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A. C. Littleton’s Final Thoughts on Accounting: A Collection of Unpublished Essays

ISBN : 978-1-78635-390-0 , eISBN : 978-1-78635-389-4

Publication date: 15 October 2016

Accounting education can be considered as experience, as practice in learning to learn, and as part of education for business. Accounting techniques are important as parts of a data-processing apparatus, providing deeply significant data regarding enterprise prior experience. The objective of accounting is to provide insight into the results of management decisions. The aim of accounting education is to help students learn to learn to become professional accountants. The teacher should often mix theory with practice (the why and the how), and often indicate the contact of the course with non-accounting courses.

(2016), "The Purpose of Accounting Education ☆ ", A. C. Littleton’s Final Thoughts on Accounting: A Collection of Unpublished Essays ( Studies in the Development of Accounting Thought, Vol. 20 ), Emerald Group Publishing Limited, Leeds, pp. 47-55. https://doi.org/10.1108/S1479-350420160000020021

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Copyright © 2016, The Estate of A.C. Littleton

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Accounting education: the future is bright

Academia & Education Community

Author: Susan Smith, UCL School of Management, University College London & Jennifer Rose, Alliance Manchester Business School, University of Manchester

Published: 25 Jul 2023

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The AI narrative is shifting and students continue to face multiple challenges. Accounting education must move with the times.

The 2022/23 academic year has challenged the academic and education community once more. The release of ChatGPT 3 in late 2022 led to a rush of activity as the sector sought to understand the risks and opportunities that it, and other generative AI tools offer, not to mention the ethical implications of using them. Also, during 2022/23 both students and academics continue to face mental health challenges and burnout as they continue working through the ongoing cost of living crisis. Now academics are preparing for the next round of the Research Excellence Framework (with different rules of course) and are currently awaiting the results from the most recent round of the Teaching Excellence Framework. This is against the backdrop of a challenging regulatory and funding situation for the UK universities sector. That said, students are now mostly back in classrooms, with the benefits of many lecturers leveraging the digital skills built up through the pandemic to create more flexible learning environments where they can flourish.

What then does 2023/24 and beyond hold for accounting education?

The narrative surrounding generative AI has shifted noticeably in recent months from one predominantly concerned with academic integrity implications to considering the opportunities that it presents. For academic research, generative AI can yield significant productivity gains in the form of literature searching and writing support. In the classroom it can help with the development of lesson plans, the creation of scenarios and case studies, as well as writing check-up questions. For students it can support the review process, acting as a coach, a Socratic opponent or offer self-test capabilities. It is important that accounting academics maintain a dialogue with the profession to understand how such tools are being used in practice so that they can prepare students for the changing workplace.

We are hopeful that we will see a change in what authentic assessment looks like, perhaps with more portfolio work and reflection, including more optionality in assessment to support our diverse student population demonstrate their developing knowledge and skills. As accounting lecturers, we need to be aware of the constraints of professional accreditation but need to continue to challenge our students to develop and demonstrate the skills they need for the future.

All of this brings us to a juncture for accounting education. Too often accounting is conceptualised as a narrow technical subject and students focus on ‘the right answer’. This ignores the important enabling role that accounting plays in society in shaping behaviours, making inequalities visible and also the implications of its darker side, including matters of power and control. Given the power of accounting in society, a strong ethical foundation and the ability to make sound judgements are critical to underpin responsible behaviours. The rapidly developing sustainability reporting area is a fantastic opportunity to draw these themes together and engage with how accountants can work on societal challenges.

Accounting education has a responsibility to embrace and engage with the uncertainties of the subject, ensuring students are equipped with critical thinking skills that enable them to recognise and engage with the complex issues facing contemporary society.

In the words of Garry Carnegie and Jenni Rose ‘ How should we redefine accounting? ’. The article, from earlier this year, draws on the following definition of accounting:

'A technical, social and moral practice concerned with the sustainable utilisation of resources and proper accountability to stakeholders to enable the flourishing of organisations, people and nature.' (Carnegie, Parker & Tsahuridu, 2021)

Of course, students will still need to be able to perform technical calculations in order to understand the construction of the accounts but the emphasis is likely to shift to engage them further with the uncertainties and areas of judgement at the outset rather than in the more advanced options of their degree.

The question is, are we bold enough to lead these changes?

*The views expressed are the author’s and not ICAEW’s.

Carnegie, G., Parker, L., & Tsahuridu, E. (2021). It's 2020: what is accounting today? Australian Accounting Review , 31(1), 65-73.

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The AAA's new Learning Management System (LMS) is now offering two courses, available free to members with purchase options for non-members. The first course, created in collaboration with KPMG, titled "The Architecture of Inclusion", includes 8 insightful 1-hour modules with resources, tools, and techniques to improve your cultural intelligence (CQ). The newest series, titled "The Inclusive Classroom" features discussions with educators and offers strategies and resources to foster inclusivity in your classroom for all students. Bulk registration pricing is also available for organizations.

Thinking of a PhD?

PhD Students can take advantage of the reduced student membership rates offered by AAA and its sections. AAA Meetings are a great opportunity for PhD students to present their research , be exposed to new ideas, and network with other students and professionals . Each year, the AAA hosts the Accounting PhD Rookie Recruiting and Research Camp. This conference is a two-day forum for recruiters to meet and network with PhD Candidates. Student members also receive a 10% discount on Author Services via Editage

AAA Journals

AAA Members have access to all 17 of our journals, including The Accounting Review , Accounting Horizons , and Issues in Accounting Education . These journals are a great educational resource to learn more about trending topics in accounting, and stay up to date on the latest research. Full members receive access to teaching notes!

COSO Frameworks for Teaching and Research

The AAA in a joint initiative with The Committee of Sponsoring Organizations of the Treadway Commission (COSO), provides online academic access to COSO’s two frameworks. With this project, COSO is investing in education with the long-term goals of improving organizational performance, enhancing governance, and reducing the extent of fraud in organizations.

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Is an Accounting Degree Worth It?

Understanding the Numbers When reviewing job growth and salary information, it’s important to remember that actual numbers can vary due to many different factors — like years of experience in the role, industry of employment, geographic location, worker skill and economic conditions. Cited projections do not guarantee actual salary or job growth.

If you're thinking about a bachelor’s degree in accounting, you might have questions about what the degree program is like and what you can do with it.

Choosing your major or degree program is a big decision, but doing your research can help you make a choice that works for you, your interests and your goals.

First Things First: Is Accounting a Hard Major?

Some accounting degree courses do fall into the category of what you probably think of as typical “math” classes. For example, you can expect to take a course in statistics. But many classes in your accounting degree will focus on the theories, documentation and laws that inform accounting practices, like microeconomics or federal taxation.

“In accounting, the math involved is manageable, with resources readily available to assist in understanding,” Regis said, “but the focus should be on problem-solving and logical thinking rather than complex mathematical computations.”

Regis has been an instructor and administrator at SNHU for 10 years. As a senior associate dean, she currently oversees accounting, finance and business administration programs and courses, among others. During this time, she’s seen the challenges students face in an accounting program , but also the skills that can help them succeed.

So, What Makes Someone a Good Accountant?

According to Regis, you may be a good fit for a degree in accounting if you have:

• A keen eye for detail: Details matter in accounting, and being detail-oriented ensures accuracy in your financial reporting.
• Strong analytical skills: Accountants have to make sense of complex financial data to help inform business strategies.
• A strong sense of integrity: Financial information often has a sensitive nature. “Integrity and ethical conduct are non-negotiable,” Regis said.

Every major comes with its own set of challenges, and they will be different for every student. Regis encourages students who are facing challenges or difficulty to share their concerns with an instructor or advisor and to take advantage of academic support services .

Find Your Program

How valuable is a bachelor’s degree in accounting.

If you are interested in becoming an accountant , getting your bachelor's degree in accounting or a related field (like business administration) is a good first step. While there are some jobs you can do without a bachelor's degree, like becoming an accounting clerk, auditing clerk or bookkeeper , your earning potential will see a significant increase if you have a bachelor's degree.*

According to the U.S. Bureau of Labor Statistics (BLS), in 2023, accountants and auditors with a bachelor’s degree made a median salary of $79,880 compared to the median salary of $47,440 for accounting clerks, auditing clerks or bookkeepers.*

In addition to increasing your earning potential and career options, an accounting degree can also lay the groundwork for further certifications, like becoming a Certified Public Accountant  (CPA).*

Accounting Degree Career Outlook and Outcomes

Your bachelor’s degree in accounting can be the gateway to multiple career opportunities  — and the career outlook for accountants is good.* According to the BLS, there will be an expected 126,500 job openings for auditors and accountants each year between 2022 and 2032, which is a growth rate of 4%.* This is slightly higher than the projected 3% growth rate across all careers in the U.S.*

“An accounting degree offers flexibility, allowing graduates to explore various sectors within the business world,” said Regis. She also noted that some career paths you may choose to pursue with an accounting degree include:

• Auditing: Auditors make sure that an organization’s financial statements are accurate and compliant with relevant laws.
• Financial analysis: Financial analysts guide businesses in decision-making based on data and financial insights. Find out how you can become a financial analyst .
• Forensic accounting: Forensic accountants and fraud examiners investigate financial transactions and crimes. If this interests you, explore how to become a forensic accountant .
• Public accounting: Public accountants advise individuals and businesses on tax matters.

To increase your skills and help boost your employability after graduation, Regis said it’s beneficial to look for internships that will give you practical experience — and you can often get course credit for them during your degree as well. She also suggests looking into professional certifications, student organizations, competitions and conferences to develop your leadership skills  and professional networks .

Is an Accounting Degree a Good Fit for Me?

If you’re thinking about a bachelor's degree in accounting, take the time to look at your options and your goals. To aid your research and reflection, Regis encourages students to check out industry websites sites like AICPA & CIMA or the New Hampshire Society of Certified Public Accountants to learn more about the career path.

“Prospective students should assess their interest in accounting, understand the commitment required for a rigorous academic journey and explore the various specializations within accounting to find their niche,” said Regis.

Discover more about SNHU's online bachelor's in accounting : Find out what courses you'll take, skills you'll learn and how to request information about the program.

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About southern new hampshire university.

SNHU is a nonprofit, accredited university with a mission to make high-quality education more accessible and affordable for everyone.

Founded in 1932, and online since 1995, we’ve helped countless students reach their goals with flexible, career-focused programs . Our 300-acre campus in Manchester, NH is home to over 3,000 students, and we serve over 135,000 students online. Visit our about SNHU  page to learn more about our mission, accreditations, leadership team, national recognitions and awards.

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Accounting Explained With Brief History and Modern Job Requirements

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What Is Accounting?

What is the purpose of accounting, history of accounting, what types of careers are in the accounting field.

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Why accounting is important.

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Amanda Bellucco-Chatham is an editor, writer, and fact-checker with years of experience researching personal finance topics. Specialties include general financial planning, career development, lending, retirement, tax preparation, and credit.

Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing, and reporting these transactions to oversight agencies, regulators, and tax collection entities. The financial statements used in accounting are a concise summary of financial transactions over an accounting period, summarizing a company's operations, financial position, and cash flows . 

Key Takeaways

• Regardless of the size of a business, accounting is a necessary function for decision making, cost planning, and measurement of economic performance.
• A bookkeeper can handle basic accounting needs, but a Certified Public Accountant (CPA) should be utilized for larger or more advanced accounting tasks.
• Two important types of accounting for businesses are managerial accounting and cost accounting. Managerial accounting helps management teams make business decisions, while cost accounting helps business owners decide how much a product should cost.
• Professional accountants follow a set of standards known as the Generally Accepted Accounting Principles (GAAP) when preparing financial statements.
• Accounting is an important function of strategic planning, external compliance, fundraising, and operations management.

Investopedia / Jiaqi Zhou

Accounting is one of the key functions of almost any business. A bookkeeper or an accountant may handle it at a small firm. At larger companies, there might be sizable finance departments guided by a unified accounting manual with dozens of employees. The reports generated by various streams of accounting, such as cost accounting and managerial accounting, are invaluable in helping management make informed business decisions. 

The financial statements that summarize a large company's operations, financial position, and cash flows over a particular period are concise and consolidated reports based on thousands of individual financial transactions. As a result, all professional accounting designations are the culmination of years of study and rigorous examinations combined with a minimum number of years of practical accounting experience.

The history of accounting has been around almost as long as money itself. Accounting history dates back to ancient civilizations in Mesopotamia, Egypt, and Babylon. For example, during the Roman Empire, the government had detailed records of its finances. However, modern accounting as a profession has only been around since the early 19th century.

Luca Pacioli is considered "The Father of Accounting and Bookkeeping" due to his contributions to the development of accounting as a profession. An Italian mathematician and friend of Leonardo da Vinci, Pacioli published a book on the double-entry system of bookkeeping in 1494.

By 1880, the modern profession of accounting was fully formed and recognized by the Institute of Chartered Accountants in England and Wales . This institute created many of the systems by which accountants practice today. The formation of the institute occurred in large part due to the Industrial Revolution. Merchants not only needed to track their records but sought to avoid bankruptcy as well.

The Alliance for Responsible Professional Licensing (ARPL) was formed in August 2019 in response to a series of state deregulatory proposals making the requirements to become a CPA more lenient. The ARPL is a coalition of various advanced professional groups including engineers, accountants, and architects.

What Are the Different Types of Accounting?

Accountants may be tasked with recording specific transactions or working with specific sets of information. For this reason, there are several broad groups that most accountants can be grouped into.

Financial Accounting

Financial accounting refers to the processes used to generate interim and annual financial statements. The results of all financial transactions that occur during an accounting period are summarized in the balance sheet, income statement, and cash flow statement. The financial statements of most companies are audited annually by an external CPA firm.

For some, such as publicly-traded companies, audits are a legal requirement. However, lenders also typically require the results of an external audit annually as part of their debt covenants. Therefore, most companies will have annual audits for one reason or another.

Managerial Accounting 

Managerial accounting uses much of the same data as financial accounting, but it organizes and utilizes information in different ways . Namely, in managerial accounting, an accountant generates monthly or quarterly reports that a business's management team can use to make decisions about how the business operates. Managerial accounting also encompasses many other facets of accounting, including budgeting, forecasting, and various financial analysis tools. Essentially, any information that may be useful to management falls underneath this umbrella.

Cost Accounting

Just as managerial accounting helps businesses make decisions about management, cost accounting helps businesses make decisions about costing. Essentially, cost accounting considers all of the costs related to producing a product. Analysts, managers, business owners, and accountants use this information to determine what their products should cost . In cost accounting, money is cast as an economic factor in production, whereas in financial accounting, money is considered to be a measure of a company's economic performance.

Tax Accounting

While financial accountants often use one set of rules to report the financial position of a company, tax accountants often use a different set of rules. These rules are set at the federal, state, or local level based on what return is being filed. Tax accounts balance compliance with reporting rules while also attempting to minimize a company's tax liability through thoughtful strategic decision-making. A tax accountant often oversees the entire tax process of a company: the strategic creation of the organization chart , the operations, the compliance, the reporting, and the remittance of tax liability.

While basic accounting functions can be handled by a bookkeeper, advanced accounting is typically handled by qualified accountants who possess designations such as Certified Public Accountant (CPA) or Certified Management Accountant (CMA) in the United States.

In Canada, the three legacy designations—the Chartered Accountant (CA), Certified General Accountant (CGA), and Certified Management Accountant (CMA)—have been unified under the Chartered Professional Accountant (CPA) designation.

A major component of the accounting professional is the "Big Four". These four largest accounting firms conduct audit, consulting, tax advisory, and other services. These firms, along with many other smaller firms, comprise the public accounting realm that generally advises financial and tax accounting.

Careers in accounting may vastly difference by industry, department, and niche. Some relevant job titles may include:

• Auditor (internal or external): ensures compliance with reporting requirements and safeguarding of company assets.
• Forensic Accountant : monitors internal or external activity to investigate the transactions of an individual or business.
• Tax Accountant: strategically plans the optimal business composition to minimize tax liabilities as well as ensures compliance with tax reporting.
• Managerial Accountant: analyzes financial transactions to make thoughtful, strategic recommendations often related to the manufacturing of goods.
• Information and Technology Analyst/Accountant: maintains the system and software in which accounting records are processed and stored.
• Controller : oversees the accounting functions of financial reporting, accounts payable, accounts receivable, and procurement.

As of May 2023, the average Certified Public Accountant in the United States made $113,095 per year.

What Are Accounting Standards?

In most cases, accountants use generally accepted accounting principles (GAAP) when preparing financial statements in the U.S. GAAP is a set of standards and principles designed to improve the comparability and consistency of financial reporting across industries. Its standards are based on double-entry accounting, a method in which every accounting transaction is entered as both a debit and credit in two separate general ledger accounts that will roll up into the balance sheet and income statement.

In most other countries , a set of standards governed by the International Accounting Standards Board named the International Financial Reporting Standards (IFRS) is used.

Tax accountants overseeing returns in the United States rely on guidance from the Internal Revenue Service. Federal tax returns must comply with tax guidance outlined by the Internal Revenue Code (IRC). Tax accounts may also lean in on state or county taxes as outlined by the jurisdiction in which the business conducts business. Foreign companies must comply with tax guidance in the countries in which it must file a return.

Accountants often leverage software to aid in their work. Some accounting software is considered better for small businesses such as QuickBooks, Quicken, FreshBooks, Xero, SlickPie, or Sage 50. Larger companies often have much more complex solutions to integrate with their specific reporting needs. This includes add-on modules or in-home software solutions. Large accounting solutions include Oracle, NetSuite, or Sage products.

What Is the Accounting Cycle?

Financial accountants typically operate in a cyclical environment with the same steps happening in order and repeating every reporting period. These steps are often referred to as the accounting cycle, the process of taking raw transaction information, entering it into an accounting system, and running relevant and accurate financial reports. The steps of the accounting cycle are:

• Collect transaction information such as invoices , bank statements , receipts, payment requests, uncashed checks, credit card statements, or other mediums that may contain business transactions.
• Post journal entries to the general ledger for the items in Step 1, reconciling to external documents whenever possible.
• Prepare an unadjusted trial balance to ensure all debits and credits balance and material general ledger accounts look correct.
• Post adjusting journal entries at the end of the period to reflect any changes to be made to the trial balance run in Step 3.
• Prepare the adjusted trial balance to ensure these financial balances are materially correct and reasonable.
• Prepare the financial statements to summarize all transactions for a given reporting period.

Cash Method vs. Accrual Method of Accounting

Financial accounts have two different sets of rules they can choose to follow. The first, the accrual basis method of accounting, has been discussed above. These rules are outlined by GAAP and IFRS, are required by public companies, and are mainly used by larger companies.

The second set of rules follow the cash basis method of accounting. Instead of recording a transaction when it occurs, the cash method stipulates a transaction should be recorded only when cash has exchanged. Because of the simplified manner of accounting, the cash method is often used by small businesses or entities that are not required to use the accrual method of accounting.

Imagine a company buys $1,000 of inventory on credit. Payment is due for the inventory in 30 days.

• Under the accrual method of accounting, a journal entry is recorded when the order is placed. The entry records a debit to inventory (asset) for $1,000 and a credit to accounts payable (liability) for $1,000. When 30 days has passed and the inventory is actually paid for, the company posts a second journal entry: a debit to accounts payable (liability) for $1,000 and a credit to cash (asset) for $1,000.
• Under the cash method of accounting, a journal entry is only recorded when cash has been exchanged for inventory. There is no entry when the order is placed; instead, the company enters only one journal entry at the time the inventory is paid for. The entry is a debit to inventory (asset) for $1,000 and a credit to cash (asset) for $1,000.

The difference between these two accounting methods is the treatment of accruals. Naturally, under the accrual method of accounting, accruals are required. Under the cash method, accruals are not required and not recorded.

The Securities and Exchange Commission has an entire financial reporting manual outlining reporting requirements of public companies.

Accounting is a back-office function where employees may not directly interface with customers, product developers, or manufacturing. However, accounting plays a key role in the strategic planning, growth, and compliance requirements of a company.

• Accounting is necessary for company growth. Without insight into how a business is performing, it is impossible for a company to make smart financial decisions through forecasting . Without accounting, a company wouldn't be able to tell which products are its best sellers, how much profit is made in each department, and what overhead costs are holding back profits.
• Accounting is necessary for funding. External investors want confidence that they know what they are investing in. Prior to private funding, investors will usually require financial statements (often audited) to gauge the overall health of a company. The same rules pertain to debt financing. Banks and other lending institutions will often require financial statements in compliance with accounting rules as part of the underwriting and review process for issuing a loan.
• Accounting is necessary for owner exit. Small companies that may be looking to be acquired often need to present financial statements as part of acquisition or merger efforts. Instead of simply closing a business, a business owner may attempt to "cash-out" of their position and receive compensation for building a company. The basis for valuing a company is to use its accounting records.
• Accounting is necessary to make payments. A company naturally incurs debt, and part of the responsibility of managing that debt is to make payments on time to the appropriate parties. Without positively fostering these business relationships, a company may find itself with a key supplier or vendor. Through accounting, a company can always know who it has debts to and when those debts are coming due.
• Accounting is necessary to collect payments. A company may agree to extend credit to its customers. Instead of collecting cash at the time of an agreement, it may give a customer trade credit terms such as net 30. Without accounting, a company may have a hard time keeping track of who owes it money and when that money is to be received.
• Accounting may be required. Public companies are required to issue periodic financial statements in compliance with GAAP or IFRS. Without these financial statements, a company may be de-listed from an exchange. Without proper tax accounting compliance, a company may receive fines or penalties.

Example of Accounting

To illustrate double-entry accounting, imagine a business sends an invoice to one of its clients. An accountant using the double-entry method records a debit to accounts receivables, which flows through to the balance sheet, and a credit to sales revenue, which flows through to the income statement.

When the client pays the invoice, the accountant credits accounts receivables and debits cash. Double-entry accounting is also called balancing the books, as all of the accounting entries are balanced against each other. If the entries aren't balanced, the accountant knows there must be a mistake somewhere in the general ledger.

What Are the Responsibilities of an Accountant?

Accountants help businesses maintain accurate and timely records of their finances. Accountants are responsible for maintaining records of a company’s daily transactions and compiling those transactions into financial statements such as the balance sheet, income statement, and statement of cash flows. Accountants also provide other services, such as performing periodic audits or preparing ad-hoc management reports.

What Skills Are Required for Accounting?

Accountants hail from a wide variety of backgrounds. Generally speaking, however, attention to detail is a key component in accountancy, since accountants must be able to diagnose and correct subtle errors or discrepancies in a company’s accounts. The ability to think logically is also essential, to help with problem-solving. Mathematical skills are helpful but are less important than in previous generations due to the wide availability of computers and calculators.

Why Is Accounting Important for Investors?

The work performed by accountants is at the heart of modern financial markets. Without accounting, investors would be unable to rely on timely or accurate financial information, and companies’ executives would lack the transparency needed to manage risks or plan projects. Regulators also rely on accountants for critical functions such as providing auditors’ opinions on companies’ annual 10-K filings . In short, although accounting is sometimes overlooked, it is absolutely critical for the smooth functioning of modern finance.

American Institute of Certified Public Accountants. " CPA Licensure ."

Gary J. Previts, Peter Walton, and Peter Wolnizer. "Global History of Accounting, Financial Reporting and Public Policy: Eurasia, Middle East and Africa," Pages 1-29. Emerald Group Publishing, 2012.

Jane Gleeson-White. "Double Entry: How the Merchants of Venice Created Modern Finance," Pages 28, 47 and 91. W. W. Norton & Company, 2012.

The Institute of Chartered Accountants in England and Wales. " Timeline: 1853-1880 ."

Alliance for Responsible Professional Licensing. " AICPA, NASBA Help Launch New Coalition to Protect Professional Licensing ."

U.S. Securities and Exchange Commission. " All About Auditors: What Investors Need to Know ."

American Institute of Certified Public Accountants. " Frequently Asked Questions FAQs - Become a CPA ."

Institute of Management Accountants. " CMA Certification ."

Chartered Professional Accountants Canada. " The CPA Profession ."

Glassdoor. " CPA Salaries ."

Financial Accounting Foundation. " About GAAP ."

International Financial Reporting Standards Foundation. " Who Uses IFRS Standards? "

Internal Revenue Service. " Tax Code, Regulations, and Official Guidance ."

U.S. Securities and Exchange Commission. " Financial Reporting Manual ."

• Accounting Explained With Brief History and Modern Job Requirements 1 of 51
• What Is the Accounting Equation, and How Do You Calculate It? 2 of 51
• What Is an Asset? Definition, Types, and Examples 3 of 51
• Liability: Definition, Types, Example, and Assets vs. Liabilities 4 of 51
• Equity Meaning: How It Works and How to Calculate It 5 of 51
• Revenue Definition, Formula, Calculation, and Examples 6 of 51
• Expense: Definition, Types, and How Expenses Are Recorded 7 of 51
• Current Assets vs. Noncurrent Assets: What's the Difference? 8 of 51
• What Is Accounting Theory in Financial Reporting? 9 of 51
• Accounting Principles Explained: How They Work, GAAP, IFRS 10 of 51
• Accounting Standard Definition: How It Works 11 of 51
• Accounting Convention: Definition, Methods, and Applications 12 of 51
• What Are Accounting Policies and How Are They Used? With Examples 13 of 51
• How Are Principles-Based and Rules-Based Accounting Different? 14 of 51
• What Are Accounting Methods? Definition, Types, and Example 15 of 51
• What Is Accrual Accounting, and How Does It Work? 16 of 51
• Cash Accounting Definition, Example & Limitations 17 of 51
• Accrual Accounting vs. Cash Basis Accounting: What's the Difference? 18 of 51
• Financial Accounting Standards Board (FASB): Definition and How It Works 19 of 51
• Generally Accepted Accounting Principles (GAAP): Definition, Standards and Rules 20 of 51
• What Are International Financial Reporting Standards (IFRS)? 21 of 51
• IFRS vs. GAAP: What's the Difference? 22 of 51
• How Does US Accounting Differ From International Accounting? 23 of 51
• Cash Flow Statement: What It Is and Examples 24 of 51
• Breaking Down The Balance Sheet 25 of 51
• Income Statement: How to Read and Use It 26 of 51
• What Does an Accountant Do? 27 of 51
• Financial Accounting Meaning, Principles, and Why It Matters 28 of 51
• How Does Financial Accounting Help Decision-Making? 29 of 51
• Corporate Finance Definition and Activities 30 of 51
• How Financial Accounting Differs From Managerial Accounting 31 of 51
• Cost Accounting: Definition and Types With Examples 32 of 51
• Certified Public Accountant: What the CPA Credential Means 33 of 51
• What Is a Chartered Accountant (CA) and What Do They Do? 34 of 51
• Accountant vs. Financial Planner: What's the Difference? 35 of 51
• Auditor: What It Is, 4 Types, and Qualifications 36 of 51
• Audit: What It Means in Finance and Accounting, and 3 Main Types 37 of 51
• Tax Accounting: Definition, Types, vs. Financial Accounting 38 of 51
• Forensic Accounting: What It Is, How It's Used 39 of 51
• Chart of Accounts (COA) Definition, How It Works, and Example 40 of 51
• What Is a Journal in Accounting, Investing, and Trading? 41 of 51
• Double Entry: What It Means in Accounting and How It's Used 42 of 51
• Debit: Definition and Relationship to Credit 43 of 51
• Credit: What It Is and How It Works 44 of 51
• Closing Entry 45 of 51
• What Is an Invoice? It's Parts and Why They Are Important 46 of 51
• 6 Components of an Accounting Information System (AIS) 47 of 51
• Inventory Accounting: Definition, How It Works, Advantages 48 of 51
• Last In, First Out (LIFO): The Inventory Cost Method Explained 49 of 51
• The FIFO Method: First In, First Out 50 of 51
• Average Cost Method: Definition and Formula with Example 51 of 51

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Definition of accounting

• explanation

Examples of accounting in a Sentence

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'accounting.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

Middle English acountynge "reckoning, calculation," from gerund of accounten "to account entry 2 "

circa 1676, in the meaning defined at sense 2b

Phrases Containing accounting

• cost accounting
• there's no accounting for taste

Dictionary Entries Near accounting

account for (something)

accounting equation

Cite this Entry

“Accounting.” Merriam-Webster.com Dictionary , Merriam-Webster, https://www.merriam-webster.com/dictionary/accounting. Accessed 1 May. 2024.

Kids Definition

Kids definition of accounting, legal definition, legal definition of accounting, more from merriam-webster on accounting.

Nglish: Translation of accounting for Spanish Speakers

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