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

The Turkana Rift has produced more than 1,200 hominin fossils from the past 4 million years, accounting for about one third of all such finds in Africa.

From Science Daily • Apr. 25, 2026

A report released Wednesday by the American Farm Bureau Federation found that roughly $9.6 billion has already been distributed, with corn, wheat, and soybean producers accounting for 80% of payments.

From Salon • Apr. 25, 2026

A former executive at Live Nation, the world’s largest live entertainment company, is suing the company, alleging that he was wrongfully terminated after he raised concerns about alleged financial misconduct and improper accounting practices.

From Los Angeles Times • Apr. 23, 2026

Fuel is the second biggest cost for airlines after labor, accounting for about 25% to 30% of total airline operating costs, according to the International Air Transport Association.

From MarketWatch • Apr. 22, 2026

A very simple numerical principle that’s sometimes of use in accounting for the certainty of a particular kind of coincidence is illustrated by the mailman who has twenty-one letters to distribute among twenty mailboxes.

From "Innumeracy: Mathematical Illiteracy and Its Consequences" by John Allen Paulos

Related Words

• bookkeeping
• computing