When you begin a enterprise you shortly discover out that you could perceive accounting phrases. Whether you might be coping with your accountant, bookkeeper or doing the accounting your self, you’ll encounter accounting abbreviations. Most enterprise individuals have heard of “Accounts Payable” (AP) and “Accounts Receivable” (AR). But what about AJE? That stands for “Adjusting Journal Entry” which you’ll possible encounter when your accountant is able to shut your accounting books for your small business’ fiscal 12 months.
I’ve been in enterprise for a number of years and have compiled an inventory under of a few of the commonest accounting abbreviations and accounting phrases that you’ll encounter. Having this helpful checklist out there helps you concentrate on your small business slightly than spending extreme time deciphering accounting phrases. Even when you use accounting software program akin to FastBooks, it’s nonetheless helpful to turn into aware of 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 (worth 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 great beginning in serving to you perceive accounting.