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 share is now effectively zero, at least by the company’s own accounting.

From MarketWatch • May 21, 2026

By accounting for both processes together, the team demonstrated that the two forms of breathing are not separate phenomena but instead arise from related underlying physics.

From Science Daily • May 21, 2026

In the year ending March 2026, there were 43,806 detected arrivals via illegal routes, with small boat crossings accounting for 90% of these arrivals.

From BBC • May 21, 2026

The company is already dominant in launch services, accounting for more than half of the world’s orbital launches.

From Barron's • May 20, 2026

The authorities were extremely strict about this, and the only kind of publication that would pass muster might be a quarterly on actuarial science for a prisoner studying accounting.

From "Long Walk to Freedom" by Nelson Mandela

Related Words

• bookkeeping
• computing