Financial Terminology - Rady School of (金融术语雷迪管理学院).pdf

Financial Terminology - Rady School of (金融术语雷迪管理学院).pdf

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Financial Terminology - Rady School of (金融术语雷迪管理学院)

Glossary of Financial Terminology Financial Terminology Heres a list of common financial terminology used in financial statements. Accounting Close This is when the “books” are closing and the numbers are being tabulated in the financial statements for the prior period. Normally this happens in the first week of the month. Accrual An estimate intended to capture the cost of a good or service in the absence of an invoice. The estimate is done at quarter-end so the benefits of goods and services received is matched with the cost to the company. Addition to Owners Net Income less Dividends Equity Audit To review and verify the accuracy of financial records as well as validating methods used to calculate financial records. Auditors Auditors can be external or internal. An external auditor is an independent public accountant who examines a business entitys books. The external auditor is not an employee of the company. A public company is required to have an independent external auditor conduct and audit and issue an opinion on the accuracy of our financial statements that are filed with the SEC. An internal auditor is an employee of the organization who is conducting an internal audit. The internal auditor works independently of the accounting and other departments and is concerned with financial and/or operational activities of the organization. The internal auditor attempts to assure the accura

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