# #accounting-lexicon > 31 public memos tagged #accounting-lexicon on MythOS. ## Links - [Tag Page](https://mythos.one/tag/accounting-lexicon) - [MCP Server](https://mythos.one/api/mcp) ## Memos - [Accounting Glossary](https://mythos.one/me/johnzdanowski/b06688): The Accounting Glossary is a collection of the bookkeeping and accounting terms behind John's Weekly Accounting practice. It gives operators, founders, and bookkeepers a shared vocabulary for keeping... - [Traditional accounting titles](https://mythos.one/me/johnzdanowski/355f28): The traditional titles in a Finance & Accounting Department, from most to least senior: Chief Financial Officer VP / Director Finance VP / Director FP&A Controller Accounting Manager Staff Accountant... - [Functions in a Finance & Accounting Department](https://mythos.one/me/johnzdanowski/cacb91): The Functions in a Finance & Accounting Department fall into two groups: accounting, which covers bookkeeping and the accrual accounting of the month-end close, and finance, which covers financial... - [Finance & Accounting Department](https://mythos.one/me/johnzdanowski/6327ce): A Finance & Accounting Department is the team that executes the functions required to enable management to run the business well, from keeping the books to planning and analyzing the company's... - [Inbound Freight](https://mythos.one/me/johnzdanowski/d8ce3c): Inbound Freight in a consumer branded goods business is the cost of shipping, duties, and tariffs to get parts and ingredients to the manufacturer and finished goods from the manufacturer to the... - [GAAP](https://mythos.one/me/johnzdanowski/e9c954): GAAP), short for Generally Accepted Accounting Principles, is the body of authoritative standards and common practices that governs how a business records and reports financial information so its... - [Transaction Downloads](https://mythos.one/me/johnzdanowski/41fe8a): Transaction Downloads are the bank and credit card transactions that accounting software such as Quickbooks Online automatically imports from a business's financial institutions, each of which must... - [Tops Down](https://mythos.one/me/johnzdanowski/efcfc6): Tops Down budgeting is a budgeting method that starts with Boundary Conditions for growth targets and runway, then fills in the level of expenses the company can sustain. The method works from the... - [Base Budget](https://mythos.one/me/johnzdanowski/bdee43): A Base Budget is a revenue budget set conservatively enough that a company expects to beat it in 90% of scenarios, with expenses then budgeted Bottoms up to stay within the desired runway. Annual... - [Other Variable Overheads](https://mythos.one/me/johnzdanowski/4ce64e): Other Variable Overheads are costs that increase with sales but are not included in cost of goods sold (COGS), such as percentage-of-revenue referral fees and the cost of managing a customer care... - [Automated Transactional](https://mythos.one/me/johnzdanowski/15a8a8): Automated Transactional processing is a system in which every cash entry is automatically matched to its Accrual Accounting entry as soon as it is entered into the books. In conventional bookkeeping,... - [ARR](https://mythos.one/me/johnzdanowski/4b88a3): ARR (Annualized Recurring Revenue, also called Annual Recurring Revenue) is the yearly value of the revenue a company expects to keep receiving from its customers on a recurring basis, such as... - [PEO](https://mythos.one/me/johnzdanowski/546ea4): A PEO, or Professional Employer Organization, is a firm paid by companies to serve as the employer of record for their employees, taking on payroll, benefits, and employment compliance. PEOs work... - [Strategic Transaction](https://mythos.one/me/johnzdanowski/f65a91): A Strategic Transaction is a company-defining transaction that changes a company's ownership, capital structure, or scope, most commonly raising capital, acquiring a company, or selling the company.... - [Cash Basis](https://mythos.one/me/johnzdanowski/44eb31): Cash Basis accounting is a method of recognizing revenue and expenses as cash hits or leaves the bank account, rather than when revenue is earned or expenses are incurred. It stands in contrast to... - [Operational Accounting vs Tax Accounting](https://mythos.one/me/johnzdanowski/68f14f): Operational Accounting vs Tax Accounting is the BrightZen Systems principle that the accounting kept to run a business takes priority over the accounting kept to file its taxes, summed up in a... - [Bottoms up](https://mythos.one/me/johnzdanowski/cec873): Bottoms up budgeting builds a company's expense budget from the ground up, starting with every vendor in every department and every account and reviewing past spending with each department head to... - [Expense Accounts](https://mythos.one/me/johnzdanowski/2ea17d): Expense Accounts are the accounts a company uses to categorize its expenses on the Income Statement. Each expense account collects costs of one kind, such as salaries, rent, or software, so operating... - [ZAAP](https://mythos.one/me/johnzdanowski/23a6e3): ZAAP is short for Z Accepted Accounting Principles, the set of accounting principles that BrightZen Systems considers reasonable for startups. The name plays on GAAP, Generally Accepted Accounting... - [Month End Close](https://mythos.one/me/johnzdanowski/dd489d): The Month End Close is the recurring accounting process of finalizing a company's books for a calendar month, so that the month's financial statements can be produced and relied on. A typical close... - [Bookkeeping](https://mythos.one/me/johnzdanowski/8d654e): Bookkeeping is the recording of a business's day-to-day financial transactions — sales, purchases, receipts, and payments — so that accurate financial statements can be prepared from them.... - [Stock Options](https://mythos.one/me/johnzdanowski/2facc0): Stock Options are the traditional way that venture-backed companies enable employees to build equity in a company. A stock option is the right, but not the obligation, to purchase a certain stock at... - [Convertible Note](https://mythos.one/me/johnzdanowski/b3b8a4): Convertible Notes, and their more modern Silicon Valley counterpart SAFE Notes, are a way to take an investment in a company without the time and expense of doing a "priced round." Convertible Notes... - [Net Orderly Liquidation Value](https://mythos.one/me/johnzdanowski/e082e2): Net Orderly Liquidation Value (NOLV) is the estimated amount that could be recovered by selling a set of assets in an orderly sale, after the costs of liquidation, and it is how a lender decides how... - [General Ledger](https://mythos.one/me/johnzdanowski/5b70d6): The General Ledger (GL) is a company's master record of accounts, where every financial transaction is ultimately posted and from which the financial statements are built. Transactions are first... - [Income Statement](https://mythos.one/me/johnzdanowski/4c72cb): An Income Statement shows the company's revenues and expenses during a particular period of time. It indicates how the revenues are transformed into the net income or net profit. Revenue Cost of... - [Roll-Forward](https://mythos.one/me/johnzdanowski/51bdd8): Deep inside equity accounting auditors produce a “roll-forward“. A roll forward is simply the recognition that the starting balance, plus or minus any changes in the period equals the ending balance.... - [Chart of Accounts](https://mythos.one/me/johnzdanowski/76c900): A chart of accounts (COA) is a list of financial accounts for recording transactions in a company’s accounting system. Balance Sheet Accounts 1000 Assets 2000 Liabilities 3000 Equity Income Statement... - [Accrued Liability](https://mythos.one/me/johnzdanowski/c3c27a): An Accrued Liability is an expense a business has incurred but not yet paid or been billed for, recorded on the balance sheet as a liability until the payment is made. Accrued liabilities, also... - [Accrual Accounting](https://mythos.one/me/johnzdanowski/3e8b80): Accrual Accounting is the practice of recording revenue when it is earned and expenses when they are incurred, rather than when money is received into or spent from the bank account. Accrual... - [Marginal Income Statement](https://mythos.one/me/johnzdanowski/4448c2): A Marginal Income Statement expresses every component of an Income Statement as a percentage of revenue, so that each line shows how many cents of every revenue dollar it consumes or leaves behind....