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. (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

These components include investments with maturities of three months or less, like money-market funds, Treasury bills, commercial paper and possibly, stablecoins, for which there are no specific accounting rules at present.

From The Wall Street Journal • Apr. 15, 2026

Elia Ferracuti is an associate professor of accounting and Rahul Vashishtha is a professor of accounting at Duke University’s Fuqua School of Business.

From MarketWatch • Apr. 15, 2026

After accounting for factors like age, sex, and education, higher lifetime enrichment was linked to a 38% lower risk of Alzheimer's disease and a 36% lower risk of mild cognitive impairment.

From Science Daily • Apr. 15, 2026

West Bengal is also home to India's second-largest Muslim population, accounting for roughly 14% of the country's 172 million Muslims, according to the 2011 census.

From BBC • Apr. 12, 2026

Every time something like this happens, I go to accounting for every person I know who also fits the description, who it could’ve been.

From "Piecing Me Together" by Renée Watson

Related Words

• bookkeeping
• computing