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Top Accounting Terms Undergrads Should Be Aware of

When you pursue an accounting specialization, or it is available in your educational establishment as an auxiliary discipline, you will always come across assignments. They are different from Literature or Linguistics essays where you focus mostly on creativity. Accounting papers are the ones that should be powered by your knowledge of accounting terminology. Yet, many students make one common mistake - they add too much terminology to look smart, or they use words that do not fit the context at all.

For your consideration, this review will cover the major accounting terms which might come in handy for your assignments.


The Terminology Concerning Balance Sheet

On most occasions, accounting students will work on balance sheets. They stand for designated financial statements that may provide information on the company’s liabilities, assets, equities at a set time. Then, such sheets involve rates of return and capital structures. In simple terms, you may need to write about what one or another company owns and owes.

Looking ahead, if you are puzzled by such an assignment, you can refer to accounting homework help online. It can be partially related to STEM where you can request help for taxation, cost issues, management practices, bookkeeping solutions among others. Another approach is to overlook free financial samples and derive inspiration for your homework from there for free.

So, what are the most important terms with the balance sheets?

1. Accounts Payable

Accounts Payable or briefly AP is the information on expenses that one or another company has incurred but has not yet completed for payment. It can be represented in the form of a debt, a company currently owes.

2. Accounts Receivable

This information, in turn, is the representation of the revenue or sales that one company has provided but not yet collected for payment. It is represented in the form of an asset that with time is likely to convert into cash.

3. Accrued Expense

Accrued Expense is incurred but has not yet been paid.

4. Equity

Equity is a common term within the accounting field, and it stands for the value left over after some liabilities have been completed. It is the value commonly owned by owners and investors.

5. Inventory

You use this term to classify the assets one company purchases to then sell to customers. In simple terms, one company may have a department where they store their goods prior to distributing them to clients. It helps to understand what should be ordered for replenishment. You can be asked to create a report on inventory within one company as an assignment or provide instructions on how to deal with one problem that leads to a poor inventory process.


The Terminology Concerning Income Statements

As the name suggests, income statements stand for business or company’s income they currently have, expect to have or have managed to achieve in the last month/year among others.

1. Cost of Goods Sold

They are simply expenses that can be related to the creation of a service/product. It can be a cost of materials involved in the manufacturing or direct labour costs to provide services.

2. Gross Margin

It is a little bit complicated term, however, it means the percentage calculated by involving Gross Profit and dividing it by Revenue. It can indicate a person on the profitability of a business.

3. Gross Profit

When you occupy managerial positions or plan to become a manager after graduation, you will need to work with this term a lot. It also indicates a business’s profitability in dollars/euros or other currencies without taking overhead expenses into consideration. For instance, you will need to come up with assignments to question one’s company profit during the established time frame. By finding an online solver that deals with STEM assignment help, you can receive prompt assistance from specialists.


The Terminology Concerning General Accounting Terms

Now, let’s also cover some general accounting terms which might come in handy as well.

1. Accounting Period

In simple terms, it is just a piece of information found in all financial statements where you can overlook the numbers, and profit data taking into consideration a particular span of time reported. It can be only a winter or it can be 2020-2021.

2. Cash Flow

If you have ever worked in a restaurant or another hospitality facility, you are most likely to know that cash flow is the cash prepared for you at the beginning of a working day for change to clients. Speaking of the official accounting description, it is the inflow and outflow of cash within one business.

3. Interest

An Interest stands for the amounts paid on loans or credits that exceed the repayment of the balance.

4. Liquidity

It describes how quickly something like assets may be converted into cash. For instance, how quick your real estate may bring you some profit when you release it for sale or rent.

“I want to pay someone to do my homework on profit calculations”

even such requests by providing more information on the formatting, and academic requirements may be ordered online. All in all, accounting is not that hard when you have a basic understanding of common terms.

Yes, you can always refer to dictionaries, however, by learning them at once, you can then interpret them easily by coming across them in your daily life. Believe us, there will be a non-accounting sphere where you need to know what is the cash flow or interest

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Tutor City's blog focuses on balancing informative and relevant content, never at the expense of providing an enriching read. 

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Resident author - Mr Wee Ben Sen, has a wealth of experience in crafting articles to provide valuable insights in the field of private education.

Ben Sen has also been running Tutor City, a leading home tuition agency in Singapore since 2010.