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Accounting dictionary

Learn about common accounting terms and phrases

A

  1. Abnormal loss
  2. Abridged accounts
  3. Absorbed overhead
  4. Accountancy
  5. Accounting cushion
  6. Accounting equation
  7. Accounting principles
  8. Accounting system
  9. Accounting year
  10. Accounts payable
  11. Accounts receivable
  12. Accrual accounting
  13. Accruals
  14. Acquisition
  15. Activity-based costing (ABC)
  16. Administration
  17. Aged debtors report
  18. Aging report
  19. Allowable expenses
  20. Amortisation
  21. Annual accounting VAT scheme
  22. Annual Investment Allowance (AIA)
  23. Annual report
  24. Appreciation
  25. Arbitrage
  26. Articles of association
  27. Asset-backed commercial paper
  28. Assets
  29. Audit
  30. Audit trail
  31. Auditor's report
  32. Australian Business Number (ABN)
  33. Australian Company Number (ACN)
  34. Authorised Share Capital
  35. Average cost
  36. 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. Balloon payment
  8. Bank balance
  9. Bank fees
  10. Bank reconciliation
  11. Bank statement
  12. Bankruptcy
  13. Barriers to entry
  14. Barriers to exit
  15. Base period
  16. Bearer share
  17. Benefits in kind
  18. Bond
  19. Bonus
  20. Book value
  21. Bookkeeping
  22. Break-even point
  23. Brick and mortar
  24. Bridging software
  25. Budget
  26. Business angel
  27. Business name
  28. Business plan
  29. Business rates
  30. Business structure
  31. Buying rate
  32. By-products

C

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

D

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

F

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

G

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

H

  1. Harmonized system
  2. Historical cost
  3. 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. Instalment payments
  14. Intangible assets
  15. Intellectual property
  16. Interest
  17. Inventory
  18. Investor
  19. Invoice
  20. Invoice format
  21. 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. Lean accounting
  5. Legal tender
  6. Liabilities
  7. Lifetime Individual Savings Account
  8. LIFO
  9. Limited company
  10. Limited cost trader
  11. Limited liability
  12. Liquidation
  13. Liquidity
  14. Loan
  15. Losses

M

  1. M-commerce
  2. Making Tax Digital
  3. Managed service company (MSC)
  4. Management accounting
  5. Management buyout (MBO)
  6. Manufacturer
  7. Margin scheme
  8. Marginal benefit
  9. Marginal cost
  10. Markdown
  11. Market share
  12. Market value
  13. Markup
  14. Matching principle
  15. Materiality principle
  16. Memorandum of association
  17. Merchandise
  18. Merchant acquirer
  19. Mergers and acquisitions (M&A)
  20. Mezzanine financing
  21. Mobile payments
  22. Modified invoice
  23. Monetary policy
  24. Monetary unit principle
  25. 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. Nil VAT Return
  9. Nominal ledger

O

  1. OCR system
  2. Off-balance sheet (OBS)
  3. Open items creditor
  4. Open items debtor
  5. Opening balance
  6. Outsourcing
  7. Overhead
  8. Owner’s equity

P

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

Q

  1. Quantitative easing
  2. Quick ratio
  3. Quotation

R

  1. Rateable value
  2. Raw materials
  3. Recurring expense
  4. Recurring invoice
  5. Reducing balance depreciation
  6. Refund or Reimbursement
  7. Registered share
  8. Reimbursable expense
  9. Reliability principle
  10. Reminder letter
  11. Remittance advice
  12. Request for proposal (RFP)
  13. Research and Development (R&D)
  14. Reserves
  15. Residual value
  16. Retailer
  17. Retained earnings
  18. Return on investment (ROI)
  19. Revaluation
  20. Revaluation of creditors/debtors
  21. Revenue recognition principle
  22. Revenues
  23. Reverse charge
  24. Rounding
  25. 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. Simplified invoice
  14. Single market
  15. SME
  16. Social enterprise
  17. Sole trader
  18. Solvency
  19. Spoilage
  20. Stakeholder
  21. Stamp duty
  22. Standard costing
  23. Standard VAT accounting scheme
  24. Standing order
  25. Statement of account
  26. Statement of cash flows
  27. Statement of retained earnings
  28. Statutory accounts
  29. Stock
  30. Stock management
  31. Stockholders' equity
  32. Straight-line depreciation
  33. Structures and Buildings Allowance (SBA)
  34. Subcontractor
  35. Subscription
  36. Subsidiary
  37. Superannuation
  38. Supply and demand
  39. Supply chain
  40. Suspense account
  41. SWIFT/BIC codes
  42. Switching costs
  43. SWOT analysis

T

  1. Tangible assets
  2. Tariff
  3. Tax accounting
  4. Tax base
  5. Tax codes
  6. Tax file number
  7. Tax point
  8. Time period principle
  9. Time Value of Money (TVM)
  10. Touch ID
  11. Trade mark
  12. Trading name
  13. Transaction
  14. Transaction fee
  15. Trial balance
  16. 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 margin scheme
  9. VAT MOSS
  10. VAT number
  11. VAT rate
  12. VAT registration
  13. VAT relief
  14. VAT report
  15. VAT return
  16. VAT taxable turnover
  17. VAT threshold
  18. Venture capital
  19. Virtual terminal

W

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

Y

  1. Year end