What is accounting terminology like?
Accounting terminology is like a spoken language (i.e. English). Just like the language we speak, which has specific words that describe specific elements of the world in which we live, accounting terminology is often described as the ‘language of business’. Accounting terminology describes elements of accounting that involves the inputs (source documents), the processes (double-entry bookkeeping) and the outputs (financial statements) of accounting. Accounting terminology also has phrases of joined words that convey meaning about accounting and its elements (i.e. Fixed Costs). There is also jargon (‘bottom line), acronyms (P&L) and abbreviations (Dep. Depreciation) that all make up what we know as accounting terminology.