Accounting for Business Terms with "T"

Glossary of Accounting for Business - Glossario Contabilità Imprese

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T-Account: the layout of accounts in the accounting books. The T-account is the basis for journal entry in accounting. T-accounts have three basic elements. A title, a left side (debit side) and a right side (credit side). To make an entry in a T-account, put the currency (dollar, pound, etc.) amount on the appropriate side (debit or credit).

Tangible Asset: assets having a physical existence, such as cash, equipment,, stock and property. Accounts receivable are also usually considered tangible assets for accounting purposes.

Tax Code: the number found by adding up an individual's personal allowances which is used to calculate that individual's tax liability.

Total Cost: production cost plus administration, selling and distribution expenses and finance expenses.

Trade Discount: a reduction from the sales list price that a business might offer to some of its customers. The amount of the trade discount will be shown on the face of the invoice as a deduction from the list price. A Settlement Discount is different.

Trading Account: compares sales, stock used and direct expenses to find the profit or loss made by buying and selling.

Trading And Profit And Loss Account: a financial statement in which both gross profit and net profit are calculated.

Transposition Error: where the characters within a number are entered in the wrong sequence.

Trial Balance: a list of all the nominal accounts at a given time, together with their net balances, shown as either a debit or a credit balance. The double entry book-keeping system, if completed correctly, requires that the total of all debits equals the total of all credits. In theory the balances should always be equal when using computer accounts programs. If an imbalance occurs, it may indicate that you have corrupt data.

Tronc: a monetary pool in which tips / gratuities are collected and later shared out between all staff, e.g. in a restaurant. The person who shares out the tips is called a "troncmaster".

True And Fair View: the expression that is used by auditors to indicate whether, in their opinion, the financial statements fairly represent the state of affairs and financial performance of a company.