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

That means tokenized deposits retain the same credit-risk profile, regulatory expectations and accounting treatments, making it easier for banks to offer blockchain-based payments within an existing regulatory framework.

From The Wall Street Journal • Jun. 4, 2026

Public charging stations have grown from 2,000 to over 10,000 in the last three years, yet infrastructure is uneven across regions with just four of India's 28 states accounting for over 50% of the chargers.

From BBC • Jun. 3, 2026

That was true last week as well, with mega-cap tech names like Micron, Microsoft, and Broadcom accounting for more than two-thirds of the S&P 500’s weekly gain.

From Barron's • Jun. 1, 2026

These relationships remained strong even after accounting for age and other health factors.

From Science Daily • Jun. 1, 2026

Then after a week or two the women usually begin to talk, very softly but without cease, until they’ve finished the accounting of places and people they’ve lost.

From "The Poisonwood Bible" by Barbara Kingsolver

Related Words

• bookkeeping
• computing