InvestorWords.com
accounting
Definition
The systematic recording, reporting, and analysis of financial transactions of a business. The person in charge of accounting is known as an accountant, and this individual is typically required to follow a set of rules and regulations, such as the Generally Accepted Accounting Principles. Accounting allows a company to analyze the financial performance of the business, and look at statistics such as net profit.
Recommended Articles from InvestorGuide.com
Featured Tip
9 Signs of Potential Creative Accounting PracticesHere are nine things investors should watch for as possible warnings of accounting gimmickry:
1. Overly Aggressive Performance Targets: The company ups the ante by continually setting revenue an ... Read more
1. Overly Aggressive Performance Targets: The company ups the ante by continually setting revenue an ... Read more
Additional Tip(s)
- A Caution on the Restructuring Costs
- A Common Path Taken by Fraudsters
- A Caution on Earnings
- A Warning on Restructuring Charges
- Management Can Use The Power of Accounting to Mislead You
- Question Leadership and Management of a Company
- One Secret to Successfully Invest in Foreign Stocks
- The Rules of Accounting Played by Management
- Focusing on One Stock in a Portfolio
Related Videos
Featured Advertiser
Get our free Term of the Day newsletter!



