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ACCOUNTING
TERMINOLOGY
– GLOSSARY
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1. ACCEPTANCE

2. ACCOUNTING POLICIES

3. ACCRUAL

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4. ACCRUAL/MERCANTILE BASIS OF

ACCOUNTING

5. ACCRUED EXPENSE

6. ACCRUED LIABILITY
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7. ACCRUED REVENUE

8. ACCUMULATED DEPLETION

9. ACCUMULATED DEPRECIATION

10. AMORTISED VALUE


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11. ANNUAL REPORT

12. APPROPRIATION ACCOUNT

13. ASSETS

14. AUTHORISED SHARE CAPITAL


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15. AVERAGE COST

16. BAD DEBTS

17. BALANCE SHEET

18. BILL OF EXCHANGE


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19. BONUS SHARES

20. BOOK VALUE

21. BORROWING COSTS

22. BOND/DEBENTURE
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23. CALL

24. CALLED-UP SHARE CAPITAL

25. CAPITAL ASSETS

26. CAPITAL COMMITMENT


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27. CAPITAL EMPLOYED

28. CAPITAL PROFIT/CAPITAL LOSS

29. CAPITAL RESERVE

30. CAPITAL WORK-IN-PROGRESS


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31. CASH

32. CASH DISCOUNT

33. CASH PROFIT

34. CARRYING AMOUNT


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35. CHEQUE

36. COLLATERAL SECURITY

37. COSTS OF DISPOSAL

38. COSTS AND INCOME TAX EXPENSE.

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39. CONTINGENCY

40. CONTINGENT ASSET

41. CONTINGENT LIABILITY

42. CONTRA ACCOUNT


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43. COST

44. COST OF PURCHASE

45. COST OF GOODS SOLD

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46. MATERIALS; (II) LABOUR AND

FACTORY OVERHEADS; SELLING

AND ADMINISTRATIVE EXPENSES

ARE NORMALLY EXCLUDED.


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47. CONVERSION COST

48. CONVERTIBLE DEBENTURE

49. CUMULATIVE DIVIDEND

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50. CUMULATIVE PREFERENCE

SHARES

51. CURRENT ASSETS

52. CURRENT LIABILITY


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53. DEFERRAL

54. DEFICIENCY

55. DEPLETION

56. DEPRECIATION
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57. DEPRECIABLE AMOUNT

58. DEPRECIABLE ASSETS

59. DEPRECIATION METHOD

60. DISCOUNT
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61. DIVIDEND

62. ENTITY CONCEPT

63. EQUITY SHARE

64. EXCHANGE DIFERENCE


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65. EXPENDITURE

66. EXPENSE

67. EXPIRED COST

68. EXTRAORDINARY ITEMS


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69. FAIR VALUE

70. FAIR MARKET VALUE

71. FIRST CHARGE

72. FIRST IN, FIRST OUT (FIFO)


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73. FIXED ASSET

74. FIXED COST

75. FIXED DEPOSIT

76. FIXED OR SPECIFIC CHARGE


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77. FLOATING CHARGE

78. FINANCIAL INSTRUMENT

79. FOREIGN CURRENCY

80. FORFEITED SHARE


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81. FREE RESERVE

82. FUND

83. FUNDAMENTAL ACCOUNTING

ASSUMPTIONS
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84. GAIN

85. GENERAL RESERVE

86. GOING CONCERN

ASSUMPTION
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87. GOODWILL

88. GROSS MARGIN OR GROSS

PROFIT

89. GOVERNMENT
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90. GOVERNMENT GRANTS

91. GROSS BOOK VALUE

92. INCOME AND EXPENDITURE

STATEMENT
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93. INTANGIBLE ASSET

94. INVESTMENT

95. ISSUED SHARE CAPITAL

96. JOINT VENTURE


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97. LAST IN, FIRST OUT (LIFO)

98. LIABILITY

99. ASSETS/PROPERTY.

100. LONG-TERM LIABILITY


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101. LEASE

102. A LEASE IS AN AGREEMENT

WHEREBY THE LESSOR CONVEYS

TO THE LESSEE IN RETURN FOR A


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PAYMENT OR SERIES OF

PAYMENTS THE RIGHT TO USE AN

ASSET FOR AN AGREED PERIOD OF

TIME.
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103. MATERIALITY

104. MORTGAGE

105. NET ASSETS/SHAREHOLDERS’

FUNDS/NET WORTH
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106. NET FIXED ASSETS

107. NET PROFIT/NET LOSS

108. NET REALIZABLE VALUE

109. OBSOLESCENCE
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110. OPERATING PROFIT

111. PAID-UP SHARE CAPITAL

112. PREFERENCE SHARE CAPITAL

113. PRELIMINARY EXPENSES


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114. PREPAID EXPENSE

115. PRIME COST

116. PRIOR PERIOD ITEM

117. PROFIT/LOSS
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118. PROFIT AND LOSS ACCOUNT

119. PROMISSORY NOTE

120. PROVISION

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121. PROVISION FOR DOUBTFUL

DEBTS

122. PRUDENCE

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123. REDEEMABLE PREFERENCE

SHARE

124. REDEMPTION

125. RESERVE
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126. REVENUE RESERVES.

127. REVALUATION RESERVE

128. RESIDUAL VALUE

129. REVENUE/INCOME
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130. REVENUE RESERVE

131. RIGHT SHARE

132. SALES TURNOVER/GROSS

TURNOVER/GROSS SALES
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133. SECURED LOAN

134. SHARE CAPITAL

135. SHARE DISCOUNT

136. SHAREHOLDERS’ EQUITY


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137. SHARE ISSUE EXPENSES

138. SHARE WARRANTS

139. SECURITIES PREMIUM

140. SINKING FUND


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141. STRAIGHT LINE METHOD

142. SUBSCRIBED SHARE CAPITAL

143. SUBSTANCE OVER FORM- An

Accounting Concept According To


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Which The Substance And Not

Merely The Legal Form Of

Transactions And Events Governs

Their Accounting Treatment And


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Presentation In Nancial

Statements.

144. SUNDRY CREDITORS / TRADE

CREDITORS/TRADE PAYABLES
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145. SUNDRY DEBTORS / TRADE

DEBTORS/ TRADE RECEIVABLES

146. SURPLUS

147. TRADE DISCOUNT


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148. UNEXPIRED COST

149. UNISSUED SHARE CAPITAL

150. UNPAID DIVIDEND

151. USEFUL LIFE


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