Accounting Terms - Glossary of Accounting Terms and

Definitions
While studying accountancy, you could come across a number of accounting terms which you might
certainly not be familiar with. most glossaries may help you using it, however some accounting
definitions may always be as well elaborately worded for most individuals to understand along with
hence find yourself confusing these as opposed to helping them. Therefore I will endeavour to make
this glossary involving accounting terms and definitions as basic and an simple task to realize as I
can. I hope this glossary insures up the vast majority of the doubts that accounting students might
have.
Glossary of Accounting Terms and Definitions
A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z |
A
Above your Line
Above the particular series items are your type revenue and also expense things that directly affect
the actual calculation associated with periodic net income.
Absolute Change
Absolute change will become the numeric adjust inside the worth of the commodity, expense etc.
Absorb/Absorption
Absorb means that certain account or perhaps group regarding accounts moyen the particular
quantities from comparable or even associated accounts as well as sets of accounts. Thus, the
particular mixed account can be a brand new entity while that old ones are generally removed. With
Regard To instance, if you've 3 creditors, John, George as well as Paul, you'll be in the position to
combine them straight into one 'creditors' account. Hence, that they are called absorption.
Absorbed Costs
Absorbed costs certainly are generally a mix of each variable and also fixed costs.
Absorption Costing
Absorption costing absorbs just about all costs beneath a pair of head item costs (manufacturing
costs) along with period costs (non-manufacturing costs).
Absorption Pricing
Absorption pricing is actually environment a price which can easily be the particular sum of the
absorbed expense as well as a new marked-up percentage of profit.
Absorption Variance
Absorption variance may always be the distinction between the predicted as well as real absorption
costs.
Accelerated Depreciation
Accelerated depreciation is really a type of depreciation where larger amounts of depreciation tend
to be calculated inside the initial few years.
Account
An account is the physical record in the transactions incurred associated to a asset, liability,
revenue, expense etc.
Accounts Analysis
Accounts analysis could be looked as a technique for price behavior analysis through classifying
records below two heads: fixed or even variable.
Accounts Group
Accounts team is really a mix of comparable accounts. e.g. fixed assets group, long-term liability
team etc.
Accounting
Accounting may become the process of recording every 1 associated with the economic events that
will affect the business/individual over an accounting period. Accounting is completed based on the
different accounting principles, concepts and the Golden Rules.
Accounting Concepts
There tend to be particular assumptions which are taken as any given although recording the
accounts. These types of assumptions are classified as accounting concepts. The Particular 4
accounting concepts are generally Heading Concern Concept, Accrual Foundation Concept,
Consistency Concept and also Prudence Concept. Study in pertaining to more about Simple
Accounting Concepts and also Principles.
Accounting Cycle
An accounting cycle will become the group of steps being followed whilst preparing economic
statements. Your steps within the accounting cycle are generally budgeting, journal entries,
adjusting entries, ledger posting, preparing monetary studies along with closing of accounts.
Accounting Entity Assumption
For legal and also tax purposes, a new enterprise can always be treated as getting a various entity
from your owners. Thus, just the transactions related to the business are generally recorded and not
the ones associated for you to owners.
Accounting Equation
The accounting equation lays on the relationship between total assets, liabilities and owner's equity.
the accounting equation is Total Assets = Total Liabilities + Owner's Equity
Accounting Event
An accounting event will be just about any event exactly where there's a adjust (increase/decrease)
throughout worth of the assets, liabilities or even owner equity.
Accounting Income
Accounting income is the earnings earned by the company more than the actual accounting yr with
an accrual basis.
Accounting Measurement along with Disclosure
Accounting measurement as well as disclosure will become the accounting concept that says that
will adequate dates ought to be able to be utilized along with disclosed for the purpose of decision-
making.
Accounting Periods
An accounting period involving time will be the frame of energy in your course of which your
accounts tend to be prepared. An accounting period regarding time will be generally to obtain a
year.
Accounting Principles
Accounting ideas are commonly accepted rules assumed although accounting for that business.
Pertaining To details, reference GAAP (Generally Accepted Accounting Principles).
Accounting Ratios
Accounting ratios are mathematical equipment which usually assist in doing the actual comparative
financial analysis for two monetary variables.
Accounting System
An accounting system is actually a holistic approach for you to accounting. This could always be
manual too as computerized. An accounting system assists identify economic events, record all of
them as well as generate studies following your accounting time period or perhaps throughout the
period.
Accounting Theory
An accounting theory develops the framework for that accounting procedure. You could find four
kinds of theories of accounting: Classical Inductive, Income, decision Usefulness as well as Details
economics.
Accounting Timing Difference
Accounting time difference is actually the consequence that thinking about a new deferred economic
event would have around the monetary statements.
Accounting Treatment
Accounting therapy may become the group of rules that lays down the approach to treat a merchant
account and how to handle any specific transaction.
Accounts Payable
Accounts payable are the particular type accounts wherein the company posseses an obligation to
fund receiving goods or services. they are usually classified like a liability.
Accounts Payable to Sales
Accounts payable to sales represents the time taken involving the sales as well as payment in order
to creditors.
Accounts Receivable
Accounts receivable are the particular ones accounts the location exactly where the enterprise could
owe cash regarding providing merchandise as well as services. This is surely an asset.
Accounts Receivable Reserve
An accounts receivable reserve is actually a pool of cash held aside through the enterprise to end up
being able to protect itself via default around the accounts receivables.
Accounts Receivable Turnover
Accounts receivable turnover allows the business enterprise measure how quickly the shoppers are
generally having to become able to pay out the cash receivable. That is actually calculated by
Accounts Receivable Turnover = Net Credit Score Revenue / average Accounts Receivable.
Accrual Concept
Accrual concept is actually among your core accounting concepts. Accrual concept states which a
economic event should be recorded in the period associated with time in which it is incurred as
opposed to if this is paid for or even when money is actually received inside return.
Accrued Assets
Accrued assets are the type assets via that the actual revenues are usually earned however, not
received.
Accrued Expenses
Accrued expenses are the actual ones expenses which in turn have been incurred but not paid.
Accrued Income
Accrued income is actually earnings that's earned but not but received.
Accrued Interest
Accrued curiosity will be fascination an asset provides earned, but not received.
Accrued Inventory
Accrued stock is the fact that which in turn provides arrived inside the warehouse regarding the
business nevertheless hasn't but been paid for.
Accrued Liability
Accrued liabilities are the particular ones liabilities that will happen to end up being able to be
incurred by the enterprise and haven't been compensated off.
Accrued Payroll
Accrued payroll is actually employee salaries that will remain unpaid at the end of the year.
Accrued Revenue
Accrued income is income that has been earned although not but received.
Accumulated Amortization
Accumulated amortization may always be the accumulated costs from the intangible assets owned
from the business.
Accumulated Depreciation
Accumulated depreciation is the costs incurred for your wear and also tear of the fixed asset which
is calculated periodically.
Acid Test Ratio
Acid test ratio is a ratio which analyzes your liquidity place in the business. The idea will be
calculated simply by Acid Test Ratio = Total Liquid Assets / Existing Liabilities.
Acquisition
Acquisition is a scenario where 1 company requires over the particular controlling stake of a few
other company.
Activity Based Costing
Activity based costing is a form of costing which analyzes the particular expense of a product based
around the cost regarding the many actions performed for it.
Activity Ratio
Activity ratio will become the capability of your company to become able to transform their balance
sheet assets in to cash or even sales.
Actual cash Value
Actual money value is a technique regarding figuring out your real loss incurred through the
enterprise expressed within monetary terms. This can be usually found in context associated with
depreciation.
Actual Cost
Actual price will end up being the exact amount you must pay to buy a tough along with fast asset as
opposed towards the market worth or perhaps production cost.
Additional Paid-in Capital
Additional paid-in capital will always be the amount paid through the shareholders over along with
over the actual par value of the asset.
Adequate Disclosure
Adequate disclosure is giving the necessary quantity of knowledge inside the type of footnotes to
always be able to indicate the financial status in the business
Adjusted E-book Value
Adjusted E-book Worth could end up being tangible guide value or perhaps an economic e-book
value. Within a new tangible book value, value of intangible assets are generally deducted from your
total assets. Throughout the economic book value, the actual assets are usually adjusted with their
market value as opposed towards the expense associated with purchase.
Adjusting Entries
Adjusting entries would become the entries done after the accounting period to be able to update
specific things that aren't recorded as daily transactions. The Particular process of recording
adjusting entries are generally referred for you to as adjustment.
Administrative Costs
Administrative expenses are those which usually aren't directly required for your procedure for
production, but you are included within the final price of the merchandise while they are incurred.
e.g sales office rent is surely an administrative price since it is not required in the technique of
production.
Advance
Advance is definitely an amount of money compensated prior to the enterprise enterprise earns it.
Agency
An Agency is the contractual relationship involving the principal and the agent the spot where the
agent is empowered from the principal to consider certain decisions in his behalf.
Aggregate
Aggregate means total.
Allocation
Allocations are generally quantities distributed to each department pertaining to their particular
working expenses.
Allowance
Allowance can end up being a low cost given in order to clients inside the event involving provision
regarding unsatisfactory merchandise or even services.
Allowance with regard to Bad/Doubtful Debts
Allowance pertaining to bad debts are generally amounts of cash reserve by the business as a
protective cover regarding possible defaults about payments.
Alternate Payee Endorsement
Alternate payee endorsement will be once the original payee endorses the particular draft to the
different entity, and in addition this other entity endorses it again.
Amalgamation
Amalgamation may be the merger regarding a couple of or perhaps much more company entities.
Amortization
Amortization could mean 3 things.
It can be a number of payments in which lead to gradual reduction of your significant debt.
It is creating off the worth of an intangible asset over the actual helpful existence with the asset.
It may furthermore mean periodic deduction within the value of the fixed asset by method of
depreciation.
Amount Due
Amount due will end up being the amount payable by a debtor to a creditor. read onto realize
Precisely what is actually Amortization.
Ancillary
Ancillary identifies something that offers lesser importance.
Annualized
Annualizing can end up being a approach through which usually every 1 regarding the amounts
pertaining for you to less when in contrast in order to a year tend to be calculated with their one-
year equivalents.
Annual Report
An annual report is a comprehensive report of every 1 regarding the financial statements of the
business. The idea can become a mandatory requirement with regard to public companies
Annuity
An annuity can be a series of periodical payments of a fixed amount for any fixed period. e.g.
insurance premium. Study on regarding Fixed Annuities Explained as well as the Annuities
Professionals along with Cons.
Appreciation
Appreciation is the increase inside the price of your asset because of to economic circumstances or
even improvements for the asset.
Appropriation
Appropriation may end up being the allocation regarding amounts, that are section of the particular
total net profit, under numerous heads such as general reserve fund etc.
Arrears
Arrears are usually financial debt who have not necessarily been compensated yet.
Assessed Value
Assessed worth is the estimated worth that is taken for calculation regarding tax.
Assessment
Assessment is the total amount associated with tax or perhaps levy payable.
Asset
Asset is a factor that is actually owned by a company which has commercial worth as well as
exchange value.
Asset Earning Power
Asset earning energy is one of the profitability ratios which decide the particular earning energy
regarding assets. The idea can be calculated by simply Asset Earning power = Earnings prior to
Taxes / Total Assets.
Asset Turnover Ratio
Asset turnover ratio assists set up the connection involving the sales as well as the total assets. It is
calculated through Asset Turnover Ratio = Total Income / average Assets.
Asset Valuation
Asset valuation is the method simply by that the want for an asset or an asset portfolio can be
determined.
Audit
Audit is the process of checking along with validating the enterprise enterprise records.
Audit Committee
Audit committee can be a particular committee appointed in a company to carry out your audit
oversight responsibility of the board regarding directors.
Audit Report
Audit record is an official, signed document which provides the facts regarding the actual purpose,
scope as well as findings with the audit.
Authorized Capital
Authorized richesse may always be the total cash that the organization provides made by selling the
actual issue involving authorized shares. This is actually calculated simply by Authorized Richesse =
Quantity involving Shares which are Issued * Par Worth of Shares
Average Cost
Average cost = Total cost / number regarding Units.
Average Inventory
Average inventory may always be the average quantity involving stock held more than the actual
accounting period. That can be calculated simply by average inventory = (Opening inventory +
Closing Inventory) / 2
Average Net Receivables
Average net receivables are usually the common in the accounts receivable over the actual
accounting period. It will be calculated through average Net Receivables = (Opening Net
Receivables + Closing Net Receivables) / 2
Average Settlement Period
Average Settlement Time Period will be calculated
for debtors average Settlement period = (Trade Debtors * 365) / Credit Score Sales
for creditors average Settlement period = (Trade Debtors * 365) / Credit Score Purchases
Average Tax Rate
Average tax price = Total Taxes Paid Out / Tax Base.
Avoidable Cost
Avoidable price will end up being the cost that can be avoided by having a certain decision.
B
Bad Debt
Bad Financial Debt may always be the amount owed to us yet which cannot be recovered. The idea is
a loss.
Balance
Balance will become the difference between your credit as well as the debit sides associated with an
account.
Balance Sheet
A balance sheet is the list of every 1 of the assets and liabilities in the business.
Balloon payment
Balloon payment is the final payment on the loan. The idea is actually referred for you to as
consequently because it will be considerably greater than the particular regular payments.
Bank Balance
Bank stability will be the sum of money present in the banking account with the business.
Bank Overdraft
Bank overdraft represents negative balance in the bank account with the company.
Bank Reconciliation
Bank reconciliation is the verification involving all the entries within the bank statement using the
bank book with the business. read upon for your Purpose associated with Bank Reconciliation
Method and also Actions for you to Accounts Reconciliation.
Bank Statement
A bank statement is the financial statement showing the facts regarding all associated with the
transactions that will the company enterprise had produced by means of your certain bank account.
Bankruptcy
Bankruptcy is a scenario where a business/individual will not have enough assets to settle his
liabilities. The individual who is bankrupt will be referred for you to as an insolvent.
Barter System
Barter system is truly a non-monetary system associated with exchange exactly where commodities
tend to be traded pertaining to commodities as opposed to for money.
Base Capital
Base money = Issued as well as Paid-up Discuss Money + Contributed Surplus + Retained Earnings.
Basic Earning Power
Basic earning energy measures the actual profitability in the assets. The idea is actually calculated
from the method Fundamental Earning Energy = EBIT / Total Assets.
Basis
Basis means the actual starting place pertaining to calculating many different variables such as
profit, loss, depreciation, amortization etc. It could additionally suggest the ebook worth of
investments.
Batch
Batch can always be a collection of items that need to be handled collectively with regard to
production.
B/D
Brought Down. That is the balance from the previous accounting time period which is carried
forward.
Below the Line
Below the actual series products are those in which straight affect the balance sheet and not the
earnings statements.
Benchmarks
A benchmark is a high standard which is set regarding performance.
Big 4
Big 4 refers for the 4 greatest accounting firms: PriceWaterhouseCoopers, KPMG, Delloite as well as
Touche along with Ernst along with Young.
Billings
A billing is a request sent to the debtor requesting payment for a debt.
Bill involving Exchange
Refer: Draft
Bills Payable
Bills payable is a guarantee created from the receiver of a advantage for the giver of a benefit, to
always be able to pay an sum regarding money in the future.
Bills Receivable
Bills receivable can end up being a record associated with all associated with the bills which are
receivable with a firm.
Bond
A bond is a certification regarding credit card debt issued either by way of a corporation or the
government for you to raise money.
Bond Discount
A bond price reduction may become the difference between your confront price of the link and the
issued price. the confront value on this case is actually higher than the actual issued price.
Bond Premium
Bond Premium will always be the distinction between your issued cost as well as the deal with worth
of your bond. Inside this case, the actual issued cost is higher.
Bond Sinking Fund
Bond sinking fund is really a provision produced through the bond issuing body to pay off the
confront area value of the link in maturity.
Bonus
A bonus can be looked upon as the remuneration given for an employee inside excess of the
stipulated salary.
Books
Books refers to the journals, ledgers as well as other subsidiary publications such as sales books as
well as obtain books, as maintained through the business.
Book Building
Book building is really a sort involving talk about issue in which the cost of the particular shares
aren't fixed, nevertheless depends upon investor bidding.
Book Costs
The guide price is the expense involving an asset when it absolutely was purchased. The idea could
be described as a historical cost.
Book Income
Book income will end up being the revenue earned by way of a business as reported inside the
financial statement.
Book Inventory
Book Stock = cost regarding Acquiring your inventory - all your Liabilities related with most the
Inventory.
Book Keeping
Book trying for you to keep may always be the process of recording all involving the economic
events as well as transactions of the business.
Books involving Accounts
Refer Ledger
Book in order to market Ratio
Book to market ratio is a ratio which calculates the book price of the actual equity of a firm to the
market price of your equity.
Branch Accounting
Branch Accounting can be trying to become able to keep the particular textbooks regarding is the
particular reason geographically separated departments or units associated with exactly the actual
same business.
Break Also Analysis
Break even analysis may be basically ascertaining the amount of units of the item sold covers your
costs. The point with the revenue volume in which usually the costs are usually equal for the volume
can be known as break even point. read about pertaining to Break Perhaps Analysis Formulas
Brought Forward
Refer B/D
Budget
A spending budget provides their email list regarding expense heads and the amounts allotted to
expense heads. With Regard To example, a revenue spending budget lays along the quantity to be
allocated to sales, etc.
Budgetary Deficit
When there can be certainly an excessive associated with expenditure over income in the budget, it
is called a budgetary deficit.
Budgetary Control
Budgetary manage is a process in which usually the actual quantity incurred and furthermore the
budgeted amount with regard to every expense head can be compared.
Budgeting
Budgeting is estimating the expenditure requirements in the department or perhaps every expense
head according to historical data along with trend analysis.
Budget Performance Report
Budget performance report represents the actual comparison involving the real expenditure and the
budgeted expenditure.
Buffer
A buffer can always be a safety measure over the budgeted amount, just within case of contingency.
Business Entity
A enterprise entity could be considered a proprietorship, partnership, corporation, or LLC. Each And
Also Every entity offers to follow the separate group of rules.
Business Valuation
Business valuation will be the quantity which will be realized in the wedding the enterprise ended up
being offered into a hypothetical buyer.
Bylaws
Bylaws would always be the different provisions which govern the actual corporate policies.
C
CA
CA may be short regarding both Chief Accountant as well as Chartered Accountant.
Call
A contact could be
The procedure for redeeming any bond or preferred stock prior to its maturity date.
Right to purchase 100 shares/asset within a new specified period in a specified price.
Callable Bond
A callable bond is a type associated with bond giving your issuer the right to spend off from his
discretion.
Capital
Capita may always be the cash or even the property accessible for that purpose of production.
Capital Account
Capital account is the account exactly where all regarding the details concerning your transactions
related for the paid-up money tend to be given.
Capital Asset
Capital asset is usually used inside the context of fixed assets. Assets that aren't used within the day-
to-day course of company are classified as money assets.
Capital Budget
Capital spending budget is the quantity allocated for the buy involving fixed assets during the
accounting period.
Capital Charge
Capital charge will be calculated from the formula Richesse Cost = Richesse * Weighted average
Expense regarding Capital.
Capital Commitment
Capital commitment can become a resolve for purchase capital assets with a fixed time within the
future.
Capital Contribution
Capital contribution may become the cash as well as assets the corporation acquires through
shareholder money.
Capital Employed
Capital Employed is the real value of the particular assets that's contributing to the ability
associated with the company to produce revenue. It will be calculated simply by Money Employed =
Fixed Assets + current Assets - Existing Liabilities.
Capital Expenditure
Capital Expenditure may become the money invested for the improvement and also servicing of
current fixed assets or perhaps for choosing new fixed assets.
Capital Expenditure Ratio
Capital Expenditure Ratio will be calculate from the method Money Expenditure Ratio = Richesse
Expenditure / Total assets.
Capital Fund
Capital funds are calculated from the method Richesse Fund = Total Richesse Stock + Money
Debentures + Surpluses + Undivided Earnings + Reserves + Guarantee Fund + Guarantee Fund
Surplus
Capital Gain
Capital acquire is the positive distinction between sale worth as well as the purchase worth to have
an asset.
Capital Improvement
Capital improvement is virtually any worth adding exercise to an asset that increases its value.
Capital Intensive
Capital intensive can become a kind regarding market that will relies more on money to buy high-
end machinery pertaining to its production as against labor intensive that relies more on human
resources.
Capital Investment
Refer Richesse Expenditure.
Capitalization
Capitalization refers towards the statement with the total capital obtainable using the firm.
Capitalization Rate
It is the rate regarding interest that's necessary in order to transform the group of future receivable
payments within their existing value equivalent.
Capitalized Cost
Capitalized expenses are your type that are deducted over numerous accounting intervals due to
depreciation or even amortization.
Capital Loss
A circumstance where there is a negative difference involving the purchased price of an asset and
also offering expense of an asset. That is the exact complete opposite of capital gain.
Capital Market
Capital marketplace will always be the marketplace exactly where shares and also securities with
the listed companies are traded.
Capital Profit
Capital gain is actually when the distribution involving money due for you to tax cost savings
because of depreciation, sale of your fixed asset as well as some other resources in which usually are
usually not associated to retained earnings.
Capital Rationing
Capital rationing is to set any restriction or perhaps a cap on money expenditures.
Capital Receipts
Capital receipt is the amount received because of the particular sale of the money asset.
Capital Redemption Reserve
A richesse redemption reserve is surely an undistributed reserve developed out in the profits of the
company.
Capital Reduction
Capital reduction indicates to reduce the actual total capital obtainable with most the company.
Capital Reserve
A richesse reserve is certainly 1 of your reserves in which a new company creates, out in the yearly
profits, for just with regards to any specific purpose.
Capitation
Capitation can end up being a fixed charge, tax or perhaps payment that is levied as a fixed quantity
for each person.
Carried Down
Carried down is the year's closing stability with an account which is carried for the subsequent
accounting period.
Cash
Cash refers for the liquid funds accessible using the business in the form of notes and coins for your
purpose regarding payment.
Cash Basis
The opposite of accrual basis can be called cash basis. This is a sort associated with accounting the
spot where the transactions are generally recorded only once there can be certainly an exchange of
cash, irrespective regarding when the transactions occurred. cash time frame accounting is different
in the GAAP.
Cash Book
Cash e-book will end up being the record of all the money transactions - receipts along with
payments, which are created from the business. That may also always be expanded to end up being
able to include the bank transactions if the company does not wish to keep a new separate bank
book.
Cash Budget
Cash budget may become the allocation towards the money receipts as well as payments in which
the company may incur more than an accounting period.
Cash Deficit
Cash deficit indicates the excess regarding cash payment obligations more than the actual total
money available.
Cash Discount
Cash discount may end up being the price reduction permitted to the debtor to induce him to end up
being able to pay earlier.
Cash Dividend
Cash dividend will be the talk about associated with the organization profits which is given for the
shareholders as dividend.
Cash Earnings
Cash earnings tend to be defined as the excess regarding money revenue over cash expenses
throughout an accounting period.
Cash Flow
Cash flow may end up being the distinction between the cash inflow as well as the cash outflow in
the business. That will not deal with accrued payments in assistance of deals with the inflow and
outflow of cash.
Cash Flow Analysis
A economic management and also analysis technique that is accustomed to compare the particular
amount along with timing of the inflow and also outflow of cash in in order to the business.
Cash Flow Statement
Cash flow statement can end up being a monetary statement which provides information on your
inflow and also outflow of money for your business. The idea is actually split up into 3 parts: money
flows from financing, money flows through investing and cash flows from operations.
Cash Inflow
Cash Inflow is the measure of the total money coming into the enterprise as a result of different
financing, investment and also operational activities.
Cash Outflow
Cash outflow may become the measure of the total money going out of the company as a result of
the various financing, investment and operational activities.
Cash Management
Cash management is a monetary management technique that will aims in order to increase your
option of cash inside the company with out changing your levels of fixed assets. This aims to become
able to secure quicker debtor payments to improve the particular liquidity situation in the business.
Cash Profit
Cash profit can be calculated as Money Revenue = profit right after tax + Depreciation.
Cash Ratio
Cash ratio can be calculated simply by cash Ratio = (Cash + Marketable Securities) / Present
Liabilities.
Cash Receipt
Refer Receipts
Certified Monetary Planner
A certified monetary planner is actually a monetary planner qualified as per the requirements with
the Institute of Certified financial Planners.
Certified Public Accountant
Certified Public Accountant can become a certification in which gives an individual your license to
practice public accounting.
Charge Off
Refer bad Debt
Chapter S
A unique type of incorporated business entity in the united States and can be also governed by a
certain set of guidelines and it is allowed to avoid payment of corporate taxes.
Charter
A charter is a document of the corporation.
Chart regarding Accounts
A chart of accounts is really a serial listing associated with every 1 associated with the ledger
accounts of a business.
Check
A verify can always be a kind of payment, by means of the lender along with can always be created
payable for you to a particular individual or even an unspecified bearer from large.
Checking Account
A bank checking account is a type of bank-account in which usually the amount could be withdrawn
with a check, an ATM card or a debit card.
Claims
A claim is a legally backed need for funds from the debtor, that or even paid, outcomes in a law suit.
Claims Outstanding
Claims outstanding may be calculated by simply Claims Outstanding = Claims Against Assets -
Claims Settled.
Close
To shut a merchant account is to carry forward the check towards the the coming year following the
actual accounting period.
Closing Accounts
Closing an account is actually passing the actual closing entry on the last day in the accounting
period.
Closing Date
Closing date is the date exactly where one will get possession regarding as well as title to a asset.
Closing Entry
The closing entry is definitely an accounting entry which is passed to hold forward the balance of an
unbalanced account towards the next accounting period.
Closing Stock
Closing stock may end up being the stock of inventory accessible with almost all the enterprise at
the finish of the accounting period.
Coding
Coding implies assigning the correct code towards the accounts.
Collateral
Collateral/Security/Mortgage are generally assets which are provided as to safeguard obtaining a
loan. Throughout case of a default on the loan, the lending company has the right to adopt up the
ownership with the collateral.
Collateral Note
Collateral Note is a kind regarding note that's secured using a collateral.
Collection Period
Collection period defines your quantity of time it requires to be able to transform your current
typical revenue in to cash. Within various other words, it may become the moment allowed to sales
debtors pertaining to payment.
Combined Economic Statement
A combined monetary statement is a monetary report which moyen the financial statements of two
or perhaps more merged enterprise entities.
Commercial Loan
Commercial loan is a short-term financing offered by method of a lender for any time period
regarding about 6 months.
Commercial Paper
Commercial paper is another kind of temporary financing issued by organizations in order to
investors for any 2 to become able to 270 day period.
Committed Costs
Committed expenses are a long term fixed expenses in which the company posseses an obligation for
you to pay.
Commodity
Commodities/goods are the key item that will the business enterprise deals in and is used for
commerce. The idea could be described as a product or a support based on the naturel of the
business. read on with regard to much more about Commodity Value Index.
Common size Analysis
Common Dimension analysis can become a type of monetary analysis exactly where 1 item/account
is actually taken since the base worth and also every 1 associated with the other medication is in
comparison in order to it.
Common Dimension Statement
A widespread dimension statement is the economic statement in which shows comprehensive typical
dimension analysis.
Company
A organization is an association involving persons who make money along with undertake any legal
company activity. Any business could end up being restricted through guarantee or shares.
Company Tax
Refer Corporation Tax
Comparative Statement
A comparative statement is a financial statement which compares the outcomes associated with a
couple of or even a lot more prior many years using the existing results.
Compensating Errors
Compensating problems are the particular ones mistakes in which cancel a new prior error.
Compliance Audit
Compliance audit can end up being a watchdog procedure for you to make sure that the business
enterprise will be complying using the pair of rules and also treatments that are set with regard to
it. It could be in comparison for the accounts audit that makes positive that the actual correct
accounting info is disclosed.
Compliance Panel
A compliance panel can be a committee of people throughout charge of the compliance audit. This
can be compared for the monetary audit committee.
Composite Depreciation
Composite depreciation is to combine comparable assets in the exact same class along with
implement depreciation to any kind of as well as all of them in flat rate.
Composite financial Statement
A composite financial statement is surely an typical of financial statements regarding either 2 or
even much more companies as well as a couple of or perhaps more periods.
Compound Annual Growth Rate
Compound annual growth rate is the yearly price applied to a investment over multiple years.
Compound Interest
Compound interest may always be the fascination calculated on the principal more than that the eye
is constantly upon the accrue over time.
Compound Journal Entry
Compound general entry is an entry regarding an economic event that will simultaneously affects
either a pair of or even much more debits or perhaps a pair of or a lot more credits or both.
Comprehensive Annual Monetary Report
A comprehensive annual economic statement may always be the complete annual monetary
statement in the business.
Compulsory Liquidation
A compulsory liquidation is the liquidation in the assets involving the organization by a court order if
the organization will be not able to pay back its outstanding debts.
Concessionary Loans
Concessionary loans are usually sanctioned by the government for the companies to fund a new
particular exercise as prescribed by the issuing authority.
Conglomerate
A conglomerate is really a group of numerous companies operate beneath exactly your same
umbrella ownership along with run like a single entity.
Conservatism Principle
Conservatism principle of accounting says that the estimates of the company needs for you to be
conservative rather than understated or overstated.
Consistency Principle
Consistency principle regarding accounting says in which exactly the same accounting policies along
with treatments should be followed in each along with every and every accounting period.
Consolidated Capital
Consolidated richesse includes all the assets and money that's utilized in day-to-day enterprise
operations.
Consolidated Economic Statement
A consolidated financial statement is actually a comprehensive statement which gives details
concerning all the assets, liabilities and also operating accounts with the mother or father
organization along with subsidiary companies under it, if any.
Constraint
A constraint is actually a factor that boundaries or even restricts the enterprise activity.
Contingency Budget
Contingency budget will always be the funds reserve for a contingency plan.
Contingency Plan
A contingency strategy can be implemented if a amount of unfortunate event will take place. It can
always be a 'plan B'.
Contingent
A contingent will be something which occurs due in order to a issue that's not necessarily yet
established.
Continuity Assumption
The continuity assumption within accounting states the accounting for your business should be
carried out if the business will have an unrestricted lifestyle span.
Contra Entry
A contra entry is a type associated with ledger entry which will get offset simply by an exactly
opposite entry.
Contributed Assets
Contributed assets are the particular type assets which are owned by a contributing entity towards
the business.
Contributed Capital
Refer Paid-Up Capital
Contributed Surplus
A contributed surplus will end up being the cash earned via offering your shares involving the
business more than the par value.
Contributed Margin
Contributed margin will become the excess associated with proceeds through sales more than the
particular variable costs. The idea gives the total revenue designed for servicing your fixed costs.
Contribution to be able to sales ratio
Contribution in order to sales ratio will be calculated by simply Contribution in order to Revenue
Ratio = (Contribution * 100) / Revenue Revenue
Controllable Expense
Controllable expenses are the actual type that will could be controlled, restrained as well as avoided
completely by the business.
Conversion Costs
Conversion costs are usually calculated as Conversion Expenses = Immediate Labor +
Manufacturing Overhead.
Convertible
The phrase 'Convertible' is actually typically accustomed to refer to 1 kind regarding security in
which could be transformed directly into another kind of security.
Corporate Governance
Corporate Governance is really a system which governs the particular direction and control of
enterprise corporations.
Corporation
A corporation can become a enterprise that has been incorporated and enjoys separate legal legal
rights via its owners.
Corporation Tax
Corporation tax is the direct tax charged for the income incorporated running the business entities.
Correcting Entry
A correcting entry is surely an entry created to end up being able to nullify the effect of your
previously made wrong entry.
Cost
Cost is the monetary quantity that needs to be paid to acquire something.
Cost Accounting
Cost Accounting/Costing can be a procedure to find out, review and also control costs.
Cost Allocation
Cost allocation is the spending budget allotted to the various price centers within the business.
Cost Assignment
Cost Assignment is the assigning of expenses regarding a free account towards the numerous
accounts which are accountable for incurring your cost.
Cost Advantage Analysis
Cost advantage analysis will become the analysis involving the costs as well as benefits connected
together with any company decision by simply first estimating the expense after which the particular
expected return.
Cost Ceiling
Cost ceiling may always be the maximum spending budget that will most likely be allotted for any
project. This is actually calculated as cost Ceiling = Goal cost + Contingency Cost
Cost Center
A cost middle of an organization is a that will not directly add worth for the product, but that they
are indirect costs. With Regard To instance, revenue as well as marketing expenses are price
centers.
Cost Control
Cost control can be a workout to manage the costs incurred under any head inside a business.
Cost Driver
Cost driver is surely an event or perhaps a group of events and also actions which brings about
expenses being incurred
Cost/Income Ratio
Cost earnings ratio can become a reasonably simple ratio to comprehend and is calculated as
Cost/Income Ratio = Total Expense / Total Income.
Cost involving Capital
Cost of Money is the charge of return that a new business can earn with assorted investments. This
can be calculated to ensure that the very best investment decision could be studied through the
business.
Cost associated with Debt
Cost of debt is the amount regarding cash it requires for financing the financial debt in the form of
interest, etc.
Cost involving Equity
Cost of Equity may end up being the compensation that the investors interest in their own
investment along with risk, in which the business enterprise comes along with an obligation for you
to pay.
Cost regarding Items Sold
Cost associated with Merchandise offered is the cost involving procuring as well as processing
goods. This consists of direct material, labor and also factory overheads.
Cost Plus
Cost in addition is a approach associated with pricing that requires finding out the actual total cost
required to create a finished great and then adding a reasonable charge of profit.
Cost Principle
Cost principle associated with accounting says the fixed assets buy should be recorded in the price
in which they were purchased, as opposed to their economic costs.
Cost Reduction
Cost reduction will be a fitness come to reduce the total costs incurred by the business by not really
incurring the avoidable costs.
Cost Rollup
Cost Rollup may always be the determination involving all of the cost elements within the total costs
incurred through the length of the actual business.
Cost Split
Cost split is one of the most fundamental elements of costing and also involves systematic breaking
down involving all the costs that can be associated along with production.
Cost Gain Volume Analysis
Cost gain volume analysis can be a study of the response in the total costs, revenues along with
profit credited to the changes inside the output level, offering price, variable costs for each unit and
the fixed costs.
Coupon Bond
Coupon bond can be a financing measure for any business. Any coupon bond gives its holder a set
fascination payment on a yearly basis as well as the proceeds through redemption in the maturity
with the bond
Coupon Rate
Coupon price may be the fixed interest rate that's provided on a coupon bond.
Coverage Ratio
Coverage ratio refers to the capability of a company to fulfill any kind of particular sort regarding
expense.
Credit
Credit is surely an arrangement in between a new buyer and a seller regarding deferred payment
about items and also services. a credit rating entry is an entry which in turn eventually will decrease
assets or boost liabilities.
Credit Control
Credit Manage is truly a scenario exactly where obtaining credit score can be discouraged simply by
increasing the price of credit.
Credit Line
Credit range will become the maximum credit permitted by the enterprise to a minimum of one
customer, an organization involving clients as well as every 1 regarding the customers.
Credit Memo
Credit memo may end up being the document which could be used although issuing credit to be able
to vendors.
Credit Note
When any client returns the merchandise for the business, then your business concerns the credit
score note for you to his name, saying that his account may be credited for the price of your
merchandise returned.
Creditor Account
Creditor account can be a cumulative record of all the creditors to the business. This is truly a
record regarding the money payable to them.
Creditor Turnover
Creditor Turnover ratio is actually calculated as Creditor Turnover = (Average Creditors * 365) /
Price involving Sales
Credit Risk
Credit risk is the possibility of loss which a new company faces through nonpayment through the
borrowers.
Credit Sales
Credit revenue tend to be revenue regarding which money just isn't paid immediately, however the
customer promises for you to spend it on a long term date.
Cumulative Earnings
Cumulative Earnings will be the sum total associated with all the earnings over a new period
involving time of time.
Cumulative Preferred Stock
Cumulative preferred stock is a type associated with preferred stock on that if the dividend isn't paid
in a single year, then the dividend will accumulate to the long term years.
Current Asset
Current Assets are the particular ones assets inside the hands regarding the organization which are
usually sold as well as transformed in to money inside any year.
Current Cost
Current price will become the expense that could be incurred if the enterprise chose to substitute an
asset.
Current Price Accounting
Current price accounting is a type of accounting which records the particular up to be able to date
quantities according to the current price as opposed for the historical cost.
Current Credit Card Debt in order to Total Financial Debt Ratio
Current financial debt for you to total debt ratio exhibits your current liabilities associated with the
organization as a share of the total liabilities with the business. This is actually calculated by Present
Financial Debt to Total Credit Card Debt Ratio = current Financial Debt * one hundred / Total Debt
Current Liabilities
Current liabilities would be the liability obligations associated with the company which in turn it is
expected to pay off inside a year.
Current Ratio
Current ratio will become the ratio which compares the present assets towards the current liabilities
within the company. That will be calculated through the formula: current Ratio = current Assets /
Existing Liabilities.
Custodian
A custodian is the business enterprise entity which is in control of maintaining records or possibly is
the caretaker for any property.
Customs
Customs may end up being the authority whom is within charge associated with collecting duty
around the goods in which arrives into the country. Your duty that's compensated regarding
importing merchandise in to end up being able to the country can be known as custom duty.
D
Day Book
A day e-book is a daily created record involving transactions.
Day's cash in hand
Days cash on hand is the average money accessible with almost all the business.
Day's Inventory
Day's inventory shows the average quantity of energy in which the things are within the inventory.
Days Payable Outstanding
Days payable outstanding exhibits the particular amount of the time it will take for your company to
repay its creditors in receipt involving stock from them.
Days sales Outstanding
Days sales outstanding may end up being the amount of your current time it takes for converting
debtors/receivables to cash.
Dead Assets
Dead assets are your ones assets whose every day existence is restricted for their immediate use.
Debentures
Debentures are usually instruments used from the business to always be able to raise money. The
debenture might end up being backed by safety or perhaps unsecured.
Debit
A debit is an entry around the left side of a ledger account which in turn eventually raises the
quantity associated with assets or expenses or decreases the particular liabilities, income or the net
worth.
Debit Note
A debit note can always be a document which informs/reminds any debtor involving his outstanding
debt.
Debit Record
Refer Debit
Debt
A debt can be funds as well as goods or even services that 1 business owes an additional business.
Any business that will owes cash to another is considered in order to possess a credit card debt more
than the particular other.
Debt Coverage ratio
Debt coverage ratio may become the comparison involving the net income of a fantastic investment
and the amount needed in order to services the debt.
Debt Financing
Debt financing implies to advance the actual activities regarding the company enterprise simply by
issuing credit card debt instruments such as bonds as well as debentures or accounting and
bookkeeping services perhaps receiving loans.
Debt Instrument
A debt instrument can end up being a created document which acknowledges debt.
Debtor
A person or even persons that owe cash for the enterprise are generally collectively known as
debtors.
Debtor Days
Debtor days may always be the typical variety of times necessary for you to convert receivables in
order to sales.
Debt ratio
Debt ratio measures simply how much with the total funds regarding the business enterprise are
generally supplied by outsiders. The idea is actually calculated by: Credit Card Debt Ratio = Total
Liabilities / (Total Liabilities + Shareholder Equity)
Debt Security
Debt security will become the to protect credit card debt capital i.e debentures, bonds
Debt Support Ratio
Debt support ratio may end up being the amount regarding total revenue that is spent on paying for
debts. The idea will be calculated by Credit Card Debt service Ratio = (Debt Payment * 100) / Total
Income
Debt in order to Equity Ratio
Debt for you to equity ratio measures the actual section of the particular total capital that's financed
simply by credit card debt as well as the portion financed through equity. It will be calculated by
simply debt in order to Equity Ratio = Total Liabilities / Stockholder Equity
Debt in order to Total Assets Ratio
Debt in order to total assets ratio measures the percentage of assets financed through debt.
Declining Stability Depreciation Method
Declining balance depreciation approach is truly a approach of calculation regarding depreciation in
a fixed rate. under this method, an asset will constantly become depreciated a tough and fast price
of percentage as well as the subsequent depreciation will be about the reduced balance.
Deduction
Deduction implies for you to subtract.
Deductive Accounting Theory
Deductive accounting theory works around the assumption which accounting standards along with
reporting guidelines could be according to logical and also mathematical deduction.
Default
Default can be each time a debtor to the business will not spend the actual funds for amount due to
the business, credited to inability as well as unwillingness upon his part. This is used a lot more
generally in the context of banking in which in turn a default is a situation when a individual who
has brought that loan will not spend it back.
Defeasance
Defeasance is always to release a debtor via his financial debt obligation for the business.
Deferred
Deferred is actually a great thing or a liability which will probably be realized with a long term date.
Deferred Annuity
Deferred annuity can end up being a number of payments that will commence on the long term date.
Deferred Development Costs
Deferred Development Expenses are your type which is likely to be acknowledged after a specific
condition/obligation is satisfied.
Deferred Expenditure
Deferred expenditure is expenditure which can be carried forward as well as wiped off more than
subsequent periods.
Deferred Expenses
Refer Prepaid Expenses
Deferred Income
Deferred earnings is actually income earned ahead of time from the business.
Deferred Maintenance
Deferred Maintenance will be the expense in which should have been paid out regarding
maintenance but has been delayed.
Deferred Payment Credit
Deferred payment credit score can become a letter regarding credit rating that will states that will
any payment will be created following the time period specified in the letter involving credit.
Deferred Tax Assets
Deferred tax assets are the particular type assets which decrease the tax liability involving the
business pertaining to a few many years over the validity of individuals assets.
Deferred Tax Liability
Deferred tax liabilities are the opposite regarding deferred tax assets and also hold the impact
regarding enhancing the tax payment regarding the company in the next years.
Deficit
A deficit may end up being the excess associated with expenditure over revenue.
Deficit Budget
A deficit budget is a budget the area exactly where the budgeted expenses are usually greater than
your budgeted income.
Deficit Spending
Deficit paying will become the external financing required to invest in the expenses that will aren't
protected by income.
Deflation
Deflation is a scenario characterized by method of a decline inside prices.
Delinquency Ratio
Delinquency Ratio may be the ratio which compares the past-due loans to the loans that will are
already serviced completely.
Demand Deposit
A demand deposit can always be a deposit kept with a bank coming from that cash may end up being
withdrawn whenever you want without virtually any notice.
Demand Draft
Demand draft is surely an instrument regarding payment that certain person offers for the some
other as well as the other individual may demand money against it.
Demand Note
Demand note is a note that is payable on demand via an individual who owes the actual money.
Departmental Accounting
Departmental accounting will be keeping the actual account of the price and also income regarding
the various departments involving the company that have various autonomy, however are not
geographically separated.
Depreciable Cost
Depreciable expense may be the expense with the fixed asset which is topic to depreciation.
Depreciated Historical Costs
Depreciated historical price will become the method associated with valuing particular assets.
Depreciated Historical costs = Expense involving their Acquisition + Enhancement - Reduced
Depreciation till in which date.
Depreciation
Depreciation can be writing off the ebook value of the fixed asset each year, credited to the
reduction in its value due to don along with tear, obsolescence etc.
Depreciation Allocation
Depreciation allocation signifies that as opposed to simply writing off depreciation every year, the
business could instead create an amortization or perhaps a reserve for improving your fixed asset or
even for buying a brand name new one.
Depreciation Convention
Depreciation convention is determining the actual approach associated with depreciation to become
utilized to have got an asset which is purchased with a while during the accounting period.
Depreciation Reserve
Depreciation reserve will be accustomed to create a systematic account simply by allocating the
particular depreciated value of a fixed asset more than its entire life.
Depreciation Schedule
A depreciation routine can end up being a statement showing the important points with the
quantities and timing of depreciation more than its efficient life.
Derivative
A derivative is a transaction or perhaps a contract whose worth can be derived from your value of
the particular underlying assets.
Designated Receipts
Designated receipts are revenues which are designated for a specific purpose.
Devaluation
Devaluation can be reducing value of something. That is many widely used inside the context
regarding currency value reduction.
Diluted Earnings For Each Share
Diluted Earnings for each talk about tend to be calculated not just on equity stock but additionally
about preferred stock and convertible debt.
Dilution
Dilution will be weakening or even reduce in the worth of a balance sheet item.
Diminishing Worth Method
Refer Declining balance Depreciation Method
Direct Cost
Direct cost can always be a total involving the expense which are related with just about all the
actual production of your product. Immediate Expenses = Immediate Material + direct Labor.
Direct Expense
Direct Expenses are the ones expenses that are directly connected along with providing any product
regarding sale.
Direct Labor
Direct Labor is the remuneration paid towards the employees that produce the actual product.
Direct Labor Budget
Direct Labor budget is the planned monetary allocation regarding having for you to pay for the
direct labor.
Direct Labor rate Variance
Direct Labor Charge Variance may end up being the difference involving the normal hrs to be
worked by simply a staff member as well as the real hrs worked by the employee.
Direct Materials
Direct Supplies consists of the expense of purchasing the actual raw materials for the technique of
production.
Director's Report
The director's report is actually written from the director involving the company in the annual
document as to his analysis along with feedback on the performance associated with the
organization inside the past 12 months and additionally the director's vision for that subsequent
year.
Direct Create off Method
Direct create off technique is to write off every one associated with the bad debts in some time
which they are generally adjudged non-collectable.
Disbursement Voucher
Disbursement voucher will be the document used to request disbursement pertaining to expenses.
Disclosure Note
Refer Disclosure Principle
Disclosure Principle
Disclosure principle within accounting says that any detail relating to the information related to the
much better comprehension of the particular financial statement should be disclosed through the
management.
Discount
Discount will end up being the lower within the cost of your product.
Discount Allowed
A low cost has been said being allowed when the vendor minimizes the buy price to induce your
consumer to make any purchase.
Discounted cash Flow
Discounted money flow is usually to price reduction the cash flow from a good investment at the
necessary interest every year.
Discounted Earnings
Discounted earnings is often to reduce the need for long term inflows in for you to the business by
way of a certain charge involving interest.
Discounted Payback
Discounted payback period associated with time will become the period of time of time it'll take to
deal with your original cash outflow in the discounted price involving interest.
Discounting Rate
Discounting price will end up being the interest rate with which usually a new series of cash
inflows/outflows tend to be discounted.
Discrepancy
Discrepancy may end up being the distinction in between a pair of claims or facts.
Discretionary Costs
Discretionary costs are those expenses that will can be increased as well as decreased at the
decision with the business.
Discretionary Income
Discretionary earnings may become the income left with most the company right after all associated
with the main expenses tend to be incurred.
Dishonored Note
Dishonored note is actually a note that the debtor defaulted on, creating a negative debt.
Disintermediation
Disintermediation may become the transfer regarding funds in the lower return investment choices
for the higher return options.
Disposable Income
Disposable earnings may become the income left with the organization right after all of the main
obligations are generally met.
Dissolution
Dissolution can be legally winding up the particular business.
Distribution Cost
Distribution cost will be the expense incurred on distributing the item to be able to its users.
Distribution to end up being able to Owners
Distribution for you to owners will become the payment to always be able to proprietors in the type
of dividend.
DIT
DIT can be short for Depreciation, interest as well as Taxes.
Divestiture
Divestiture can be whenever a business sells its product line, division or even a subsidiary.
Dividend
Dividend can be a portion of the earnings associated with the business enterprise which is paid to
the shareholders in the company.
Dividend Capitalization
Dividend capitalization may always be the method for estimating the expense of the particular firm's
widespread equity.
Dividend Payout Ratio
Dividend payout ratio gives the percentage regarding earnings that are offered as dividends.
Dividend per Share
Dividends for each discuss are calculated by Dividend for each talk about = Total Dividend / number
involving Shares.
Dividend Yield Ratio
Dividend yield ratio = latest Annual Dividends / Present Discuss Price
Division
A division can become a unit or maybe a section of the business that is runs its operations
independently.
Document Control
Document control is the department in the business that looks after the documentation inside the
business as well as consider proper care of all regarding the documents.
Document Reconciliation
Document Reconciliation is the synchronization and also verification regarding all of the documents.
Document Review
Document Review can always be a technique of information collection through examining active
records.
Doomsday Ratio
Doomsday ratio will be calculated by simply Doomsday Ratio = cash inside Hand / Total Liability
Double Accounting
Double accounting is a fraudulent or unintentional double counting regarding assets or liabilities.
Double Entry Accounting
Double entry accounting is actually recording the debit also because the credit rating effect with the
entry.
Double Leverage
Double Leverage identifies a scenario the area exactly where the holding business raises the credit
card debt and also dowstreams it for the subsidiary company.
Doubtful Debts
Doubtful financial debt is a credit card debt owed to the enterprise the particular recovery
associated with which, just isn't certain.
Down payment
Down payment is a lump sum payment made in the period of purchase.
Draft
A draft is a note that will signifies the contract among the buyer along with seller, stating that the
buyer will pay the specified sum of income after your specified period.
Draw
Refer Proprietor's Draw
Drawdown
Drawdown exhibits the amount of value lost, either as a percentage or in currency terms
Drawee
Drawee is the individual within whose favor any check/bill etc. is drawn.
Duality Concept
Duality concept is an accounting concept which says that all accounting entry may have a pair of
effects, debit and credit.
Due Diligence
Due diligence will end up being the amount of diligence that the internal audit committee is
predicted to maintain.
Duty
Duty will always be the tax which is imposed upon imported goods.
E
E & OE
E & OE is surely an abbreviation for Mistakes and also Omissions Excepted.
E & P
E & P is an abbreviation for Earnings and also Profits.
Earned Income
Earned income may end up being the earnings earned simply by selling goods and also services.
Earning Asset
Earning asset is actually simply a good point which features a capacity to earn.
Earning Capacity
Earning Capacity is the net average earnings of an asset in any kind of offered point involving time.
Earning Power
Earning power = EBIT / Total Assets
Earnings
Earnings will be the financial capacity associated with the business to produce distributions in order
to its shareholders.
Earnings just before Taxes
Refer Gain before Taxes
Earnings via Operations
Earnings via operations = Revenue - Operating Costs
Earnings per Share
Earnings per discuss = profit Following Tax / Amount regarding Shares
EBIT
EBIT may be the acronym regarding Earnings Prior To interest along with Taxes.
EBITDA
EBITDA may be the acronym for Earnings before Interest, Taxes, Depreciation along with
Amortization.
EBITDARM
EBITDARM will end up being the acronym with regard to Earnings Just Before Interest, Taxes,
Depreciation, Amortization, Rent and also Management fees.
Economic Cost
Refer opportunity Cost
Economic Entity
Economic entity is the accounting concept in which supplies a context with regard to economic
events for recording your transactions.
Economic Order Quantity
Economic order amount is often that amount of inventory being ordered which usually minimizes the
price of holding along with transporting stock along with having the necessary stock constantly to
ensure that your production exercise will not acquire hindered.
Economic Value
Economic worth may be the value of the particular asset derived via its earning capacity.
Economies of Scale
Economies regarding scale can be a theory in which the harder amount anyone buy, your lesser is
the typical price of each individual item.
Effective Fascination Rate
Effective interest rate will become the price associated with credit computed on the yearly basis and
expressed as getting a percentage.
Effective Tax Rate
Effective tax charge may always be the net price associated with every one regarding the taxes in
which a person/business pays upon income. Efficient Tax rate = total taxes paid out / total income
Efficiency
Efficiency will always be the comparative ratio involving output to be able to input.
Embezzlement
Embezzlement will be fraud or perhaps misappropriation by an entrusted person, e.g. by simply
employees.
EMI
EMI will end up being the acronym pertaining to Equated Month For You To Month Installments.
Employee Compensation
Employee compensation may always be the wages/salaries and many kinds of another advantages
provided towards the employee from the employer.
Endorsement
Endorsement is often to forward any note/bill/check through the original payee.
Engagement
Engagement is to pledge, bind or perhaps get together involving 2 or perhaps a lot more entities.
Engineered Costs
Engineered expenses are your ones expenses which are straight connected to output.
Entity Concept
Entity concept regarding accounting says in which the business and also its proprietors are
extremely different entities and the private transactions with the proprietor should certainly not be
included within the books associated with accounts.
EOM
EOM is the acronym regarding Finish with the Month
EOY
EOY may be the acronym pertaining to Finish with the Year
Equity
Equity means the actual ownership or maybe the percentage of ownership that will an individual has
inside a company.
Equity Accounting
Equity Accounting is the practice of showing the particular undistributed income of some other
company in which 1 organization holds an ownership of under 50%.
Equity Capital
Equity capital can be a method of financing in which in turn the company's equity can be marketed
to end up being able to investors.
Equity Financing
Equity financing can always be a way of financing by issuing common stock as well as preferred
stock.
Equity Holding
Equity holding can be holding the talk about regarding money in a organization which provides the
shareholder your rights for you to vote, receive dividend etc.
Equity Share
An equity share is actually defined as the share of the total equity held through the investor.
Equity to Asset Ratio
Equity to always be able to asset ratio provides your quantity involving assets that are financed from
the shareholders' equity capital.
Errors regarding Commission
Errors involving commission are the particular type that will occur since a few incorrect motion is
actually taken.
Errors regarding Omission
Errors of omission are those in which occur since a quantity of action isn't taken.
Errors involving Original Entry
Errors associated with original entry are those in which in turn a wrong amount will be entered
about each debit and also credit score attributes in the journal.
Errors associated with Principle
Errors involving principle are those where the entry is created to become able to an inaccurate class
involving account.
Estate
Estate is all involving the assets owned by the organization in the duration of death in the holder of
the assets
Estate Taxes
Estate taxes are the taxes levied about the transfer involving property from the deceased to the legal
heirs.
Ethical Standards
Ethical standards are usually published documents that will include the principles and also
important procedures along with the associated guidance inside the type of explanations as well as
other material.
Excise Tax
Excise tax is the tax that is levied through the government or possibly the state government on
actions like manufacture, occupation, privilege, sale and non-deductible consumption.
Executor
An executor can become a legal entity, specified inside the will in the deceased that's vested using
the power to execute the actual will.
Exempt
Exempt will be to become free from a new tax liability.
Expected Annual Capacity
Expected annual capacity is the production capacity planned for your year.
Expendable
Expendable item is one which can end up being utilized as well as discarded as well as won't affect
the finish product.
Expenditure
Expenditure may become the cost incurred throughout trying to produce revenue.
Expenses
Expenses are every day costs incurred to perform and also maintain a business.
External Audit
External audit is the audit performed by simply an entity which is external for the business.
Extraordinary Items
Extraordinary products are the actual type which occur infrequently and therefore are unusual.
F
Face Value
Face worth may always be the worth which is published about the face of the commodity.
Factoring
Factoring would always be to purchase the credit card debt in a discount.
Factory Overhead
Factory overheads are the ones costs incurred within the factory that will can not really be straight
assigned to become able to immediate costs.
Fair Marketplace Value
Fair market worth of a commodity will become the value from which in turn the owner is actually
prepared to sell your commodity and the buyer is actually ready to buy it.
Fair Value
Fair value may become the worth at which in turn selling real estate can be prepared to sell and the
buyer is actually willing to buy an asset.
F & A
F & a may always be the commonly used acronym pertaining to either Facilities and also
Administrative expenses or perhaps Finance as well as Accounts or even Finance and also
Administration.
Favorable Variance
A variance has been said to become favorable if the actual spending/use involving resources by the
business is lower than your normal spending/use.
FBWT
FBWT will end up being the acronym with regard to Fund Stability using Treasury.
FDI
FDI will become the acronym for Foreign Immediate Investment.
Fees Earned
Fees earned is surely an income statement account that shows your support revenues earned
through the period.
Fees Simple
Fees easy implies absolute ownership over a real property.
FF & E
FF & E is the acronym pertaining to Furniture, Fixtures along with Equipment.
Fictitious Asset
Fictitious asset will be the debit stability about the asset facet associated with the total amount
sheet. Intentional creation of fictitious assets may amount to fraud.
Fiduciary
Fiduciary is a enterprise or even an individual that is empowered to behave with regard to another
inside good faith and also trust.
FIFO
FIFO is the acronym regarding First in Very first Out. This assumes that the stock that is bought
very first is used or perhaps marketed ahead associated with the inventory which is bought later.
Finance
Finance might always be used to suggest both money, or even the subject that handle effective
management involving funds or even a department in the company that is in cost of managing funds.
Finance Charge
Finance charge will always be the total quantity expressed in dollar terms which usually a person
will most likely be charged as fascination regarding loan.
Financial Accounting
Financial Accounting will end up being the process of recording every one involving the transactions
of the enterprise enterprise with regard to reporting along with analysis.
Financial Analysis
Financial analysis will always be the method to evaluate your financial statement of your company.
Financial Money Flow
Financial cash flow may always be the cash flow that is generated by the assets in the firm and just
how those funds are distributed towards the shareholders.
Financial Budget
Financial budget can be split up straight into two types. Money spending budget may be the forecast
for large expenditures and funds budget is the forecast regarding cash receipts as well as
disbursements.
Financial Engineering
Financial engineering is the procedure that tend to be responsible for creation and also mixture of
your assortment of financial instruments to be able acquire a defined economic objective
Financial Gearing
Financial gearing will be virtually any borrowing which usually the company enterprise undertakes.
Financial Interest
Financial curiosity can be just about any relationship using a commercial entity.
Financial Leverage
Financial leverage is using financial debt to increase the particular return about equity
Financial Management
Financial management can be a topic that are usually responsible for financial management as well
as control, through analysis of economic statements.
Financing Cost
Financing expense is the difference between your expense of getting your asset and the return the
asset provides.
Finished Items Inventory
Finished goods stock is the stock involving finished goods lying unsold inside the warehouse.
FIT
FIT may always be the acronym regarding Federal Earnings Tax.
Fixed Asset
Fixed assets are your ones assets that are essential for regular perform associated with business.
Fixed Bond
Fixed bond is a kind involving bond in which pays fascination with a set rate till maturity
Fixed Cost Ratio
Fixed Cost Ratio = Fixed Expenses / Total Expenses.
Fixed Costs
Fixed expenses are the particular ones expenses which do certainly not vary depending on the level
of production along with sales.
Fixed Deposits
Fixed deposits are generally quantities which in turn you continue with the bank for a specified
period of time and make a specific interest rate that is greater than the particular rate pertaining to
cost savings accounts.
Fixed Incomes
Fixed earnings may end up being the kind involving income which usually you receive via an
investment. interest upon bank savings is actually an instance of fixed income.
Fixed Overheads
Fixed overhead expenses are the actual ones expenses which are not directly connected to
production and remain fixed irrespective in the degree of production and also sales.
Flat Interest
Flat interest charge is the charge charged around the starting amount as opposed to the actual
present balance.
Flat Rate
Flat rate means that the purchase price of the commodity will remain the same, irrespective in the
volume sold.
Forecast
Forecast is an estimate or even prediction concerning the company results.
Forensic Audit
Forensic Audit is examining the particular evidence regarding an assertion produced within the
court associated with law.
FP & A
FP & Any is the acronym pertaining to financial Planning and Analysis.
Freight
Freight may be the price incurred inside transporting assets or even merchandise in order to as well
as from the warehouse or even place involving production.
Fringe Benefit
Fringe rewards would always be the non-monetary benefits provided in order to employees.
FRS
FRS will become the acronym with regard to financial Reporting Standard.
Full Cost Bookkeeper
A complete charge bookkeeper is actually one that can perform every one involving the accounts
function proper through journal preparation to earning the last financial statements.
Full cost Recovery
Full cost recovery is adjusting the prices of goods/services so that all of the fixed along with variable
costs involving the item are met.
Fully Depreciated
An asset has been said to become totally depreciated when it has already been charged with the
maximum total depreciation as is allowed by the tax authorities pertaining to in which asset.
Fund
A fund is definitely an amount regarding cash that's reserve for a certain purpose.
Funds Employed
Funds employed is the typical with the Net working Money and also the Fixed Assets
Funds Flow
Funds flow may always be the total funds generated via operations over the actual span of company
activity.
Future Value
Future worth is the value of the commodity or even an asset at a future period involving time
regarding time.
FYE
FYE is the acronym for Fiscal 12 Months Ended.
G
GAAP
GAAP will become the acronym for Typically Accepted Accounting Principles, that is an accepted
group of accounting procedures, policies along with rules. Study in for additional in regards to end
up being able to the U.S. GAAP - Typically Accepted Accounting Principles
G & A
G & A New will become the acronym with regard to General and Administrative Overheads.
Gain
Gain may become the excessive associated with total income more than total expenses. gain could
also end up being utilized to reference a increase in value, rate or even prices.
Garnish
Garnish is to declare the actual debtor's wages/salary below the court order for previously defaulted
debts.
Gearing Ratio
Gearing ratio will end up being the ratio that measures the proportion with the total money
employed financed by long-term debt.
Generally Accepted Auditing Standards
Generally Accepted Auditing Standards are the standards, rules and guidelines set through the
Auditing Standards Board with the American Institute regarding Certified Public Accountants.
Gilt
Gilt, generally use, can become a bond issued from the government.
Global Bond
Global bond is really a bond which can be often traded outside involving the country of its issue.
Global Funds
Global Fund is a type involving mutual fund where the fund organization can easily purchase
companies positioned anywhere inside the world
GMROI
GMROI will be the acronym regarding Gross Margin Return in Investment.
Going Concern Concept
Going Concern Concept involving Accounting assumes which the business will be in existence with
regard to all of the foreseeable future.
Going Public
Going public is actually accustomed to indicate in which any specific company is actually likely to
issue publicly traded talk about capital.
Going Rate
Going price is the typical cost involving these products or even services.
Golden Guidelines of Accounting
The Golden rules regarding Accounting govern the actual remedy involving a variety of forms of
accounts in case regarding an economic event.
For private accounts, your rule is Debit the actual receiver; credit rating the particular giver.
For real accounts your rule is Debit what arrives in; Credit Score what will go out.
For Nominal Accounts your rule is actually Debit most expenses or losses; Credit Score just about all
incomes and also gains.
Goods
The commodity in which the enterprise trades, will be collectively referred in order to as goods.
Goodwill
Goodwill is surely an intangible benefit 1 business enjoys more than its competitor as the market is
ready to absorb the particular goods with the former business even in a higher price.
Governance
Governance will become the act of exercising authority or simply governing which is performed from
the Board associated with Directors.
GP Ratio
GP Ratio is the acronym with regard to Gross Gain Ratio. The Particular Gross profit ratio measures
the connection between the gross profit along with sales. GP Ratio = (Gross profit * 100) / Sales
Gross
Gross is definitely an amount prior to just about any deductions as well as additions are made to it.
Gross Debt
Gross credit card debt is the total involving all regarding the credit card debt obligations with the
business.
Gross Margin
Gross Margin is used synonymously with Gross Gain or perhaps Gross Revenue Ratio.
Gross Profit
Gross profit is the excess of revenue more than production costs.
Gross Gain Margin about Sales
Refer GP Ratio
Gross Gain Method
Gross profit Approach is the inventory estimated that is depending on gross margin.
Gross Revenue
Gross income is the funds earned via sales involving goods.
Gross Sales
Gross sales may be the total value of sales prior to virtually any discounts, deductions or perhaps
returns.
H
Hard Assets
Hard Assets include physical assets as well as financial assets and do certainly not contain intangible
assets.
Hard Costs
Hard costs would become the total expenses incurred around the obtain involving assets.
Hidden Assets
Hidden assets are usually just about any worth generating assets inside the enterprise which are not
included in the stability sheet of the company.
High Credit
High Credit Rating is the highest in which a debtor features ever extracted from just about any one
creditor.
High Lower Method
High-Low method can become a technique regarding approximating price method is one which in
turn considers only the highest and also lowest factors in the provided data as well as the exercise in
the given range.
High Yield Debt
High Yield Financial Debt is a financial debt instrument that will gives a greater yield/return
because it is a higher risk instrument.
Hire and also Obtain Agreement
Hire and also Obtain agreement is an agreement the place where the buyer hires an asset/goods at a
charge involving rent and also after the actual renting time period along with following spending
every one associated with the installments, receives ownership in the asset or perhaps goods.
Holding Company
A holding company is a that will holds more than 50% stake throughout an additional organization
(known as subsidiary company).
Horizontal financial Analysis
Horizontal financial Analysis is the analysis in the ratios of one business using these of the
competitors and also with individuals with the industry.
Hostile Takeover
A hostile takeover is when one company buys out the other business whether the board approves
associated with it or not. This will be usually completed by buying the vast majority stake of the
company in the publicly traded share, thus becoming your vast majority stakeholder, bypassing your
board of directors.
Human Capital
Human money will be the intellectual money regarding employees that the organization enjoys.
Hybrid Instrument
Hybrid instrument is a bundled instrument containing 2 as well as much more various forms of
danger management instruments.
I
Identifiable Assets and also Liabilities
Identifiable assets along with liabilities contain each tangible and intangible items inside the
stability sheet.
Idle Time
Idle period is the occasion with regard to which in turn production exercise gets suspended.
Immovable
Immovable will be usually used inside the context of assets which are permanent as well as
stationary, like territory as well as buildings.
Impairment regarding Value
Impairment of value may be the permanent loss of value associated with an asset.
Implicit rate associated with Interest
The rate associated with interest is said being implicit if the stated fascination rates are various from
your industry rate.
Implied Costs
Implied expenses are the concealed costs incurred around the assets which have recently been
compensated for.
Imprest Basis
Imprest basis signifies that the cash balance pertaining to expenditure inside the cash account is
replaced at the end of each as well as every period.
Income
Income is the amount associated with money received within a period involving time of time on
account of anything.
Income Gearing Ratio
Income Gearing Ratio = Curiosity Expense / Operating Profit.
Income Tax
Income tax will become the tax compensated as a percentage of company or perhaps individual
income.
Income Taxes Payable
Income taxes payable may end up being the amount regarding money payable as income tax, but
isn't compensated yet.
Incorporated
Incorporated is truly a sort regarding business entity which includes been allowed to operate like a
corporation through the approval regarding the state government.
Incremental
Incremental means additional.
Incremental Budget
Incremental spending budget may end up being the spending budget for the fixed overhead costs.
Incremental Cost
Incremental expense may be the expense incurred pertaining to producing 1 additional unit
associated with output.
Incremental Expense regarding Capital
Incremental cost associated with richesse is the weighted cost with the additional richesse raised.
Indirect Cost
Indirect costs are your ones expenses which aren't immediately related towards the process of
production.
Indirect Shareholding
Indirect shareholding can be when a business The holds a direct shareholding within organization B
as well as organization B holds the direct shareholding within business C, business The has been
said to get an indirect shareholding inside company C.
Industry Analysis
Industry analysis is the analysis with the financial performance associated with an sector as
becoming a whole.
Inflation Accounting
Inflation accounting is actually a kind of accounting the location where the amounts are generally
adjusted to the changing prices.
Inflation Adjustment
Inflation adjustment would be to modify the particular figure with an amount pertaining to increase
or even reduction in inflation.
Inherent Risk
Inherent risk may end up being the danger that's intrinsic to always be able to any activity,
investment etc.
Insolvency
Insolvency is a situation where an entity's liabilities exceed its assets and can not be paid off.
Installation
Installation may end up being the cost incurred to put a excellent thing into use.
Installment Sale
Installment sale can be offering the commodity and also receiving the payments for it more than
successive durations instead of the lump sum.
Insurance Claim
Insurance declare is the published notification which in turn the actual insured gives to the insurer
for you to ask for your amount thanks beneath the actual policy.
Intangible Asset
An Intangible asset will be a good point that will cannot be bodily seen or felt, however its presence
benefits the particular company, e.g goodwill.
Intellectual Capital
Intellectual money may always be the useful resource regarding specialized knowledge which a
organization offers and it is recognized as a great thing for the company.
Interest
Interest can become a fixed cost that's provided as compensation with regard to parting using
immediate liquidity.
Interest-Bearing
Interest bearing will be utilized to describe something that provides interest.
Interest Coverage
Interest Coverage Ratio = Net Curiosity Expense / EBIT
Interest Earnings
Interest earning may be the total fascination received from the organization about various
investments.
Interest Expense
Interest expense will end up being the total fascination paid by the company for a new number of
debts.
Interest Rate
Interest price is a percentage in the total investment/debt with which in turn the interest amount
will be given/paid.
Interim Audit
Interim audit is definitely an audit that is conducted from a while throughout the year.
Interim Dividend
Interim Dividend is the dividend that's paid at a while throughout the year
Interim Statement
Interim statement gives your economic position involving the company from some time during the
year.
Internal Audit
Internal audit will be the audit completed by the audit committee in the organization itself.
Internal Charge associated with Return
Internal rate of return will end up being the price associated with return, expressed as becoming a
percentage, the particular net current value regarding which is zero.
Intrinsic Value
Intrinsic worth is the price of something through itself, irrespective associated with its use and
whether it is used.
Inventory
Inventory is the stock involving uncooked materials, are employed in progress as well as finished
goods
Inventory Accumulation
Inventory accumulation is the added inventory which was stored on account of unplanned events.
Inventory as well as Purchases Budget
Inventory along with purchases spending budget will be the spending budget set through the
organization for choosing and storing inventory.
Inventory Control
Inventory Manage is often to take proper care of the optimum quantity associated with stock within
the shops in the company.
Inventory Obsolescence
Inventory is considered to be obsolete if this can be no more usable as well as salable.
Inventory Profits
Inventory revenue is the profit in which the business earns thanks towards the rise within the costs
of inventory.
Inventory Transfer
Inventory transfer is actually a procedure that will literally tracks the actual transfer associated with
stock via one destination to another.
Inventory Turnover Ratio
Inventory turnover ratio offers the actual quantity of occasions your inventory will be purchased as
well as used up with regard to production or perhaps marketed in a given period.
Inventory Valuation
Inventory valuation may be the process of assigning monetary value to always be able to inventory.
Investment
Investment is purchasing one thing by getting an intention to gain any profit from its sale as well as
acquiring earnings because regarding it from standard intervals. read upon with regard to Kinds of
Investments
Investment Capital
Investment richesse is the capital raised through the issue regarding shares or long term credit card
debt instruments similar to debentures.
Investment Expense
Investment expense is the expenses incurred about the stock besides those expenses that are
incurred for getting your inventory, just like installation costs, brokerage etc.
Investment Tax Credit
Investment tax credit is a tax credit score that's offered to the organizations for you to write off a
portion associated with the price of purchasing equipment.
Investment Turnover
Investment turnover is the ratio utilized to measure the particular number of times an asset as well
as investment revolves.
Invoice
An invoice is surely an itemized bill giving the facts involving the things purchased or even sold.
IPO
IPO is the acronym regarding initial Public Offering. It will be the extremely first moment in which a
business moves public with all the issue associated with shares.
J
JIT
JIT will be the acronym with regard to Just-in-Time.
Job Costing
Job Costing is the allocation involving time, material along with expenses to a individual occupation
or project.
Joint Account
Joint Account will be the financial account that is utilized and also run through a pair of as well as a
lot more account holders.
Joint Payee Endorsement
Joint Payee endorsement will be each occasion a bank draft is actually made out for you to 2 parties,
along with each events are required for you to endorse the back of the lender draft prior to it being
honored from the bank.
Joint Stock Company
Joint Stock company can be a kind regarding company which enjoys a quantity of features of your
partnership and the few features of the corporation.
Joint Venture
Joint Enterprise can end up being a company exercise began simply by two or even a lot more
people, who invest richesse with regard to in which company activity. Study about pertaining to
much much more about venture Capital
Joint Ventures along with Investments
Joint Ventures and also Investments may be the total investments and also equity in the joint
venture.
Journal
Journal is the initial record involving transactions involving the company while they occur.
Journal Entry
Journal entry is a record with the transactions made through the business.
K
Kaizen Budgeting
Kaizen Budgeting is the budgeting approach which requires directly into thought projected long
term costs rather than present practices.
Kaizen Costing
Kaizen costing can be lowering the expense regarding production in little steps.
L
Lag Time
Lag occasion may always be the moment among two closely associated phenomena like stimulus as
well as response.
Land
Land may become the asset account in which the details as well as the expenses of territory holding
for the company are given.
Leasehold Improvements
Leasehold improvements are usually repairs as well as improvements produced for you to leasehold
terrain by the lessee.
Ledger
Ledger will be it that consists associated with numerous individual accounts in order to which in
turn the particular journal entries are generally posted.
Ledger Group
Ledger team can end up being a team regarding ledgers that consist of your primary ledger along
with a quantity of secondary ledgers.
Legal Entity Assumption
Refer Entity Concept
Leverage
Leverage is the property rising as well as falling at a higher proportion compared to always be able
to the comparable investments.
Leverage Ratios
Leverage ratios measure the particular impact of equity and credit card debt richesse on
profitability.
Levied
Levied can end up being a charge which is imposed or perhaps collected.
Liability
Liability is actually a loan or even a debt for that enterprise that actually needs to become
discharged.
LIFO
LIFO may end up being the acronym with regard to last Within Very first Out. It means that the
inventory which can be purchased final is utilized as well as sold first.
LIFO Liquidation
LIFO Liquidation will always be the process of reducing the reported worth of the actual inventory.
LIFO Reserve
LIFO reserve is the distinction between the LIFO degree of inventory as well as the FIFO amount of
inventory.
Lifting and Operating expenses
Lifting and also Operating expenses are generally incurred inside the oil and energy industry, within
the running along with maintenance involving oil wells.
Limited Company
Limited company can always be a legal entity that's owned simply by shareholders. read more on
Corporation Types.
Limited Liability
Limited liability will be once the owner's liability for that enterprise is restricted to his discuss in the
business. Study upon with regard to An Explanation regarding LLC (Limited Liability Company).
Line regarding Credit
Line regarding Credit Score is definitely an agreement between a financial institution plus a
business in which in turn the financial institution agrees an upper restrict on the amount sanctioned
without having to adopt yet another loan.
Liquid Assets
Liquid assets are generally money and also those assets that are simply convertible for you to cash.
Liquidating Dividends
Liquidating dividends are those dividends which are paid out from the organization in the period of
liquidation/bankruptcy
Liquidation
Liquidation can be promoting off all associated with the assets of the business to repay the actual
debts of the business.
Liquidity
Liquidity is the ability associated with the company enterprise to meet all current financial debt
obligations.
Liquidity Ratio
Liquidity Ratio = (Cash + Marketable Securities) / Present Liabilities
Loaded Labor Rate
Loaded labor rate is the total of the employee remuneration, benefits, richesse expenses along using
other overheads about labor.
Loan
Loan will be when a lender enables the borrower to consider a couple of involving the assets owned
by the lender for any specified amount involving time, which is likely to be returned after the actual
specified period associated with time together with interest. read onto know about Mortgage Loan
Underwriting
LOC
LOC will be the acronym with regard to Letter of Credit.
Long-Lived Assets
Long-lived assets are the ones which in turn are not consumed in the typical length of business.
Long Term Debt
Long term financial debt can become a kind regarding financing that's taken by a enterprise and the
maturity associated with that is many years hence.
Long Term Debt-to-Equity
Long term Debt-to-Equity Ratio = Long Lasting Liabilities / Shareholder Equity
Long Term Liabilities
Long term liabilities are those which are because of for upwards of the year.
Long Term Receivables
Long term receivables are the particular ones receivables that is likely to be received after a year.
Loss
Loss may always be the extra of expenses over incomes in any context.
M
Maintenance
Maintenance will become the expense incurred for trying for you to keep a good point inside
working condition.
Managed Receivables
Managed receivables are those receivables in which usually the business performs billing and
collection.
Management Accounting
Management accounting deals with all the entire spectrum of collection, recording, examining along
with managing your economic activities involving the company through the management.
Manufacturing Account
Manufacturing account gives the total of the prime and overhead expenses associated with
manufacturing finished goods.
Manufacturing Overhead
Manufacturing overheads consist of all the indirect labor costs, indirect material expenses along
with indirect expenses employed for manufacturing.
Marginal Benefit
Marginal advantage will end up being the added amount regarding advantage derived by a growth
or perhaps lower inside a unit involving an activity.
Marginal Cost
Refer Incremental Costs
Marginal Profit
Marginal revenue will end up being the incremental profit derived simply by an boost in production
by 1 unit of the goods.
Margin of Safety
Margin regarding Safety shows how far the actual sales degree may fall, till the business begins
incurring a new loss.
Marketable Capacity
Marketable capacity may end up being the difference between your total capacity absorbed by the
market and the predicted capacity.
Marketable Security
Marketable safety is an equity or perhaps financial debt security that can be easily traded.
Market Capitalization
Market capitalization is the total price of your issued shares within the market. market
Capitalization = number associated with Shares * Present Marketplace Price
Marketing Expense
Marketing expense may end up being the cash that the company spends in advertising his or her
goods throughout the accounting period.
Market to book Value
Market in order to book value = Industry Capitalization / Tangible Assets
Master Budget
Master budget is the principal spending budget prepared from the enterprise which include several
budgets which relate to each and also every as well as every head pertaining to that the prices are
prepared.
MAT
MAT may end up being the acronym regarding Management, Administrative and also Technological.
Matching Concept
Matching concept will always be the concept inside accounting saying that the costs and also
revenues ought for you to be matched in the earnings statement.
Material Control
Material manage is actually proactively governing the supplies which are used within the
manufacturing activity.
Materiality Principle
Materiality principle says that accountants ought to utilize the Typically Accepted Accounting
Principles, except when their use is difficult or even financially unviable.
Materials Requisition Planning
Materials Requisition planning may become the procedure for planning with regard to materials in
which are needed often inside the procedure for production.
Materials
Materials can be usually used to refer to the raw supplies which are employed within the technique
of production.
Maturity Value
Maturity value will always be the value an investment will recognize at the finish of the maturity
period.
Merger
Merger may be the union associated with two or even more organizations where 1 is not absorbed
by the other, yet instead, they both maintain his or her separate identities.
Minimum Wage
Minimum wage will end up being the legally fixed lowest each hour wage that can be compensated
to an employee.
Miscellaneous Income
Miscellaneous earnings may always be the income which can be derived through resources other
than the particular usual sale of goods.
Mixed Costs
Mixed expenses are your type expenses which could have both, a fixed and variable component.
Modified Accrual Basis
Modified accrual basis is truly a mix of both the cash along with accrual bases of accounting.
Modified Internal rate regarding Return
Modified internal charge associated with return may become the price regarding return which may
be modified to complement up using the required charge associated with return.
Monetary Assets
Monetary assets are the assets that are measured in their current collectible amounts, as opposed to
their historical costs.
Money Measurement Concept
Money measurement concept will be certainly one of the most fundamental concepts in accounting
which usually says that all involving the transactions should be measured inside funds terms.
N
Natural Accounts
Natural accounts are user-defined accounts for the various actions which are related with all the
accounting entity in which capture data in the transaction level.
Natural Classification
Natural classification of expenses classifies your price based around the naturel in the cost item.
NEBT
NEBT will end up being the acronym with regard to Net Earnings Just Before Taxes.
Negative Amortization
Negative Amortization will be when the outstanding principal stability of the loan raises rather than
decreasing, as is the case with normal amortization.
Negative Money Flow
Negative cash flow can be when the money outflow exceeds the bucks inflow.
Negative Goodwill
Negative goodwill is said to become able to arise if the net assets exceed the cost of acquisition.
Negative working Capital
Working Richesse is considered to be negative if the present assets exceed the particular current
liabilities.
Negligence
Negligence is actually defined as an omission to accomplish something which a fair man would have
certainly not forgotten for you to do.
Negotiable Instrument
Negotiable instrument is a document which in turn represents any financial debt or even cash
payable through a single person to be able to another.
Net
Net may be the final amount calculated following all of the required deductions are generally
produced for the gross amount.
Net Accounts Receivable
Net accounts receivable is the total accounts receivable minus a deduction for those accounts which,
the company assumes, will certainly not be collected.
Net Assets
Net assets will become the difference between total assets and non-capital liabilities.
Net book Value
Net book worth may end up being the existing guide worth of a good point or even a liability.
Net cash Flow
Net money flow will become the difference involving the cash inflows as well as the money outflows
for any business.
Net Contribution
Net contribution may end up being the remaining quantity after all regarding the deductions are
generally made to the gross amount.
Net Debt
Net Financial Debt = (Debt + Short-term Loans) - current Assets.
Net Earnings
Refer Net Income
Net Income
Net income will be the excess in the total revenue generated by the enterprise over the actual
expenses.
Net Curiosity Margin
Net fascination margin may always be the excess of curiosity received in investment over curiosity
compensated regarding debt.
Net of Taxes
Net associated with taxes typically indicates the consequence involving applicable taxes, which has
been considered throughout identifying the entire effect involving a product around the financial
statements.
Net Operating Income
Net operating income is the excessive associated with sales income over operating costs.
Net Operating Loss
Net operating loss may end up being the excess of operating expenses over sales revenue.
Net Operating Gain right after Taxes (NOPAT)
NOPAT = Operating Earnings x (1 - Tax Rate).
Net Existing Value
Net present Worth (NPV) may become the distinction involving the present worth of your full stream
regarding long term inflows associated with cash from a great investment and the existing value of
cash outflow for choosing the investment.
Net Profit
Net revenue is the excess associated with income via all resources more than your expenses.
Net Purchase
Net purchases will be the amount involving purchases following deducting the purchase returns,
allowances as well as discounts.
Net Receivables
Refer Net Accounts Receivables
Net Revenue
Net income = Gross income - (Discounts + Allowances + sales Returns + Freight)
Net Sales
Net sales is the quantity involving revenue attained after deducting the particular revenue returns,
allowances, discounts etc.
Net Worth
Net Really Worth of your Company = Total Assets - Total Liabilities
Nominal Accounts
Nominal accounts are generally account objects regarding incomes as well as expenses in the
business.
Nominal Capital
Nominal richesse is the total encounter price of your authorized discuss capital.
Nominal interest Rate
Nominal curiosity price may end up being the interest rate that's specified inside the contract
document for any bond, loan etc.
Non-cash Expense
Non money expenses are those which in turn appear on the debit facet involving an earnings
statement, however there is actually certainly no real outflow of money for that same, pertaining to
e.g. depreciation
Non Existing Assets
Non current assets are the actual type assets inside the balance sheet which are not existing assets.
Non Equity Share
Non equity discuss is actually a type involving discuss that exhibits the particular indebtedness
involving organization to the shareholder, nevertheless isn't section of the equity fascination within
the entity.
Non Fixed Asset
Non fixed assets are your ones assets in the balance sheet that aren't fixed.
Non Doing Asset
Non executing asset may always be the asset that doesn't supply a return or possibly is not really
effectual in generating income.
Non profit Organization
Non-profit organizations are those organizations running regarding social benefit rather than
regarding generating profit.
NOPLAT
NOPLAT will become the acronym pertaining to Net Operating Gain Much Less Adjusted Taxes.
Not pertaining to Gain Accounting
Not for revenue accounting will be the practice of accounting regarding non profit organizations.
NPPE
NPPE will end up being the acronym with regard to Net Property, Plant as well as Equipment.
NPV
NPV is the acronym pertaining to Net Existing Value
NWC
NWC will always be the acronym regarding Net Operating Capital.
O
O & M
O & M may be the acronym pertaining to Operations and Management.
Objectivity Principle
Objectivity principle associated with accounting states that will transactions will be recorded around
the schedule of objective evidence available.
Off Stability Sheet Asset
An off balance sheet asset is however one in which represents a resource of the entity as well as
something which will be projected in order to possess a future economic value.
Off balance Sheet Financing
Off the total amount sheet financing can end up being a borrowing the facts associated with which in
turn usually tend to be not given inside the stability sheet
Off the Books
Off the actual textbooks is 1 thing which is not necessarily recorded within the textbooks involving
accounts.
On Account
On account is a payment created in order to discharge the financial debt entirely or even in part.
Open Account
Open account is an arrangement in that the payment is probably not guaranteed.
Open Guide Credit
Open e-book credit score is a form of credit rating the location exactly where the payment is most
likely not assured.
Opening Balance
Opening balance will become the stability carried forward of the account to the next accounting
period.
Opening Stock
Opening stock may always be the opening balance regarding uncooked or even processed inventory.
Operating Allowance
Operating Allowance is an advance/reimbursement which can easily be made against specific
costs/expenses and/or a reduction in quantity payable to cover individuals particular costs/expenses.
Operating Assets
Operating assets are those long lasting assets that the company intends to make use of as opposed
to sell.
Operating Budget
Operating budget is actually a mixture of the various budgets that are set for operations. The Actual
numerous budgets included throughout operating budget tend to be revenue along with collection
budget, price regarding items marketed budget, inventory along with purchases budget and
operating expenses budget.
Operating Money Flow
Operating cash flow may end up being the inflow as well as outflow associated with cash in the
business pertaining to operational activities.
Operating Money Flow Ratio
Operating money flow ratio can be calculated by simply money flow from operations/current
liabilities.
Operating Cost
Operating costs are the particular ones costs that are incurred pertaining to keeping property.
Operating Cycle
Operating cycle may end up being the period difference in between purchasing raw materials along
with realizing the bucks from your sales associated with finished goods.
Operating Expenditure
Operating Expenditure may always be the expenditure incurred in day-to-day items of expense
within the business.
Operating Expenses
Operating expenses are the typical and also administrative and promoting expenses with the
business.
Operating Expenses for you to Sales
Operating expenses to become able to revenue ratio gives the percentage of the total sales revenue
which is accustomed to pay regarding operating expenses.
Operating Income
Operating income will always be the excess associated with revenues from operations more than the
particular operating expenses.
Operating Leverage
Operating Leverage will end up being the ratio of fixed operating expenses for the total operating
costs.
Operating Margin
Operating margin may become the ratio that compares operating income in order to revenue
revenue.
Operating Profit
Operating profit is the excess associated with gross revenue more than operating expenses.
Operating Gain for you to Sales
Operating revenue to revenue ratio will always be the ratio which in turn compares the actual
operating profit for the sales and also exhibits simply how much percentage of revenue constitutes
your operating profit.
Operating Ratio
Operating Ratio = Operating Expenses / Operating Revenues
Operating Revenue
Operating revenue will be the revenue earned on the basis involving day-to-day operations similar to
sales.
Operating Risk
Operating risk is the risk inherent to the operations of just about any particular business.
Operating Transfer
Operating transfer can be the place where a transfer associated with funds as well as sources can be
created from 1 account to another to finance the actual operations of this account.
Opportunity Cost
Opportunity expense will end up being the expense of choosing or otherwise picking one investment
plan or an operation more than another.
Order of Liquidity
Order of liquidity can always be a format regarding preparing the total amount sheet exactly where
just about all items on the asset aspect involving the balance sheet are placed in descending order
involving liquidity.
Order regarding Permanence
Order regarding permanence is actually format regarding preparing the check sheet where all the
fixed assets tend to be arranged inside the descending order of their permanence.
Ordinary Asset
Ordinary asset can end up being a non-capital asset which is used for company purposes.
Ordinary Income
Ordinary earnings will always be the income earned via the particular ordinary span of enterprise
and not from any kind of money gains or perhaps extraordinary windfall gains.
Organization Cost
Organization expense may become the expenses incurred to start with any company entity. These
kinds of expenses will furthermore be referred to end up being able to as startup costs and can
include the amount involving money allocated to legal charges etc.
Other Income
Other income is the earnings derived from resources apart from the key exercise of the business.
Out with the Pocket
Out in the pocket expenses are those which need an outlay regarding money in a given period
period.
Outstanding
Outstanding is surely an unpaid amount owed in order to someone.
Outstanding Shares
Outstanding shares is the variety of shares in which are currently issued by the company as well as
held from the shareholders.
Overdraft
Overdraft is really a facility given with a bank to a account holder which allows the actual account
holder to always be able to have a negative balance.
Overhead
Overhead may become the expense which is certainly not straight incurred about production, but
indirectly incurred pertaining to some other reasons.
Overhead Budget
Overhead budget gives all the expected production costs apart from immediate supplies and also
direct labor.
Overhead Rate
Overhead minute rates are calculated by simply totaling every one regarding the expenses for one
year, excluding labor as well as materials, and then divided from the total price associated with
labor and also materials.
Overtime
Overtime will always be the perform carried out throughout excessive in the regular working hours.
Overstated
Something is considered to be overstated in the event it will be quoted being a lot more laptop as
well as computer really is.
P
PA
PA is the acronym regarding for each annum.
Paid Up Capital
Paid up capital may end up being the total quantity paid through the shareholders pertaining to
acquiring the particular stock of the company.
P & L
P & L will become the acronym regarding gain and also loss statement. The idea offers the facts
regarding the particular incomes and also expenses associated with the business enterprise more
than the particular accounting period.
Parent Company
Parent organization is the business which usually features a large quantity of subsidiaries under it.
Partnership
Partnership can become a enterprise type which usually features certainly not been incorporated
however provides more than 1 owner.
Par Value
Par value will be the face area value. This can be usually utilized while referring to become able to
bonds or other monetary instruments.
Payable
Payable is a few quantity which can easily be not really compensated from the business. That is
actually a liability.
Payables Turnover
Payables Turnover = Purchases / Payables
Payable in order to Shareholders
Payable to be able to shareholders usually refers to the payments that are to become produced to
become able to shareholders.
Payback Period
Payback period will be the period of your own time necessary to recover the quantity invested
regarding richesse investment.
Pay Cycle
Pay cycle is really a group of rules that will define the particular criteria regarding selection of
scheduled payments pertaining to payment creation.
Payment Credited Date
Payment payment date specifies the final date till that the payment has to be able to be made.
Payout Ratio
Payout ratio is the dividend compensated through the organization towards the shareholders from
earnings expressed as a percentage.
Payroll
Payroll will always be the listing of all associated with the employees in the organization in
supplement to their salaries.
PBT
PBT is the acronym for profit before Taxes.
Per Annum
Per annum implies every year
P/E Ratio
Price in order to Earnings ratio compares the existing cost of the particular discuss towards the
earnings for each share. P/E Ratio = Rate of the Discuss / Earnings per Share.
Performance Budget
Performance spending budget is a budget format which separately relates the input involving
resources as well as the output associated with solutions regarding each unit throughout an
organization.
Performing Asset
Performing asset can be an asset which usually continues to be able to be giving an excellent steady
return over its practical life.
Period Cost
Period expenses are your ones which can't be accumulated and want being repaid simply by
charging them contrary to the revenue in that 12 months itself.
Periodicity Concept
Periodicity Concept may become the accounting concept which usually states that each along with
every accounting period involving time comes along with an economic exercise connected with it,
along with this exercise can be measured, accounted for, as well as reported.
Periodic Valuation
Periodic valuation of the assets deals using figuring out the future worth of assets as well as
investment portfolios.
Perpetuity
Perpetuity is surely an annuity that is payable forever.
Persistent Earnings
Persistent earnings are usually continually recurring amount of earnings via one accounting period
associated with time for the other.
Personal Accounts
Personal account can always be a sort associated with account which keeps the particular record
regarding transactions associated with each person associated with the business, such as debtors as
well as creditors.
Personal Equity
Personal equity is often that part with the owned equity that is invested in the asset.
Petty Cash
Petty cash is actually a cash allowance made for small, day-to-day cash expenses.
Physical Inventory
Physical stock may be the total inventory current inside the warehouses.
Piecemeal
Piecemeal is just one factor at a period or just any little bit with a time.
PITI
PITI will always be the acronym for Principle, Interest, Taxes as well as Insurance.
Plant Asset
Plant asset may end up being the physical asset involving the company exactly where all associated
with the production exercise requires place.
Pledged Accounts Receivable
Pledged accounts receivable is a short term loan arrangement where the accounts receivable
regarding the business are held as security using the lender.
Pledged Assets
Pledged asset will end up being the asset given for the lender of the loan as security. Throughout
case the individual who has had the credit defaults on the payment, then the assets will be taken
from the lender.
Pledged Revenue
Pledged income is that part of your income which has to become obligatorily accustomed to support
the debt.
PLS
PLS will become the acronym regarding Revenue and also Loss Sharing.
Portfolio
A portfolio is the details along with introduction to all associated with the investments as purchased
by a business entity or an individual.
Posting
Posting is to record all of the transactions from your journal within the individual ledger accounts.
Preference Shares
Preference shares certainly are usually a kind associated with capital stock, the holders associated
with which in turn enjoy the first proper around the dividends in the company, which may be with a
fixed rate and could even even end up being cumulative.
Preferred Creditor
Preferred creditor may always be the creditor whose credit card debt is actually to be repaid before
paying down the actual debts involving additional creditors.
Premium In capital Stock
Premium about capital stock is the extra of paid out value for the shares more than the facial skin
value.
Pre-Operating Costs
Pre-operating costs are usually expenses which are deferred till the particular related assets are
generally ready for that income support in which period the costs are charged to operations.
Prepaid Expenses
Prepaid expenses are those expenses which in turn happen in order to be paid for inside advance
Present Value
Present value is the discounted value of the amount associated with cash receivable in the future as
a lump sum or an annuity.
Price to book Ratio
Price in order to Guide Ratio = Stock Capitalization / Guide value associated with Shares
Price for you to Money Flow Ratio
Price to cash Flow Ratio = Value per Talk About / cash Flow per Share
Price to Income Ratio
Price in order to revenue = Marketplace Worth per Discuss / Income per Share
Prime Cost
Prime Expense is the total regarding immediate supplies along with immediate labor employed for
production
Proceeds
Proceeds may become the money which arrives into the enterprise due to revenue etc.
Process Costing
Process costing will always be the costing that is done on the various procedure for the business to
discover out the price of every process.
Product
Product or goods may be the primary commodity which is marketed by the enterprise to generate its
revenues.
Product Cost
Product price will become the cost of inventory within the warehouses of the business.
Product Invoice
Product invoice is the invoice for your sale of products.
Production Budget
Production spending budget is the spending budget set regarding every 1 of the activities related to
production.
Productive Activity
Productive exercise can be any such activity that will generate economic worth for your business.
Productivity Ratio
Productivity Ratio may always be the ratio of the output produced by the enterprise to the input
used from the business regarding production.
Professional Fees
Professional costs are the charges charged by simply service experts for that services delivered
through them.
Profit
Profit will end up being the extra regarding earnings over expenses.
Profitability Ratios
Profitability ratios may end up being the group of ratios which in turn aid measure the actual
profitability of the business.
Profit right after Tax
Profit right after tax will become the excess associated with revenue over every one associated with
the expenses along with right after payment associated with tax.
Profit Prior To Taxes
Profit before tax will always be the profit earned through the company before making the particular
deduction for tax.
Promissory Note
A promissory note can end up being a economic instrument made from the debtor praoclaiming that
the actual debtor intends to pay the cash he owes for the creditor in the specified period and will be
also signed through the debtor to that effect.
Proprietary Asset
Proprietary asset will become the asset that is considered as intellectual property and may certainly
not always be disclosed.
Proprietary Theory
Proprietary theory assumes zero distinction involving the company as well as its owners and also
considers these as one and the same.
Proprietor's Draw
Proprietor's draw will be the cash withdrawal created through the proprietor in the company with
regard to his personal use.
Proprietor's Fund
Proprietor's fund = Proprietors Richesse + Net Revenue - Proprietor's Draw
Public Offering
Public issue is the decision made from the organization to be able to raise a lot more richesse by the
public issue of share capital.
Purchase Account
Purchase account is the ledger account where every one involving the purchases of the raw
materials as well as stock tend to be recorded.
Purchase Discount
Purchase low cost is the low cost provided by the vendor for the enterprise pertaining to purchases.
Purchase Method
Purchases technique is surely an accounting technique for an acquisition making use of market
worth for your consolidation of the net assets of the two entities about the stability sheet.
Purchase Order
Purchase order is to place a requisition to purchase items using the supplier regarding raw
materials.
Purchase Returns
Purchase returns is the section of inventory that is returned towards the vendor credited for you to
poor quality, unusable nature with the items supplied etc.
Purchases
Purchases tend to be all the items bought through the company with regard to production as well as
resale.
Purchases Budget
Each business sets a purchase spending budget in which in turn the total expense upon purchases is
actually fixed.
Purchases Ledger
Refer purchase Account
Q
Quarterly Report
Refer Interim Statement
Quick Assets
Quick assets will be the sum of the current assets minus inventory.
Quick Ratio
Refer Acid test Ratio
Quotation
Quotation is a declaration involving cost in which the seller is ready to sell his goods.
R
RAB
RAB may become the acronym with regard to Regulatory Asset Base.
Rate associated with Return
Rate regarding return may become the acquire as well as loss created by an investment or possibly a
enterprise like a whole, expressed like a percentage.
Ratio
Ratio can be a mathematical instrument which in turn helps compare the performance involving two
accounting results.
Ratio Analysis
Ratio analysis is to use the different ratios that assist compare the actual performance of the
organization along with some other companies, or even using its previous results or perhaps with
regard to checking internal efficiency.
Real Accounts
Real accounts are the actual ones accounts which usually offer with almost all the transactions with
an asset or possibly a liability account.
Realizable Value
Realizable value is the value which is expected upon converting your assets held from the
organization to cash.
Realization Principle
Realization principle associated with accounting states the income ought to be recognized once the
merchandise can be bought or possibly the services will be delivered.
Rebate
Rebate will become the payment produced for the customer in order to induce him into a sale or to
induce early payment for the sale.
Recast Earnings
Recast earnings are the particular type earnings which can easily be made if some expenses could
be eliminated.
Receipt
Receipt could be possibly an act regarding receiving money or even a document created by the
receiver of money acknowledging that the money has been received.
Receivable
Receivable will end up being the money that is credited towards the enterprise and contains not
really but been received.
Receivables Turnover
Refer Accounts Receivable turnover
Receiver
Receiver can be someone who receives something, which might end up being cash, assets etc.
Reconciliation
Reconciliation will always be the process of cross-checking along with correcting/adjusting the
check associated with a couple of statements so that your figures regarding both these statements
match for the single item.
Recording Principle
Recording principle throughout accounting governs the actual duration of recording the specific
entry. That says the entry ought to always be able to be recorded once the money is actually earned
or perhaps pledged rather than if the actual inflow or outflow regarding money will take place.
Recourse Note
Recourse note will be the right in the payee for you to demand payment from the maker as well as
endorser of your negotiable instrument.
Recovery
Recovery may always be the collection of quantities receivable which in fact had formerly been
published of as poor debts.
Recurring Entry
A recurring entry will become the entry occurring regularly on the exact same date (of various
months) and has the identical amount.
Redeemable
Redeemable can be a factor that can be converted in order to cash.
Redemption
Redemption is to repay the principal amount on a redeemable debt or security.
Register
Register is to record the actual entries for that transactions inside the official books or registers.
Registered Bonds
Registered Bonds are your ones with regard to that what they are called and get in touch with
information on the link holders are maintained from the issuing company.
Regulation
Regulation may become the manage or perhaps direction according for the guidelines set from the
government.
Reimbursement
Reimbursement is to repay the add up to an individual who had previously borne your expense about
our behalf.
Related Party Transaction
Related party transaction is a transaction in between 2 events exactly where 1 party has a
significant control or even influence over the other.
Relevance Concept
Relevance concept will end up being the accounting concept that refers to the capacity regarding
accounting info to produce an effect on the choice makers.
Reliability Concept
Reliability concept will be the accounting concept which says the monetary reporting by the
company should be trustworthy and trustworthy.
Remittance Advice
Remittance guidance will be the notification sent to a debtor to end up being able to remind him
with the payment due.
Remuneration
Remuneration is the act regarding having to end up being able to pay for your goods bought as well
as solutions received.
Replacement Cost
Replacement price may end up being the total expense from existing rates regarding an asset which
may well not necessarily end up being an exact duplicate associated with the niche asset but serves
the identical purpose or performs the same operate as the original.
Replacement Value
Replacement value will always be the price spent to replace an item or an asset.
Reported Earnings For Each Share
Reported earnings for each talk about will become the section of the particular total revenue
actually payable to the shareholders divided by the quantity of shares available.
Representation Expenses
Representation expenses are the ones that are incurred with regard to representational purposes
like enterprise parties.
Reserve
Reserve is truly a pool of cash developed from income to get a certain purpose or perhaps as a
burglar regarding contingencies
Residual
Residual is what is left when the others with the entity is actually taken away.
Residual Claim
Residual claim is the claim produced about the earnings in the actual end the other debt obligations
have been satisfied.
Residual Equity Theory
Residual equity theory states that the people who just love common stock are the real people which
just love your company.
Residual Income
Residual earnings is the earnings which usually will probably be earned without any other effort or
expense.
Residual Value
Residual worth will be thought as the ebook value of your fixed asset after it has been completely
depreciated.
Resource Absorption
Resource absorption is actually when every 1 involving the limited sources regarding the company
are usually absorbed.
Restricted Assets
Restricted assets are those whose use as well as working is fixed by simply law.
Results coming from Operations
Results with regard to operations may end up being the commonly used synonym regarding
monetary statement.
Retained Earnings
Retained earnings are that will part of the distributable revenue which might have not been given
for the owners, yet retained inside the company regarding future use.
Retained Earnings Statement;
Retained earnings statement may be the statement that will offers the important points concerning
the particular earnings retained by the business inside the business.
Return on Assets
Return upon asset is the ratio which compares the actual net profit right after tax for the total assets
inside the company. Return in Assets = Earnings after Tax / Total Assets
Return about Richesse Employed
Return about capital employed is a measure involving how successfully a company is utilizing its
capital. Return in capital Employed = profit Just Before Earnings as well as Taxes / (Total Assets -
current Liabilities)
Return on Equity
Return about Equity = Net income / Shareholders Equity
Return on Investment
Return in investment measures your total cash coming into the company because of an investment.
Return in Net Worth
Refer Return in Shareholder Equity
Return upon Sales
Return in sales = Earning prior to Taxes / Total Sales.
Return on Shareholder Equity
Return on Shareholder Equity = profit after Tax / Shareholder Equity
Returns Inward
Refer Revenue Returns
Returns Outward
Refer Obtain Return
Revaluation
Revaluation is an exercise conducted by the organization in order to review the price of the assets
regarding the business to produce certain these people are not undervalued or even overvalued.
Revenue
Revenue may become the cash that will occur in due to revenue regarding merchandise or perhaps
provision regarding services.
Revenue Adjustment
Revenue adjustment is surely an entry which adjusts the particular income based on received data.
Revenue Expenditure
Revenue expenditure will always be the total expense that's incurred in income generating activities.
Revenue Principle
Refer Realization Principle
Reversing Entry
Reversing entry is a rectifying entry which could be created to right an original oversight within
recording the entry.
Risk
Risk is a possibility of losing or in virtually any other case not gaining value through an economic
activity.
Risk Adjusted Return
Risk adjusted return is subtracting the actual price of return of one asset in the price of return of
another asset, both asset having similar risks.
ROACE
ROACE may always be the acronym pertaining to Return about Typical Richesse Employed
ROI
ROI will become the acronym for Return upon Investment. Study onto understand How to be able to
Calculate Return about Investment.
S
Safety Stock
Safety stock is the quantity of stock the company defines because the lowest the particular inventory
degree of the business can easily go.
Salary
Salary will be the remuneration paid for the employees in the organization.
Sales
Sales may end up being the money generated by offering your merchandise of the company.
Revenue = Quantity involving Units * Price per Unit
Sales Account
The revenue account is the ledger account which provides the essential points regarding the
revenue in the business.
Sales as well as Collection Budget
Sales and also collection spending budget is the quantity regarding revenue that the business
expects to make in the yr and the revenues that will it expects to be able to collect.
Sales along with Marketing and Advertising Expense
Sales and advertising expenses are the total expenses allocated to creating awareness for your
organization and the goods inside the industry along with offering them.
Sales Discount
The price reduction allowed through the organization upon revenue for you to induce early cash
payment is known as revenue discount.
Sales Invoice
Sales invoice will end up being the record with the transaction involving the buyer as well as the
seller, produced through the seller.
Sales Journal
Sales Journal will be in which usually the entry with regard to sales associated with goods will be
chronologically made.
Sales Order
Sales order will be the contract by which the buyer and furthermore the seller in the merchandise
agree around the terms of a contract.
Sales Proceeds
Sales proceeds is the funds realized from sales.
Sales Returns
Sales return may always be the items returned through the consumer to the company credited to
always be able to poor quality, unsuitability etc.
Sales Revenue
Sales revenue is the income realized from your sale regarding goods.
Sales Tax
Sales tax is the tax levied on the sale of a product from the government.
Salvage Value
Salvage value may end up being the scrap value realized about the sale of the fully depreciated asset
or a asset which usually can't be used for production.
Scrap Value
Refer Salvage Value
Selling along with Administrative Expense Budget
Selling and administrative expenses spending budget gives the quantity that is allocated pertaining
to promoting and also administrative expenses of the business.
Semi Fixed Costs
Semi fixed costs are those costs exactly where one component in the expense is fixed along with
another will be variable. That They will also be referred for you to as semi variable costs.
Sensitive Assets
Sensitive assets are those assets, your return or usability involving which is actually often affected
by external uncontrollable factors.
Sensitive Liabilities
Sensitive liabilities are those that use a floating fascination charge which can be often affected by
external uncontrollable factors.
Sensitivity Analysis
Sensitivity analysis helps the business verify your sensitivity associated with a product throughout
relation to the numerous external as well as internal changes.
Separate Determination Concept
Separate determination concept within accounting says which each component of each group
involving assets or liabilities needs to be valued separately.
Separate Valuation Concept
Separate valuation concept inside accounting says that to always be able to appear for the aggregate
amount regarding a great point or even a liability, each individual asset as well as liability
comprising the particular aggregate has in order to be determined separately.
Service Charge
Service charge may become the charge that is compensated more than and also above the essential
fee for delivering a service.
Setoff
Setoff can end up being a means of discharging a new credit card debt by developing a debt
associated with exactly the actual same quantity contrary in order to the creditor, from the sale of
merchandise etc.
Share
A share can be a part of the business. It is the total capital split up into little individual parts.
Share Capital
Share money will end up being the money raised by the organization with a public issue associated
with shares in favor of cash.
Shareholder Loan
Shareholder loan will be any kind of loan given to some shareholder by the company.
Share Premium
Share premium may be the further price compensated for purchasing the stock, more than as well as
over your par value of your talk about in the duration of issue.
Short Term Asset
Short term asset will be an asset which can easily be expected to become converted into cash inside
a year.
Short Term Liability
Short term liability is the liability that's expected to be paid off inside a new year.
Simple Journal Entry
Simple journal entry is but one that provides only one debit effect then one credit effect.
Single Entry Bookkeeping
Single entry book trying in order to keep will always be the complete opposite of double entry
bookkeeping as well as only one impact of your transaction can be recorded.
Sinking Fund
Sinking fund can always be a fund produced by depositing the actual profits of each 12 months with
just about all the objective of ultimately settling any debt.
Solvency
Solvency is really a scenario in that the assets in the entity are generally sufficiently greater than
the particular liabilities.
Split Payment
Split payment is a mode regarding payment which usually allows you to pay partly throughout cash
and partly on credit.
Spoilage
Spoilage includes all the supplies wasted or even spoiled inside the procedure for production.
Spontaneous Assets
Spontaneous assets are your type which arise from your day-to-day operations in the business.
Spontaneous Liabilities
Spontaneous liabilities are those that arise in the day-to-day liabilities of the business
Spot Cash
Spot money may become the immediate payment regarding cash.
Standard Price System
Standard price system may be the price system that's particularly designed to allocate different
costs below their own respective heads.
Startup Costs
Startup expenses are usually the various costs incurred in starting the business. Legal charges and
also registration charges are usually included in the startup costs.
Stated Capital
Stated richesse may end up being the amount associated with money declared through the company
as capital inside the economic statements with the company.
Statement associated with Accounts
Statement associated with account will always be the specifics of all the transactions in between a
debtor and creditor.
Statement of Money Flows
Statement associated with money flows exhibits your inflow and outflow regarding the cash from the
business.
Statement of Retained Earnings
Statement of retained earnings provides the facts associated with how the retained earnings
involving the business are now being utilized.
Statement regarding stockholders equity
Statement involving stockholders equity is the review of the modifications in shareholder equity for
that accounting period.
Statutory Account
Statutory account is actually a free account developed by the operation associated with law, as
opposed to as getting a enterprise need.
Statutory Deductions
Statutory deductions are your ones that are produced in compliance involving several law or
perhaps regulation.
T
Tainted Accounts Receivable
Tainted accounts receivable are those which in turn possess some legal problems mounted on them,
related to always be able to fraud, misuse etc.
Takeover
Takeover is when one organization buys a new controlling stake inside as well as totally purchases
another.
Tangible Assets
Tangible assets are the particular type which will be often seen or touched.
Tangible book Value
Tangible book worth may end up being the summation associated with every 1 of the tangible assets
of the business.
Tangible Capital
Tangible capital is the total associated with outstanding stocks along with retained earnings.
Target Costing
Target costing involves setting a price for that product then obtaining the production expenses
inside collection with the target price, in order that the company can easily make revenue too.
Target Margin
Target margin will be the desired gain on a product.
Tariff
Tariff is the tax paid by the importing nation around the import of goods.
Tax
Tax may always be the amount charged against the earnings of the enterprise from the government
pertaining to permitting the activity associated with the business enterprise inside the country.
Taxable Benefits
Taxable advantages are your ones non-cash benefits provided from the employer towards the
employee upon which tax can be being paid.
Taxable Income
Taxable earnings may always be the income earned by an individual or possibly a business entity
upon which the tax liability is decided.
Tax Accounting
Tax accounting implies using into consideration the consequence of taxes although planning
business strategies.
Tax Base
Tax base may always be the value of the taxable assets, earnings as well as property.
Tax effect Method
Tax impact technique says that the consequence upon tax to become paid, should be demonstrated
inside the textbooks of accounts inside the 12 months where the actual earnings is recorded,
irrespective involving if the tax can be truly paid.
Technically Bankrupt
Technically bankrupt is actually a circumstance in that the company's liabilities have exceeded its
assets, currently, however the creditors haven't but inquired pertaining to their money.
Term Bonds
Term bonds are bonds which are held to acquire a certain predefined amount of energy whose
principal amount can be payable at maturity.
Term Debt
Term credit card debt can be a credit card debt that may mature with a certain predefined date
within the future.
Terminal Value
Terminal worth will become the total discounted amount realizable inside the future.
Term Loans
Term loan can become a loan obtained from a new lender to find a specified period associated with
time involving time.
Time Worth involving Money
Time price of cash is truly a concept in which states that will money in hand these days is
significantly more valuable when compared with cash receivable tomorrow.
Total Assets
Total assets is the sum involving all the fixed as well as existing assets.
Total Asset Turnover
Total asset turnover gives the actual efficiency associated with the business throughout managing
their own assets.
Trade Debtors
Trade debtors are generally people who owe the company money, because of items sold to them
upon credit.
Trade Discount
Trade low cost is actually reducing the offering cost of merchandise to boost sales.
Trading Concern
Trading concern is a in which derives its goods pertaining to sale by buying goods off their
producers with regard to resale to their client base, thereby generating revenue.
Transportation Costs
Transportation expenses are those which are incurred throughout transporting the particular
merchandise coming from 1 place to another.
Trial Balance
Trial balance is listing all the ledger accounts and their balances.
Turnover
Turnover is actually sales.
U
Unabsorbed Costs
Unabsorbed costs are your type which occur if the cost structure doesn't fully reflect all variable
and/or fixed costs.
Unallocated Costs
Unallocated expenses are the particular type which in turn aren't included inside the price
associated with merchandise sold.
Unappropriated Profits
Unappropriated profits are those which have been withdrawn in the enterprise by the proprietors or
not appropriated.
Uncollectible Accounts Expense
Uncollectible accounts expense may end up being the expense incurred throughout wanting to
recognize payment from the debtor, but the debtor doesn't increase your risk for payment.
Uncontrollable Expense
Uncontrollable expense is often that expense incurred within the usual course of business which
usually can not really be controlled.
Underabsorbed Overhead
Underabsorbed overhead will be the total overhead that is not necessarily allocated to the item sold.
Under-Billing
Under-billing just isn't receiving the full quantity payable or billing for a lower amount as compared
to what is receivable.
Under-Stated
Understated is always to state less than what it really is.
Underwriting
Underwriting is often to protect by insuring and to guarantee economic support.
Unearned Rent
Unearned rent may end up being the rent received beforehand before it is truly earned.
Unearned Revenue
Unearned income will end up being the revenue received before it is truly earned.
Unfavorable Variance
Unfavorable variance is when the actual costs incurred are higher compared to regular costs.
Unliquidated
Unliquidated will be a excellent point which usually offers not been converted to cash.
Unrealized Accounts Receivables
Unrealized accounts receivable could be unhealthy debts.
Unrealized Income
Unrealized earnings is that income which is earned although not but received.
Unresolved Equity
Unresolved equity may end up being the distinction between your total assets and the total liabilities
in the stability sheet.
Unrestricted Assets
Unrestricted assets are the ones about which there's no government regulation relating to his or her
use.
Unsecured debt
Unsecured debt is a in which usually the borrower provides simply no collateral contrary to become
able to the financial debt for the lender.
Usage Variance
Usage variance will be the distinction between the budgeted and real use of materials.
Useful Life
Useful life will always be the approximate quantity of the time for which the actual asset is actually
assumed being beneficial prior with it being completely depreciated.
V
Valuation Allowance
Valuation allowance is definitely an allowance which gives with regard to changes in the price of the
assets of the company.
Valuation Date
Valuation date will be the date on that your valuation can be made.
Variable Costs
Variable expenses are those which vary having an improve as well as decrease inside the production.
Variable Expenses
Refer Variable Costs
Variable interest Rate
Variable fascination price may always be the curiosity rate which in turn changes depending around
the modifications in an underlying fascination price index.
Variances
Variance is a difference between something projected and actual.
Variance Analysis
Variance analysis will end up being the utilisation associated with the a variety of forms of variances
to investigate the entire performance.
W
WACC
WACC will become the acronym with regard to Weighted Typical Expense regarding Capital.
Wage
Wage may always be the remuneration compensated to a worker with regard to output of goods as
well as services.
Warehouse
Warehouse is really a shop where all the unsold finished goods or possibly the unused raw materials
are generally kept.
Wholly Owned Subsidiary
Wholly owned subsidiary is but one whose 100% in the stock is actually owned through the mother
or father company
Windfall gains
Windfall gain is really a gain which usually the business will get as a results of an uncontrollable
event
WIP
WIP is the acronym with regard to Perform in Progress.
Working Capital
Working Money = current Assets - Present Liabilities
Working Money Turnover
Working capital turnover exhibits how efficiently your operating money associated with the business
can be employed.
Write Off
Write off would be to reduce the need for an item.
Y
Yield
Yield will always be the annual return about investment which could be expressed as a percentage.
YTM
YTM is the acronym pertaining to Yield to end up being able to Maturity.
YTD
YTD will be the acronym for any extended time for you to date.
Z
Zero Coupon Bonds
Zero coupon bonds are your type upon that curiosity just isn't compensated on a yearly basis.
So it was a comprehensive accounting terms and definitions glossary. I believe this accounting
glossary will solution all your queries and doubts concerning accounting terminology.
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