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

As it stands, the fertilizer market is small, with North American companies like Nutrien, Mosaic, and CF Industries accounting for more than $50 billion in global market cap space.

From Salon • May 15, 2026

The company failed to secure additional debtor-in-possession financing after the first DIP loan lost significant value because the company’s underlying assets and cash flows deteriorated amid fraud allegations and accounting irregularities.

From The Wall Street Journal • May 14, 2026

Apple and Nvidia are TSMC’s two largest customers, accounting for almost 40% of sales, according to Bloomberg.

From Barron's • May 14, 2026

The company hasn’t set a target for generating a profit under generally accepted accounting principles.

From The Wall Street Journal • May 14, 2026

According to Nelson’s accounting, nearly half my father’s congregation were relatives of dead twins.

From "The Poisonwood Bible" by Barbara Kingsolver

Related Words

• bookkeeping
• computing