There are certain assumptions that are taken for granted while recording the accounts. Accounting is done based on the various accounting principles, concepts, and the Golden Rules.
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Hence, they are called absorption.Ībsorbed Costs are a combination of both variable and fixed costs.Ībsorption costing absorbs all costs under two head product costs (manufacturing costs) and period costs (non-manufacturing costs).Ībsorption pricing is setting a price, which is the sum of the absorbed cost plus a marked-up percentage of profit.Ībsorption variance is the difference between the predicted and actual absorption costs.Īccelerated depreciation is a form of depreciation where larger amounts of depreciation are calculated in the first few years.Īn account is the physical record of the transactions incurred related to an asset, liability, revenue, expense, etc.Īccounts analysis can be looked as a method of cost behavior analysis by classifying records under two heads: fixed or variable.Īccounts group is a combination of similar accounts, like fixed assets group, long-term liability group, etc.Īccounting is the process of recording all the economic events that affect the business/individual over an accounting period. For instance, if you have 3 creditors, John, George, and Paul, you can combine them into one creditors' account. Thus, the combined account is a new entity, while the old ones are removed. Glossary of Accounting Terms and Definitions 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 Above the LineĪbove the line items are those revenue and expense items that directly affect the calculation of periodic net income.Ībsolute change is the numeric change in the value of a commodity, expense etc.Ībsorb indicates that one account or group of accounts combines the amounts from similar or related accounts or groups of accounts. The paragraphs below conjure up a list of basic and advanced accounting terms in a simple language. Most glossaries may help you with it, but some definitions may be too elaborately worded for most people to understand, resulting in a confusion. While studying accountancy, you may come across several terms that you may not be familiar with. Игровой зал казино Вулкан "VulkanStars"Īccounting helps keep a track of the financial position of the business and forms the basis for good financial planning.
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