< Accountancy
- Asset
- Anything with probable future economic benefit that is obtained or controlled by a company and is the result of a past transaction.
- Cr
- The abbreviation for Credit.
- COGS
- The abbreviation for Cost of goods sold
- Controlling Account
- An account in the general ledger that summarizes the account balances in a subsidiary ledger.
- Depreciation
- The process of spreading the cost of acquiring a fixed asset over its useful economic life.
- Double Entry
- is the principle of accounting which requires that every transaction has two effects one of which is a debit and the other of which is a credit of the same amount.
- Dr
- The abbreviation for Debit.
- FIFO (First IN First OUT)
- The inventory system leave new inventory in stock until the old ones sold by legal terms.
- Fixed Asset
- An asset acquired by a business where there was no intention to make money from immediately reselling the asset. e.g A Van used by a plumbing firm.
- General Ledger
- The main ledger that has all the income statement and balance sheet accounts.
- Liability
- Probable future sacrifice of economic benefits, or the entity owes somebody something.
- Prepayment
- A Prepayment is a type of asset arising from the fact that the business has alreasy been invoiced for the right to all or part of a service in a future period e.g. rent for next year, paid this year.
- Stock
- Stock is the set of those assets held by the business intended for resale in their current form or in a modified form. Stock includes raw materials, components, work in progress and finished goods.
- Subsidiary Ledger
- Subsidiary Ledger is a ledger that has individual accounts with similar characteristics.
- UEL
- The abbreviation for useful economic life.
- Useful economic life (UEL)
- The useful economic life of a fixed asset is the time period for which the asset is likely to be useful in generating profit for a company (or meeting the aims of a charity).
- WIP
- WIP is the abbreviation for Work in Progress
- Work in Progress (WIP)
- Work in progress is the set of assets held by a business which are part way through some process after which they can be resold. Once completed the articles will cease to be WIP and become finished goods.
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