QuickBooks 2024 All-in-One For Dummies

Appendix B

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 assign overhead costs more accurately, 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.

account:

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. Each individual account must use a unique account number.

accountant’s copy:

Allows an accountant to review/edit a client’s QuickBooks file while at the same time, the client can continue using and updating the file at their 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, ...