The ability to measure the financial success or failure of an enterprise is driven by the double-entry bookkeeping system, a financial accounting system that dates to the 13th century and an Italian mathematician named Luca Pacioli.

This list of accounting terms from TechRepublic Premium will help you grasp the vocabulary and the concepts underlying this language of financial status and success.

From the glossary:

DEFERRALS

This refers to a delay in recognizing revenues or expenses on the income statement until a later, more appropriate time. Revenues are deferred to a balance sheet liability account until they are earned in a later period. When the revenues are earned, they will be moved from the balance sheet account to revenues on the income statement. Expenses are deferred to a balance sheet asset account until the expenses are used up, expired or matched with revenues. At that time, they will be moved to an expense on the income statement.

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