The Old And New Name Of Accounting Terms

Accounting is a very broad Educational subject and career too. There are so many terms in accounting which are not been used anymore in modern day accounting. In this blog post, we are going to be looking at some of the old and new name of accounting terms.

1. Old name: Final accounts
New name: Financial statement

2. Old name: Trading and Profit & loss account
New name: Income Statement

3. Old name: Sales
New name: Revenue

4. Old name: Purchases
New name: Raw materials (Ordinary goods purchased)

5. Old name: Cost of goods sold
New name: Cost of sales

6. Old name: Stock
New name: Inventory (of raw materials and finished goods)

7. Old name: Sundry expenses
New name: Other operating expenses

8. Old name: Sundry income
New name: Other operating income

9. Old name: Interest receivable
New name: Investment revenues

10. Old name: Interest payable
New name: Finance costs

11. Old name: Net profit
New name: Profit (before tax) for the year

12. Old name: Fixed assets
New name: Non-current assets

13. Old name: Land and buildings
New name: Property

14. Old name: Investments
New name: Investment property

15. Old name: Stock
New name: Inventory

16. Old name: Debtors
New name: Trade receivables

17. Old name: Prepayments
New name: Other receivables

18. Old name: Bank and cash
New name: Cash (and cash equivalents)

19. Old name: Creditors
New name: Trade payables

20. Old name: Accruals
New name: Other payables

21. Old name: Long term liabilities
New name: Non-current liabilities

22. Old name: Capital
New name: Equity

23. Old name: Balance sheet
New name: Statement of financial position

24. Old name: Provision for bad/doubtful debt
New name: Allowance for doubtful debt.

25. Old name: Cash flow statements (previously called Funds Flow Statement)
New name: Statement of cash flows

26. Old name: Capital reserve
New name: Gain on a bargain purchase

27. Old name: Minority interest
New name: Non controlling interest

NB: This does not mean that the old terms are wrong, but the current belief is that the new terms clearly reflect the functions played by the items.

These are the current new accounting terms, we will update them as soon as there are new ones. But if you know of any new term which I did write in this post, please write it in the comments section and we will investigate and update.