accounting

American  

[uh-koun-ting] / əˈkaʊn tɪŋ /

noun

1. the theory and system of setting up, maintaining, and auditing the books of a firm; art of analyzing the financial position and operating results of a business house from a study of its sales, purchases, overhead, etc. (distinguished from bookkeeping).

2. a detailed report of the financial state or transactions of a person or entity.

   an accounting of the estate.

3. the rendering or submission of such a report.

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accounting British  

/ əˈkaʊntɪŋ /

noun

1. 1. the skill or practice of maintaining and auditing accounts and preparing reports on the assets, liabilities, etc, of a business

   2. ( as modifier )

      an accounting period

      accounting entity

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accounting Cultural  

1. The system of recording and auditing business transactions. (See audit.)

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Etymology

Origin of accounting

First recorded in 1350–1400; Middle English; account + -ing ¹

Explanation

Accounting is the act of computing something, usually by dealing with numbers. If you were very good at math in high school, you might think about going into accounting. You can see the word count within accounting, which is one way to remember that the word has to do with keeping track of numbers — usually in relation to financial transactions. Balancing your checkbook is a form of accounting. Large firms often hire accountants to keep track of their earnings and spending. Accounting can also more generally mean explaining. Someone who decides to wear shorts to the prom is likely going to have some serious accounting to do!

Example Sentences

But even from a business-minded standpoint, by any hard-minded accounting of costs and time and reach and relevance and adaptability and return on investment, 60 Minutes was working.

From Slate • Jun. 5, 2026

With a handful of tech companies accounting for such a large chunk of the stock market, any shift in investor sentiment can easily drag the entire market down.

From BBC • Jun. 5, 2026

Private-credit lenders are also increasing loan issuance fees and applying conservative underwriting to industries such as accounting due to AI threats.

From The Wall Street Journal • Jun. 5, 2026

ARK Innovation’s total stake in Alphabet was valued at just more than $162 million as of Wednesday’s close, accounting for 2.33% of the ETF’s overall portfolio.

From Barron's • Jun. 4, 2026

Eva took on administrative duties for our new project, which were pretty challenging given that federal dollars came with all kinds of complex reporting and accounting requirements.

From "Just Mercy" by Bryan Stevenson

Related Words

• bookkeeping
• computing