Glossary of Accounting and Financial Terms
- ABA transit number:
- The number that identifies the bank against which a check is drawn. Every check has an American Bankers Association (ABA) transit number, usually located in the top-right corner. The number — actually, two numbers separated by a hyphen — identifies the bank’s location and the bank’s name.
- ABC (activity-based costing) management:
- An approach to cost accounting that tries to more accurately assign overhead costs and more precisely measure the profits of a firm’s products, services, and business units. Refer to Book 4, Chapter 4 for a more complete discussion.
- The record of transactions in a checking, savings, securities, trust, or charge account, including the account’s up-to-date balance.
- account number:
- The number that identifies the holder of an account. All accounts must have an account number.
- Accountant’s copy:
- Allows an accountant to review/edit a client’s company file while at the same time the client can continue using and updating the file at his or her location.
- accountant’s opinion:
- The results of an audit of a company’s records and books.
- accrual basis:
- An accounting method in which income gets recorded as it’s earned (typically, when you prepare an invoice) and expenses are recorded as they occur (typically, when you receive an invoice).
- accrued interest:
- Interest earned on a bond or certificate of deposit but paid at some future date, such as when the bond or certificate of deposit is ...