Typically, accounting periods are one month, six months or one year long. This can vary from company to company and even within a single company. Accounting periodĪn accounting period refers to the time reported in a financial statement. Related: Accounts Payable: Asset or Liability? 4. It's part of the liability category on a company's balance sheet. Accounts payableĪccounts payable comprise all unpaid business expenses. This document can help an organization track its finances more accurately. An accountant's report is not part of an audit. Accountants' reportĪn accountant's report is a financial document prepared by an independent accountant, including financial statements, review reports, agreed-upon procedures reports, compilation reports and attestation reports. Related: Learn About Being an Accountant 2. For example, an accountant may perform audits or track the cash flow of the organization. Depending on the company's need, the person may be required to have specific certifications as proof of expertise. AccountantĪn accountant is a person skilled in the recording and reporting of financial transactions. The following list includes some of the most common accounting terms and their meaning: 1. In this article, we list and define 79 accounting terms you may encounter in a variety of industries. It can also support you when presenting information about a company's finances and making effective decisions based on the documents you examine. Understanding these industry terms can help you read and interpret accounting documents correctly. Whether you're an aspiring accountant or are collaborating with an accounting team, knowing common accounting terms can provide you with valuable insight into a company's accounting department.

Advanced bookkeeping definition