Accounting Terminology Guide

17204 Words69 Pages
Accounting Terminology Guide A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | Y | Z The New York State Society of CPAs (NYSSCPA) General Committee on Public Relations has prepared this glossary as an educational tool for journalists who report on and interpret financial information. How to Use this Guide To jump to a letter in the alphabet, click the letter at the top. When you see “Top of Page”, click the link and it will bring you here. Capitalized terms that appear within definitions of other terms are also defined in this guide. Related terms are cross­referenced to provide a clearer understanding of their interdependent relationships. Commonly used acronyms (e.g., IRS) are listed…show more content…
Accrual Basis ­ Method of ACCOUNTING that recognizes REVENUE when earned, rather than when collected. Expenses are recognized when incurred rather than when paid. Accumulated Depreciation ­ Total DEPRECIATION pertaining to an ASSET or group of assets from the time the assets were placed in services until the date of the FINANCIAL STATEMENT or tax return. This total is the CONTRA ACCOUNT to the related asset account. Additional Paid in Capital ­ Amounts paid for stock in excess of its PAR VALUE or STATED VALUE. Also, other amounts paid by stockholders and charged to EQUITY ACCOUNTS other than CAPITAL STOCK. Adjusted Basis ­ After a taxpayer 's basis in property is determined, it must be adjusted upward to include any additions of capital to the property and reduced by any returns of capital to the taxpayer. Additions might include improvements to the property and subtractions may include depreciation or depletion. A taxpayer 's adjusted basis in property is deducted from the amount realized to find the gain or loss on sale or disposition. Adjusted Gross Income ­ Gross income reduced by business and other specified expenses of individual taxpayers. The amount of adjusted gross income affects the extent to which medical expenses, non business casualty and theft losses and charitable contributions may be deductible. It is also an important figure in the basis of many other individual planning issues as

More about Accounting Terminology Guide

Get Access