Related Words

Double-Entry Accounting: A system of recording transactions in a way that maintains the equality of the accounting equation.

Financial Accounting Standards Board (FASB): The Financial Accounting Standards Board (FASB) is an independent, self-regulatory board that establishes and interprets generally accepted accounting principles (GAAP). It operates under th . . . View Full Definition

Generally Accepted Accounting Principals (GAAP): The sum of taxes, charges, and miscellaneous income taken in at the state and local level while neglecting overlapping revenue which may be erroneously counted twice.

Financial Accounting: The area of accounting concerned with reporting financial information to interested external parties.

Double-Entry Book-Keeping: A system which accounts for every aspect of a transaction - where it came from and where it went to. This from and to aspect of a transaction (called crediting and debiting) is what the term . . . View Full Definition

Current Cost Accounting: The valuing of assets, stock, raw materials etc. at current market value as opposed to its historical cost .

Generally Accepted Accounting Principles (GAAP): Authoritative guidelines that define accounting practice at a particular time.

Equity Method Or Accounting For Investments In Stocks: Method used to account for an investments in the stock of another company when significant influence can be imposed (presumed to exist when 20 to 50 percent of the outstanding voting stock is owned).

Inflation Accounting: The rate at which the general level of prices for goods and services is rising.

Replacement Cost Accounting: An accounting method that includes as part of depreciation the difference between the original purchase price of an asset and the current replacement cost.