Accounting Resources
A guide to accounting resources available through Shapiro Library and on the web.
Accounting Glossary
- Accounting Information SystemA structure that a business uses to collect, store, manage, process, retrieve, and report its financial data.
- Accounting MethodsThe rules a company follows in reporting revenues and expenses. The two primary methods of accounting are accrual accounting (generally used by companies) and cash accounting (generally used by individuals).
- Accounting PrinciplesThe rules and guidelines that companies and other bodies must follow when reporting financial data. These rules make it easier to examine financial data by standardizing the terms and methods that accountants must use.
- Anomalies in Financial DataOutliers in a set of financial data. When the actual result under a given set of assumptions is different from the expected result predicted by a model.
- Audit SamplingThe application of an audit procedure to less than 100% of the items within an account balance or class of transactions for the purpose of evaluating some characteristic of the balance or class.
- Common-Size Financial StatementsStatements in which all the elements are expressed as percentages of the total. Such statements are often used for making performance comparisons between companies.
- Consolidated Financial StatementsThe financial statements of a group of entities that are presented as being those of a single economic entity. These statements are useful for reviewing the financial position and results of an entire group of commonly owned businesses.
- Corporate CultureThe beliefs and ideas that a company has and the way in which they affect how it does business and how its employees behave.
- Cost BehaviorAn indicator of how a cost will change in total when there is a change in some activity.
- Current AssetsA balance sheet line item listed under the Assets section, which accounts for all company-owned assets that can be converted to cash within one year.
- Current LiabilitiesA company’s short-term financial obligations that are due within one year or within a normal operating cycle.
- Data LifecycleStages and processes data goes through in an organization from beginning (collection) to end.
- Discount for Lack of Control (DLOC)A discount for lack of control is the reduction in a company’s share value due to a shareholder’s lack of ability to exercise their control over the company.
- Discount for Lack of Marketability (DLOM)n amount or percentage deducted from the value of an ownership interest to reflect the relative absence of marketability.
- Due Diligence (Tax)Steps a tax preparer must take when preparing a return or claim for a refund claiming the following: Earned income tax credit (EITC); Child tax credit (CTC), additional child tax credit (ACTC), or credit for other dependents (ODC); American opportunity tax credit (AOTC); Head of household (HOH) filing status.
- Economic IndicatorsStatistics which show how the country's economy is going to perform in the short or long term.
- Environmental, Social and Governance (ESG)ESG stands for environmental, social and governance and refers to aspects of an organization that investors use to determine its level of ethical consciousness. Many investors review ESG criteria when deciding on their next investment prospects because they want to invest in opportunities that reflect their personal values. Choosing companies through ESG criteria can also be a risk assessment strategy, because customers may prefer to purchase from businesses with positive ESG metrics, making those companies more appealing to investors. Investors review the connections between sustainability, social responsibility and financial success during their assessments.
- External FactorsExternal Economic Factors are those not under the control of a business, but which influence its efficiency e.g. improved communications may give access to wider markets, but pollution may increase illness in the workforce.
- Fair ValueThe price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
- Financial Statement FootnotesExplanatory and supplemental notes that accompany a firm’s financial statements. The notes vary depending on the accounting framework used to construct the financial statements (such as GAAP or IFRS). Footnotes are an integral part of the financial statements and must be issued to users along with financial statements.
- Financial Statement ProjectionA financial picture that management believes it can attain as of a future date.
- Forensic InvestigationThe application of scientific knowledge and methodology to legal problems and criminal investigations.
- Fund AccountingA system of accounting used by nonprofit entities to track the amount of cash assigned to different purposes and the usage of that cash.
- General LedgerGrouping of accounts that are used to sort and store information from a company’s business transactions.
- Generally Accepted Auditing Standards (GAAS)A set of systematic guidelines used by auditors when conducting audits of companies' financial records.
- How Cash Flow Data Connects to Other Financial Statement ComponentsKnowing how activity in the balance sheet, income statement, and retained earnings/equity statement affect cash flow.
- Internal ControlsMechanisms, rules, and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.
- Internal StakeholdersIndividuals or groups within an organization (employees, owners, shareholders, managers, and so on
- Leadership in Energy and Environmental Design (LEED)The LEED (Leadership in Energy and Environmental Design) Green Building Rating System is a voluntary, consensus-based national standard for developing high-performance, sustainable buildings.
- Long-Term LiabilitiesObligations resulting from a previous event that are not due within one year of the date of the balance sheet (or not due within the company’s operating cycle if it is longer than one year). Long-term liabilities are also known as noncurrent liabilities.
- Macroeconomic FactorSomething that influences the structure, performance, behavior, and decision making of the whole, or aggregate, economy.
- MacroeconomicsStudy of the economics of a whole area, a whole industry, a whole group of the population or a whole country, in order to help in economic planning.
- Microeconomic FactorSomething that influences the decisions of individuals and firms to allocate resources of production, exchange, and consumption.
- Occupational FraudWhen an employee, manager, or executive of an organization deceives the organization itself.
- Risk Assessment (audit)The auditor’s assessment of the risks of material misstatement in a financial statement audit.
- Statement of Cash FlowsOne of the financial statements issued by a business, and describes the cash flows into and out of the organization.
- Tax AvoidanceThe use of legal methods to minimize the amount of income tax owed by an individual or a business.
- Tax Filing StatusDetermines the rate at which income is taxed. The five filing statuses are: single, married filing jointly, married filing separately, head of household, and qualifying widow(er) with dependent child.
- Tax LiabilityPayment owed by an individual, a business, or other entity to a federal, state, or local tax authority.
- Tax PositionPosition used to measure current or deferred income tax assets and liabilities that an entity takes in a previously filed tax return or expects to take in a future tax return. A tax position can yield a permanent reduction or deferral of income taxes payable.
- Tax ReturnForm or forms filed with a tax authority that report income, expenses, and other pertinent tax information.
- Trade PolicyNational framework of laws, regulations, decisions, practices, and negotiating positions that governments adopt to ensure that national companies have to regulate the exchange of goods and services with a specific country or bloc of countries.
- TransactionA business event that has a monetary impact on the financial statements of a business. It is recorded in the business’s accounting records.
- Valuation TechniquesTools used to summarize financial reporting data and evaluate the performance and financial position of a company.
Dictionary of Accounting
- Dictionary of Accounting by S. M. H. Collin This link opens in a new windowISBN: 9780713682861Publication Date: 2009-03-04This comprehensive dictionary covers a wide range of topics related to accountancy, including personal finance, investments and company accounts. Ideal for students of accountancy, users without a background in accounting and those working in company accounts departments. 'Clear as day... This dictionary provides an extremely thorough guide to the terms we use in accounting... For students beginning the AAT qualification and people from a non-accounting background, this book will be extremely useful.' - Accounting Technician