A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

A

Accounting Cycle

The accounting cycle represents a standardised sequence of procedures that accountants follow to record, process and report financial transactions during a specific accounting period.
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Accounting Principles

Generally Accepted Accounting Principles (GAAP) function as a comprehensive framework of accounting standards, procedures and guidelines that govern financial reporting.
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Accounts Payable

Accounts payable (AP) represents the money a company owes to vendors or suppliers for goods and services purchased on credit. These short-term debt obligations appear as liabilities on a company's balance sheet, reflecting unpaid bills that require settlement within a specified timeframe.
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Accrual

Accrual basis accounting recognises revenue and expenses when they are earned or incurred, regardless of when cash changes hands. This contrasts sharply with cash basis accounting, which only records transactions when money physically moves in or out of an account.
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Amortisation

Amortisation represents a fundamental concept in financial planning that affects both loan repayments and accounting practices. Understanding this principle helps individuals and businesses make informed decisions about debt management and asset valuation.
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API

An Application Programming Interface (API) functions as a messenger that takes your request to a system and returns the response back to you. Think of it as a waiter in a restaurant—you don't need to know how the kitchen operates to order food.
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Asset

In accounting and finance, assets represent resources owned or controlled by a business that provide economic value. These valuable items appear on the balance sheet and contribute to a company's worth and operational capabilities.
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Audit Trail

An audit trail represents a chronological sequence of records documenting the history of transactions and activities affecting financial data. This sequential record provides evidence of who accessed financial information, what changes were made and when these activities occurred.
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B

Balance Sheet

A balance sheet is one of the three primary financial statements that reports a company's assets, liabilities and shareholders' equity at a specific point in time..
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Book Value

In accounting, book value is the value of an asset according to its balance sheet account balance. In other words, book value is the net worth of a company calculated as total assets minus total liabilities.
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C

Capital

Capital represents accumulated assets used to generate wealth and economic value. Unlike ordinary resources consumed in daily operations, capital functions as a productive resource that creates additional value when properly deployed. In financial contexts, it typically refers to money invested to generate returns.
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Capital Expenditure

Capital expenditure (CapEx) refers to funds used by organisations to acquire, upgrade or maintain physical assets such as property, industrial buildings, equipment or technology infrastructure.
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Cash Accounting

Cash-basis accounting represents a straightforward method of financial record-keeping where transactions are recognised only when money physically changes hands. In other words, transactions are recorded only when money goes in or out of an account. 
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Cash Flow Insolvency

Cash flow insolvency occurs when a business cannot meet its financial obligations as they fall due, despite potentially having positive net assets. This situation represents a fundamental liquidity crisis where a company has insufficient ready cash to pay creditors, suppliers, employees or other parties on time. 
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Cash Equivalents

In financial accounting, cash equivalents represent short-term, highly liquid financial instruments that organisations can readily convert to cash with minimal risk of value change.
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Chart of Accounts

A chart of accounts represents the organised, comprehensive listing of every account in an organisation's accounting system. Think of it as the financial filing cabinet where each drawer and folder has a specific purpose and designation.
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Closing Entry

Closing entries are specialised journal entries made at the conclusion of an accounting period to reset temporary accounts to zero and transfer their balances to permanent accounts. They represent a crucial step in the accounting cycle that prepares the books for a new fiscal period.
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D

Debit Balance

In accounting, a debit balance refers to the amount, shown in the record of a company's finances, by which its total debits are greater than its total credits. This concept is fundamental to the double-entry bookkeeping system used in financial record-keeping.
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Debits and Credits

The foundation of modern accounting rests upon two essential concepts: debits and credits. Though these terms often cause confusion for beginners, they represent straightforward accounting mechanics. A debit entry represents money flowing out or an increase in assets, while a credit entry indicates money coming in or an increase in liabilities and equity.
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Depreciation

At its core, depreciation represents the systematic allocation of an asset's cost over its useful life. Rather than recording the entire expense when purchasing a long-term asset, businesses spread this cost across multiple accounting periods that benefit from the asset's use.
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Dividends

Dividends represent distributions of a company's earnings to its shareholders. When businesses generate profits, they face three primary options: reinvest those earnings into operations, retain them as cash reserves or distribute a portion to shareholders as dividends.
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E

Equity

Equity simply means ownership in a business. It represents the residual interest in the assets after deducting liabilities. It's calculated with a basic formula: Total Assets minus Total Liabilities.
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F

Financial Ratios

Financial ratios represent mathematical relationships between different elements found in financial statements. These calculated values quantify the connections between various financial data points, creating standardised metrics that allow for meaningful interpretation of a company's performance.
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Fixed Asset

When examining business resources, fixed assets represent tangible, long-term resources that organisations own and use in their operations. These physical items hold economic value and typically remain in service for extended periods, often years or decades.
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G

Gantt Chart

A Gantt chart is a horizontal bar chart that visually represents a project schedule, displaying tasks against time. This project management tool transforms complex task sequences into an intuitive visual format that shows what needs to be done and when.
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Gross Margin

Gross margin represents the percentage of revenue retained after accounting for the direct costs of producing goods or delivering services.
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Gross Sales

Gross sales represent the total revenue generated from all sales transactions before any deductions are applied. This foundational financial metric captures the complete picture of a company's sales activity, regardless of returns, discounts or allowances that may follow.
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I

Income Statement

An income statement (also known as a profit and loss statement) is a fundamental financial document that presents a company's revenues, expenses and resulting profit or loss over a specific period.
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Intercompany Transactions

Intercompany transactions occur when related business entities—such as parent companies, subsidiaries or divisions within the same corporate group—exchange goods, services, loans or investments with each other.
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L

Liability

In accounting, liability represents a company's financial obligations that must be settled in the future. At its core, liabilities are amounts owed to creditors, lenders, suppliers, and other external parties that arise from past transactions or events. 
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M

Master Data

Master data represents the critical information that defines an organisation's fundamental business entities. Unlike transactional data that captures daily activities, master data consists of the relatively stable reference information that rarely changes but is essential for operational processes.
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N

Net Income

Net income represents the remaining profit after deducting all expenses from total revenue during a specific accounting period. This fundamental financial measure appears as the final figure on an income statement, often referred to as the "profit and loss statement" in accounting terminology.
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P

Payroll

Payroll is the process of calculating and distributing employee wages, managing deductions and ensuring proper tax withholdings. It forms the foundation of employee compensation management in organisations of all sizes.
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Profit Margin

Profit margin represents the percentage of revenue that translates into profit after accounting for all expenses. This fundamental financial metric demonstrates how efficiently a business converts sales into actual profit.
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Q

Quantitative Analysis

Quantitative analysis refers to the systematic examination of numerical data through mathematical and statistical techniques to uncover patterns, test hypotheses and develop models that explain relationships between variables.
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R

R2R

The Record to Report (R2R) process encompasses the end-to-end financial workflow that transforms raw transactional data into finalised financial statements. 
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S

Trial Balance

SFTP (Secure File Transfer Protocol) is a network protocol that provides secure file access, transfer and management capabilities over any reliable data stream. Unlike its predecessor FTP, SFTP operates through an encrypted SSH (Secure Shell) tunnel, ensuring that all transmitted data remains protected from unauthorised access.
Learn more about STFP 

T

T Accounts

T accounts are visual representations used in double-entry bookkeeping that display financial transactions in a T-shaped format. The name derives from their appearance – a T-shaped structure with the account name on top, debits recorded on the left side and credits on the right side. 
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Trial Balance

In accounting, a trial balance is a crucial worksheet that lists all general ledger accounts with their corresponding debit or credit balances at a specific point in time. 
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