Definition: A "method of accounting" is a way that a business keeps track of its money – how much it earns and how much it spends. It involves recording all financial transactions in a systematic manner.
In more complex financial discussions, you might encounter different methods such as: - Accrual accounting: This method records income and expenses when they are earned or incurred, not necessarily when the money is actually received or paid. - Cash accounting: This method records income and expenses only when cash is exchanged.
While "method of accounting" specifically refers to financial tracking, "accounting" can also refer generally to the field of study or profession related to managing financial records.
There aren't specific idioms for "method of accounting," but general idioms related to finances include: - "Keep the books": To maintain financial records. - "Bottom line": Refers to the final total of financial results, often used to discuss profitability.
There may not be direct phrasal verbs specifically for "method of accounting," but you might encounter phrases like: - "Write off": To remove an amount from the accounts because it is no longer collectible. - "Balance out": To ensure that the debits and credits in the accounts are equal.
In summary, a "method of accounting" is a systematic way businesses track their financial transactions.