Cost of

Customer margin under activity-based costing

The equation Assets = Liabilities + Equity, which demonstrates the two-sided nature of accounting and is useful for explaining the concept of double-entry accounting (or double-entry bookkeeping).

Accounting Glossary

accounting period

The time period for which financial information is being tracked in a business, such as monthly, quarterly, or annually.

accounts receivable

An account that records the amounts that customers owe to a business.

adjusting entry

A correction made to a bookkeeping account that adjusts for accounting errors or other necessary changes at the end of the accounting period.

cash flows

Used to describe the source or sources of cash or how cash is used.

Chart of Accounts

A list of all the accounts used by a business, including what types of transactions go into each account.


An accounting entry that increases an asset or expense account, and decreases a liability or income account.


A portion of a company’s profits paid by share of common stock on a quarterly or annual basis.


Financial Accounting Standards Board. FASB is the highest-ranking authority in the private (non-government) sector of the U.S. for making pronouncements on GAAP and for keeping accounting standards up-to-date.

Federal Unemployment Tax

In the U.S., the fund that used to be known simply as Unemployment. Employers contribute to the fund, and states also collect taxes to fill their unemployment fund reserves. (The acronym FUTA means Federal Unemployment Tax Act.)

fidelity bonds

A type of insurance — typically carried by employers for their employees — that helps guard against theft and reduce the risk of loss.


First-in, first-out. A method for costs of goods sold in which a business charges out product costs to cost of goods sold expense in the chronological order in which the goods were acquired.


Describes a product that is interchangeable and virtually indistinguishable from another product.

General Ledger

A summary of all of a business’s accounts and transactions.


International Accounting Standards Board. The IASB (based in London) is the main authoritative accounting standards setter outside the U.S.

NAB Lifts Cash Profit 7% To $1.6 Billion But Revenue Is Down  — Business Insider Australia
This was partially offset by higher lending balances and a broadly stable customer margin.

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