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Glossary

Accountancy is a profession composed of a systematic field of knowledge about
accounting, including the rules and principles that govern actual accounting procedures.
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Accountant is a person who professionally deals with accounting or accountancy.
Their job spans beyond those performed by bookkeepers (i.e. recording, classifying,
and summarising financial records) to include, preparation, analysis, and interpretation
of financial statements. This is a highly trained personnel who is capable of designing
accounting systems for different organisation
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Accounting is a subset of accountancy involving the practical application of accountancy
principles to execute the profession’s core duties. It explains the nature of the work of
the accountants. Accounting is composed of different activities, including identifying
and classifying business transactions, recording in books of accounts, preparing financial
statements, and analysing and interpreting the obtained results.

Accounting cycle also known as the accounting process reflects a series of steps that are
regularly repeated in the same order from identifying and recording business transactions
to the time of preparing financial statements
Accounts payable is the amount of money that is owed by a business to a creditor,
usually for goods or services supplied by a creditor. They are treated as current liabilities
in the statement of financial position.

Accounts receivable is the amount of money that it is owed by other individuals/firms
for goods or services supplied to them. They are treated as current assets in the statement
of financial position.

Accumulated depreciation is the total amount of depreciation expenses allocated to
an asset since it was purchased and started to be used

Amortisation is a term that resembles depreciation as a technique used in spreading
out the costs associated with the use of assets but in the category of intangible assets.
Examples of intangible assets include goodwill, patents and trademarks, and copyrights,
over the expected period.

Arithmetical errors are accounting errors arising due to transaction discrepancies
between amounts in words and amounts in figures. Also, they can arise due to wrong
addition to the content of an invoice.

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