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What is the Basic Accounting Terminology? – Let us tell you!
Basic accounting terminology indicates the basic terms involved in the subject of accountancy, such as capital, cash flow balance sheet, accounts payable, assets and accounts receivable. Such terms are used widely in the domain of accounts for processing transactions. Books like ‘Oxford dictionary of accountancy’ and ‘Dictionary of accounting’ serve different purposes.
Such terms have been in common usage since very old times, particularly in the country of Iran that saw the term “book-keeping” being originated. The term “Double-entry book-keeping” originated during the medieval era in Europe. It was during the medieval era that the joint-stock companies came into being in Europe. A need was felt in the 1800s to improve the standards of accounting. Following the establishment of the Institute of Chartered Accountants in Wales and England in 1880, accounting became an organized sector.
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