In the world of business, accounting terminology can differ across different countries. You might find financial statements in English but they are presented in a different language. In this case, using Google Translate can help you get a clearer understanding of what you’re reading. This article will discuss some of the key terms in accounting. If you want to become more familiar with them, keep reading! There are many more terms that you should know, so you can better understand financial statements.
There are two main types of accounting. These are called credits and debits. A credit balance occurs when the sum of all debit entries exceeds the total of all credits. An accounting system measures, records, and reports financial information to decision makers. Accounts payable relate to purchases made on open accounts, and accounts receivable reflect credit sales, less an allowance for doubtful accounts. These accounts represent the financial health of a business. If you’re a student of accounting, you should be familiar with these terms before you begin studying.
A debtor is someone who owes a company money but does not make the payment. In the United States, this type of debtor is called a debtor. In Finland, debtors are people who owe a company money but do not pay the amount. A deficit is the difference between expenses and revenue, before depreciation. Then there’s depreciation, which refers to the process of paying back a debt over a period of time.
As a rule of thumb, a corporate entity is a legal entity that is organized under a government charter. This entity is governed by a board of directors and has freely transferable CAPITAL STOCK. The board of directors has adopted international standards for financial reporting, but this standard is based on recognition rather than the use of specific terminology. Regardless of language, however, differences in culture can result in the application of certain terms.
A subordinate loan is one that must be paid off first before a higher priority debt can be repaid. Subordinate loans are those that only make sense when you understand the terms. The terms can also refer to the conditions of a loan. In some cases, a loan is considered subordinate if it is backed by collateral. The same goes for a bond that has a high premium. The terms for each type of loan are explained below.
Another term for net assets is “cash and cash equivalents.” This refers to funds that can be easily converted into dollars. Typically, this is the first item on the balance sheet in the United States. Cash equivalents also include currency, checks, and petty cash. Another term for cash is “liquid deposits.”
The FASB is the highest-level body that establishes standards for financial reporting for local and state governments. Its standards are based on a body of rules that sets accounting practice. The most basic form of a journal is a journal. The journal is an organized series of debit and credit transactions made in a general ledger. Debits should equal the credits. A liability is an amount that a company owes to another party.