10/11/2024
Updated Accounting Terms:
Accounting is a very broad Educational subject and career too. There are so many terms in accounting which are not used anymore in modern day accounting. In this post, we are going to look at some of the old and new name of some accounting terms.
1. Old name: Final accounts
New name: Financial statement
2. Old name: Trading and Profit & loss account
New name: Income Statement
3. Old name: Sales
New name: Revenue
4. Old name: Purchases
New name: Raw materials (Ordinary goods purchased)
5. Old name: Cost of goods sold
New name: Cost of sales
6. Old name: Stock
New name: Inventory (of raw materials and finished goods)
7. Old name: Sundry expenses
New name: Other operating expenses
8. Old name: Sundry income
New name: Other operating income
9. Old name: Interest receivable
New name: Investment revenues
10. Old name: Interest payable
New name: Finance costs
11. Old name: Net profit
New name: Profit (before tax) for the year
12. Old name: Fixed assets
New name: Non-current assets
13. Old name: Land and buildings
New name: Property
14. Old name: Investments
New name: Investment property
15. Old name: Stock
New name: Inventory
16. Old name: Debtors
New name: Trade receivables
17. Old name: Prepayments
New name: Other receivables
18. Old name: Bank and cash
New name: Cash (and cash equivalents)
19. Old name: Creditors
New name: Trade payables
20. Old name: Accruals
New name: Other payables
21. Old name: Long term liabilities
New name: Non-current liabilities
22. Old name: Capital
New name: Equity
23. Old name: Balance sheet
New name: Statement of financial position
24. Old name: Provision for bad/doubtful debt
New name: Allowance for doubtful debt.
25. Old name: Cash flow statements (previously called Funds Flow Statement)
New name: Statement of cash flows
26. Old name: Capital reserve
New name: Gain on a bargain purchase
27. Old name: Minority interest
New name: Non controlling interest
Remember: This doesn't mean that the old terms are wrong.
Happy international Accounting day to my fellows
