Financial Accounting Glossary: Key Terms and Definitions
- Adjusting entries
- Amortization
- Contributed capital
- Gain
- Going concern opinion
- Historical cost
- Income statement
- Interest coverage ratio
- Operating cycle
- Retained earnings
- Right-of-use (ROU) asset
- Allowance for doubtful accounts
- Articulation
- Asset turnover
- Current Expected Credit Losses (CECL)
- Closing entries
- Cost of goods sold
- Diluted EPS
- Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
- Expense
- General journal
- Matching principle
- Materiality
- Pro forma earnings
- Accounting equation
- Accrual basis
- Accumulated depreciation
- Additional Paid-In Capital (APIC)
- Accounting Standards Codification (ASC) 350
- Assets
- Capital expenditure
- Coupon rate
- Current ratio
- Debt-to-equity ratio
- Deferred revenue
- Direct method
- Earnings Before Interest and Taxes (EBIT)
- Finance lease
- International Financial Reporting Standards (IFRS) vs. Generally Accepted Accounting Principles (GAAP)
- Accounts payable
- Accounting Standards Codification (ASC) 320 and 321
- Accounting Standards Codification (ASC) 842
- Cash flow from operations
- Current assets
- Depreciation
- General ledger
- Journal entry
- Lower of cost or net realizable value (LCNRV)
- Management’s Discussion and Analysis (MD&A)
- Operating income
- Operating lease
- Quick ratio (acid-test)
- Return on equity (ROE)
- Revenue
- Accounting Standards Codification (ASC) 606
- Available-for-sale (AFS)
- Conservatism
- Current liabilities
- Discount (bond)
- Generally Accepted Accounting Principles (GAAP)
- Goodwill
- Gross profit
- Held-to-maturity (HTM)
- Income tax expense
- Intangible asset
- Par value
- Property, Plant, and Equipment (PP&E)
- Preferred stock
- Prepaid expense
- Revenue recognition
- Accounts receivable
- Accounting Standards Codification (ASC) 805
- Contingent liability
- Debit / Credit
- Earnings per share (EPS)
- First-In, First-Out (FIFO)
- Fiscal year
- Indirect method
- Inventory turnover
- Liabilities
- Return on assets (ROA)
- Cash basis
- Common stock
- Deferred tax asset / liability
- Dividends declared
- Double-declining balance
- Equity method
- Last-In, First-Out (LIFO)
- Net income
- Premium (bond)
- Acquisition cost
- Balance sheet
- Bond
- Book value
- Contra-account
- Double-entry bookkeeping
- Effective interest method
- Equity
- Going concern
- Impairment
- Internal controls
- Inventory write-down
- Other Comprehensive Income (OCI)
- R&D expense
- Related-party transaction
- Salvage value
- Segment reporting
- Statement of cash flows
- Trading security
- Working capital
- Trial balance
- Specific identification
- T-account
- Treasury stock
- Useful life
- Accumulated Other Comprehensive Income (AOCI)
- Statement of stockholders' equity
- Stock-based compensation
- Straight-line depreciation
- Selling, General, and Administrative Expenses (SG&A)
- Units-of-production depreciation
- Subsequent events
- Treasury stock method
- Unearned revenue
- Weighted-average cost
- Activity Trend Analysis
- Recording Transactions Journal Ledger
- Profitability Market Ratios
- Intangibles Natural Resources
- Inventory
- Liabilities Bonds Payable
- Accounting Cycle Financial Statements
- Liquidity Solvency Ratios
- Financial Statement Analysis Ratios
- Plant Assets Depreciation
- Bonds Payable Issuance
- Cash Receivables
- Financial Statement Preparation