Accounting Terminology Guide

G

G
GAAP

Conventions, rules, and procedures necessary to define accepted accounting practice at a particular time. The highest level of such principles are set by the FINANCIAL ACCOUNTING STANDARDS BOARD (FASB).

GAAS

See GENERALLY ACCEPTED AUDITING STANDARDS.

Gain

Excess of REVENUES received over costs relating to a specific transaction.

GAO

Accounting and auditing office of the United States government. An independent agency that reviews federal financial transactions and reports directly to Congress.

GASB

Group that has authority to establish standards of financial reporting for all units of state and local government.

General Journal

The simple and most flexible type of journal.

General Ledger

Collection of all ASSET, LIABILITY, owners EQUITY, REVENUE, and expense accounts.

General Partnership

PARTNERSHIP with no limited partners.

Generally Accepted Accounting Principles (GAAP)

Conventions, rules, and procedures necessary to define accepted accounting practice at a particular time. The highest level of such principles are set by the FINANCIAL ACCOUNTING STANDARDS BOARD (FASB).

Generally Accepted Auditing Standards (GAAS)

Standards set by the AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS (AICPA) which concern the AUDITOR'S professional qualities and judgment in the performance of his or her AUDIT and in the actual report.

Gift

A valid transfer of property from one taxpayer to another without consideration or compensation. A gift may be subject to the unified estate and gift transfer tax.

Going Concern

Assumption that a business can remain in operation long enough for all of its current plans to be carried out.

Going Private

Movement from public ownership to private ownership of a COMPANY's shares either by the company's repurchase of shares or through purchases by an outside private investor.

Going Public

Activities that relate to offering a private company's shares to the general investing public including registering with the SEC.

Goods Available for Sale

The sum of beginning inventory and the net cost of purchases during a period; the total goods available for sale to customers during an accounting period.

Goodwill

Premium paid in the acquisition of an entity over the fair value of its identifiable tangible and intangible ASSETS less LIABILITIES assumed.

Governing Documents

Official legal documents that dictate how an entity is operated. The governing documents of a CORPORATIONinclude ARTICLES OF INCORPORATION and BYLAWS; a PARTNERSHIP includes the partnership agreement; a TRUST includes the trust agreement or trust indenture; and an LLC includes the ARTICLES OF ORGANIZATIONand OPERATING AGREEMENT.

Government Accountability Office (GAO)

Accounting and auditing office of the United States government. An independent agency that reviews federal financial transactions and reports directly to Congress.

Governmental Accounting Standards Board (GASB)

Group that has authority to establish standards of financial reporting for all units of state and local government.

Grantee

Person to whom property is transferred.

Grantor

(1) Person who transfers property. (2) Person who creates a trust.

Greenmail

Any amount a corporation pays to a shareholder to directly or indirectly buy back its stock.

Gross Income

The beginning point for the determination of income, including income from whatever sources derived.

Gross Margin

The difference between NET SALES and COST OF GOODS SOLD.

Gross Sales

The total amount of sales for cash and on credit accumulated during a specific accounting period.

Guaranty

Legal arrangement involving a promise by one person to perform the obligations of a second person to a third person, in the event the second person fails to perform.