L - Acounting Glossary
Accounting definitions.
Source: Wikipedia.org
Liability
In accounting, a financial liability is something
that is owed to another party. This is typically
contrasted with an asset which is something of
value that you own. The basic accounting equation
relates assets, liability, and capital (or equity)
thus: liablities + equity = assets.
Long-term asset
Long-term assets are those assets usually in service
over one year such as buildings, equipment, etc.
These often receive favorable tax treatment over
short-term assets.
Long-term liabilities
Liabilities with a future benefit over one year,
such as notes payable that mature greater than
one year.
Luca Pacioli
Luca Bartolomes Pacioli, Italian mathematician,
(1445-1517), is credited with the first publication
of the 'Venetian method' of keeping accounts,
now known as 'double-entry bookkeeping'. For this
reason, some regard him as the founder of the
field of accountancy. His publications include
the Summa de arithmetica, geometria, proportioni
et proportionalita an encylopaedic work on the
state of the art in arithmetic, mathematics, and
bookkeeping at the time.
