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					ACCOUNT : ACCOUNT is the detailed record of
          expense.

ACCOUNT        ACCOUNT AGING usually refers to
AGING :        receivable based on the dates the cha
               accounts payable, to a lesser degree, to
               OF ACCOUNTS.

ACCOUNT ACCOUNT ANALYSIS is a way to
ANALYSIS : driver and classifies each account from
           cost accountant then looks at each co
           per unit of cost driver activity or the pe

ACCOUNTING ACCOUNTING is primarily a syst
:          based upon the accounting equation
           someone says "accounting" they a
           involved in the application of the acc

ACCOUNTING ACCOUNTING CONCEPTS are th
CONCEPTS : statements, i.e., the basic assumption
ACCOUNTING ACCOUNTING CYCLE is the sequ
CYCLE :        given period. It refers to the fact tha
               a year) there are a set of steps (c
               preparation for the next period or cy
               a start and an end. The cycle usually
               adjusting entries, posting to the accou

ACCOUNTING ACCOUNTING ENTITY is an orga
ENTITY :   for legal or tax purposes. An accou
           separate from its individual member
           also ACCOUNTING ENTITY ASSU

ACCOUNTING ACCOUNTING EQUATION is a m
EQUATION : between the assets, liabilities and ow
           equation states that assets equal li
           operations applied to both sides of
           equity.

ACCOUNTING ACCOUNTING EVENT is when th
EVENT :    when there are changes in owner's eq

ACCOUNTING ACCOUNTING INCOME is the inc
INCOME :    Income = the change in net assets
            owners; i.e. transaction based.
ACCOUNTING ACCOUNTING MEASUREMEN
MEASUREMENT and information disclosure require
AND
DISCLOSURE :

ACCOUNTING ACCOUNTING PERIOD is the tim
PERIOD :   year.

ACCOUNTING ACCOUNTING RATIO is the resu
RATIO :    Ratios help analysts interpret financi

ACCOUNTING ACCOUNTING STANDARDS BO
STANDARDS accounting standards. Many of ASBs
BOARD (ASB)
:

ACCOUNTING ACCOUNTING SYSTEM is the se
SYSTEM :   that provide for identifying releva
           documents, entering data into the
           accurately, updating master files prop
ACCOUNTS ACCOUNTS PAYABLE (AP) are tra
PAYABLE  for goods and services received.
(AP) :

ACCOUNTS ACCOUNTS PAYABLE TO SALES
PAYABLE    relative to sales. Numbers higher than
TO SALES : suppliers assets (cash owed) to fund op

ACCOUNTS ACCOUNTS RECEIVABLE is a cur
RECEIVABLE or merchandise sold on credit.
:

ACCOUNTS ACCOUNTS RECEIVABLE LEDG
RECEIVABLE which cash assets owed to an organiza
LEDGER :

ACCRUAL : ACCRUAL is the recognition of reven
          when cash is received or disbursed.
ACCRUAL    ACCRUAL BASIS OF ACCOUNTI
BASIS OF   period in which they are earned o
ACCOUNTING disbursed in that period. This is the
:          order to conform to generally accep
           statements for external users.

ACCRUED      ACCRUED ASSETS are assets from r
ASSETS :

ACCRUED ACCRUED EXPENSES are expenses
EXPENSES : is postponed.

ACCRUED      ACCRUED INCOME is income earn
INCOME :     period.

ACCRUED ACCRUED INTEREST is interest earn
INTEREST :
ACCRUED ACCRUED INVENTORY functions
INVENTORY inventory physically received into the
:          arrived.

ACCRUED      ACCRUED LIABILITY are liabilitie
LIABILITY : made, during a given accounting pe
            would be: wages, taxes, suppliers/vend

ACCUMULATED ACCUMULATED DEPRECIATI
DEPRECIATION a company for wear and tear or ob
:

ACQUISITION ACQUISITION is one company taki
:           MERGER and POOLING OF INTER

ACQUISITION ACQUISITION COST is the amoun
COST :      plus transportation costs and ancillary
ACTUAL    ACTUAL COST is the amount paid fo
COST :    value.

ADJUSTING ADJUSTING ENTRIES are special a
ENTRIES : books at the end of an accounting p
          accounts for items that are not recorded

ADJUSTMENT ADJUSTMENT can be either: 1.
:              ADJUSTING ENTRIES; or, 2. ch
               adjustment of an account due to the r

AGENCY        AGENCY COSTS is the incremental c
COSTS :

AGING OF AGING OF ACCOUNTS is the classi
ACCOUNTS : billing or the due date. The longer a
           inventory is held, the greater is its r
           company also has an Opportunity Cos
           elsewhere for a return. An aging sche
           from 1-30 days, 31-60 days, 61-90 da
           held too long, obsolescence, spoilage
           done for other accounts such as fix
           AGING.
ALLOWANCE . ALLOWANCE FOR BAD DEBTS
FOR BAD     ACCOUNTS RECEIVABLE, to allow
DEBTS :

AMALGAMATION AMALGAMATION is a consol
:            the distinction being that the sur
                    base.

AMORTIZATION AMORTIZATION is the gradual
:            sufficient to meet current intere
             involves real property, often the
             and hazard insurance on the pr
             intangible asset over the expecte
             $100,000 for a patent, they amor
             the deduction of capital expenses
             is a method of measuring the
             equipment or buildings.

APPRECIATION APPRECIATION is the increase i
:            which is due to economic and othe
             to improvements or additions made

ARBITRAGE ARBITRAGE is the movements of
:         interest rates; such movements quickly
ASSET :   ASSET is anything owned by an indiv
          value. Assets may consist of speci
          obligations due others. (See also Liabil
ASSET     ASSET VALUATION is the process o
VALUATION investment, or balance sheet item. Th
:         which may be incorporated into com
          necessarily to be transferred but the
          takeovers, share flotation or mortgages

AUCTION       AUCTION MARKET is a trading sy
MARKET :      enter competitive offers simultaneousl
              trades are negotiated. Examples: the
              auction market.

AUTHORIZED AUTHORIZED CAPITAL STOCK
CAPITAL     can be issued under a company's A
STOCK :     than the number of authorized shares
BAD DEBT : BAD DEBT is an open account balan
           and is written off.

BAD DEBT      BAD DEBT EXPENSE see UNCOLL
EXPENSE :
BALANCE BALANCE OF PAYMENTS / BALA
OF         total export dollar value and its tota
PAYMENTS / particular trading partner. A positive
BALANCE means capital flows out of the country.
OF TRADE :

BALANCE       BALANCE SHEET is an itemized sta
SHEET :       a given business to portray its net wor
              balance sheet are generally the historic

BALANCE BALANCE SHEET GEARING is the
SHEET
GEARING :
BALANCING BALANCING OFF THE BOOKS m
OFF THE   much money is left or, how overdrawn
BOOKS :   quarterly, for management committee

BANK      BANK BALANCE is the amount of m
BALANCE : by a financial institution on a bank stat

BANK          BANK COLLECTION is the collectio
BALANCE is
the amount of
money in a
bank acco :

BANK      BANK GUARANTEE is an irrevoca
GUARANTEE money in the event that the party re
:         discharge the liability to a third person

BANK            BANK RECONCILIATION is
RECONCILIATION depositor’s checkbook balance.
:
BANK      BANK STATEMENT is a statement
STATEMENT account holder.
:

BANKRUPTCY BANKRUPTCY is a state of insolv
:          pay debts. In the U.S., bankruptcy ca

BENCHMARK BENCHMARK is a study to compare
:         or, a standard for the basis of compar
BIG BATH : BIG BATH is a business strategy in
           make poor results look even worse. St
           improvement. Big bath is sometimes e
           more impressive by employing big bat

BILLS         BILLS PAYABLE, in merchant ac
PAYABLE : promissory notes which have been ma
              account under that name, and recorded
BILLS         BILLS PURCHASED, in trade fina
PAYABLE, in immediate funds in exchange for a sal
merchant      will send the sales documents to the bu
accounts, are
all bills :

BILLS      BILLS RECEIVABLE, in merchant
RECEIVABLE bonds, and other evidences or secur
:          payable to him.

BOOK COST BOOK COST, normally, is the cost a
:         amount paid to acquire an asset.
BOOK          BOOK INCOME is the income repor
INCOME :      i.e., taxable income normally is not al
              within financial statements.

BOOK      BOOK INVENTORY is the acquisitio
INVENTORY inventory.
:
BOOK      BOOK VALUE is an accounting ter
VALUE :   assets less liabilities. The book value
          adding all assets (generally excluding
          and other liabilities, plus the liquidatio
          is divided by the number of common
          common share. Book value of the a
          relationship to market value.

BOOK-TO- BOOK-TO-BILL RATIO is the ratio o
BILL RATIO sent (sic billed). The ratio is a measur
:          the orders than it can likely produce a
           to investors or traders in the high-tech
BOOK-TO-     BOOK-TO-MARKET is the ratio of th
MARKET :

BOOKING : BOOKING, in import / export, is an a
          shipment.

BOOKKEEPING BOOKKEEPING is the recording o
:
BOOKS OF BOOKS OF ACCOUNT are the finan
ACCOUNT : level of recorded data, before summari

BOOKS OF     BOOKS OF RECORD are all manda
RECORD :     events, or decisions pertaining to the
             of director minutes, births or deaths, an

BOOT :       BOOT is money received during an
             business for an assumption of liabilitie

BORROWING BORROWING COSTS is the financi
COSTS :   borrowing of funds, i.e. interest, amo
               debt securities, loan fees, gains and lo
               funds and regarded as an adjustment t

BREACH OF BREACH OF CONTRACT is the failu
CONTRACT
:
BREAK-     BREAK-EVEN ANALYSIS is an an
EVEN       products that need to be sold to reach a
ANALYSIS :

BREAK-     BREAK-EVEN EQUATION is the eq
EVEN       unit selling price, v = unit variable cos
EQUATION : px = vx + FC.

BREAK-     BREAK-EVEN POINT is the volu
EVEN POINT combination of sales and costs that wil
:

BROKERAGE BROKERAGE, dependent upon usag
:         contract between two parties, or, the p
BROUGHT BROUGHT FORWARD is the recogn
FORWARD : accumulated balance brought forward
BUDGET :  BUDGET is an itemized listing of the
          anticipates receiving, along with a listi
          will be incurred in obtaining the abo
          budget is typically for one business cy
          year capital budget). Of the many kin
          an EXPENSE BUDGET lists expected
          the anticipated payments for CAPITAL

BUDGET    BUDGET CONTROL is actions carri
CONTROL : budget as a standard, an organization
          objectives. Their actual performance is

BUDGET      BUDGET PERFORMANCE REP
PERFORMANCE performance.
REPORT :

BUDGETARY BUDGETARY ACCOUNTING, con
ACCOUNTING the cost of planned acquisitions and t
:
BUDGETARY BUDGETARY DEFICIT occurs when
DEFICIT :
BUDGETING BUDGETING is the documenting o
:         (normally one year) along with prop
          BUDGET.

BUDGETING BUDGETING PROCESS is a systema
PROCESS : usually fixed resource, such as money

BUSINESS      BUSINESS ENTITY is a selection of
ENTITY :      proprietorship, general partnership, c
              liability company.

BUSINESS  BUSINESS SEGMENT is a compone
SEGMENT : service or a group of related products
          that are different from those of other b

BUSINESS      BUSINESS UNIT is equivalent to a w
UNIT :        separate legal entity. It is an organizat
              has all support functions contained w
              from a business unit to the corporate o
CAPITAL :     CAPITAL, in economics, can mean:
              production process. In finance, capita
              enterprise used in transacting the busin

CAPITAL       CAPITAL ASSET is a long-term ass
ASSET :       business. Generally, it includes fixed a
              and furniture.

CAPITAL   CAPITAL BUDGET is the estimated
BUDGET :  given fiscal period. Capital items are
          which is normally written off over a n
          limited to the expenditures that will b
          operating budgets.
DEBENTURE DEBENTURE is a corporate IOU that
:         therefore somewhat riskier than a bond

DEBIT :       DEBIT is a record of an indebtedness;
              constituting an addition to an expens
              worth, or liability account.
DEBIT         DEBIT CARD is a banking card enhan
CARD :        sale (POS) features so that it can be
              individual's checking account, allowin
              without writing a check. Each finan
              customize the product and differentiat
              access cards.

DEBT      DEBT FINANCING is raising money
FINANCING directly from financial institutions.
:         installments, with interest. A lender i
          based on that risk. The lender usually
          business plan, management capabiliti
          evaluate your company’s chances of su

DEBT        DEBT INSTRUMENT is a written
INSTRUMENT CDs, GICs, commercial paper, and ba
:
DEBT       DEBT SECURITY is a security repres
SECURITY : for the loan, the issuer promises to pa
           security issuers may include corporati
           agency. See CONVERTIBLE and CON
DEBT TO       DEBT TO EQUITY measures the ris
EQUITY :      capital contributed by creditors and
              provided by owners for the creditors
              borrow. While using debt implies ri
              introduces the potential for increase
              successfully (operating earnings exce
              magnified through financial leverag
              acceptable. The company should be c
              general benchmark. Should a compan
              will be a major impediment to obtain
              find the company's working capital, a
              serious financial weakness.

DEBT TO       DEBT TO TOTAL ASSETS RATIO m
TOTAL         debt, includes both current and long te
ASSETS
RATIO :

DEBTOR :      DEBTOR is the party against who one

DEFERRED : DEFERRED, in accounting, is any ac
           future date, e.g. annuities, charges, t
         dependent on type of deferral, as either
DEFERRED DEFERRED ASSET is an amount ow
ASSET :  entity within one year from the date of

DEFERRED DEFERRED EXPENSES see PREPAI
EXPENSES :

DEFERRED DEFERRED INCOME is that income
INCOME : but have yet to be "earned". For examp
         on the 1st Jan. As the company financi
         to record five months of the income a
         be accrued in the balance sheet as a "de

DEFICIT :     DEFICIT is a debit balance in the R
              losses.

DEFICIT       DEFICIT BUDGET is where the estim
BUDGET :
DEPOSIT :     DEPOSIT can mean a variety of thing
              will be met; b. the act of putting mon
              time of purchase with the balance to b
              acquired for temporary use.

DEPRECIATION DEPRECIATION is the amount of
:            off the cost of a plant or machine o
             obsolescence, and salvage value. I
             in each business period over the l
             line (SL). If the expense is assume
             period over the life of the asset, th
             used variations of the accelerated
             digits (SYD) and the double-dec
             depreciation is chosen for a busine
             reporting purposes.

DEVALUATION DEVALUATION, in economics, is
:           currencies.

DILUTED   DILUTED EARNINGS PER SHAR
EARNINGS preferred stock, unexercised stock op
PER SHARE share are usually a more accurate refle
:
DIRECT       DIRECT COST is that portion of co
COST :       service for sale and is included in the
             inventory (it can be traced to a given c
             of indirect cost.
DIRECT       DIRECT EXPENSE is that portion of
EXPENSE :    or service for sale and is included in
             and inventory.

DISCOUNT     DISCOUNT RATE is the interest rate
RATE :       a U.S. bank to borrow funds when a b
             to borrow, and such borrowing is qui
             used to meet short-term liquidity needs

DIVIDEND : DIVIDEND is that portion of a corpora

DIVIDEND     DIVIDEND PAYOUT RATIO is a
PAYOUT       dividends; computed by dividing cash
RATIO :      stock.

DIVIDEND     DIVIDEND YIELD is the annual rate
YIELD :
DIVIDENDS DIVIDENDS PER SHARE (DPS)
PER SHARE shareholders earned by way of pro
(DPS) :   shareholders were actually paid by w
          Dividends paid to equity shareholders

Dr :          Dr is an ancient Italian abbreviation f
              confused with the acronym DR with bo

DRAFT :  DRAFT, in import / export, is a cont
         certain amount of money, within a spe
EXTERNAL EXTERNAL AUDIT is an audit cond
AUDIT :  company being audited. These indepe
         once per year (see INTERIM AUDIT)
         role is to give an opinion of the financ
         the company being audited. Based on w
         for management and board utilization
         audit is the most common type of ex
         purpose audits which might include; p
         the results, a less intensive review, and

EXTERNAL EXTERNAL AUDITOR is an audito
AUDITOR :     independent of the company it is aud
              professional association of accounta
              corporation’s board of directors.

EXTRAORDINARY EXTRAORDINARY ITEMS a
ITEMS :            infrequently. Both characteris
                   extraordinary item on the incom
EXCHANGE EXCHANGE RATE RISK, in foreig
RATE RISK : uncertain changes in the rate of exchan

EXPENDITURE EXPENDITURE is a cost incurred
:           See expenses.

EXPENSE :     EXPENSE is the amount of assets or s

EXPENSES : EXPENSES are the daily costs incurre

EXPLORATORY EXPLORATORY RESEARCH is
RESEARCH :  market survey where targeted co
            geared toward eliciting a lengthy a
EFFECTIVE EFFECTIVE TAX RATE is the net ra
TAX RATE : taxes. It is calculated by dividing the to

EFFICIENCY EFFICIENCY is the ratio of the output
:

ENTREPRENEUR ENTREPRENEUR is the person
:            and management of a given bu
             and/or professional risk taker alm

EQUITY :       EQUITY is, normally, ownership or pe

EXCHANGE EXCHANGE RATE is the rate at whic
RATE :
EARNINGS : EARNINGS is a term that refers to the
           to shareholders other than return of cap

EARNINGS       EARNINGS BEFORE TAXES see PR
BEFORE
TAXES :
EARNINGS EARNINGS PER SHARE (EPS) is ei
PER SHARE and losses, less preferred-share divid
(EPS) :   most recent fiscal year end. Net incom
          before extraordinary gains or extraor
          Diluted EPS is where the number of s
          outstanding dilution such as options, w

EBIT :       EBIT is Earnings Before Interest an
             performance calculated as revenue le
             referred to as operating earnings.

EFFECTIVE    EFFECTIVE INTEREST RATE is
INTEREST     percentage. Includes up-front costs pa
RATE :       amount than the interest rate stipulated
FACE         FACE VALUE is the value printed or
VALUE :

FAIR         FAIR MARKET VALUE is the price
MARKET       buy, in an arms- length transaction, w
VALUE :      have reasonable knowledge of relevant
FAIR VALUE FAIR VALUE, under GAAP, is the
:          current transaction between willing pa
           balance sheet, the fair value of a liabil
           or settled in a current transaction betwe

FIFO (first-in, FIFO (first-in, first-out) is an inven
first-out) :    assumed to be the first goods sold so
                purchased goods.

FINANCE        FINANCE CHARGE is the total dolla
CHARGE :       payments for the life of the loan, any i
               charges paid to the lender and/or brok
               fees are normally not included in the fi
FINANCE        FINANCE LEASE, typically, is a full-
LEASE :        responsible for maintenance, taxes, and

FINANCIAL      FINANCIAL ACCOUNTABIL
ACCOUNTABILITY has adopted to meet their respo
:              financially sound. They wo
               accountable for implementing
                     Asset Protection and Major Ris

FINANCIAL FINANCIAL ACCOUNTING is the
ACCOUNTING information to interested external par
:

FINANCIAL FINANCIAL EXPENSE can mean a
EXPENSE : interest expense on long-term debt; or
          charges; foreign exchange losses on de
          amortization of bond redemption prem
          charges and impairment losses on inve

FINANCIAL FINANCIAL RISK is the possibility o
RISK :    principal and/or interest in a timely m
          for the most part, are immune from de
          Bonds issued by corporations are mor
          bankrupt. Municipalities occasionally
          called default risk or credit risk.
FINANCING FINANCING COST is the difference
COST :    and the assets cash yield. Positive carry
          cost; negative carry means that the fina
FIRM :        FIRM is members of a business organi
              e.g. a legal or accounting firm.

FISCAL        FISCAL YEAR is the declared acco
YEAR :        conformance to a calendar year (Janu
              months, 52 weeks, 365 days. For exam
              i.e. October 1 through September 30 is

FIXED         FIXED ASSET is a long-term tangibl
ASSET :       the current or upcoming fiscal year,
              furniture. Sometimes called PLANT.

FIXED ASSET FIXED ASSET INVESTMENT see T
INVESTMENT
:
FIXED      FIXED ASSETS are those assets of a
ASSETS :   business, and which will not normally
           For example, furniture, fixtures, land
           receivable and inventory are not. Some
FIXED         FIXED ASSETS (NET) is all propert
ASSETS        accumulated depreciation or depletion.
(NET) :
GROSS         GROSS PROFIT is net sales minus co
PROFIT :

GROSS    GROSS SALES is the total revenue a
SALES :  also GROSS REVENUE.
GLOBALIZATION GLOBALIZATION is the nam
:              interdependence of the world's m
               a social change, an increased c
               transculturation; the explosive ev
               facilitate international cultural an

GOING     GOING CONCERN refers to the liqu
CONCERN : of that concern being able to continue

GOING     GOING CONCERN CONCEPT is the
CONCERN he prepares a set of accounts. That the
CONCEPT : the foreseeable future.
GOING       GOING CONCERN PRINCIPLE as
CONCERN accounting records from the date of its
PRINCIPLE :

GOODWILL GOODWILL is that intangible possess
:        that is in excess of the normal or basic
         The goodwill of a business may be du
         community, or the quality of its emplo
         the proven ability to earn excess profit
         company to the extent that the purchas
         tangible assets. There are a number of
         The net profit of the business is capit
         value of all the tangible assets is subt
         intangible assets, or goodwill. b. Exces
         those normally earned by a similar bu
         c. Income Tax Method - The past five
         rate of return for tangible assets and s
         then capitalized to arrive at the good
         would accept and a willing buyer wou
         of goodwill is established by a formula
         is worth one years gross income.
GAAP :   GAAP see GENERALLY ACCEPTED
GAIN :        GAIN is: a. the amount by which the r
              in rate or price; c. earn on some comm

GENERAL       GENERAL LEDGER is the ledger th
LEDGER :      contains offsetting debit and credit acc

GENERALLY GENERALLY ACCEPTED ACC
ACCEPTED   common set of accounting principle
ACCOUNTING accepted methods of doing accountin
PRINCIPLES
(GAAP) :

GENERALLY GENERALLY ACCEPTED AUDITI
ACCEPTED rules and guidelines set down by the
AUDITING Certified Public Accountants (AICPA
STANDARDS accountant would apply the generally
(GAAS) :  so, they can be held to be in violation o
HARD      HARD ASSETS are physical assets
ASSETS :  credit, financial instruments). Hard
          organization and subjected to inventory
HIRE AND  HIRE AND PURCHASE AGREEME
PURCHASE an option of purchase) in which a per
AGREEMENT with the added condition that if he s
:         installments of rent as they becom
          absolutely in him, and that if he cho
          goods and be quit of any liability for f
          such a contract is generally treated a
          sometimes applied to a contract in
          surrender of the goods. In England, ho
          a sale.

HISTORICAL HISTORICAL COST ACCOUNTI
COST       statement items to be based on ori
ACCOUNTING originally exchanged in an arm's-le
:          market value of an item at the transac

HISTORICAL HISTORICAL COST CONVENTIO
COST       not subsequently revalued upwards,
CONVENTION exchange for the obligation. The
:          objectively based on verifiable figu
           become a dubious convention to follo
HOLDING HOLDING COMPANY is a company
COMPANY : occur through the ownership of 50 per
           of a dominant influence).
HORIZONTA HORIZONTAL FINANCIAL ANAL
L FINANCIAL ratios of other companies as well
ANALYSIS : deviation of these ratios.
IAS :      IAS see INTERNATIONAL ACCOUN

IASB :       IASB see International Accounting Sta

IASC :       IASC is International Accounting Stan

IFRS :       IFRS see INTERNATIONAL FINANC

IMPAIRED     IMPAIRED ASSETS, in banking, app
ASSETS :     limited to problem loans. In addition t
             assets which have come onto banks ba
             See IMPAIRMENT OF VALUE.
IMPAIRED     IMPAIRED GOODWILL is the reco
GOODWILL known as goodwill.
:

IMPAIRMENT IMPAIRMENT OF VALUE is the p
OF VALUE : debit the loss account and credit the a

IMPLICIT   IMPLICIT RATE OF INTEREST is w
RATE OF    rate at the time a note is negotiated
INTEREST : exchanged for the note establishes the

INCOME :      INCOME is the amount of money
              exchange for labor or services, from t
              investments.

INCOME    INCOME STATEMENT see PROFIT
STATEMENT
:
INCOME    INCOME TAXES PAYABLE is incom
TAXES
PAYABLE :
INCORPORATED INCORPORATED is a legal enti
:            a state government.

INCORPORATION INCORPORATION is a legal p
:             the state in which it is based allo

INDUSTRY : INDUSTRY is the people or companie

INTEREST : INTEREST, in law, is a right or leg
           something; in finance, it is a fixed ch
           amount borrowed.
INTEREST INTEREST RATE is the rate of intere
RATE :     annual rate. The rate is derived by div
           borrowed. For example, if a bank char
           be 10%. Interest rates are quoted o
           consumer and business loans. Rates in
           Federal Reserve raising key short-term
           stock market because investors can g
           bonds instead of stocks. It also hurts
           attractive compared to newer issues.
INTERIM     INTERIM AUDIT is an audit cond
AUDIT :     minimizing the work and time invo
            corporation might have an interim aud
            at the end of the fiscal year most of the
            year thus allowing for a comprehensi
            interim audit does not usually yield any

INTERIM    INTERIM DIVIDEND is the declarat
DIVIDEND : determination.

INTERNAL    INTERNAL AUDIT is an independen
AUDIT :     examine and evaluate its activities as
            auditing is to assist members of
            responsibilities. To this end, intern
            recommendations, counsel, and infor
            objective includes promoting effectiv
            may contract an external auditor or firm

INTERNAL    INTERNAL AUDITOR is an auditor
AUDITOR :   throughout the year. Internal auditors
            they usually have significant accountin
            directors of the corporation.
INTERNAL     INTERNAL RATE OF RETURN (IR
RATE OF      Net Present Value (NPV). IRR is an
RETURN       estimating the discount rate. IRR takes
(IRR) :      cash flows over the lifetime of a proje
             not equivalent.

INTERNATIONAL INTERNATIONAL ACCOUN
ACCOUNTING    FINANCIAL REPORTING STA
STANDARDS
(IAS) :

INTERNATIONAL INTERNATIONAL ACCOUNT
ACCOUNTING      UK. The IASB is responsible for
STANDARDS       IASB hopes that through the c
BOARD (IASB), : financial statements more compa
                financial report would be differ
                accounting principles. There are
                time members (ie employed onl
                three former preparers of accoun
                The remaining two may be of
                organization IASC Foundation,
                parental body of the IASB. Th
                    Advisory Council and the Interna

INTERNATIONAL INTERNATIONAL FINANCIA
FINANCIAL     the older name of International
REPORTING     standards. They are issued by the
STANDARDS
(IFRS) :

INTRINSIC INTRINSIC VALUE, generally, is the
VALUE :   humans; often considered the ethical v
          e.g., in securities, it is the perceived ac
          book value.
INVENTORY INVENTORY for companies: include
:         of being made ready for sale (work in
          a broker or dealer for resale.

IPO         IPO (INITIAL PUBLIC OFFERING)
(INITIAL
PUBLIC
OFFERING) :
IRRELEVANT IRRELEVANT COST, in manageria
COST :     or negative implications phenomeno
           whether it is denominated in money te

ISSUE :   ISSUE, in securities, is stock or bonds
          new securities by a corporation or gove
JOINT     JOINT STOCK COMPANY is a com
STOCK     features of a partnership. This type of c
COMPANY : of stock markets as a corporation, how
          company debts and have additional res

JOINT     JOINT VENTURE is a venture by a
VENTURE : expertise. See also VENTURE.

JOINT       JOINT VENTURES & INVESTM
VENTURES & ventures.
INVESTMENTS
:

JOURNAL : JOURNAL, in accounting transactions
KNOW-HOW : KNOW-HOW is the knowledge and s
LAND :        LAND, in terms of accounting, is the
              buildings.

LEASE :       LEASE is a contract where a party be
              the asset for use by the lessee at a c
              variables, for a certain period (lease pe
              at the end of such period, the asset, su
              returned to the lessor or disposed off a

LEASEHOLD LEASEHOLD is an agreement betwe
:         use the leased property for a specific p

LEASEHOLD    LEASEHOLD IMPROVEMENT
IMPROVEMENTS to occupancy, made to a leased fa
:            and amortized over the life of the

LEDGER :      LEDGER is a book of accounts in whi
              and thereby classified and summarize
              physical separate books): a. Purchas
              creditors' accounts are recorded; also
              credited with purchases and debited w
              The detail in the creditors ledger is su
              the general ledger; b. Sales/Debtors L
              are recorded; also known as the sold
              credited with cash received, discount
              ledger is summarized in the debtors
              General/Impersonal Ledger is a book
              transactions, through offsetting debit a
              and expense accounts; and d. Private
              loans, mortgages, directors' salaries an
LEGAL         LEGAL ENTITY is a person or organ
ENTITY :      and may be sued for failure to perform
              not a legal entity, while a corporation i

LESSEE :      LESSEE is the party to whom the po
              period of time in return for rental paym

LESSOR :      LESSOR is the party who conveys sp
              for the receipt of rent.

LIABILITY : LIABILITY, in insurance, is a term us
            areas of financial exposure / loss. Pr
                insurers will underwrite: The first is ge
                non-employees except that caused by
                product liability, which covers injury t
                from a business. The third is public lia
                the premises of the insured.

LIEN :         LIEN is the right to take another's prop
LIFO (last-in, LIFO (last-in, first-out) is an inventory
first-out) :   to be the first goods sold so that the en

LIMITED     LIMITED LIABILITY is one that doe
LIABILITY :

LIMITED   LIMITED PARTNER is a partner in
PARTNER : liability is restricted to the amount of h

LIQUID          LIQUID ASSET is cash and any ass
ASSET :         checks and easily-convertible securitie

LIQUIDATION LIQUIDATION is the selling of all
:             the sale to pay off creditors.
LIQUIDITY : LIQUIDITY is a company's ability to m
            be quickly converted to cash.

LISTED    LISTED COMPANY is a public comp
COMPANY :

LONG TERM LONG TERM DEBT is all senior de
DEBT :    deferred portions of long term debt, an

LONG-         LONG-TERM is a long period of tim
TERM :        relates to a buy and hold investment s
              of 12 months, e.g. long-term liabilities

LONG-         LONG-TERM DEBT TO EQUITY
TERM DEBT     contributions of creditors as related to
TO EQUITY     DEBT TO EQUITY, Long-Term Debt
:             the owners for the long-term creditor
              considered to be highly leveraged.
              comfortable amounts of debt at ratios
              of book value (shareholders equity). T
               with a low debt exposure. It is best to c
LONG-          LONG-TERM LIABILITIES are liabi
TERM           example of a long-term liability would
LIABILITIES
:

LUMP-SUM : LUMP-SUM is an agreed upon sum o
           LUMP-SUM is an agreed upon sum of
MUTUAL      MUTUAL AGENCY is the right of a
AGENCY :    business operations of the partnership
NEAR-CASH NEAR-CASH ASSETS are non-cash
ASSETS :   relatively short period (e.g., short-term

NEGOTIABLE NEGOTIABLE INSTRUMENT can
INSTRUMENT any document representing money p
:          over (delivery) and/or endorsing it (s
           or directing it to another). A negot
           governing contract law. However, a
           ordinary contract by the fact that a n
           it transferable. This quality of negoti
           substitute for money by holders in
              original parties who drafted the neg
              note must be payable to order, or to b
              them non-negotiable.

NET :        NET, in general, is the figure remainin
             starting, or gross, amount.

NET        NET ACCOUNTS RECEIVABLE is
ACCOUNTS amounts the company believes it will
RECEIVABLE
:

NET ASSETS   NET ASSETS is the difference bet
:            capitalized long-term liabilities.
NET          NET INCOME is the difference betw
INCOME :     caption and amount is usually found a
             Same as Net Profit.

NET       NET OPERATING INCOME (NOI)
OPERATING before deducting for income taxes and
INCOME
(NOI) :

NET        NET OPERATING LOSS (NOL) is
OPERATING exceed business income for the fiscal y
LOSS (NOL) used to offset income in a prior year, o
:          the net operating loss forward.

NET       NET OPERATION PROFIT AFTER
OPERATION the cost of debt financing (i.e. it omits
PROFIT    NOPAT is primarily used in the calc
AFTER     income x (1 - Tax Rate).
TAXES
(NOPAT) :

NET        NET PRESENT VALUE (NPV) is a
PRESENT    present value of all cash outflows (
VALUE      (returns) is calculated using a given d
(NPV) :    An investment is acceptable if the NPV
           is called the HURDLE RATE and
           CAPITAL.
NET PROFIT NET PROFIT is the company's total
:             business, depreciation, interest, taxes a

NET PROFIT NET PROFIT MARGIN (NPM after
MARGIN     after consideration of all revenue an
(NPM after items, and income taxes. For a busines
Tax) :     making the net profit margin ratio one
           important to analyze the ratio over tim
           to abnormal conditions or expenses wh
           may indicate a margin squeeze sugg
           initiated. In some cases, the costs of su
           or even losses before increased profita

NET PROFIT NET PROFIT MARGIN (NPM Pre-
MARGIN     ordinary business (excluding taxes) th
(NPM Pre-  firm prior to any tax considerations w
Tax) :     in the long term profits must be gene
           performance indicators for any busin
           variation in the ratio from year-to-yea
           need to be addressed. A decline in the
           that productivity improvements may
           improvements may lead to a furthe
           profitability is achieved.
NET           NET WORTH is the difference betwe
WORTH :       included here.

NOMINAL : NOMINAL means small payment, or v
NOMINAL NOMINAL ACCOUNTS are those ac
ACCOUNTS : expense accounts, and dividend or with

NOTES     NOTES PAYABLE are all note oblig
PAYABLE : include trade notes payable.

NOTES      NOTES RECEIVABLE is a debt d
RECEIVABLE payment. Note receivable, an entry
:          indicates the dollar amount of loans d

NOTES TO   NOTES TO THE FINANCIAL ST
THE        following the financial statements c
FINANCIAL explains in some depth the informatio
STATEMENTS
:
OTHER         OTHER INCOME is income from acti
INCOME :      entity's business.

OUTSTANDING OUTSTANDING is the amount ow
:

OUTSTANDING OUTSTANDING SHARES is th
SHARES :    investors. It also includes restricte
            company) as well as shares held by
            retired are not considered outstandin

OVERDRAFT OVERDRAFT is, a. a draft in excess
:         (usually at a bank or other financial in
          agreed amount and often for an agreed
PRE-TAX       PRE-TAX INCOME/PROFIT see
INCOME/PROFIT
:

PREFERENCE PREFERENCE SHARE see PREFER
SHARE :
PREFERENCE PREFERENCE SHARE CAPITAL i
SHARE      shares.
CAPITAL :

PREFERRED PREFERRED STOCK, usually, non-v
STOCK :   and has preference over common sto
          assets.

PREPAID    PREPAID EXPENSES are amounts th
EXPENSES : and services. Typically, insurance pre
           the policy. Prepaid Expenses is a Cur
           paid for something and someone owes
PAID-IN-   PAID-IN-CAPITAL is capital receive
CAPITAL : paid-in capital, NOT that capital recei
           capital.

PAID-UP       PAID-UP CAPITAL is the total amoun
CAPITAL :

PARENT    PARENT COMPANY is a company o
COMPANY :
PARI PASSU PARI PASSU is to do or apply some
:          reference to two class of securities or o

PARTNERSHIP PARTNERSHIP is an unincorporat
:           from a sole proprietorship in that a s
PAYBACK PAYBACK PERIOD, in capital budg
PERIOD : CAPITAL INVESTMENT. The payb
         outlay, regardless of the source of the
         The major shortcoming for the paybac
         flows after the payback period and
         investment project. For this reason, an
         methods of capital budgeting; primar
         PRESENT VALUE methods.

PAYMENT : PAYMENT is the satisfaction of a deb

PERMANENCE PERMANENCE is the quality or s
:          and useful life. See ORDER OF PER

PETTY         PETTY CASH, normally, is an accoun
CASH :       purchasing or the reimbursing of inexp

PLS :    PLS see Profit and Loss Sharing.
PREPAYMENT PREPAYMENT is the payment of a
:

PRESENT      PRESENT VALUE is the discounted
VALUE :      in the future, taking into considerati
             represents a series of future cash flow
             is almost always more valuable soone
             corresponding future values.

PRICE :      PRICE is the property of having mat
             money something would bring if or wh

PRIOR        PRIOR PERIOD refers to accounti
PERIOD :     ACCOUNTING PERIOD.

PROFIT AND PROFIT AND LOSS STATEMENT
LOSS       your business revenue and expenses f
STATEMENT total revenue and the total expense
(P&L) :     statement, and one that distinguishes i
            statement represent transactions over
            balance sheet show information as of a
PROFIT      PROFIT BEFORE TAXES (PBT) is
BEFORE      before the company has to pay incom
TAXES (PBT) including interest expenses and operati
:

PROMISSORY PROMISSORY NOTE, usually jus
NOTE :     wherein the maker agrees to pay a sp

PROPRIETORS PROPRIETORS FUNDS is owner's
FUNDS :

PROSPECTUS PROSPECTUS is the disclosure docu
:          prospectus is issued on the effective d

PROXY :    PROXY is a person authorized to act
           shareholders of a corporation authorizi
PRUDENCE : PRUDENCE is having foresight and c
PRUDENCE PRUDENCE CONCEPT, otherwise
CONCEPT : alternative procedures or values, the
          profit, a lower asset value and a higher

PURCHASE PURCHASE AGREEMENT is a cont
AGREEMENT
:

PURCHASE PURCHASE DISCOUNT is a reduct
DISCOUNT : within a specified period.
QUALITATIVE QUALITATIVE INFORMATION
INFORMATION involving quality or kind.
:

QUANTATIVE QUANTATIVE INFORMATION
INFORMATION quantity.
:

QUARTERLY QUARTERLY REPORT see INTERI
REPORT :
QUICK      QUICK ASSETS is current assets min
ASSETS :

QUICK      QUICK RATIO (or Acid Test Ratio) i
RATIO :    solvency, the current ability of a firm
           considers only cash, marketable secur
           they are considered to be the most liq
           implies "dependency" on inventory and
R&D :      R&D see RESEARCH & DEVELOPM

RATE OF    RATE OF RETURN is the gain or
RETURN :   income plus capital gains relative to in
           return is the annual return realized on
           inflation.

RATIO :    RATIO is the relative size, expresse
           another (for example, the ratio of as
           $200,000 and liabilities of $150,000 w

RATIO      RATIO ANALYSIS involves conver
ANALYSIS : analysis allows comparison of one fir
           firm, a firm of one size can be directly
           may be larger or smaller or even in di
           comparison not dependent on the size
           for comparison than do raw numbers.

REAL :     REAL, dependent upon usage, means
           price and income, which are corrected
           actual purchasing power; or, 2. actual c
REAL       REAL ACCOUNTS, also called perm
ACCOUNTS : and capital; whose balances are not c
           carried over to the next period. These
           statement of condition (balance sheet).

REAL          REAL ESTATE see REAL PROPERT
ESTATE :

REAL       REAL PROPERTY is land and / or an
PROPERTY : natural resources, e.g., vacant land, bui

REALIZABLE REALIZABLE VALUE is the expect
VALUE :

REALIZATION REALIZATION PRINCIPLE is tha
PRINCIPLE : and services are rendered.
REBATE :   REBATE is a. payment to a customer
           promotion tactic; b. unearned interes
           maturity; c. amount paid back or cred
           an object sold (i.e., a refund).

RECAPITALIZATION RECAPITALIZATION: It
:                recapitalization in itself is, d
                 relationships between the de
                 become quite complex depe
                 being recapitalized. This is s
                 off a hostile takeover.

RECEIPT :     RECEIPT is a written acknowledgmen
              merchandise has been received.

RECEIPTS : RECEIPTS this term, unless otherwise
RECEIVABLE RECEIVABLE is an amount awaiting
:
REDEMPTION REDEMPTION is the repayment of
:          maturity (as when a corporation repu

REGULATION REGULATION is the act of controll
:          of 1933 or SEC and FASB accountin

RELEVANT RELEVANT COST, in managerial a
COST :   implications phenomenon which is c
         denominated in money terms or not.

REMUNERATION REMUNERATION is the act of
:            (Example: Receiving remuneratio

REPLACEMENT REPLACEMENT COST is the tot
COST :      an exact duplicate of the subject
            original.
REPLACEMENT REPLACEMENT VALUE is th
VALUE :     Replacement value is a valuation
            value is different than liquidation v
                  assets, which is usually higher
                  replacement value of the assets to d

RESEARCH & RESEARCH & DEVELOPMEN
DEVELOPMENT discovery of new knowledge with
(R&D) :     services. Development is the tran
            new or improved products and serv

RESERVE :     RESERVE is an accounting entry that

RESERVE    RESERVE ACCOUNTS, generally, ar
ACCOUNTS : satisfy dividends, improvements, conti

RESERVE    RESERVE CAPITAL is that part of t
CAPITAL : been called up. It is thus a reserve, whi
RESIDUAL : RESIDUAL, generally, is something le

RESIDUAL      RESIDUAL VALUE is: a) Realizable
VALUE :       with its sale; b) Scrap value or the val
              depreciation has been deducted from th
RETAINED RETAINED EARNINGS are profits o
EARNINGS : as of the balance sheet date. The e
           (Retained Earnings is an account in th
           the balance, either debit or credit, of a
           are retained in the business. NOTE: A
           may be used to reduce a deficit or ma
           profits require a vote of the shareholde

RETROSPECTIVE RETROSPECTIVE is to be co
:             review of the prior years perform

RETURN OF RETURN OF CAPITAL is the dis
CAPITAL : depreciation, sale of a capital asset o
          earnings.
RETURN ON RETURN ON CAPITAL EMPLOYED
CAPITAL   is using its capital. The formula to me
EMPLOYED Profit before interest and tax (PBIT) / (
(ROCE) :

RETURN ON RETURN ON EQUITY (ROE) measu
EQUITY        investments in assets and in generatin
(ROE) :       how well management is running the
              company is a value creator or a cas
              shareholders' equity, you can see how
              things being equal, the higher a compa

RETURN ON RETURN ON INVESTED CAPITAL
INVESTED the money (owned or borrowed) inve
CAPITAL   income after taxes / (total assets less ex
(ROIC) :

RETURN ON RETURN ON INVESTMENT (ROI)
INVESTMENT of a business. ROI can be calculate
(ROI) :    Income as a percentage of Net Book V

REVALUATION REVALUATION, in general, is th
:           currency, it is the increase in the ex
REVALUATION REVALUATION RESERVE see A
RESERVE :

REVALUATION REVALUATION SURPLUS, und
SURPLUS :        above a cost-based measure are rec

REVENUE : REVENUE is the inflows of assets f
          including the reduction of liabilities fro

REVENUE     REVENUE EXPENDITURE is the
EXPENDITURE generating revenue, generally referr
:

REVENUE       REVENUE RESERVE is a fund th
RESERVE :     distributable.
RISK :        RISK is the measurable possibility o
              uncertainty. Uncertainty is not measura

ROYALTY : ROYALTY is the share of the produc
          by an owner for permitting another en
          rental paid to the original owner of
          production. Royalty can involve litera
          well as mining leases and conveyances
SALES /     SALES / RECEIVABLES (Receiv
RECEIVABLES times trade Receivables turn over
(Receivables     receivables, the shorter the time be
Turnover) :      company is getting paid for goods a
                 industry in order to determine if the
                 the receivables turnover, the better c
                 indication of systemic problems w
                 turnover with that of industry averag

SALES    SALES CONTRACT see SALES ORD
CONTRACT
:

SALES      SALES DISCOUNT is a reduction in t
DISCOUNT : a sale. Sales Discount is on the incom
           Sales.

SALES          SALES INVOICE is a document that
INVOICE :      customer.

SALES TAX : SALES TAX is a tax levied by a gove
            an item and certain taxable services, co
SALVAGE     SALVAGE VALUE is: a) Realizable
VALUE :       with its sale; b) Scrap value or the val
              depreciation has been deducted from th

SAVINGS    SAVINGS ACCOUNTS are client acc
ACCOUNTS : credit unions, and mutual savings bank
           These accounts let customers set asid
           make purchases. But to make those pu
           "transactions deposits" (or "checkable
           easy enough that savings accounts ar
           constitute a sizeable portion of the M
           make withdrawals, but you do not ha
           MMDAs (money market deposit acc
           make on the account each month is usu

SAVINGS    SAVINGS DEPOSITS see SAVINGS
DEPOSITS :

SEC :         SEC is the Securities and Exchange Co

SECURED : SECURED is an obligation backed by
SECURITY : SECURITY dependent upon usage is:
              against financial failure; financial inde
              you default on your obligation; or, d. a
              finance and investment; the holder of
              stocks and bonds.

SECURITY      SECURITY STOCK see SAFETY ST
STOCK :

SELLING &      SELLING & ADMINISTRAT
ADMINISTRATIVE expenditures for non-manufact
EXPENSE        salaries. See OPERATING BUD
BUDGET :

SHARE :       SHARE is one unit of ownership intere

SHARE       SHARE APPLICATION MONEY
APPLICATION Payments received for a subscription
MONEY :
SHARE     SHARE CAPITAL is that portion of
CAPITAL : return for cash or other considerations.
SHARE     SHARE PREMIUM is the difference b
PREMIUM : stocks par value when issued.

SHAREHOLDER SHAREHOLDER is an individual
:           one or more shares of a company.

SHAREHOLDER SHAREHOLDER LOANS inclu
LOANS :     shareholders. Loans from shareho
            reality is such loans should be cou
            back to the shareholder.

SHAREHOLDER'S SHAREHOLDER'S EQUITY i
EQUITY :      EQUITY, NET WORTH and sto
SHAREHOLDERS SHAREHOLDERS FUND is equ
FUND :

SHORT        SHORT TERM ASSET is an asset
TERM         operating cycle (usually one year), e.g.
ASSET :
SHORT       SHORT TERM LIABILITY is a liabil
TERM
LIABILITY :

SHORT-        SHORT-TERM usually encompasses a
TERM :

SIMPLE     SIMPLE INTEREST is interest compu
INTEREST : which includes accrued interest in the c
SOLE               SOLE PROPRIERTORSHIP
PROPRIERTORSHIP company are considered a
:                  proprietorship is a company w
                   company or corporation. Th
                   company, but he/she reports
                   tax return. The owner is insep
                   any business debts; also calle
                   sole proprietorship include: o
                   business is unincorporated.

SOLE       SOLE PROPRIETOR is an individ
PROPRIETOR corporation. A sole proprietor pays
:              his/her business debts and obligations

SOLVENCY : SOLVENCY is a company's long-term

STATEMENT STATEMENT OF ACCOUNTING
OF         reporting organization, statement o
ACCOUNTING accounting policies, and a statement
POLICIES :

STATEMENT STATEMENT OF AFFAIRS is a s
OF AFFAIRS debtor's assets and liabilities - secur
:          prepared on short notice and from i
           company and or by the bankrupt wher
           to the value of the assets and the exten
           of affairs is sworn under oath by the de
STATEMENT STATEMENT OF CASH FLOWS m
OF CASH    of four financial statements found in th
FLOWS :    and disbursements for a given fiscal y
           financing.

STATEMENT STATEMENT OF RETAINED EARN
OF         Statement of Retained Earnings is
RETAINED Information such as dividends or a
EARNINGS : Statement of Retained Earnings provi
           doing with the company's earnings.

STATEMENT OF STATEMENT OF STOCKHO
STOCKHOLDERS' stockholders' equity of a corpora
EQUITY :

STEWARDSHIP STEWARDSHIP is responsibility
:           boards of directors must show good
            board member.

SUNDRY    SUNDRY CREDITORS refers to com
CREDITORS
:
SUNDRY    SUNDRY DEBTOR is an entity from
DEBTOR :  or in respect of contractual obligat
          receivable.

SUNDRY            SUNDRY SHAREHOLDERS ar
SHAREHOLDERS
:

SURETY        SURETY BOND is a contract by whi
BOND :        the debt of another party.

SURPLUS :     SURPLUS generally means any exce
              appropriated for a particular purpose. I
              and debt, including capital stock, have

SYNTHETIC SYNTHETIC LEASE is a transaction
LEASE :   but as a loan from a tax standpoint; re
          and the tax benefits that accompany th
TRANSACTION TRANSACTION DATE is the date
DATE :

TREASURY TREASURY BILL (T-BILL) is a gov
BILL (T- are zero-coupon bonds that are sold a
BILL) :  maturity. Treasury bills are considered
         are commonly issued with maturity da
TRIAL     TRIAL BALANCE is a listing of the a
BALANCE : specified date. A trial balance is usuall
          to see if additional adjustments are req
          system relies on double-entry bookk
          amount as it has total credit amounts.

TURNOVER TURNOVER, in U.S. accounting, is th
:        period; often used in terms of inventor
         for either a portfolio or exchange, TUR
         percentage of the total shares. In Great
T-BILL : T-BILL see TREASURY BILL.

TANGIBLE : TANGIBLE normally refers to assets
           appraised at an actual or approximate v

TANGIBLE      TANGIBLE BOOK VALUE is differ
BOOK          intangible assets, which are assets that
VALUE :       expenses and deferred financing costs)

TARGET :      TARGET is the goal intended to be a
              target, margin target, or profit target.
TAX :    TAX is a charge against a legal ent
         government, e.g. income taxes, sales ta
TAX        TAX ACCOUNTING is the plannin
ACCOUNTING avoidance.
:

TAXABLE : TAXABLE refers to goods or funds su

TAXABLE TAXABLE BENEFITS are employe
BENEFITS : benefits, such as employer-provided
           educational assistance, are subject t
           Medicare tax rules. According to Inter
           to, or on behalf of, an employee con
           withholding, unless specifically exclud

TAXABLE       TAXABLE INCOME is that income
INCOME :      calculating income taxes. Taxable inc
              reported within financial statements. S

TERM DEBT TERM DEBT, as in Term Bonds, is de
:         Term debt is usually carried as one typ
TERM LOAN TERM LOAN is a bank loan, typically
:         matures in between one and ten years a

TIME          TIME DEPOSIT is a bank deposit tha
DEPOSIT :     prior notice, e.g. a certificate of deposi

TIME          TIME VALUE OF MONEY is the id
VALUE OF      future, because the dollar received tod
MONEY :       received.

TOTAL         TOTAL ASSET TURNOVER measu
ASSET         assets - specifically the generation of r
TURNOVER      ratio is extremely important in high as
:             companies. Generally, the higher this r
              smaller the investment required to gen
              the firm has less money tied up in fixed

TOTAL         TOTAL ASSETS is the total of all ass
ASSETS :
TOTAL         TOTAL CURRENT ASSETS is total
CURRENT       all other current assets.
ASSETS :

TOTAL       TOTAL CURRENT LIABILITIES is
CURRENT LTD, trade payables, income taxes pay
LIABILITIES
:

TOTAL       TOTAL LIABILITIES & NET WORT
LIABILITIES
& NET
WORTH :

TRADE     TRADE DEBTORS represent amoun
DEBTORS : goods/services from the company.

TRADE      TRADE DISCOUNT is a producer d
DISCOUNT : increasing sales of the producer's produ
UNAPPROPRIATED UNAPPROPRIATED PROFI
PROFITS :          business by its proprietors or a
UNDERWRITER UNDERWRITER is a. a banke
:           (investment banker), or b. an agent

UNLIMITED UNLIMITED COMPANY is where th
COMPANY :

UNREALIZED UNREALIZED is an event having o
:          to unrealized gains and losses, which
           the security or asset that an entity cur
           is the opposite of realized.

UNREALIZED UNREALIZED ACCOUNTS RECEI
ACCOUNTS received; can be used to offset taxes.
RECEIVABLE
:
UNREALIZED UNREALIZED INCOME (paper pro
INCOME :   collected through a transaction, such
           also called unrealized gain or unrealiz

UNREALIZED UNREALIZED LOSS is a term tha
LOSS :     portfolio resulting from applying the
              short-term portfolio, the unrealized l
              portfolio, the unrealized loss is presen
              of the balance sheet.

UNSECURED UNSECURED is obligation backed no
:         Opposite of secured.

UNUSUAL   UNUSUAL GAINS AND LOSSES a
GAINS AND occur infrequently, but not both, are
LOSSES :  EXTRAORDINARY ITEMS).

USEFUL       USEFUL LIFE is the expected period
LIFE :       be productive.
VALUE :      VALUE is a term that defines the wor
             or words such as 'Fair" or "Fair Mark
             found. Not all value for an item is the s

VALUE        VALUE ADDED is the difference, at
ADDED :      between the price of a product or serv
             product or provide the service.
VALUE     VALUE ADDED TAX is a consum
ADDED TAX manufacturing process where value is
:         cycle; as well as at the point where the

VALUE FOR VALUE FOR MONEY is in the perc
MONEY :   Proof of good value for money is in b
          was worth the price paid. Examples
          suitability, quality, skills, price, whol
          other factors and the relevant importan

VARIABLE   VARIABLE COSTS are those costs a
COSTS :    amount of production, e.g. the direc
           manufacturing of a product.
VARIABLE VARIABLE EXPENSES are those b
EXPENSES : production or sales volume. Contrast w

VARIABLE      VARIABLE INTEREST RATE is a
INTEREST      changes of an underlying interest rate
RATE :        a certain spread over the prime rate.

VOUCHER : VOUCHER is a. a piece of substan
               expenditure, disbursement, or complet
               especially one exchangeable for cash o
WACC :         See Weighted Average Cost of Capital

WARRANT : WARRANT, in government accountin
          payee. In securities, it is a security enti
          some specified future date at a specif
          "warrant" is then traded as a security
          stock. Warrants are issued by corpo
          another class of security to enhance
          options, but with much longer time sp
          by corporations whereas exchange trad

WARRANTY WARRANTY is a guarantee given to a
:        will perform as promised, or a refund
         exchange made.

WEIGHTED WEIGHTED AVERAGE is one in w
AVERAGE : "weights." Varying subjective assump
          for each data category. For example
          calculating a student's grade in a cou
              course by calculating that the test av
              grade, and a single project is 10% of th

WEIGHTED WEIGHTED AVERAGE COST OF
AVERAGE expected return on all of a company's
COST OF    and other debt, is weighted in the ca
CAPITAL    capital structure.
(WACC) :
WHOLLY     WHOLLY OWNED SUBSIDIARY
OWNED      common stock.
SUBSIDIARY
:

WITHDRAWAL WITHDRAWAL is a. the act of tak
:          or, b. a retraction of a previously he

WITHHOLDING WITHHOLDING TAX usually ref
TAX :       compensation to account for that in

WORK IN       WORK IN PROCESS is parts and
PROCESS :     finished goods.
WORK IN      WORK IN PROGRESS is a piece of w
PROGRESS :
WORKING      WORKING CAPITAL (WC) is curre
CAPITAL      assets or current capital. It measures
(WC) :       the ability to finance current operation

WORKING      WORKING CAPITAL RATIO is work
CAPITAL
RATIO :

WRITE-       WRITE-DOWN is the reduction in the
DOWN :

WRITE-OFF WRITE-OFF is to decrease the value
:         vehicle involved in an accident can be
          the value of the vehicle.

WRITE-UP : WRITE-UP is the increase in value o
           GAAP (Generally Accepted Accountin
YIELD :     Yield is the annual return on an
          redemption or maturity (the same
          redemption"; thus a bond which has a
          sell at $98.2% when interest rates are
          yield and 1.8% pull to redemption ($1
ZERO      ZERO COUPON BONDS are bonds
COUPON    mature at full face value so the diffe
BONDS :   represents interest income. The issue
          interest isn't paid out until the end of

				
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