AICPA: Accounting Glossary
AccountingRecording and reporting of financial transactions, including the origination of thetransaction, its recognition, processing, and summarization in the financial statements.Accounting ChangeChange in (1) an accounting principle; (2) an accounting estimate; or (3) the reportingentity that necessitates disclosure and explanation in published financial reports.Accounting Principles Board (APB)Senior technical committee of the American Institute of Certified Public Accountants(AICPA) which issued pronouncements on accounting principles from 1959-1973. TheAPB was replaced by the Financial Accounting Standards Board (FASB).Accrual BasisMethod of accounting that recognizes revenue when earned, rather than when collected.Expenses are recognized when incurred rather than when paid.Accumulated DepreciationTotal depreciation pertaining to an asset or group of assets from the time the assets wereplaced in services until the date of the financial statement or tax return. This total is thecontra account to the related asset account.Additional Paid in CapitalAmounts paid for stock in excess of its par value or stated value. Also, other amountspaid by stockholders and charged to equity accounts other than capital stock.Adverse OpinionExpression of an opinion in an auditor's report which states that financial statements donot fairly present the financial position, results of operations and cash flows inconformity with generally accepted accounting principles (GAAP).Affiliated CompanyCompany, or other organization related through common ownership, common control of management or owners, or through some other control mechanism, such as a long-termlease.