Although Basic Principles of Accounting are almost the same all over the world, the American Accounting practices differ to some extent from the British Accounting practices.
Some American terms are given below which are equivalent to British terms:
|Sr. No.||British Terms||American Terms|
|3||Purchases on Credit||Purchases on Account|
|4||Gross Profit||Gross Income|
|5||Net Profit||Net Income|
|6||Profit and Loss Account||Income Statement|
|7||Outstanding/Accrued Expenses||Payable Expenditure|
|8||Provision for Bad Debts||Allowance for Uncollectible|
|11||Ordinary Shares||Common Shares|
|12||Sundry Debtors / Trade Debtors||Accounts Receivable|
|13||Sundry Creditors / Trade Creditors||Accounts Payable|
|14||Bills Payable||Notes Payable|
|15||Bills Receivable||Notes Receivable|
|16||Accounting Period||Fiscal Period|
|17||Accounting Year||Fiscal Year|
|22||Bonus Share||Stock Dividend|
|23||Preference shares||Preferred stock|
|24||Paid-up Capital||Paid in Capital|
|25||Profit and Loss Appropriation A/C||Retained Earnings|
|26||Credit Note||Credit Memo|
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.