Source: Active as an asset, it refers to any asset owned by a company and that can be converted into currency. It is one of the most important accounting terms for any company and is divided into fixed assets and current assets. Liquid Assets A liquid asset is an asset that, as the name implies, is in circulation and convertible into money over a period of time. For example, inventory or merchandise is a form of current assets. It's a fundamental concept for any businessman, which is why we've included it in this accounting glossary. , fixed assets Unlike the concept of current assets, fixed assets refer to goods that are owned and not sold.
An example of fixed assets is machinery and real estate. Fixed whatsapp mobile number list assets are one of the most important items in account analysis. Tax Agency A tax agency is a public body that controls the taxation system of a country. For example, the national government of Peru is responsible for channeling taxes. Although many people don't include it in the list of concepts in the accounting glossary, the tax authority is very important and worth knowing. For example, you have to pay income tax to these types of establishments. Who Comes Up With Accounting Terms Source: , Opening Balance Opening Balance is one of the most commonly used accounting terms because that's.
What happens to every company at the beginning of each fiscal year. This concept is very useful for understanding the financial health of a company. , Balance sheet has many related concepts in accounting terms, such as opening balance and balance sheet. A balance sheet is an analysis of a company's financial position at a given point in time. Unlike the opening balance, it does not take into account the beginning of the year, but any time of the year. 7. The Accounting Cycle The accounting cycle is the time at which a company makes accounting records to reflect its activities.