financial accounting glossaries（1）

1.Accounting :

           The systematic recording, reporting, and analysis of financial transactions of a business. The person in charge of accounting is known as an accountant, and this individual is typically required to follow a set of rules and regulations, such as the Generally Accepted Accounting Principles. Accounting allows a company to analyze the financial performance of the business, and look at statistics such as net profit.

2.Account:

       1. A record of financial transactions for an asset or individual, such as at a bank, brokerage, credit card company, or retail store.

       2. More generally, an arrangement between a buyer and a seller in which payments are to be made in the future.

3.Accounting period:

      When a company uses an appropriate amount of time to file financial statements. The amount of time can reported as an annual, quarterly, or monthly statement.

4.Accountant:

      One who is skilled in the practice of accounting or who is in charge of public or private accounts. An accountant is responsible for reporting financial results, whether for a company or for an individual, in accordance with government and regulatory authority rules.

5.Accrual method:

      An accounting method that requires income or expenses to be entered when the income is earned or the payment is payable. For example, if a property owner purchases a three-year insurance policy, under the accrual method, only the first year's insurance expense is shown as a journal entry, even if the property owner pays the entire balance in full.

6.Cash method:

     An accounting method based on cash receipts and cash expenditures. For accounting purposes, income and expenses are booked when monies are received and spent, not when they are due.