{"id":20464,"date":"2023-02-01T07:14:41","date_gmt":"2023-02-01T07:14:41","guid":{"rendered":"https:\/\/envoice.eu\/?p=20464"},"modified":"2024-01-31T11:55:23","modified_gmt":"2024-01-31T11:55:23","slug":"51-most-used-accounting-abbreviations-and-acronyms","status":"publish","type":"post","link":"https:\/\/envoice.eu\/en\/blog\/51-most-used-accounting-abbreviations-and-acronyms\/","title":{"rendered":"51 Most Used Accounting Abbreviations and Acronyms"},"content":{"rendered":"

Accounting departments appear to speak a foreign language <\/span>because they do<\/span><\/i>. Most people who work closely with the certified public accountant or chief financial officer would be familiar with the jargon.<\/span><\/p>\n

However, if you need clarification about all the accounting abbreviations and acronyms you encounter at work, you can work towards becoming more proficient with accounting terms using this list.<\/span><\/p>\n

1.<\/span> IASB \u2013 International Accounting Standards Board<\/span><\/h2>\n

The IASB is a standard-setting body responsible for developing and publishing the International Financial Reporting Standards and approving interpretations developed by the interpretation committee.[1]<\/span><\/p>\n

2.<\/span> FASB – Financial Accounting Standards Board<\/span><\/h2>\n

FASB is the accounting body that issues the US Generally Accepted Accounting Principles that private, public and non-profit companies follow.\u00a0<\/span><\/p>\n

FASB is the US counterpart of the International Accounting Standards Board.[2]<\/span><\/p>\n

3.<\/span> IFRS – International Financial Reporting Standards<\/span><\/h2>\n

IFRS is one of the accounting acronyms that you will encounter often. This refers to the accounting standards issued by the IASB.\u00a0<\/span><\/p>\n

Compliance with the IFRS makes business valuation and benchmarking possible. Most countries in Europe use IFRS in preparing their financial reports.<\/span><\/p>\n

4.<\/span> ASB – Auditing Standards Board\u00a0<\/span><\/h2>\n

ASB is a senior committee of the American Institute of Certified Public Accountants. This group issues auditing standards and practice guidance to ensure objective and high-quality audit and attestation services. [3]<\/span><\/p>\n

5.<\/span> IAASB \u2013 International Auditing and Assurance Standards Board\u00a0<\/span><\/h2>\n

IASB\u00a0 is a standard-setting body that oversees the issuance of standards auditing, assurance, and quality management designed to increase public confidence in the profession.<\/span><\/p>\n

6.<\/span> GAAP \u2013 Generally Accepted Accounting Principles<\/span><\/h2>\n

Like the IFRS, GAAP refers to the guidelines for preparing and compiling financial statements. GAAP applies to all companies, but large enterprises regulated by the Securities and Exchange Commission must comply with stricter reporting requirements.\u00a0<\/span><\/p>\n

Generally Accepted Accounting Principles include standards, accounting rules, and procedures. However, most professionals use this term to refer to US GAAP \u2013 the standards issued by the Financial Accounting Standards Board.[4]<\/span><\/p>\n

7.<\/span> FS \u2013 Financial Statements<\/span><\/h2>\n

A company’s financial statements convey the result of the entity’s business operations for a specific period.\u00a0<\/span><\/p>\n

Most companies prepare three types of financial statements: balance sheet, income statement, and statement of cash flows. Decision makers like the CEO, CFO, Certified Management Accountant, manager, or supervisor use these reports for financial planning.<\/span><\/p>\n

8.<\/span> BS – Balance Sheet<\/span><\/h2>\n

The Balance Sheet or Statement of Financial Position details the Total Assets, Liabilities, and Equity as of a specific date. Companies may have different formats for presenting the balance sheet, but Total Assets should always equal the sum of the Total Liabilities and Equity.<\/span><\/p>\n

9.<\/span> IS \u2013 Income Statement<\/span><\/h2>\n

An income statement, also known as the Statement of Financial Performance, reports the total Income, Expenses, Gains, Losses, and Net Income for a certain period.\u00a0<\/span><\/p>\n

10. P&L \u2013 Profit and Loss Statement<\/span><\/h2>\n

Profit and Loss Statement is another name for the Income Statement.\u00a0<\/span><\/p>\n

\"\"
Source: Pexels<\/figcaption><\/figure>\n

11. CF –\u00a0 Cash Flow\u00a0<\/span><\/h2>\n

Cash Flow measures the cash movement. It is the net amount of inflows and outflows.\u00a0<\/span><\/p>\n

Cash inflows often come from sales, revenues, additional investments, loan proceeds, and other collections. Meanwhile, cash outflows result from financial transactions such as paying loans and expenses or purchasing equipment in cash.\u00a0<\/span><\/p>\n

12. SCI \u2013 Statement of Comprehensive Income<\/span><\/h2>\n

The Statement of Comprehensive Income is a summary of the standard net income as reported in the Income Statement and the Other Comprehensive Income.\u00a0<\/span><\/p>\n

OCI includes unrealized gains and losses that are not reported in profit and loss. This statement is often part of the standard financial reported issues by multinational companies. Income reported in OCI may be reclassified as part of the Income Statement in a future period.<\/span><\/p>\n

13.\u00a0 WC \u2013 Working Capital<\/span><\/h2>\n

Working capital is the difference between the company\u2019s total current assets and the total current liabilities. This amount is the funds available to the business in its day-to-day operation.\u00a0<\/span><\/p>\n

A positive working capital shows that the company can meet current obligations.<\/span><\/p>\n

14. GL \u2013 General Ledger<\/span><\/h2>\n

The General Ledger summarizes all the company\u2019s accounting data for each account type. The general ledger shows the transaction list for each line item under the asset, liability, capital, revenue, or expense account.<\/span><\/p>\n

General Ledger accounts show the beginning balance for the accounting period, debits and credits to the account based on transactions that happened during the period, and the ending balance of the account. This ending balance will be the basis for the trial balance report.<\/span><\/p>\n

15. TB \u2013 Trial Balance<\/span><\/h2>\n

Trial balance is a report that shows the balances of all general ledger accounts at the end of the period. This report lists all assets, liabilities, equity, income, and expense accounts with their end balance which could either be debit or credit. Preparing the trial balance is an integral part of financial statement preparation.<\/span><\/p>\n

16. DR \u2013 Debit<\/span><\/h3>\n

Debit refers to a bookkeeping entry that increases the balance of a company’s assets and expenses. Any debit made to a liability, equity, or revenue decreases these accounts.<\/span><\/p>\n

Suppose a company receives a cash payment from the sale of goods; it will record the transaction as follow:<\/span><\/p>\n