When you begin a enterprise you shortly discover out that it’s worthwhile to perceive accounting phrases. Whether you’re coping with your accountant, bookkeeper or doing the accounting your self, you’ll encounter accounting abbreviations. Most enterprise folks have heard of “Accounts Payable” (AP) and “Accounts Receivable” (AR). But what about AJE? That stands for “Adjusting Journal Entry” which you’ll seemingly encounter when your accountant is able to shut your accounting books for your small business’ fiscal yr.
I’ve been in enterprise for a number of years and have compiled an inventory beneath of a number of the most typical accounting abbreviations and accounting phrases that you’ll encounter. Having this helpful record obtainable helps you concentrate on your small business moderately than spending extreme time deciphering accounting phrases. Even in case you use accounting software program corresponding to FastBooks, it’s nonetheless helpful to develop into accustomed to these phrases.
- ABC: Activity Based Costing
- AJE: Adjusting Journal Entry
- AP: Accounts Payable
- AR: Accounts Receivable
- AT: Asset Turnover
- BB: Beginning Balance (see additionally: EB)
- BV: Book Value
- CJE: Closing Journal Entry
- CM: Contribution Margin (= Sales much less Variable Costs)
- COGM: Cost Of Goods Manufactured
- Cr: Credit
- CVP: Cost-Volume-Profit
- Dr: Debit
- EB: Ending Balance (see additionally BB)
- EPS: Earnings Per Share
- EVA: Economic Value Added
- FIFO: First In, First Out (see additionally: LIFO)
- FC: Fixed Costs (see additionally: VC)
- FS: Financial Statements
- FYE: Fiscal Year End; (e.g.: FYE2010)
- GAAP: Generally Accepted Accounting Principles
- GL: General Ledger
- IS: Income Statement
- ISO: International Standards Organization
- JE: Journal Entry
- JIT: Just In Time
- LIFO: Last In, First Out (see additionally: FIFO)
- LOC: Line of Credit
- NI: Net Income
- OH: Overhead
- PL: Profit/Loss Statement
- PM: Profit Margin
- PVA: Process Value Analysis
- RE: Retained Earnings
- ROI: Return On Investment
- SAG Expenses: Selling, Administrative, and General Expenses
- SHE: Stockholders Equity
- SP: Sales Price (value of products/providers offered)
- TB: Trial Balance
- VC: Variable Costs (see additionally: FC)
- WIP: Work-In-Progress
There are many different accounting phrases however the above phrases are those that I’ve discovered are a superb beginning in serving to you perceive accounting.
