consumer price index (CPI)
  38. Consumer Rights Act 2015 (CRA 2015)
  39. Consumer surplus
  40. Contra account
  41. Contractor
  42. Contribution margin
  43. Copyright
  44. Corporation
  45. Corporation tax
  46. Cost
  47. Cost of goods sold
  48. Cost principle
  49. County court judgement (CCJ)
  50. Credit
  51. Credit card
  52. Credit note
  53. Credit rating
  54. Creditor
  55. Crowdfunding
  56. Currency
  57. Current assets
  58. Current liabilities
  59. Current ratio
  60. Customer Acquisition Cost (CAC)
  61. Customer Lifetime Value (CLTV)
  62. Customs Duty
  63. Customs union

D

  1. Dangerous asset
  2. Data Protection Act
  3. Debenture
  4. Debit
  5. Debit note
  6. Debt
  7. Debt ratio
  8. Debtor
  9. Deductible VAT
  10. Default
  11. Deferred expenditure
  12. Deferred revenue
  13. Deferred tax
  14. Delivery note
  15. Department
  16. Deposit
  17. Deposit Interest Retention Tax (DIRT)
  18. Depreciation
  19. Depreciation methods
  20. Digital signature
  21. Diminishing marginal utility
  22. Direct debit
  23. Director
  24. Directors' report
  25. Distance selling
  26. Dividends
  27. Double entry bookkeeping
  28. Down payment
  29. Drawings
  30. Due date
  31. Due diligence

E

  1. E-commerce
  2. EBIT
  3. EBITDA
  4. Economic entity principle
  5. Economies of scale
  6. Economies of scope
  7. Electronic invoicing
  8. Ending inventory
  9. Entrepreneur
  10. Entrepreneurs' Relief
  11. EORI number
  12. Estimate
  13. Exchange gain or loss
  14. Excise Duty
  15. Exit strategy
  16. Expense
  17. Export VAT

F

  1. FIFO
  2. Finance charge
  3. Financial benchmarking
  4. Financial instrument
  5. Financial statement
  6. Finished goods
  7. Fintech
  8. Fiscal policy
  9. Fixed assets
  10. Fixed cost
  11. Fixed exchange rates
  12. Flat rate VAT scheme
  13. FOB destination
  14. FOB shipping point
  15. Franchising
  16. Free trade agreement (FTA)
  17. Freelancer
  18. Fringe benefits tax (FBT)
  19. Full disclosure principle

G

  1. Gains
  2. GDP
  3. GDPR
  4. General ledger
  5. Glocalisation
  6. Going concern principle
  7. Golden parachute
  8. Goodwill
  9. Gross profit margin
  10. Group consolidation
  11. GST

H

  1. Historical cost
  2. Household income

I

  1. IBAN
  2. IFRS standards
  3. Impairment
  4. Import duty
  5. Import VAT
  6. Imprest system
  7. Income statement
  8. Income Tax
  9. Individual Savings Account (ISA)
  10. Inflation
  11. Initial Public Offering (IPO)
  12. Insolvency
  13. Intangible assets
  14. Intellectual property
  15. Interest
  16. Inventory
  17. Invoice
  18. Invoice format
  19. Invoice number

J

  1. Job costing
  2. Joint products
  3. Joint venture
  4. Joint venture for VAT
  5. Journal

K

  1. Key figure
  2. Key ratio

L

  1. Land and Buildings Transaction Tax
  2. Land Transaction Tax
  3. Late fees
  4. Legal tender
  5. Liabilities
  6. Lifetime Individual Savings Account
  7. LIFO
  8. Limited company
  9. Limited liability
  10. Liquidation
  11. Liquidity
  12. Loan
  13. Losses

M

  1. M-commerce
  2. Making Tax Digital
  3. Management accounting
  4. Management buyout (MBO)
  5. Manufacturer
  6. Margin scheme
  7. Marginal benefit
  8. Marginal cost
  9. Markdown
  10. Market share
  11. Market value
  12. Markup
  13. Matching principle
  14. Materiality principle
  15. Memorandum of association
  16. Merchandise
  17. Mergers and acquisitions (M&A)
  18. Monetary policy
  19. Monetary unit principle
  20. Monopoly

N

  1. National Insurance
  2. Near term
  3. Negative amortisation
  4. Net income
  5. Net Income After Taxes (NIAT)
  6. Net sales
  7. Net worth
  8. Nominal ledger

O

  1. OCR system
  2. Open items creditor
  3. Open items debtor
  4. Opening balance
  5. Outsourcing
  6. Overhead
  7. Owner’s equity

P

  1. Packing note
  2. Par value
  3. Partial payment
  4. Partnership
  5. Patent
  6. Payback period
  7. PAYE
  8. Payment guarantee
  9. Payment on account
  10. Payment receipt
  11. Payment terms
  12. Payroll
  13. Payroll tax
  14. Pension
  15. Period end
  16. Periodic stock management
  17. Perpetual stock management
  18. Personal allowance
  19. PESTLE Analysis
  20. Petty cash
  21. Point of sale (POS)
  22. POS system
  23. PP&E
  24. Premium
  25. Prepayments
  26. Price elasticity
  27. Pricing strategy
  28. Principal payment
  29. Process costing
  30. Producer surplus
  31. Product list
  32. Profit & loss statement
  33. Proforma invoice
  34. Project accounting
  35. Provision
  36. Purchase ledger control account
  37. Purchase order
  38. Purchasing power

Q

  1. Quantitative easing
  2. Quick ratio
  3. Quotation

R

  1. Raw materials
  2. Recurring invoice
  3. Reducing balance depreciation
  4. Refund or Reimbursement
  5. Reliability principle
  6. Reminder letter
  7. Remittance advice
  8. Request for proposal (RFP)
  9. Research and Development (R&D)
  10. Reserves
  11. Residual value
  12. Retailer
  13. Retained earnings
  14. Return on investment (ROI)
  15. Revaluation
  16. Revaluation of creditors/debtors
  17. Revenue recognition principle
  18. Revenues
  19. Reverse charge
  20. Rounding
  21. Royalties

S

  1. Sale of Goods Act 1979 (SOGA)
  2. Sales
  3. Sales discount
  4. Sales ledger control account
  5. Sales turnover
  6. Salvage value
  7. Seasonality
  8. Self assessment
  9. SEPA
  10. Share
  11. Shareholder
  12. Shareholders' agreement
  13. Single market
  14. Social enterprise
  15. Sole trader
  16. Spoilage
  17. Stakeholder
  18. Stamp duty
  19. Standard VAT accounting scheme
  20. Standing order
  21. Statement of account
  22. Statement of cash flows
  23. Statutory accounts
  24. Stock
  25. Stock management
  26. Stockholders' equity
  27. Straight-line depreciation
  28. Structures and Buildings Allowance (SBA)
  29. Subcontractor
  30. Subscription
  31. Subsidiary
  32. Superannuation
  33. Supply and demand
  34. Supply chain
  35. Suspense account
  36. SWIFT/BIC codes
  37. Switching costs
  38. SWOT analysis

T

  1. Tangible assets
  2. Tariff
  3. Tax accounting
  4. Tax codes
  5. Time period principle
  6. Time Value of Money (TVM)
  7. Touch ID
  8. Trade mark
  9. Trading name
  10. Transaction
  11. Trial balance
  12. Turnover

U

  1. UK GAAP
  2. Unbundling
  3. Underwriting
  4. Unique Selling Point (USP)
  5. Unique Taxpayer Reference (UTR)
  6. Unlimited liability
  7. Useful life

V

  1. Variable cost
  2. Variance
  3. VAT
  4. VAT Division
  5. VAT exemption
  6. VAT group
  7. VAT invoice
  8. VAT number
  9. VAT registration
  10. VAT relief
  11. VAT report
  12. VAT return
  13. VAT taxable turnover
  14. VAT threshold
  15. Venture capital

W

  1. Wholesaler
  2. Word of mouth (WOM)
  3. Work in process
  4. Working capital
  5. Write-off

Y

  1. Year end