Accounting Profession Vocabulary

Understanding the accounting language is important as a business owner.  The accounting profession has many definitions and processes to reference depending on the industry of business.  Below are a few vocabulary words to get you started thinking about your accounting system and establishing policies and procedures.

Cost basis:  Original cost of investment minus prior accumulated depreciation
Goodwill:  Purchase price less tangible value of physical assets purchased
​Net asset value:  Cost basis minus accumulated depreciations (prior total depreciation)
​NSF:  Non-sufficient funds, typically a returned check
​Unrealized gain & loss:  Investment that has increased & decreased in value, but not yet sold

​A successful business owner understands their cost, asset worth and financial statements.  Fontenot & Associates Solutions supports all business with establishing policies and procedures, visit our website today to learn more.

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