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Commerce Dictionary

Commerce Dictionary

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Accounting, Business Studies and Economics Dictionary

A priori - Literally, "at a prior time" or "in advance"; that which is prior to actual experience. Abacus - 1. instrument of ancient origin used to perform arithmetic calculations by sliding counters along rods or in grooves. Or) 2. semi-annual accounting research journal (founded in 1965) published by the Sydney University Press, edited by the University of Sydney, Department of Accounting. The subject matter covers all areas of accounting including international accounting. Abandonment - Voluntary surrender of property, owned or leased, without naming a successor as owner or tenant. The property will generally revert to a person holding a prior interest or, in cases where no owner is apparent, to the state. Abatement - Complete or partial cancellation of a levy imposed by a governmental unit. Abatements usually apply to tax levies, special assessments, and service charges. Ability- to-pay principle - The idea that taxes should be levied on a person according to how well that person can shoulder the burden. Above full-employment equilibrium - A situation in which macroeconomic equilibrium occurs at a level of real GDP above long-run aggregate supply. ABC method - Inventory management method that categorizes items in terms of importance. Thus, more emphasis is placed on higher dollar value items ("A"s) than on lesser dollar value items ("B"s), while the least important items ("C"s) receive the least time and attention. Inventory should be analyzed frequently when using the ABC method. The procedure for ABC analysis follows: (1) Separate finished goods into types (chairs of different models, and so on); separate raw materials into types (screws, nuts, and so on). (2) Calculate the annual dollar usage for each type of inventory (multiply the unit cost by the expected future annual usage). (3) Rank each inventory type from highest to lowest, based on annual dollar usage. (4) Classify the inventory as A-the top 20%; B-the next 30%; and C-the last 50% of dollars usage, respectively. (5) Tag the inventory with its appropriate ABC classification and record those classifications in the item inventory master records. Abnormal returns - The difference between the actual return and that is expected i.e ‘normal return’. Abnormal spoilage - Spoilage that is recognized as a loss when discovered. Normal spoilage is inherent in the manufacturing process and is unavoidable in the short run. Abnormal spoilage is spoilage beyond the normal spoilage rate. It is controllable because

it is a result of inefficiency. It is not a cost of good production, but rather it is a loss for the period. Costs are assigned to the spoiled units and then credited to work-in-progress inventory and debited to a Joss account. Above the line - This term can be applied to many aspects of accounting. It means transactions, assets etc., that are associated with the everyday running of a business. See below the line. Absolute advantage - The situation that exists when a given amount of resources can produce more of some product in one country than in another. Absolute poverty - When only a subsistence level is attained. When only the minimum levels of food, clothing and shelter can be met. Absorb - 1. To incorporate or assimilate amounts in an account in a way in which the first firm or entity loses its identity and is "absorbed" within the second firm or entity. Examples include the sequential transfer of expenditure account amounts to work-inprogress, finished goods, and cost of sales. OR 2. To distribute or spread costs by the process of appropriation or allocation Absorption costing - Method in which the costs of manufacturing, variable and fixed, are treated as product costs, the non-manufacturing costs (i.e, administrative and selling expenses) are classified as period costs. Absorption costing for inventory valuation is required for external reporting. A comparison between absorption and direct costing follows: Absorption Costing 1. Required for outside reporting 2. Includes fixed overhead as an inventoriable cost 3. Stresses gross profit 4. Has a higher net income when production exceeds sales Variable Costing 1. Not accepted for outside reporting 2. Does not include fixed overhead as an inventoriable cost 3. Stresses contribution margin 4. Has a higher net income when sales exceed production

Absorption variance - The variance from budgeted absorption costing of manufactured product and the actual cost of the manufactured product. ACAS – A body which mediates where conflict exists in business.

Accelerated depreciation - Method recognising high, amounts of depreciation in the earlier years and lower amounts in the later years of a fixed asset's life. Acceleration hypothesis - The hypothesis that when national income is held above potential, the persistent inflationary gap will cause inflation to accelerate, and when national income is held below potential, the persistent recessionary gap will cause inflation to decelerate. Accelerationist theory - The theory that unemployment can only be reduced below the natural level at the cost of accelerating inflation. Accelerator - The level of investment depends upon the rate of growth of demand. A given percentage change in demand may require a larger percentage change in investment. The accelerator shows by how much the rate of growth of investment exceeds the rate of growth of demand (and of output). Accelerator theory - The level of investment depends the rate of change of national income, and a result tends to be subject to be substantial fluctuations. Account - A section in a ledger devoted to a single aspect of a business (eg. a Bank account, Wages account, Office expenses account). Accounts - The financial records of a business' transactions. Account aging - is used to refer to tracking past due accounts in accounts receivable (debtors) or accounts payable (creditors) using the dates the charges were first recorded. Accountant - One who performs accounting services. Accountants prepare financial statements and tax returns, audit financial records, and develop financial plans. They work in private accounting (e.g., for a corporation), public accounting (e.g., for a CPA firm), not-for-profit accounting (e.g., for a governmental agency). Accountants often specialise in a particular area such as taxes, cost accounting, auditing, and management advisory services. A book keeper is distinguished from an accountant as one who employs lesser professional skills. The bookkeeping function is primarily one of recording transactions in the journal and posting to the ledger. Accounting - 1. Umbrella term encompassing the multitude of disciplines including auditing, taxation, financial statement analysis, and managerial accounting. Accountingrelated functions include financial accounting, cost accounting, not-for-profit accounting, and financial planning. Or 2. Process of recording, measuring, interpreting, and communicating financial data. The accountant prepares financial statements to reflect financial condition and operating performance. Also, the accounting practitioner renders personal accounting services to clients such as preparing personal financial statements and tax planning.

Examples of accounting entities are corporations. Accounting cycle . They determine such matters as the measurement of assets.. Accounting profit .g. i. .Methods or procedures employed generally by accounting practitioners. everything you need to do in one accounting year accounting wise. The accountant in performing the reporting function should follow existing accounting conventions that apply to the given situation. Accounting event .e.Business or other economic unit (including subdivisions) being accounted for separately. consistency and prudence. expense or revenue accrual). Accounting period . partnerships.Rules and guidelines of accounting. Accounting convention .This covers everything from opening the books at the start of the year to closing them at the end.Are the basic underlying assumptions that are adhered to in the preparation of financial statements. a proprietor's accounting entity might be the business whereas the legal entity would include personal assets. the timing of revenue recognition.. Accounting entity . Accounting cost – The value of an economic resource used up in production. A distinction should be made between an accounting entity and a legal entity. In Hong Kong the accounting year is from April 1st to March 31st. and the accrual of expenses. An accounting entity is isolated so that recording and reporting for it are possible. affiliated companies can be differently organised for legal and accounting purposes (e..Refers to the time period for which accounts cover. In other words. one with an outsider. in the corporate environment.This assumption treats the firm as a separate legal entity from the owner. and industry segments. Accounting entity assumption . It can be an external transaction-that is. Accounting principles .liabilities = owner's equity.g. usually it is one year. Accounting equation .Transaction entered in the accounting records of a business. A system of accounts is kept for the entity. Also.The formula used to prepare a balance sheet: assets = liability + equity. such as recording a sale. trusts. For example. They are based on custom and are subject to change as new developments arise. It can also refer to an internal transaction such as making an adjusting entry (e. industry segments). An example of an accounting principle is accrual. but can also be expressed as assets . The "ground rules" for financial reporting are referred to as generally accepted accounting principles (GAAP).The difference between total revenues and total explicit costs. theses include the assumptions of accruals. going concern.Accounting concepts .

A subsidiary ledger which holds the accounts of a business's suppliers.g. nursery stock. insurance company).1.Programs used to maintain books of account on computers. classifying. .An account in the General Ledger which contains the overall balance of the Sales Ledger. and prepare financial statements and reports. and aging of wine. procedures. The ratio compares net credit sales to average accounts receivable. Or 2. Accounts payable ledger . acquisitions. Examples are timber. and internal expansion. adjustment of the difference between the face value of a bond and the price of the bond bought at an original discount. spreadsheet and word processing abilities). accounts payable.An account in the General Ledger which contains the overall balance of the Purchase Ledger. Many different accounting software packages exist.Methods. The software can be used to record transactions. and standards followed in accumulating. recording. A single control account is held in the General Ledger which shows the total balance of all the accounts in the sales ledger. Accounts receivable ledger . livestock. inventory. Some modules are used to account for the general ledger. Accounts receivable turnover (debtors turnover ratio) . Accretion . Accounts payable . An accounting software package typically contains numerous integrated modules (for example.Is a measure of the speed with which a firm pays suppliers compared to sales. growth in assets through mergers. and reporting business events and transactions. Accounts payable to sales (creditors turnover ratio) . Ratios help with the interpretation of financial statements by focusing on specific relationships. and fixed assets. Accounting software .This is a measure of the speed by which customers pay there bills.Accounting ratio .Usually is the comparing of two or more sets of accounting data. and the right package must be selected given the client's circumstances and needs. Accounts receivable . maintain account balances. The accounting system includes the formal records and original source data. accounts receivable. payroll. Accounting system .. Regulatory requirements may exist on how a particular accounting system is to be maintained (e. Often this is done by dividing or in some other way manipulating one f item on the financial statement by another. A single control account is held in the General Ledger which shows the total balance of all the accounts in the purchase ledger.A subsidiary ledger which holds the accounts of a business's customers.

during a given financial period. The same applies to bills received from suppliers. Accrued revenue – Money that has been earned but not yet received as of the end of the accounting period. Accrual method of accounting .If a company acquires another and says the deal is 'accretive to earnings'.If during the course of a business certain charges are incurred but no invoice is received then these charges are referred to as accruals (they 'accrue' or increase in value). Accumulation . periodic addition of interests to the principal amount. but for which payment is not yet made. process of compounding. Accrued assets .Accretive .e..This is a liability which was incurred. Common examples would be: wages. Accrual . Accrued expenses . Or 4. . Accumulated depreciation account . Or 2. Accrued liability . Accruals can also apply to the income side. A typical example is interest payable on a loan where you have not yet received a bank statement. (This does not mean you pay income tax immediately. These items (or an estimate of their value) should still be included in the profit & loss account. taxes. Accrued income .1.Most businesses use the accrual method of accounting (because it is usually required by law). etc. cumulative retained profit. just that it must be included in that year's profit and loss account).Expenses incurred during an accounting period for which payment is postponed. Or 3. When the real invoice is received.This refers to income earned during an accounting period but not paid by the end of that period. regardless of whether it is paid or not).Assets from revenues earned but not yet received.This is an account held in the General Ledger which holds the depreciation of a fixed asset until the end of the asset's useful life (either because it has been scrapped or sold). When you issue an invoice on credit (i. an adjustment can be made to correct the estimate. Each fixed asset will have its own accumulated depreciation account. it is treated as a taxable supply on the date it was issued for income tax purposes (or corporation tax for limited companies). investment of a fixed dollar amount regularly and reinvestment of dividends and capital gains. Accruals .The recognition of when expenses when incurred or revenue when earned or regardless of when the actual cash is received or payed. it means that the resulting PE ratio (price/earnings) of the acquired company is less than the acquiring company.

Accuracy - Correctness of an accounting item (e.g., account balance, invoice, financial statement); also called accurate presentation. The concept refers to an accounting objective that the item fully reflects and valuates the set of facts involved, including all economic implications of the underlying transactions and events. Acid test ratio - Similar to the current ratio but excludes, stocks from current assets. Sometimes called the quick ratio. Acquisition - One company taking over controlling interest in another company. See also MERGER. Acquisition cost - The amount, net of both trade and cash discounts, paid for property, plus transportation costs and ancillary costs. Active Balances - Money held for transactions and precautionary purposes. Activity based costing (ABC) - This system of costing identifies the various different activities performed in a firm and uses a variety of cost drivers (volume and non-volume based cost drivers) to assign overhead costs (or indirect costs) to products. ABC recognises that there is a causal relationship of cost drivers with the firms activities. Activity based management (ABM) - Approach to the management of activities within business processes as the route to continuously improve both the value received by customers and the profit earned by providing this value. Causes of activities are identified, measured, and used along with other activity information for performance evaluation; emphasis is on the reduction or elimination of nonvalue-adding activities. ABM draws on ABC data as a major source for information. Activity drivers - In activity based costing (ABC), activity costs are assigned to outputs using activity drivers. Activity drivers assign activity costs to outputs based on individual outputs’ consumption or demand for activities. Actual cost - Expenditure required to buy or produce an item. T actual cost of a purchased item includes the list price (net of discount plus delivery and storage. The actual cost to manufacture a product the total of direct material, direct labour, and factory overhead. Actual GDP - The gross domestic product that the economy in fact produces. Actual growth - The percentage annual increase in national output actually produced. Adaptors - Individuals who tend to solve problems using existing or slightly modified approaches than those used in the past by the business. Adaptive Expectations Hypothesis - The theory that people base their expectations of inflation on past inflation rates.

Added value - The difference between the selling price of a product or service and the cost of inputs such as materials and components. Add-ins/ons - 1. refers to when an item is designed or intended for use in conjunction with another item, e.g. accessories to a vehicle in a purchase order. Or 2. can also refer to accessory computer software program that extends the capabilities or performance of an existing application. Additional paid in capital - excess received from stockholders over par value or stated value of the stock issued; also called contributed capital in excess of par. Adequate disclosure - Comprehensive and clear disclosure in the body of financial statements, footnotes, or supplemental schedules so that readers of a company's financial position and operating results can make proper investment and credit decisions. Ad hoc - Normally is used to mean the being concerned with a specific end or goal, often set up with quite limited planning e.g., a ad hoc committee established to handle a specific problem. Adjunct account - Is an that is used to accumulates either/or subtractions or additions to another account. Thus the original account may retain its main and specific identity. Examples include accounts like accumulated depreciation, which is a reduction to the fixed asset. Adjustable Peg - A system in which exchange rates are fixed in the short term but are occasionally changed in response to persistent payments imbalances. Adjusting entries - are needed to correctly match revenue and expenses to the correct financial year. Some transactions that are entered have attributed the revenue and expenses to the wrong financial year. Adjustments may include: Prepayments (Deferrals) – cash paid before consumption • Prepaid expenses – for expenses paid in cash and recorded as assets before they are used. • Unearned revenue – for revenues received in cash and recorded as liabilities before they are earned. Accruals – cash paid after consumption • Accrued expenses – for expenses incurred but not yet paid in cash or recorded. • Accrued revenue – for revenues earned but not yet recorded or received Deprecation – The act of expensing fixed assets over time • Depreciation – the process of expensing a fixed asset over its useful life. Normally done to regulations set out in taxation law. Adjustment - may be either: 1. A decrease or increase to an account resulting from using adjusting entries. OR

2. May also refer to when an account balance is changed due to some event, e.g., adjustment of an account due to the return of merchandise for credit. Administered price -A price set by the conscious decision of a seller rather than the impersonal market forces. Ad valorem tariffs - Tariffs levied as a percentage of the price of the import. Ad valorem tax - A tax on a good or service whose amount depends on the value of the good or service. Advance - Normally refers to an amount paid before has been earned. e.g. payment ahead of actual expenditures on a construction project. Adverse opinion - Term used when an auditor reports that the company's financial statements do not present fairly the financial position, results of operations, or changes in financial position or are not in conformity with GAAP. Adverse selection - Self-selection, within a single risk category, of persons of aboveaverage risk. Advertising elasticity of demand - The responsiveness demand to a change in advertising expenditure. Advertising media - The various means by which advertisements can be communicated to the public. Advertising: sales ratio – Advertising expenditure expressed as a % of sales. Affiliate – A relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. Agency - Relationship between two individuals where one is a principal and the other is an agent representing the principal in transactions with other parties. For example, a trust officer in a bank can engage in activities on behalf of clients. Agency costs - Reduction in the value of the organisation when an agent (a subunit manager) pursues his interest to the detriment of the principal's (the organization's) interest. Agent - An independent person or business that is appointed to deal with the sales and distribution of a product or range of products. Agents - Decision makers, including households, firms, and government bodies.

The function that relates aggregate desired expenditure to national income. the curve thus relates the total amount of output that will be demanded to the price level of that output. Even when multiple firms in the same sector (competitors) cluster. in that the more related firms that are clustered together.M). Aggregate demand shock . greater specialization and division of labour result) and the greater the market that the firm can sell into. Aggregate supply . investment (I).A strategy which allows a business to react to rapidly changing conditions. Aggregate expenditure (AE) function .The sum total of planned production for the whole economy.Economies of agglomeration is used in urban economics to describe the benefits that firms obtain when locating near each other. Agile manufacturing . government spending (G) and the expenditure on exports (X).A shift in the aggregate demand curve. It consists of four elements. Aggregate demand . the lower the cost of production (firms have competing multiple suppliers. AE = C + 1 + G + (X . Aggregate supply of labour curve .A curve showing the combinations of real national income and the price level that makes aggregate desired expenditure equal to national income. Aggregate supply curve . Aggregate demand for labour curve . there may be advantages because that cluster attracts more suppliers and customers than a single firm could alone.Agglomeration (economics) . Cities form and grow to exploit economies of agglomeration. less any expenditure on imports of goods and services (M): AD = C + 1+ G + (X -M).A curve showing the total demand for labour in the economy at different levels of real wage rates. Aggregate demand (AD) curve . representing the four major components of aggregate desired expenditure. . It is related to the idea of economies of scale and network effects. Aggregate supply shock .A curve showing the total number of people willing and able to work at different average real wage rates. Aggregate expenditure (AE).The relationship between planned rates of total production for the whole economy and the price level. consumer spending (C). Aggregate .the sum or total.A shift in the aggregate supply curve.Total desired expenditure on final output of the economy.Total desired purchases by all the buyers of an economy's output.

A representation letter is prepared that depends on the nature of the engagement and the specified users. See allocate. charge a cost or revenue to a number of departments.The situation that occurs when no resources are wasted . distribution according to a plan. a cost may be assigned to divisions of a company based on sales. products. This relates to a lump sum purchase. Allocate . Instead. products.when no one can be made better off without making someone else worse off. desire. For example.Classifying accounts by the time elapsed after the date of billing or the due date. Allocative efficiency in any activity is achieved where any reallocation would lead to a decline in net benefit. the company also has a opportunity cost of funds tied-up in the receivable that could be invested elsewhere for a return. The users of the report agree upon the procedures to be conducted by the accountant that the user believes are suitable. Private efficiency is achieved where marginal private benefit equals marginal private cost (ME = MC). Social efficiency is achieved where marginal social benefit equals marginal social cost (MSB = MSC) Allowance -1. AIDA model . Aid (Foreign) . Or 3. allocating costs is the assignment of costs to departments or products over various time periods. distribute the cost associated with the acquisition of two or more items based on their relative fair market values. a reduction in the amount owed a supplier because of damaged goods received or delays encountered. The user takes responsibility for the adequacy of the procedures. An example is assigning the prepaid cost of a three-year insurance policy by one-third each year. the report should be in the form of procedures and findings. Or 2. Agreed upon procedures . Agreed-upon procedures is when the accountant is hired to issue a report of findings based on specified financial statement items. Allocation . or investments. processes.The act of distributing by allotting or apportioning. The longer a customer's account remains uncollected or the longer inventory is held.Aging of accounts .Applies to engagements relating to agreed-upon procedures to specified elements or accounts. an acceptable reduction in quantity or quality such as normal spoilage in a manufacturing operation. or activities on some rational basis.. If a customer's account is past due. In this engagement. interest. the greater is its realisation risk. Allocative efficiency . Or .1.g. action. Or 2. the accountant does not express an opinion or negative assurance. e. operations. Spread a cost over two or more accounting periods usually based on time. It is achieved where marginal benefit equals marginal cost.Administered transfer of resources from a donor country or international agency or NGO organisation to an LDC to encourage economic growth.Simple way of planning an adverts' design: it stands for attention.

The technique. Annualise . for example. Contained in the annual report are the company financial statements including footnotes.g.A legal requirement for all companies.. week or month.A consolidation or merger.The allowance method results in a good matching of bad debt expense against sales.3. It should be noted that firms other than small financial institutions are required to use the direct write off method for tax purposes. Allowance method .A statistical technique whereby figures covering a period of less than one year are extended to cover a 12-month period. When it is known that a customer will actually not pay the balance. managements discussion of analysis and earnings. the monthly payments would be 1000 a month.An account established to record a subtraction from accounts receivable. president's letter. to allow for those accounts that will not be paid. research and marketing efforts) helpful in evaluating the entity's financial position and operating performance.Evaluation prepared by companies at the end of the reporting year which might be either on a calendar or fiscal basis. audit report. In business. Annualised hours contracts .. to be accurate. An example of ancillary revenue would be revenue gained from the selling of products or services that are not considered to be primary to the businesses generation of revenue.A payment system based on a fixed number of hours to be worked each year. If for whatever reason the customer does pay at a later date. mortgage) over a fixed period of time. all shareholders may attend. as of several corporations. a valuation account reducing the cost of an asset such as the allowance to reduce marketable securities from cost to market value. and other explanatory data (e. supplementary schedules. They vote on who they want to be on the board of directors for the coming year and on other issues raised by the board or themselves. Amalgamation .000 is amortized over 1 year with no interest. Annual general meeting (AGM) .. Annual report .Normally is used to refer to something lesser or extra importance. because of bankruptcy. but a flexible number of hours each day. Example: if a loan of 12. The annual report is read by . the distinction being that the surviving entity incorporates the asset base of others into its base. must take seasonal variations into consideration. reverse the last entry and make a second entry debiting cash and crediting accounts receivable.g. The journal entry at year-end to record anticipated uncollectibility of accounts receivable is to debit bad debts and credit allowance for bad debts. loan. Allowance for bad debts (provision for bad/doubtful debts) . Amortisation .The depreciation (or reduction) of an (usually) intangible asset (e. Ancillary . there is a recovery. the entry is to debit allowance for bad debts and credit accounts receivable.

Antitrust policy . An asset may be a piece of property. Examples may include the fact that some small stocks to outperform large stocks on occasion.The part of the profit and loss account which shows how the profit after tax is distributed . as distinguished from increases in value due to improvements or additions made to it. It is something that is irregular and difficult to explain using existing theory or rules. (3) determining the value at death for estate tax purposes. Ansoff matrix . . Apportion .Distribution of net income to different accounts and may also include the allocation of retained earnings for a specific or designated purpose. and other conditions. potential investors. Or 2. activities such as inspection and testing of materials. which is due to economic. usually over a fixed number of years.g. Annuity .. land. Or 2. e. and (4) determining a reasonable asking price in a sale. and other interested financial statement users. Anticipated inflation .The increase in the value of an asset in excess of its depreciable cost. for example. (2) determining the amount of hazard insurance to carry.stockholders. In the case of property. and packaging.either as dividends or kept in the company as retained profits.Policy designed to prohibit the acquisition and exercise of monopoly power by business firms. evaluating the usefulness of the employee the business. building. equipment). regulatory bodies. Appreciation . Appropriate / Appropriation / Appropriated . Or an increase in the value of a domestic currency in terms of other currencies.A model which identifies growth strategies for businesses based on an analysis of their products and their markets. in-process items.An exception from the common rule. finished goods. a collectible. Anomaly .To share out or divide according to a plan. employees.An inflation rate that has been correctly forecast. an appraisal is made for the purposes of: (1) allocating the purchase price to the assets acquired (e. in which case it would be called a life-contingent annuity or simply life annuity. or a precious metal. estimate of the value of an asset. creditors. or for the lifetime of a person.g. Appropriation account . is a series of fixed payments.in finance. Appraisal – 1. new equipment.

The articles contain basic information on the corporation as required by law. under certain assumed conditions. Ask price . they serve as a corporation's constitution. Arrow's impossibility theorem . thereby avoiding any semblance or accusation of conflict of interest.Anything of value that is owned by a business or in other words assets represent what a business owns or is due. ASEAN is focused on developing a free trade area among the member nations. money in the bank. Hong Kong. Traders make money on the difference between the bid price and the ask price.Four Asian nations. Asian tigers .The term "ask" normally refers to the lowest price at which a trader will sell stock at any given time. then you are said to be 3 months in arrears on your rent.A mathematical result showing that. there is no scheme for aggregating individual preferences into a valid set of social preferences Articles of incorporation . creditors. Arm’s length transaction . proportionate share of a shared expense. South Korea and Taiwan. For example. Or 2.The primary legal document of a corporation.Bills which should have been paid. Arrears . The term "bid" refers to the highest price a trader will pay to purchase the stock. amount of tax due to a the governmental or other association.A person who listens to both sides in an industrial dispute (trade union and management) and then gives a ruling of what the arbitrator thinks is fair to both sides. vehicles. Typical breakdown includes 'Fixed . Arc elasticity .A trading block of countries in SE Asia.A measure of the average responsiveness of quantity to price over an interval of the demand curve.1. That difference is refereed to as the "spread". buildings. if you have forgotten to pay your last 3 months rent. such movements quickly eliminate any such differences. Arbitrage . Equipment. Thus labour intensive technology would be appropriate in a labour abundant economy and capital intensive technology would be inappropriate. Assessment . Arbitrator . with spectacularly high growth rates of manufactured exports.The movements of funds to take advantage of differences in exchange or interest rates. Asset .Is when the transaction is conducted as though the parties to the transaction were unrelated.A technology which accords with the factor endowments of the country. cash are all examples of the assets of a business. Singapore. ASEAN (Association of Southeast Asian Nations) .Appropriate technology .

At risk .assets'. At-risk amounts are restricted to the cash investment and the debt for which the taxpayer is personally liable. debtors etc. Associate . plant.Where a business develops and markets products based on its main strengths. If the cash investment and personal debt incurred were $35. the most that could be deducted as losses is $35.Areas that are designated as having problems by the UK or EU and are eligible for support in a variety of forms.Where one party in an economic relationship (e. ATM . it may be an indication that the business should either utilize its assets in a more efficient manner or sell them. A taxpayer can deduct losses for tax purposes only to the degree of risk. Asset stripping . If there is a low turnover.Automatic teller machine. Asset turnover . as opposed to.In business. the retail price.Shocks (such as an oil price increase or a recession in another part of the world) that have different-sized effects on different industries. Asset structure – The proportion of capital employed in each type of asset.000.g.000.A measure of the productivity of assets.000. the principal). Assisted areas . Attest . Asymmetric Information . A higher ratio is desired. buildings. Asset turnover ratios can also be calculated for specific assets such as the ratios of sales to cash and sales to inventory. Higher ratios reflect favourably on the firm's ability to employ assets effectively. say. may be considered a low ratio for another industry. What is considered a high ratio for one industry. as to whether financial statements fairly present financial position and operating results. Fixed refers to equipment. an agent) has more information than another (e. vehicles etc. Current refers to cash. This ratio measures the efficiency of corporate assets in generating revenue. however. At cost . 'Current assets' and 'non-current assets'. Assume an individual incurs losses from real estate activities of $40. is when one person is brought together with another person or company into a relationship to perform some aspect of business.Formal statement by an auditor after thorough examination and consideration. Note there is an expansion of the at-risk amounts to real estate only to include certain non-recourse loans from qualified lenders.The selling off of profitable sections and closing down of loss making sections of business following an acquisition.The 'at cost' price usually refers to the price originally paid for something. Asymmetric Shocks . Asset-based (asset-led) marketing . regions or countries.g. . money in the bank.Tax term.

the trend in an account should be looked at over time as a basis for determining the extent of testing required. Evidence can be obtained through various means such as physical verification of inventory records or confirmation letters sent to verify recorded amounts of accounts receivable.A list of transactions in the order they occurred. or certified by another country's recognized national association of accountants. . Auditing evidence . Audit opinion .Guidelines that auditors follow when examining financial statements and other data. It selects and appraises the performance of the CPA firm.Body formed by a company's board of directors to oversee audit operations and circumstances. The auditor reports on the nature of his or her work and on the degree of responsibility assumed.Proof the auditor uses to substantiate a recorded item so that proper reliance may be placed on financial statement figures. Attrition . if travel expense went from 2% of sales last year to 25% of sales this year. Audit . Proof of accounting data includes examining source documents in support of a transaction. retirement.Report rendered by the independent CPA at the end of an audit investigation. Some examples are the NYSE and AMEX. This. the public accountant provides an objective evaluation to aid financial statement users. Audit trail . where the trades are negotiated. Auction (market) – A trading market in which the buyers enter bids and sellers enter competitive offers at the same time.An accountant usually certified by a national professional association of accountants. checking a journal's entries against the original purchase and sales invoices). as different to the over-the-counter market. if one exists in the corporation’s country. or death. Audit committee . For example. Auditing standards . Test checks of accounts and transactions are necessary.With an attest.The process of checking every entry in a set of books to make sure they agree with the original paperwork (eg. this inconsistency requires close examination.Reduction in numbers usually as a result of resignation. Auditor . The degree to which evidence gathering is necessary partly depends on the quality of the client's internal control system. Also. Auditing – An accounting procedure which checks thoroughly the authenticity of a company’s accounts. Corporations will often work with both internal auditors and external auditors.

and conclusions or opinions. Autocratic leadership . Automatic fiscal stabilisers . elements of expenditure that do not vary systematically with other variables. Issued shares are normally less than the number of authorised shares. or does not depend on. but are determined by forces outside of the theory. Autonomous consumption . Autarky .A situation in which a country engages in no foreign trade.An unattended machine (outside some banks) that dispenses money or allows an individual to conduct unassisted business transactions with the ATM when a personal coded card is used. The more they change with income. calculated by dividing the total cost by output. Automatic stabiliser . Authority .The right to command a situation. business. the level of disposable income. a task or an activity. For example: checking the validity of an accounting entry through the step-by-step record by which accounting data can be traced to their source. document which gives the results of the audit.In macroeconomics. Average cost or unit cost – The cost of producing one unit.A mechanism that decreases the size of fluctuations in aggregate expenditure. Authorised share capital – The maximum amount which can be legally raised by a company. such as national income and the interest rate.Calculated by the formula: 365 / inventory turnover. the bigger the stabilising effect on national income.Tax revenues that rise and government expenditure that falls as national income rises.A step-by-step record by which financial. also recommendations may be made. Authorised capital stock .The maximum number of shares of common stock that can be issued under a company's Articles of Incorporation. Average age of inventory . Audit trail .Audit report .Is the signed. . Results of the audit may include the findings. Automatic teller machine (ATM) . and quality assurance data can be traced to its source. Autonomous expenditure .A leadership style where the leader makes all decisions independently.The part of consumption that is independent of. Changes in autonomous consumption shift the consumption function. The instructions and strategies are issued from above with little opportunity for contributions to decision-making from less senior employees.

Average propensity to consume (APC) . When all output is sold at the same price. . Average tax rate (ATR) . Average cost pricing or mark-up pricing . The proportion of total disposable income that is consumed.Total product divided by the number of units of the variable factor used in its production.Total costs divided by number of units produced. except (1) sunk costs and (2) costs that will continue regardless of the decision. Average total costs (ATC) .Is using a weighted average cost for items in inventory rather than actual cost for each specific item. average revenue will be the same as price.g.Where firms set the price by adding a profit mark-up to average cost.Total revenue per unit of output. Average propensity to save (APS) .A method of investment appraisal which measures the net return per annum as a percentage of the initial spending. For example.Cost that will not be incurred if an activity is suspended. Average cost method . Average settlement period .Saving divided by disposable income.Total fixed costs divided by the number of units produced. Average rate of return (ARR) . salaries paid to employees working in a particular product line or department). Avoidable cost . Average product (AP) . also called escapable cost. The proportion of total disposable income that is saved. it is the cost that can be saved by dropping a particular product line or department (e..Total cost (fixed plus variable) per unit of output.Consumption divided by disposable income for any given level of income.Average (total) cost . Average revenue (AR) . Average variable costs (AVC) . The proportion of total income paid in taxes.Is calculated: For Debtors = Trade Debtors X 365 days / Credit Sales For Creditors = Trade Creditors X 365 days / Credit Purchases. Average fixed costs . All costs are avoidable.The total tax payment divided by total income.Total variable costs divided by the number of units produced.

Or 2. Bad debts account . the difference between total debits and total credits in an account. Or 5. Or 3.the equality of total debits and total credits of all accounts in a general ledger in the preparation of a trial balance. This cannot be deducted as an expense against tax liability. .To make a duplicate copy of original data or files usually stored on a separate data storage medium. the entry is to debit bad debt expense and credit accounts receivable. Backward vertical integration . balance of a loan. Back up .1. There usually exists a company policy of how long an unshipped order remains an order without some sort of confirmation or communication. balance in a bank account.g.Customer's order that cannot be filled at the present time usually because the merchandise is not currently in stock. If the direct write-off method is employed.An account used to record an estimate of bad debts for the year (usually as a percentage of sales). As soon as the product is available.An account in the General Ledger to record the value of un-recoverable debts from customers. Bad debts reserve account .. Or 4. the entry at time of uncollectibility is to debit allowance for bad debts and credit accounts receivable. customer accounts).Merging with a firm involved with the previous stage of production. Backup ensures the recoverability of files in the event of loss of the original data. the equality of a control account in the general ledger (e. Bad debt . If the allowance method of estimating bad debts is used.Back order .g. Real bad debts or those that are likely to happen can be deducted as expenses against tax liability (provided they refer specifically to a customer). it will be shipped to the customer. An excessive amount of back orders may indicate to the accountant that poor inventory planning exists.Account or note receivable that proves to be entirely or partially uncollectible despite collection efforts. Balance . accounts receivable) and the total balance of all accounts in the subsidiary ledger (e..

and learning and growth. as well as transfer payments. such as stocks. Balancing charge . The dimensions are financial..Exports of services minus imports of services. Balanced budget multiplier . Balance of payments (BOP) . It has a budget deficit if expenditures are greater than revenues. The capital account records purchases and sales of investments. An entity has a budget surplus if expenditures are less than revenues. Balance on trade in goods and services (or balance of trade) . Balance of trade (BOT) . internal processes. The current account records trade in goods and services. they have a great effect on the evaluation of the company by shareholders and creditors. A balanced scorecard is a set of performance measures constructed for four dimensions of performance.g. and innovation). bonds and land. innovate. and grow. royalty payments. After all.. . The term 'balance sheet' implies that the combined balances of assets exactly equals the liabilities and equity (aka net worth).One in which total expenditures equal total revenue. number of new patents as an innovation measure). The balance of trade simply records trade in goods. Balanced scorecard . internal processes. ratings of customer satisfaction).Balanced budget . And learning and growth measures examine the company's success in improving its ability to adapt. After reviewing these measures. The customer. Having financial measures is critical even if they are backward looking. number of defects) are balanced with qualitative measures (e. Balance on trade in goods . customer.The difference between the value of visible exports and the value of visible imports.. gifts.e. and interest payments. Internal process measures examine the company's success in improving critical business processes. and learning and growth measures are generally thought to be predictive of future success (i. Customer measures examine the company's success in meeting customer expectations. (2) the capital account. they are not backward looking)..g.A summary of all the accounts of a business. financial measures like growth in sales) and forward-looking measures (e. customer. Services include freight.An approach to performance measurement that also focuses on what managers are doing today to create future shareholder value. internal processes.g.The change in income divided by the tax-financed change in government expenditure that brought it about. any loss or gain on the asset can be reclaimed against (or added to) any profits for income tax purposes.g. note how "balance" is achieved: (I) performance is assessed across a balanced set of dimensions (financial. Transfer payments consist of remittances.Exports of goods minus imports of goods. and (3) there is a balance of backward-looking measures (e. Balance sheet .When a fixed asset is sold or disposed of. and (3) gold. and grants.Exports of goods and services minus imports of goods and services. Usually prepared at the end of each financial year. Balance of payments on current account – The balance of trade in goods and services plus net investment income and current transfers.Record of the transactions of a country with the rest of the world.. There are three main accounts in the balance of payments: (I) the current account. Balance on trade in services . (2) quantitative measures (e. This is called a balancing charge.

Bankruptcy . It is also a court action under which a debtor may be discharged for unpaid debts. (Business) situation in which a business' debt exceeds the fair market value of its assets. In the case of a limited company or corporation in the same position. such as a checking or savings account. Bank notes . Or 2.Paper money issued by commercial banks. Rarely do the ending balances agree. a bank reconciliation is required. Barter . a debt agreement might provide for a balloon payment when future refinancing is anticipated.Amount in a bank deposit account. .Last loan payment when it is significantly more than the prior payments. bankrupt. Barriers to entry . the person or business can petition for. Bank balance .Where the price leader is the one whose prices are believed to reflect market conditions in the most satisfactory way. For example. To reflect the reconciling items. Barometric firm price leadership .The estimated net value of omissions from all other items recorded on the balance of payments accounts.A statement from a financial institution reporting all transactions in the accounts held by the account holder. or be declared by its creditors.Bills that have been accepted by another institution and hence insured against default. the term used is insolvent . The individual can file for bankruptcy in order to seek to legally eliminate some or all of his debts. Bank (or deposits) multiplier .The number of times greater the expansion of bank deposits in that the additional liquidity in banks causes it – 1/L (the inverse of the liquidity ratio). Bank statement . and in which creditors receive distributions of assets from the debtor's property under the supervision of the court.Barriers that make it difficult for firms to enter an industry and offer competition to existing producers or suppliers.A chart where numerical information is represented by blocks or bars. Balloon payment .1. Bar chart . indicated on a bank statement.A system of exchange in which goods or services are exchanged for goods or services without the use of money. Bank reconciliation -Term used when settling differences contained in the BANK STATEMENT and the cash account in the books of the bank's customer. Bank bills . (Personal) legal process that is available for an individual who is overextended financially and is unable to pay his debts. also called partially amortized loans. as of a certain specified time or date.Balancing item . in whole or in part. Bankrupt .If an individual or unincorporated company has greater liabilities than it has assets.

The identification and assigning of relevant costs incurred in completing the manufacturing process of a specified batch of components or items. Net income available to common stockholders is net income less declared preferred dividends for the year. Batch . Basis . in increasing from 6.01% in yield. Batch costing .An economy where people exchange goods and services directly with one another without any payment of money. . Under the cash basis of accounting.The collecting and organising of incoming invoices before processing. depreciation. B/D . Basic rate of tax .. 2. amortisation and depletion. base year. Batch production – A method which involves completing one operation at a time on all units before performing the next. applying to most people's incomes..g.The year which is chosen as the point of reference for comparison. Base year .The starting value or used point in calculating the gain or loss.Brought Down (T-accounts).g. Basis points . Base amount . batch production. the yield increases by a total of five basis points. Workers would be paid with bundles of goods.e.The main marginal rate of tax. Basic earnings per share . For example.Is given as 0. Expenses are recognized in the period when the related revenue is recognized and the difference is the net income figure for a particular period.The amount from which something numerical is begun or developed or calculated or explained. however. Cash basis financial statements. revenues are recognized only when money is received and expenses are recognized only when money is paid. 12 months for annual reporting). If the preferred stock is noncumulative. a tennis rackets player with tennis balls.05%. the dividends are deducted even if they are not declared in the current year. preferred stock dividends are subtracted only if they are declared during the year. From the batch cost is is possible to then calculate the unit cost by dividing it by the number of components in the batch. in an asset sale.Refers to a collection of things or items that are to be handled or processed at the same time i. where basis is the amount on which depreciation is calculated.Method of recognizing revenues and expenses. e. (marketing) A form of price discrimination where products are joined or packaged together in order increase sales i.Barter economy . gain is proceeds minus basis. the numerator being the number of months the shares have been outstanding and the denominator being the number of months in the period (e. distort financial position and operating results of an organization.00% to 6.e. Batching (accounting) . Basic economic problem – How scarce resources with different uses are allocated to satisfy wants.Net income available to common stockholders divided by the weighted-average number of shares outstanding. If the preferred stock is cumulative. revenues are recognized as goods are sold and services are rendered regardless of the time when cash is received. The weighted-average number of common stock shares outstanding is determined by multiplying the number of shares issued and outstanding for any time period by a fraction. Basis of accounting . Under the accrual basis of accounting. For example.

In results benchmarking. Behavioural theories . Benchmarking applies to services and practices as well as to products and is an ongoing systematic process. Benchmark .Individual who will receive an inheritance upon the death of another. A standard measurement or metric used to evaluate the performance of a portfolio. Beneficial owner . a valuation is placed on people and reflected as an asset in the balance sheet. Also profit centres engage a manager's ego because the financial results of the entity are a direct reflection of the manager's performance.the process of searching for new and better procedures by comparing your own procedures to that of the very best. a firm examines the end product or service of another company.1. In human resource accounting. Below the line . approach to accounting that stresses psychological considerations in decision making.The estimated useful life period of time that an asset will be productive. or yardstick to judge one's performance as an individual or company. also called human resource.1. Behavioural accounting .Beggar-my-neighbour policies . Benchmarking (best practices) . a budget should be participative so departmental managers who are involved with it will internalize the goals. The objective is to measure the key outputs of a business process or function against the best and to analyze the reasons for the performance difference. theory that the management accounting function is essentially behavioural. It entails both quantitative and qualitative measurements that allow both an internal and an external assessment Process benchmarking is the process of assessing the quality of key internal processes by comparing them with those of other firms.This term is applied to items within a business which would not normally be associated with the everyday running of a business. See above the line . A standard. Or 2. For example. The theory states that the nature and scope of accounting systems is materially influenced by the view of human behaviour that is held by the accountants who design and operate these systems.Policies designed to increase a country's prosperity (especially by reducing its unemployment) at the expense of reducing prosperity in other countries (especially by increasing their unemployment). focusing on product/service specifications and performance results.Theories which state that business objectives are determined jointly by groups of interested parties. Benefit period . an appropriate stock or bond index can be used to gauge the performance of an investment such as a mutual fund. For example.Refers to the individual who enjoys the benefits of ownership even though the title may be in a different name. norm. . Beneficiary . Participative budgeting is a simple application of behavioural accounting. Or 2. The proceeds of an insurance policy may be in the form of a lump-sum or annuity.

title is passed to the goods. If the beta is less than I. Alternatively." and are entered in a ledger account under that name. Bill of exchange . Black economy I parallel economy .Benefits in kind . person named for receipt) for delivery of goods. Bid is the highest price an investor is willing to pay while asked is the lowest price a seller is willing to take. title. Birth-rate . and low quality of earnings. typically three months from the issue of the bill. Bill . Bill of lading .An illegal trading arrangement in which buyers and sellers do business at a price higher than the legally imposed price ceiling. these are called "bills payable. an invoice from a supplier). Black market I parallel market .The number of births per 1000 people in the population per year. High variability in stock price may indicate greater business risk.Is the authority to act without having to gain further approval.The idea that people should pay taxes based on the benefits they receive from government services. Blanket authorisation . Upon transfer of the bill.Where a monopsony buyer faces a monopoly seller. the state can subsidise the private sector to provide them. It cannot be precisely measured because it fails to go through official accounts. Benefits principle . it is less volatile than the market average. place. Beta . Together. thereby earning a rate of discount for the purchaser. Bills pay no interest as such.Written document that transfers goods. Billable . . Bill of sale .Measure of systematic or undiversifiable risk of a stock.Unofficial economic activity.Term in the over-the-counter market for unlisted securities. A spread is the difference between the bid and asked prices. A beta coefficient of more than 1 means that the company's stock price has shown more volatility than the market index (e.Are bills which have been accepted. Bid and offer are the more common terms in discussing listed securities. but are sold at a discount and redeemed at face value.g. the two prices represent a quotation in that stock.Normally refers to those hours a professional has worked and then billed to their client. its risk is the same as the market index.A certificate promising to repay a stated amount on a certain date.Refers to the costs and/or other expenses that are covered by the contractual agreement between two parties that may be billed. instability in operations.. Bills payable .Goods or services which the state provides directly to the recipient at no charge or at a subsidised price. usually. It also evidences receipt of goods. Bilateral monopoly . Bid and asked . If it equals I. or other interests from a seller to a buyer and specifies the terms and conditions of the transaction. Billable hours .Written document issued by a carrier that specifies contractual conditions and terms (such as time. that indicates it is a risky security. Standard & Poor's 500) to which it is being related.A term typically used to describe a purchase invoice (eg.

The Board has significant influence over accounting and financial policies of the business entity. government.The amount in excess of face value (maturity value) at which a bond is issued.1. Board of directors .Common stock of high quality that has a long record of earnings and dividend payments. Senior management is appointed by the Board. Bonus . Book/s . or other institution to pay the face amount at the maturity date.. Blending . The entry to record the interest each period is to debit interest expense and credit cash. Periodic interest payments are usually required.Usually an extra payment made in recognition of the contribution a worker has made to the company. a bond issue has several advantages over a stock issue.In accounting is used to refers to the ledgers or journals (for example: general journal). From the company's perspective. the entry is to debit cash and credit bonds payable. the cash or property given to assure performance (i. a written promise by a company. Bonded warehouse . or in other words the amount paid to get the asset.e. Blue chip may also refer to a high-quality bond that is secure and stable in price and interest payments.A warehouse that is authorised by customs department for the storage of items on which payment of duty is not required until the goods are removed.This is the cost when asset is purchased or realised.Group of persons elected by a company's stockholders to run the business according to the corporate charter. During inflation. such as with zero-coupon bonds. Examples are International Telephone and Telegraph and Minnesota Mining and Manufacturing.Blind trust .g to book the sale). Interest expense is tax deductible. At maturity. Sinking fund bonds require the company to make annual deposits to a trustee. the amount in the sinking fund (principal plus interest) is sufficient to pay the face of the bond. whereas the holder of a bearer bond presents coupons for interest payments. Blue chip stocks are often viewed as long-term investment instruments. the entry is to debit cash and bond discount and credit bonds payable. contractor depositing a performance bond on a construction project to be completed by a specified date). A registered bond has the name of the owner on the issuer's records.Trust where the assets are not disclosed to their owner. They have low risk and provide modest but dependable return. Bond discount . . Bond . Used a verb it means to the recording of an entry (e. Bonds may be secured by collateral or unsecured (debenture). the Board consists of top management executives (inside directors) and representatives external to the company (outside directors). Often used when people gain public office to avoid conflict of interest. Bond premium . Bonds are typically stated in $1000 denominations. Or 3. When bonds are issued at face value.The amount below face value at which a bond is issued. Book cost . Typically. Or 2. debt is paid back in cheaper dollars. whereas dividend payments are not. When bonds are issued at a discount. Blue chip . type of insurance compensating employer for employee dishonesty. i.e.A graphical approach to linear programming which deals with resource allocation subject to constraints.

Brand name .The price at which a firm is just able to cover all of its costs. The accounting system which is adopted depends upon the degree of centralisation of the the branch and how much it is controlled from its central or head office.Where a business sells just enough to cover its costs. Or 2. A stronger the brand image is more likely to have an inelastic the demand curve. It equals the gross cost less the related valuation account. Book value is a going-concern value. Brand . For example.Is a method of analysis used to determine the number of units that need to be sold to reach a break-even point in a business i. Or 2. Branch accounting .The level of output where total revenue and total cost are the same. Break-even .Accounting support functions performed by the book keeper. Boom . Books of account .This is used to refer to the situation when a consumer is unlikely or reluctant to switch from consumption of this good. net amount shown for an asset on the balance sheet.g.Means an identifiable or recognised name given to a product or service often registered as a trademark e. .A graph containing the total cost and total revenue functions. including the opportunity cost of capital. carrying value of a liability equal to its face value less unamortised discount. Nike. Break-even price . Book value .The view or opinion held by consumers/customers about a particular brand of an item.The stage when an economy is at the peak Bottom line . it will differ from market value. Break-even point .Normally means the accounting for regions separated geographically or sections of enterprises.1. The consumer is said to be "loyal" to the brand.e. where total revenue is equal to total cost.Breaking of terms agreed in the contract of employment by the employers and the employees. Break-even analysis . Breach of contract . Brand image . net income after taxes. Bounced cheque .A cheque which has been written for an amount greater than the account balance and is not paid by the bank because of the insufficient funds. Since book value is based on HISTORICAL COST. the book value of an auto is its initial cost less the accumulated depreciation. expression as to the end-result of something. Brand loyalty .A name given by a business to one or more of its products. Bookkeeping is the most basic of the accounting duties and requires less education and experience. as a means of identification by the customer.Bookkeeping . illustrating the break-even point.Theses are the financial records of an entity.1. Break-even chart . An example is the sales generated from an advertising campaign.

It is concerned with performance in terms of authority to act and the action itself. The need for such recording is consistent with the responsibility of fund accounting. the place where a broker carries out their business. looks forward: it measures the cost of planned acquisitions and the use of economic resources in the future.Areas of land which were once used for urban development.Brentton Woods system . It is used for planning and control purposes.In government accounting. process of recording budgetary amounts in the accounts of a fund. If revenue exceeds expenditure.The annual statement by the government of its financial plan.g. a balance brought forward from the previous accounting period at the start of a new accounting period. The USA maintained convertibility of the dollar into gold at the rate of $35 to an ounce. (1) The control aspect of the budgetary function is stressed.Cash in circulation plus retail and wholesale bank and building society deposits. Budgetary deficit . Broad Money in UK (M4) . it itemizes spending programmes and their costs. Budgeting . If expenditure exceeds revenue. Budget (government) .Items in narrow definitions plus other items that can be readily converted into cash. Brownfield site . The interest rate on the bridge loan is generally higher than on longer term loans. Budgetary accountability . Recording the balances has a dual effect.The difference between government sector revenue and expenditure in a given period of time.Cab be either the business of a broker who charges a fee to arrange a contract between two parties.Contrary to financial accounting. the government sector has a budget surplus.An adjustable peg system whereby currencies were pegged to the US dollar. This process may include money or time and is aimed at achieving the desired result. Broad definitions of money .Occurs when expenditures are greater than revenues. An example would be a temporary loan that is made to permit a closing on a building purchase prior to a closing on long-term mortgage financing.The planning of intended revenues and expenditures over a specified time period. Budget surplus (or budget deficit) .or long-term loans.short-term loan that is made in expectation of intermediate. comparing the actual results with the planned objectives and then investigating causes of any differences. Budgeting process . e. the government sector has a budget deficit Budgetary accounting . also called a swing loan. Budget .The process of collecting the data and preparing the budget for future activities of an entity or activity. and (2) recognition is given to the legal foundations of the budget. Bridge loan (bridging loan) . Budgetary control – A business system which involves making future plans. tax revenues and the proposed deficit or surplus. Brokerage . or. .A quantitative economic plan prepared and agreed in advance. Brought forward .The act of bringing a previously recognised value that was determined in the past.

the key people involved in the business. Business entity principle . Business valuation .Fluctuations of national income around its trend value. an inventory buffer would be additional inventory kept on hand over and above the committed or planned level of inventory. Business plan . financing needs and projections. Bursary . outlining the way it will attempt to achieve its objectives. Buffer Stock (economics) . tactical decisions (those which are taken more frequently and which are less important) and operational decisions (day-to-day decisions which will be taken by lower-level managers).A firm or business is seen as separate from its owner(s) in the presentation of the final accounts and financial statements. Business structure – The way in which a business is organized.A statement made by a business. or.Is used to refer to a component of a firm that (a) may provides a single product/service or a group of related products/services and/or(b) that is or can be subject to risks and rewards that are different from those of other of the businesses segments.. an analysis of competitors.Stocks held as a precaution to cope with unforeseen demand.Means the quantity or supply of items for sale exceeds the demand or amount consumers are willing and able to buy at the current price. . a limited liability company. after seasonal fluctuations have been removed. that attempts to smooth out fluctuations in prices by the purchase and sale of stocks. Business entity .The influence of values and beliefs upon the conduct and operation of the business.Can mean the provisions of corporate policies or refer to local council rules and regulations. Business cycle I trade cycle . Examples of business entities are sole proprietorship. Buffer stocks (accounting) .Buffer . usually run by producers or the government. A business plan should includes the product(s) and/or service(s).The treasury of a public institution or religious order. Burn rate .The rate at which a company spends its money. Business decisions .Is something that stands in between two other things e. that follow a wavelike pattern.The price that a hypothetical buyer (estimate) would pay for a business or entity under a given set of circumstances.These include strategic decisions (very important ones which can affect the overall success of the business). Business segment . It is often characterised by low prices.The legal form under which a business is conducted.An organisation.g. By laws . corporation. then you could say that at the current 'burn rate' the company will run out of cash in 1 year. Buyer’s market . Business ethics . Example: if a company had cash reserves of $120m and it was currently spending $10m a month. the market situation. and the financial rewards/results if the business plan is successful. general partnership.

1. Or stock or bond issue prior to its maturity. CAP (The Common Agricultural Policy) . This is because investors consider yield to call as opposed to yield- .of the European Community.By-products . It is designed to stabilise by fixing minimum prices for agricultural products. Call . Or at a specified price that happens within a certain specified period. A call provision is often issued on a security when the inte one that has no call provision. option to buy (or call) an asset at a specified price within a specified period.The government body responsible for union recognition. See also option.Materials which are produced as a result of a process designed to produce a different material. CAC .

Cost of Sales .The annual interest rate of a bond. businesses facing increased costs. Cost principle (historical cost .Certified Public Accountant.A card authorising purchases on credit at a predetermined interest rate and/or payment conditions. Credible threat (or promise) . . Covenant .closing stock.P. selling price and variable costs per unit or fixed costs. you would therefore credit the bank when making the journal entry). Credit card receipts .The principle where a company is obliged to record its fixed assets at their actual pur Cost-push inflation .One that is believable to rivals because it is in the threatener’s interests to carry it out.The use of fiscal and monetary policy to offset.When the power ( monopolistic/oligopolistic seller is offset powerful buyers who can prevent t Coupon rte .Consumer price index. for example. booms and slumps by concretionary and exp Countervailing power . The re The formula is: Opening stock + purchases + direct expenses .When firms price their product by adding a certain profit or mark-up to average Cost-push inflation . C.A formula for working out the direct costs of your sales (including stock) over a particular period.A clause in a contract that requires one party to do. Creative accounting . Craft union . Counter-cyclical policy . Cost plus pricing – A method of determining payment based on the actual cost of production or service provisioning p profit. It is usually a rest a lender. which are then passed higher prices.A column in a journal or ledger to record the 'From' side of a transaction (e. based on calculated ratios.Inflation that has its origin in cost increases. see Cost of Goods Sold . or refrain from doing. if you buy some petrol using a c the bank to the petrol account.A. Credit card .A functional cost unit which establishes standard cost per workload element of activity.Examines the behaviour of total revenue. Also.A trade union which represents a particular.Sales revenue where payment has been made through the use of recognized/authorised credit receipts/payments. moving them to the assets section rather than declaring them in the Profit Credit . total costs an output level.A questionable! means of making a companies figures appear more (or less) appealing to shar 'branding' where the 'value' of a brand name is added to intangible assets which increases shareholders funds (and the Capitalising expenses is another method (ie.The savings in operating costs expected after two companies. type of skilled worker. who compliment each other's strengths Cost unit . . a cost-plus government contract. Credit control .The process of monitoring and collecting the money owed to a business.g. Cost volume profit analysis (break even analysis) (CVPA) .Cost-plus pricing (full-cost pricing) . CPI .Inflation which occurs as a result of . certain things.. Cost synergy .

Data – A collection of information.The date at which those who owned/own shares will receive the dividends. .Development Assistance Committee of the OECD.An organised collection of data stored electronically with instant access. you are planning to fail. searching an Date of record ."If you are failing to plan." Tariq Siddique DAC . Database .

This principle says that all relevant information that may or does affects the full understanding a financial statements must be included with final statements. Discounting . Discretionary cost . Discount allowed .1. the interest rate the (Fed) Federal Reserve of the United States charges a bank to borrow money fro unable to meet its current liquidity requirements.A method of investment appraisal which takes interest rates into account by calculating income. excess of the par value (face value) of a financial instrument over the price paid for it. where there is no government intervention in the foreign exchange market. reduction payment.following equation [(standard rate . Discretionary . Director’s report . Discrimination . Disbursement . Direct marketing . Discounted cash flow (DCF) . such as an applicant for a job. future value) and the present value of a payment.Is used to mean the paying of money in order satisfy an expense or debt. it is up to the firm or individual to decide.People who would like to work but have ceased looking for a job and hence have withdrawn believe that no jobs are available for them.Financial report prepared for company directors. Or 3. Disclosure principle . Or 2.e. Direct write-off method – A method of recognition of uncollectible accounts only when known to be such. Discount . This means some information should be given as accompa items are outstanding lawsuits or other known factors that could affect the business. Dirty or managed float .actual rate) X actual hours].People elected by shareholders to run companies. the rate of interest used to discount a stream of future payments to arrive at their present value Discouraged workers .A reduction of the invoice amount for early payment of the invoice value.Refers to when something is not mandatory or compulsory. without the use of intermediaries such as w Direct material . selection or choice from alternatives.. The term is often use . difference between the face value (i.Refers to the difference between the actual costs of materials and the standard costs of Directors . Discretionary fiscal policy – Deliberate changes in tax rates or the level of government expenditure in order to influen demand. in banking.can be changed at the discretion of the individual decision maker.1. the rate at which the central bank is prepared to lend Or 3 3.A freely floating exchange system that involves governments intervening to stabilize the valu compared with a 'clean' float.Tax liability targeted at one person on the basis of income. Direct tax . The report is typically prepared on a quarterly and items such as the accountant's financial analyses and management recommendations. Or 2.Refers to when there is a difference between two sources of data.A method of distributing products directly to consumers. Discount rate . more generally. Discrepancy .To make a.The process of reducing future flows to give them a present valuation.The cost of raw materials and other components that can be identified with individual units of product Direct materials variances .

"Sometimes.Income from personal services. earliest time at w completed. . Earned income . Net income of a business." Yanny Natashah Earliest finish time (EFT) .. the hardest decision made is the right thing to do.1.g.. Earned income generally includes wages. dividends).. revenues earne as compensation and passive income (e.. interest.Discounted present value of future profit of a business. Earnings .In program review and evaluation technique (PERT). Or 2. salar employee compensation Earning power . See also earnings per share (EPS).

alcohol. Exchange rate appreciation . Exchange rate . Exogenous money supply .A variable that influences endogenous variables but is itself determined by factors outside the th Expansionary gap . quantity demanded exceeds quantity supplied. tobacco and betting. or claims on it.Inflation that occurs because decision makers raise prices (so as to keep their relative price the price level is going to rise. but to what anticipate will happen in the future. Excludability . Normally taxes levied on fuel. Exchange rate band .The system under which the government allows the exchange rate to be determined. in which both parties to the trade are better off. Execution lag . Pe happening now (such as a change in price).In foreign exchange.When the value of a country's currency rises compared to other currencies.A situation in which.When the equilibrium level of real national income exceeds the full-capacity level of real national between total desired spending and the full-capacity level of real national income. can be bought and sold amount of one currency that is necessary to purchase one unit of another currency (e. believe that the price level will rise.When the value of a country's currency falls compared with other currencies. Expectations – Beliefs about what will happen in the future.A tax on the sale of a particular product. $1. Also called a s Exchange . People's actions are influenced by their expectations.Money supply that does not depend on the demand for money but is set by the authoritie Exogenous variable . on average. Also called a Excess reserves . but is not allo Exchange rate depreciation .Not being subject to an obligation or liability of something.(short-run) The relationship between unemployment and the rate of increa national income and the rate of increase of money prices that arises when the demand and expectations components o Expected inflation rate .A situation in which. Exchange rate risk . Excess supply . Exempt .Excess demand . usually done on a voluntary basis. . Excise duties (taxes) . Expectations-augmented Phillips curve .Where a fall (or rise) in the long-run equilibrium exchange rate causes the actual exch greater amount before eventually moving back to the new long-run equilibrium level. Expectational inflation . For example exempt from a specific tax. at the given price.60 = £1).A weighted aver exchange rate expressed as an index where value of the index is 100 in a give different currencies in index add up to 1. Exchange rate regime .The price in terms of one currency at which another currency.The property of a good whereby a person can be prevented from using it.The rate at which people.The time that it takes to put policies in place after a decision has been made.Where a currency is allowed to float between an upper and lower exchange rate. quantity supplied exceeds quantity demanded. refers to the position of a firm in relation to changes in the exchange rates.The act of trading. Exchange rate index .Reserves held by a commercial bank in excess of the legally required minimum. at the given price. may be a specific tax (fixed tax per unit of product) or percentage of the value of the product). Exchange rate overshooting .g.

Factor mobility .we must step up the stairs." Vance Havne Face value . It excludes interest and dividends..The ease with which factors can be transferred between uses. mortgage) or equity security a instrument.Markets in which the services of factors of production are sold.Nominal amount of a debt obligation (e. note. Factor services . Factor market .The services of factors of production that are used to produce outputs. It is not enough to stare up the steps . bond."The vision must be followed by the venture.g. .

By using the budget formula). OR 2. Fixed income can als income which does not change in each period of time e.An input that cannot be increased in supply within a given time period Fixed income . Fixed exchange rate . that do not change when sales volume increases or are those expenses which vary or change directly with output. Five-year plans . the price that must be charged under a contract regardless of production costs.Used to refer to types of investment that give or yield a regular or fixed amount. Fixed price .These consist of assets which are likely to be kept by the business for more than one year.A budget that does not get adjusted for any changes in the level of sales or service.A news release issued by a company that shows its latest quarterly results.. wareho Flash earnings . and loopholes. . Fixed costs include such things as rent on a building and the pric fixed for a certain period of time. Flexible budget (variable budget) – A budget based on different volumes of activity. Fixed factor . Fixed costs . .1. Most fixed a over time so the value of these will fall on the balance sheet from one year to the next. filing cabinets. pensions which give a fixed income or fixed income investm Fixed investment. Flat (rate of) interest . Or 3 governmental units establishing a fixed price for a price floor (below which the price is not legally allowed to fall) and pr is not legally allowed to rise) on certain regulated goods and services..The expenses of a firm that remain constant regardless of changes in output or sales volume. It is a proportional tax. made by business. It is dynamic by its nature rather than static.. A pure flat tax wou exemptions. Fixed asset turnover . w goods) in standard costing.The costs that do not vary with output. It is an extremely useful tool for t incurred to the cost that are allowed for a given activity level. and tax all income at the same low tax rate.Purchases. net of the accumulated depreciation or the depletion of the asset. Fixtures & fittings .is when interest is charged on the full amount of the original loan as opposed to the declining b Flat rate – A per unit price that remains constant regardless of the volume purchased. Fixed assets (net) . Flexible budgeting is a way o . property. Or 4.expenses like rent.the price that serves as a standard for the valuation of certain inventory accounts (i.This is a class of fixed asset which includes office furniture.An exchange rate that is maintained within a small range around its publicly stated par value b country's central bank in foreign market operations. a series of budgets can be developed easily for various levels of activity.g.A measure of the management's ability to be able to generate revenue flow from the firms inve Fixed budget . in the long run they are variable. utilities. Fixed expenses .e. loan payments.The one-for-one adjustment of the nominal interest rate to the inflation rate. the price at which investment bankers agre public in a public offering of new security issues. Flat tax .Plant. of capital goods. etc.Fisher effect . such as machinery and office equipment. display cases.One in which the income tax rate is the same for all income levels. raw materials.Economic plans set up by the central government in a country that plots the future course of its econ Fixed assets . and equipment. Fixed overhead .

instru keyboard.Refers to the price paid to purchase the actual assets. and the team ought to get credit for the wins and the losses. as well as the information entered."The important thing to recognize is that it takes a team. are printed on paper. wh permanent copy of the input. failures have none. For example. or extra service and support contract . The computer's responses. the price paid fo would be considered the hard cost. The user types commands.Computer term for output printed directly on paper. Hard costs ." Philip Caldwell Hacker .Knowledgeable computer user who attempts to break into and corrupt a computer system Hard copy . The soft costs would be any additional fees or charges for serv installation charges. Successes have many fathers. any extended guarantees or warranties.

The unit that stores information (e. stock. from lowest to highest. the process of protecting oneself against unfavourable changes in prices. (2) commodities. interest rates. Or 3. commodity prices.The transport of bulk goods or products. currency movements. a mutual fund that seeks to particular bond market. and (3) securities. or directional movements based on certain events such as mergers and in order to minimize an exposure to currency risk. Or 2. Hedge fund . H such as customer lists or intellectual property.The name given to all the electronic and mechanical devices that make up a computer. Thus one may enter into an offse for the express purpose of balancing out any unfavourable changes in an already consummated agreement due to pric are commonly used to protect positions in (I) foreign currency. Hedging in relation to securities is the taking two offsetting posit the financial risk has been limited. Hierarchy – The order or levels of management of a business.1. a limited partnership of investors that invests in speculative stocks. High income oil producing countries . Hidden asset . High/low method . international short-term bond funds usually hedge most o term funds have substantial exposure. Hardware .Assets. as opposed to soft Haulage . . usually refers to road transport but can also refer to rail transport.Employment that is sufficient to produce the economy's potential output. Hard loan .The idea that workers are motivated by recognition given to them as a group. but that value has not bee value of the firm. The formula is then given as y = a + bx. In the case belong to the buyer when the final payment is made.g. etc.The accounting practice requiring all financial items reported in the firm's financial statem cost. High employment (full employment) . Or 2.Countries with very high income levels to oil exports but with the economic st countries. raw materials etc.1. Hedge .Hard disk . financing an a maturity. data files and programs) within the computer. It provides are used to specify every item's classification.A internationally recognised and agreed classification system for international trade. Historical Cost . or 2) The original amoun owns. or other things which are of significant value. In general.A chart which measures continuous data on the horizontal axis and class frequencies on the vertical axis. can be valued at what they originally cost. Hire purchase/credit sale .y pairs in the cost volume formula. a mutual fund that hedges its risk by buying or selling options to protect its Hedging – The strategy which is focused on reducing or lowering exposure to degrees of risk / loss resulting from une exchange rates. a = fixed c rate. a unemployment is frictional.An asset (with value) that has not been included in the reported book value of a firm or organisation. Harmonised system . Hawthorne effect .Methods used to buy goods now and payoff the balance over a period of time.An algebraic procedure that is used to classify a semi-variable cost into its variable and the fixed p extreme highest and lowest x . By this method customs/tariff duty calculations are more predictable. Histogram . seasonal and structural.A loan with commercial rates of interest and terms of repayment (see soft loan). Historical cost accounting ..

Idle balances ."Everything that irritates us about others can lead us to an understanding of ourselves.Money held for speculative purposes: money held in anticipation of a fall in asset ." Carl Jung IB – International baccalaureate Ideal capacity .The largest volume of output possible if a facility maintained continuous operation allowing for no losses of any kind. or engineered capacity. also called capacity. Idiosyncratic risk .Risk that affects only a single economic actor. even those deemed normal or unavoidable.

Itemised deductions . Insider trading according to this definition is against the law in most countries Insolvent .An intangible asset of property that is said to be the result of the creativity of an individual or firm copyrights. medical expenses. for an agreed premium. patents. termed a policy.A written letter or form notifying the insurance company of a request for payment of an amount spe the insurance policy. the money. catalogs. an investigation. Inter-company . Or 2.Are amounts paid by the individual taxpayer relating to his/her personal and/or quasi-business be legally deducted in the calculation of their tax liability. Interest . contingent upon the specified conditions within the insurance contract. Intangible assets . Intellectual capital . Insider trading – Refers to the buying and selling of the company's securities based on material information relating to made public. casualty and other sundry expenses.Input-output analysis .A request for information or. refers to an agreement that specifies or instructs a media outlet about aspects related to a Inside information .An agreement through an insurance contract. Taking advantage of inside information for the purpose of making a profit is illegal (called insider tra Insiders .Intellectual capital is a term which bundles a variety of knowledge resources such as copyright an capital enables a firm to charge users of its knowledge resources. the return paid to owners of capital.Marketing. Each firm will be affected by its rivals" will affect its rivals. For example MYOB (Mi package integrates the accounting software with database software.1. franchises. Interdependence (under oligopoly) . charitable contributions. This recognition will affect their decisions. such as loss Insurance claim .Those in employment who can use their privileged position (either as members of unions or because of spe despite an excess supply of labour (unemployment) or 2) Insiders are all people who get possession or learn of of ma its public release.A company is insolvent if it has insufficient funds (all of its assets) to pay its debts (all of its liabilities). Integrated software – A software package that combines many applications in one program. and mailing amortisation. Insertion order . .This involves dividing the economy into sectors where each sector is a user of inputs from and sectors. The technique examines how these inputs and outputs can be matched to the total resources available in the Inquiry . copyrights. the cost of obtaining credit. Insurance . e. goodwill. brands. the payment for current rather than future command over resources. Firms recognise this interdependence. that one party.One of the two key features of oligopoly. instead o at the time the sale was closed.Means an event that is occurring between different companies.Privileged information obtained regarding material business results and pending security transac until a certain date. formulas. Instalment sale – The selling property/items and receiving the sales price via a series of different payments.Assets of a non-physical or financial nature.g. will p insured a specified sum of money. Intellectual property . An asset such as a loan or an endowment policy are g intangibles and include trademarks. Or 3.

tasks and performance expected Job costing . budgeting. what the hell are you doing there?" Robert Townsend J-curve .The allocation of costs such as time. and if you're not in business for fun or profit. material and other expenses to an individual method that provides for the forecasting. Because if it's not excellent. don't do it at all. such as the skills.The way in which the trade balance may initially worsen after an exchange rate deprecia JIT – Just-in-time manufacturing Job analysis . . it won't be profitable or fun. collecting and subsequent reporting on the va revenues that can be attributed to individual projects or jobs."If you don't do it excellently.A study of what the job entails.

Joint stock company . the degree of audit testing required in a given situation depends on quality of the internal control system.A single production process that yields multiple products simultaneously.A term used to describe the transactions recorded in a journal. Joint costs are the costs associated with a single process of production that makes many products at the sam Joint float . . Besides interpreting the meaning of the situat determine its perceived implications. Job enrichment . Journal entries . Or 2. responsibility and profits of a business venture. Joint venture – Two firms sharing the cost.The process by which workers find appropriate jobs given their tastes and skills.A production method that involves reducing or virtually eliminating the need to hold stocks of the finished product. qualifications and expertise required from a person t Joint consultation . usually to the customer's exact specifications.Giving an employee more work to do of a similar nature. referred to as the split off point.A method used by businesses to comp the value of different jobs and perhaps set wages or salaries. Job specification .An attempt to give employees greater responsibility and recognition by 'vertically' extending their rol Job evaluation .Job description . Journal(s) .Enjoyment derived from feeling . Job rotation .The changing of jobs or tasks from time to time. accountant's opinion regarding a set of facts or evidence.Changing the tasks and activities of a job.Where a group of currencies pegged to each other jointly float against other currencies. made-to-order products. Job search .A single product is made at a time.Where the production of more of one good leads to the production of more of another. For example. Job order – A customer order for a specific number of specially designed. Journal Proper . Job enlargement . Joint costs . perhaps in an attempt to motivate workers.1. where joint prod products.Document which outlines the responsibilities and duties expected to be carried out by someone emp Job design (redesign) .that you have done a good job.Discussion between management and employee representatives before a decision is taken.A document which outlines the requirements. court order to pay money.A term used to describe the main or general journal where other journals specific to subsidiary ledge Judgment .Common manufacturing costs incurred prior to the point.A book or set of books where your transactions are first entered. Job production .A company that has some of the features of a corporation and also has features that are norm Joint supply . Joint product . Job satisfaction . Just-in-time manufacturing (JIT) .

The proposition that the money supply should be increased at a constant percent year out." Robert Greenleaf k percent rule . Kaizen . Kaizen costing . .A Japanese term meaning continuous improvement. irrespective of cyclical changes in national income. through the elimination of waste Kaizen budgeting .Determines target cost reductions for a period. such as a month or year.incorporates expectations for continuous improvement into bud budget cannot be successfully achieved unless the improvements are carried out."Many attempts to communicate are nullified by saying too much.

Kiting is to the manipulate and/or infl Knowledge management (KM) . The demand curve is thus bent or kinked and the associated marginal revenue curve has a discontinuo Kiting – 1. Chairman Metropolitan Life . In the context of securities.The process associated with connecting people to people and people to information advantage.Growth models by which the long-run path for growth in an economy is determined by th investment and the level of production or output. derived from the work of John Maynard Keynes. Or 2.A model of pricing in an oligopolistic market structure where rivals follow one firm's decision to price increase. [A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K] [L] [M] [N] [O] [P] [Q] [R] [S] [T] [U] "I don't think anybody yet has invented a past time that's as much fun. In relation to banking. Keynesian . Keynesian short-run aggregate supply curve . that active use be effective in stabilizing the economy.Kanban . as a good job. Keynesian macroeconomics .A card which acts as a signal to move or provide resources in a factory. or keeps you as young." Fredrick Hudson Ecker.Keynesian theory is used to illustrate how a free market economy can reach equilibriu scale unemployment and how the government should use expansionist fiscal spending to achieve a new equilibrium at output. means the depositing and drawing cheques at two or more banks simultaneously and difference in time it takes the second bank to have collected the monies from the original bank.A Keynesians Economist holds the view. Often the term encompasses economists who advocate active policy interventio Keynesian growth models . Kinked demand curve .A horizontal aggregate supply curve indicating that when national inc in national income can occur with little or no accompanying changes in pnces. Can also mean ill cheque by altering the amount written on the cheque.

Macroeconomics . your ego goes with it. multiplied by the standard rate. plus the number of persons who are unem Labour force participation rate . An overhead rate of cost per hour of work expended by a mach work-in-process. the price level.Countries with a low standard of living such that many people cannot meet eve include some of the most populous countries in the world covering approximately 3 billion people. Lump sum .The study of the determination of economic aggregates. Labour efficiency variance .A factor of production consisting of all physical and mental efforts provided by people.Labour . such as total output.A tax that is the same amount for every person.The total number of persons employed.Difference between the amount of labour time that should have bee labour that was actually used. Labour force . Macroeconomic equilibrium ." Colin Powell Machine hour . Low-income Developing Countries .The percentage of the population of working age that is ac (either working or seeking work). and the rate of economic growth. . which is to be all paid at one time in complete and final settlement of a Lump-sum tax .An agreed upon amount of money. [A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K] [L] [M] [N] [O] [P] [Q] [R] [S] [T] [U] "Avoid having your ego so close to your position that when your position falls.A situation in which the quantity of real GNP demanded equals the supplied.Cost allocation base that provides a systematic and contemporaneous method of costs to work-inprocess inventory.

The value within any set of data at which half of the observations are greater and half are less. Materials variance (MV) . Usually accounted for separately by a d and a credit to accounts payable or cash. Materiality .A price ceiling set by the government or some other agency. Mean (or arithmetic mean) . the pr income must not be in any way significantly affected.Where a firm superimposes a interdisciplinary team or group of project specialists on top of a fu Maturity date . Median voter theorem . When materials are transferred to work-in-process.The strategy of choosing the policy whose worst possible outcome is the least bad.The importance of an event or other information that has an influence on a company's share price. Means-tested benefits . Thus half of a the median income. The price is not allowed to rise above th fall below it). which ignores plus or minus signs in its calculatio Means . Maximax .1. If a rule is to be ignored.Difference between what is paid fora given quantity of materials and what should ha actual quantity of materials used. Maximin criterion .Benefits whose amount depends on the recipient's income or assets.The (usually projected) value of an intangible asset on the date it becomes due. Or significant in dollar amounts.The sum of the values of each of the members of the sample divided by the total numbe Mean deviation . Materials . An example is steel to make a car. Materials price variance (MPV) . Materials quantity variance (MQV) .The average deviation of all figures from the mean.The methods of achieving one's goals. Material control . Maximin . multiplied by the standard price per unit.Accountants should (GAAP) generally accepted accounting principles unless to do so would be further to this where it makes no real or material difference if the rules are not followed.Is the date at which a financial asset is converted into a money or other assets.A mathematical result showing that if voters are choosing a point along a line and each voter . Median . Maturity value .is the physical items (cost of) used in the manufacture of other products.The strategy of choosing the policy that has the best possible outcome. and half earns income below the median. Materiality principle . The principle also states the reader of the financial statements ab not be impaired. inventory is credited. direct or indirect.Refers to the particular department that is responsible for the control of any specified materials withi of a firm.Difference between the actual quantity of materials used in production and the s allowed for actual production. Under cost accounting these are material (that which goes directly into the item) and indirect material (that which is used in maintaining the manufacturin are considered to bean overhead. Matrix organisation . raw material.Difference between the actual and standard costs of materials. The term material is mainly used to refer to the direct materials.Material .The claim that the government should aim to maximize the well-being of the worst-off person in so Maximum price .

Narrow definitions of money . It can be used to describe the nature of often in particular. His heart is where his enthusiasm.Items of money that can be spent directly (cash and money in che accounts). where the other side of the entry went to (or came from). The rate of unemployment national income and at which a steady. non accelerating or non decelerating inflation can be susta called the natural rate of unemployment.A comment appended to an entry in a journal."You can buy a person's hands but you can't buy his heart." Stephen Covey NAIRU .Short for ‘nonaccelerating inflationary rate of unemployment’. his loyalty is. Narrative . .

Normalise . Norma what economists (but not businesspersons) call total costs. Normal loss .This term can be applied to many aspects of accounting.The rate of return (after taking risks into account) that could be earned elsewhere. Normative statement . Notes to the financial statement – This is a detailed set of notes that are submitted with the financial statements. The relation to parts or items on the statements. as opposed to what actually is. Normal spoilage – The product deterioration that is expected even under the best operating conditions. It means to average or smooth out a set of figure with the general trend of the business. This is usually done using a Moving average .A statement about what ought to be. [A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K] [L] [M] [N] [O] [P] [Q] [R] [S] [T] [U] "Recently.The opportunity cost of capital and risk taking just necessary to keep the owners in the industry. No. Losses greater or less are refereed to as abnormal gains or losses and may improved efficiency. Normal profit .Net Present Value. It is inherent a Costs of normal spoilage are allocated to the remaining good units in inventory. Normal rate of return . Why would I want somebody to hire his experience?" Thomas J.Where employers can change the size of their workforce as their labour requirements change. in an ethical sense. NPV . I replied.000 training him.Trade unions and management agree to have pay disputes settled by an independent arbitrat Numerical flexibility . No-strike agreements . It is an inevitable consequence of the production process under efficient o therefore considered to be unavoidable.This is the loss that can be considered under normal efficient operating procedures in the production pro through evaporation in chemical production.000. Watson . I was asked if I was going to fire an employee who made a mistake that cost the company $600. in a p an opinion that cannot be verified by observation. I just spent $600.

Is used to designate or list the type of revenue or expense that is to be charged to Object cost . Owners equity .The interest of the owners in the assets of the business represented by capital contributions and reta [A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K] [L] [M] [N] [O] [P] [Q] [R] [S] [T] [U] "If we could sell our experiences for what they cost us. goals tend to general in their nature. Objective . It consists of the direct cos the overhead cost = the total object cost. we'd all be millionaires. Dependent upon how it is used.A form of industrial action when employees refuse to work longer than their normal working hours Own brands – Products which have the brand name of their retailer on them. while objectives tend Overtime ban ." Abigail Van Buren .Object code .This normally refers to statement of specific and measurable time period or other out verifiable that tries to get the business to respond better to the circumstances of its environment in goals.The sum or total cost involved in the production an item.

in Venice in 1494.The statement of what is included in the contents of a specific container. .Pac Ioli. also used for promotional purpose Packing list (slip) .The physical container or wrapping for a product. Geometria Proportioni et Proportiona Packaging . Luca – The author of the first statement and commentary on double-entry bookkeeping. usua into the container so that it is possible that the quantity and specifications of actual merchandise m the individual who opens the specific container concerned. was part of a work Summa de Arithmetica.

includes the opportunity cost of capital.Is defined as including any activities that generate economic value for the firm in the marketplace activity that produces or creates a good or service that has value even if the good or service has not been actually paid Productive efficiency . it is treated as a expense. direct labour. quality. e. Product orientation . i. th productivity. in return for an increase in produc Productivity deal . warranties and after sales services and the like.An approach to business which places the main focus of attention upon the production process Production . Product life cycle .until the products/items are sold.A curve that shows which alternative combinations of commodities can just b resources are used. Also called the p Productive activity .A group of products or services that have a defined relationship because of physical and production s Product life cycle .e. or produc cost. Productivity agreement .A situation where firms producing the maximum output for a given amount of inputs. Or 2. de Product mix (product portfolio) – The particular mix of products that the firm is marketing.When. Production function ..Slight differences in products which may be real or perceived. Also called goods markets. A product has several dimensions. a union agrees to changes in working practices that will incre Productivity ratio – Shows the ratio of outputs as compared to inputs. Once the product/item is sold. Production budget . Product-orientated .The moral principles and standards of conduct guiding professionals such as CPAs in performin Profit . Cost of Good Sold (COG considered to be product costs. frequently used to refer to labour productivity. through its growth until it is mature an Product markets . Productivity .The stages a product will pass through from its introduction. the higher the productivity. management practices etc. See also Professional ethics .Output produced per unit of some input. it is thus the boundary between attainable and unattainable output combinations. Product family . It sets forth the units expected to be manufactu inventory requirements. direct material and factory overhead. These dimensions are collectiv mix for example may consist of size and weight of the product.1. in ordinary usage. maturity.A description applied to a business whose main focus of activity is on the product itself. product design. development.The period that starts with the initial product specification and ends with the withdrawal of the prod product life cycle is characterised by certain defined stages.Markets in which outputs of goods services are sold. the d received from the sale of goods and the value of inputs. produ product testing.The schedule for expected units to be produced. in return for a wage increase. technology. human and capital resources into goods and services. measured by tot amount of labour used.The conversion of natural.A functional relation showing the maximum output that can be produced by each and every com Production possibility frontier (curve) .Workers and management agree an increase in benefits. product quality. volume of output. Or 2) involves planning an product that will satisfy fully the needs of customers. in economics.g. Product differentiation . so that profits are econ . Productivity can be affected by different work methods. The closer to 1:0. the difference between value of outputs and the value of inputs. introduction. including research.

reference in the audit report to a material limitation placed on the auditor's exam regarding a specific item in the financial statements." Anonymous Q Ratio . Or 3.Refers to the market value of all securities (not just equity) divided by the replacement c all assets. This ratio reflects the market value of a new investment. Or 2.1. Qualification ."There is less to fear from outside competition than from inside inefficiency. reservation in a proposed agreement m unenforceable unless a specified condition is met. discourtesy and bad service. technical competence to perform a particu the CPA examination and meeting experience requirements in order to be licensed as a certified p .

It may refer to some standard of excellence.Are considerations relevant to a decision that can be measured in terms of money or quantitativ Quantitative information – Different from qualitative.The amount of a product that consumers wish to purchase in some time period. Included are controls in design and inspection. Quantity of labour supplied . or expressible in. or involving quality or kind. Quantity supplied . Quantity equation . Included are proper uation of internal control. Quantitative is information relating to. A number of tests and to determine that a part meets required specifications. the velocity of money.Qualified opinion – Refers to the auditor’s opinion accompanying a financial statement that calls attention to limitation auditor has taken with the audit of the statements.The number of of labour services that households supply to firms. and complianc professional development. Quantity theory of money .The number of labour hours hired by all the firms in an economy.The evaluation by one accounting firm or accountant of the soundness of the practices of another acc Quality training – The process of familiarizing all employees with the means for preventing. Quality assurance – A method of working for businesses that takes into account customers’ want when standardising guaranteeing that quality standards are met.The proposition the increase in the quantity of money leads to an equal percentage increa Quarterly reports . both internally Quality control . Quality – Features of a product that allow it to satisfy customers’ needs. The monitoring of a CPA firm's sys reviewer involves consideration of the adequacy and relevance of the CPA firm's procedures. practices. procedures to establish an optimal level of audit performance by practitioners.The equation M X V = P X Y.Are financial report issued every three months between annual reports. Quality chains – when employees from a series of links between customers and suppliers in business. Quantity of labour demanded . which relates the quantity of money.The amount of a product that producers wish to sell in some time period. Quality review .collection of mathematical and statistical methods used in the solution of manageria also called operations research (OR) and management science. policies and techniques used to assure tha been achieved. Quality control circles – Small groups of workers in the same area of production which meet regularly to study and so problems. Quantity demanded . and eliminating processes are tailored to the appropriate groups.1. terms of Quantitative models (methods) . QUANGOs . Qualitative information – Different from quantitative which relates to numerical amount qualitative information is that w relating to. Quantitative factors . Or 2. . and employment of generally accepted auditing standards.Quasi Autonomous Non-Governmental Organisations. detecting. Variances from established norms are identified and rec procedures to achieve a desired level of satisfaction of the operation or product being produced. and the d output of goods and services. and quality of the CPA firm's practice aids.

The percentage increase . in output over a 12-month period. If the break-even po actual sales volume is 4400 units. also called chance variances. .The path of a variable whose changes are impossible to predict. a safety margin of 400 units exists. Safe harbour rule – A legal concept whereby a person who has meet the required listed rules and protected from any adverse legal proceedings. Patton Sacrifice ratio .The number of percentage points of annual output lost in the process of reducing percentage point. tell 'em. safe harbours tend to be applied where and/or requirement are ambiguous and therefore carry a risk of being punished for a violation whic Safety margin – Refers to the excess of actual sales over break-even sales. Frequently. Random walk ." George S. Rate base . Tell them what to do and they will surprise you with their ingenuity. 'Certainly. I can!' Then get busy and find out how to do it."Whenever you are asked if you can do a job.The total allowable investment to which the rate of return allowed by a regulatory com Rate of economic growth ." Theodore Roosevelt Random sample – A sampling method allowing for the equal probability that each item will be cho Random variances – Refers to differences that are due to chance. 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] "Never tell people how to do things.

The Stores Control account is supported by an underlying su Or 2. People often think and behave strategically.Stock turns = Sales turnover of products / Value of raw material. How you think others likely to influence your own behaviour. Structural unemployment . when considering a price or product change will often take i their rivals Strategic decisions . Strategic assets – Are any asset or group of assets that the entity needs to retain if the entity is to maintain the entity' any outcome that the entity determines to be important to the current or future well-being of the entity.Depreciating something by the same (ie.A form of industrial action where employees refuse to work. If any mon . becomes insolvent ). and parts. the secured creditors are paid first. for example. the control account for all purchases of materials and supplies.The way in which a business is organised. Subordinated debt . Firms. Each sub-g Strike . Straight-line depreciation . wip & finished goo sales revenue of a given product. retail outlets. and sup chased because the storekeeper is accountable for them. Stock turns – A ratio that is used to show the number of times per year that the stock (raw material. it will depreciate to zero in exactly 5 years to as Straight line method . Can be risky.Decisions concerning policy that have a long term impact on a business. an electronic depository for goods. the process of storing information in a computer memory or on a magnetic tape or disk. wip & f Stock valuation . supplies.000. the raw materials. Or 2. Stores . Stratified sampling – is a sampling method where the population is divided into homogenous sub groups.g. Calculation .The number of times in a trading year a firm sells the value of its stocks. Strategic behaviour – Behaviour based on strategy. Strategy – The pattern of decisions and actions that are taken by a business to achieve its goals and objectives.If a company is liquidated (i. e. Stop loss order – Is the direction given to a broker to buy or sell a stock when it rises to or drops below a certain price Storage .1. 3.Valuing a stock of goods bought for manufacturing or re-sale. All purchases of materials. parts.Physically checking a business's stock for total quantities and value.A method used to calculate the annual depreciation allowance by subtracting the estimated scr dividing the result by the expected life of the asset Strategic alliance – Used to refer to an agreement between two or more organisations/entities with complementary c result in synergy.Stock taking . If you depreciate it at a rate of $2000 a year. Structure of a business .Unemployment due to a mismatch between characteristics required by available jobs and unemployed labour. Stock turnover . fixed) amount every year rather than as a percenta a vehicle initially costs $10.1. a stockroom or warehouse. Strategic planning – Is the planning process defining what you want to accomplish in your business and then identifyi reach your goal in the most efficient and sensible manner.e.

There are five types of basic accounts are equity.A particular method of displaying an account where the debits and associated informa left. Tacit collusion .Calculated. Tactical decisions . May be used to implement strategic de . revenue and expenses. excessive advertisin competition.the strong horse that pulls the whole cart. Only a handful see it for what it really is ." Winston Churchill T Account . There may be unwritten 'rules' of collusive behaviour such as price leadership. Others look upon it as a cow that they can milk. and credits and associated information on the right.Where oligopolists take care not to engage in price cutting. medium term decisions."Some regard private enterprise as if it were a predatory tiger to be shot.

A group of workers organized principally for the purpose of increasing wages and improv Trading account . Nike.Money balances held to finance payments because payments and receipts are not perfectly Transactions costs . and bad Transaction date .Means an firm that derives its business from selling products> The firm buys from one source and s Traditional theory of the firm . Trading concern . but also made by businesses and private individuals in the form of charitable contributions.Two or more entries made in a journal which when looked at together reflect an original document such receipt. Transactions balances . sales less words subtracting cost of sales from turnover. Traits . i. e. Trade union / labour union . Trade (brand) name – Refers to the distinctive and identifiable name that is used to identify a company or product and large companies. Transaction .The date on which an specified transaction occurred.Words used in identifying an individual's personality. is an amount owed to a creditor for good Trade receivables . tariff and trade agreements.The analysis of pricing and output decisions of the firm various market conditions. ass profit. and other specific identities assigned to a product.1.Trade discount – The producer gives a discount to retail trades people to in order to help them to increase the sales o Trade diversion . billing costs. Trade in goods (balance of trade) .The difference between the import and export of services. Countries that join together to restrict trade or 2. etc.A consequence of reduced trade barriers among a set of countries whereby trade with the group rep place with countries outside the group. Often a trade name is protected by copyright law.This term is more commonly known as an account receivable. Transfer price – Refers to the charge made when one division of a company provides goods or services to another div Transfer pricing (accounting) – Is the deciding on the price of goods or services that are exchanged between various .The difference between imports and exports of physical products. Trademark – Is a legal protection afforded names. A trade bloc is a large free trade zone or near-free tax. Trading blocs . Transfer payments . is an amount owed from a debtor f Trade spending – Is generally used to refer to that marketing expense which is directed towards to process of brand b advertisements.A payment to a private person or institution that does not arise out of current productive activity. symbols. Ford.Costs incurred in effecting market transactions (such as negotiation costs. Trade payable – This term is more commonly known as an account payable. Coca Cola.g. as in welfare payments. Trade in services (net invisibles) .e.An account which shows the gross profit or loss of a manufacturing or retail business.

there is no getting around it. Unallocated costs – These costs represent the entity's costs that are not associated either in a d providing a item or service for sale. an athlete or a businessman. Whether you're a musician. Unabsorbed costs – The costs that occurs when the specific cost structure that is being used do fixed and/or variable costs."I learned that the only way you are going to get anywhere in life is to work hard at it. Olympic Gold Medalist Ultra vires – Refers to an action outside the proper authority or power of a cor in the corporate charter (Latin for "beyond the power"). you won't. you'll win—if you don't. ." Bruce Jenner. a writer. If you do.

When the services are performed.Earnings of a firm that are not distributed to shareholders as dividends but are retained by the earnings. including inventory costs and miscellaneous prepaid or deferred costs.Unanticipated inflation – Inflation that catches people by surprise. revenue is then earned. unearned revenue is recorded as a liability. Unavoidable costs – These costs will need to be incurred regardless of the decision to make or buy a certain part or line. Unexpired costs are carried to future periods as assets because they represent future benefits.g. Unaudited opinion – Refers to the giving of a qualified opinion by a person who is a CPA but who has not conducted a statements.Those members of the labour force who are willing and able to work cannot find a job. Uncollectible account (bad debt) – This refers to account receivable. Or 2.Refers to an item within a specific budget where the amount that has been budgeted is not sufficie amount that is needed.The term indicating that financial information is stated in terms that enable users to perceive its si Undeposited funds account .When an outcome mayor may not occur and its probability of occurring is not known.This means it has not come to an end or been terminated yet.An account used to show the current total of money received (ie. pr Unbudgeted – Refers to any items and/or different amounts of monies that are not currently in the budget. revenue obtained other than from Unemployment . these costs cannot be recovered or saved. not yet banked or spe money. Underrecorded – This term is normally referring to an understatement of the amount of the total which would of have had been included and/or considered. Undistributed profits . Much or all of fixed costs in those cases are unavoidable costs. everything except the official settlements account). . that a future periods. Underwriting – Is the acceptance of risk in return for payment.g. or other type of receivable that Under applied/over applied factory overhead – This is the any residual or not allocated factory overhead that still re overhead costs have been assigned to the different applicable items. Unemployment equilibrium – A situation where macroeconomic equilibrium occurs at a level of real GDP below longUnemployment rate – Unemployment expressed as a percentage of the labour force. e. Unearned revenue . Unfavorable balance of payments .Where people who want full time work are only able to find part-time work. Unexpired . in taxation. underrecorded costs. The payment received prior to providing a good or service. revenues. an such like. Unexpired cost – This refers to all costs. Underemployment . population.1. This type of account is also commonly referred to as a 'cash Underbudgeted . Understandability . e. Since an obligation exists on the pa goods or services for which the advance payment was received. note receivable. An examp attorney. credit card payments.A debit balance on some part of the international payments accounts (payments the balance on current plus capital account (that is. bankers drafts etc. cheques. Uncertainty .

An example of validation is the examination an employee's expense request form by a supervisor. An example is sign of sale. to make something legal or effective. Or 2. to attest to the correctness and reliability of a financial item.This is the day when the evaluation has been made or the date when the evalua ." Albert Einstein Validate -1. I would have been a locksmith. which closes the deal."If I had only known. Validity test – Is an audit procedure that ascertains whether a recorded financial statement item i Valuation date . Another example is the counting of petty cash t the amount in the financial records. A valid ACCOUNTANT to satisfy the legitimacy of the item.

represented by the amount of goods. Value chain – Refers to a linked set of all value-creating processes or activities that convert basic input materials into consumer.5%. e. Value (of a business) . a cost variance is the difference between actual cost and standard cost in the categories of direct ma overhead. Variable inputs . Value in use – Refers to the discounted value of net cash receipts to be obtained from the corporate asset. a budget variance is spending either more budgeted.applies to many countries) . Variable interest rate – This is an interest rate that moves up and down based on the changes of an underlying intere might have a variable rate that is a certain spread over the prime rate.g.A cost that varies with output levels.Those inputs whose quantity used can be varied in the short run. usually an expression of monetary worth applied to a particular asset. which removes plus and minus signs by 'squaring' the d is the difference between a projected number and the actual number. VAT – Value added tax. Value engineering . Variable cost .Any well-defined item. such as the price of a good or its quantity. Or 3. Value of the marginal product . Variable costing – Is a costing method in which the costs to be inventoried include only the variable manufacturing co treated as a period cost-it is deducted along with the selling and administrative expenses in the period incurred.The average deviation of all figures from the mean. and 2. Variable . It should not be confused with the term cost even though it is frequently measured. value of goods equals price multiplied by quantity. services. that can take on various specific values. equated. Variable expenses – Refers to those business expenses that usually fluctuate dependent upon production or sales vo Variable factor . In economic terms.An input that can be varied by any desired amount in the short run. Or 2.Value Added Tax.Value . Variance .A procedure designed to reduce and avoid unnecessary costs before production begins. This is done by com budgeted or predicted results and investigating any discrepancies. or VAT as it is usually called is a sales tax wh goods.The value of a firms output minus the value of inputs bought from other firms. highly subjective term. Variance analysis . Value added tax (VAT .The process of calculating variances and attempting to identify their causes.1. Value analysis . Value is expenditures or amount periods.A procedure to evaluate a product after manufacture to see how costs may be reduced. or money necessary to co commodity. Proof of good value for concluding that the goods/services received was worth the price paid. group of as rendered. Value added . 1. there is also a rate for fuel which is 5% (this refers to h electricity and gas and not 'road fuels' like petrol which is still rated at 17.The amount a business is worth to a stakeholder or any other interested party.5%). At the time of writing the UK VAT standard rate is 17.the amounts at which items are stated in financial records and statements. ~ Value for money – Refers to the perception of the buyer or receiver of goods and/or services.The marginal product of an input times the price of the output. and identified b with an appropriate modifying adjective. .

Wage-cost push inflation .A payment for work. See also salary. usually weekly.An increase in the price level caused by increases in labour costs tha associated with excess aggregate demand for labour. is only to be sustained by perpetual neglect of many other things. ."Perpetual devotion to what a man calls his business. other as the aggregate demand curve continually shifts to the right and the aggregate supply curv upwards. Wage and price controls .Direct government intervention into wage and price formation with leg government's decisions on wages and prices." Robert Louis Stevenson Wage . also called the wage price spiral.

Payments made to the employees of a business for their work on behalf of the business.Wages . Weighting – A process which adjusts and index number to take into account the relative importance of a variable. Welfare . is a government report. such as warranting the performance of another party. management and professional sta White knight – Refers to an firm or individual that comes to the aid of a company facing a hostile takeover bid. government accounting. coal. Waste management .The study of how the allocation of resources affects economic well-being.The total assets of a household. a fixed asset with limited life and su excludes land.Any material which is no longer of use to the system that produced it and which has to be disposed of. Weighted average costing – Is the procedure for computing the unit cost of a process. Waste . White-collar union . Or 2. Beginning work-in-process inv costs of the current period. firm or government minus its total liabilities. bound in white.The unlimited desires or wishes that people have for goods and services. Web browser – Refers to browsers for the World Wide Web (WWW) enabling one to hook up with network servers to o pages Web page – Refers to on-line advertisement or information on the world wide web encouraging business or getting info Weight – Is the relative importance given to an individual item included in forecasting. see stock warrant. Weighted average inventory method – This is an inventory valuation method in calculation in which the weighted ave the cost of the goods available for sale divided by the number of units available for sale. Or 2. Wasting asset . security whose value expires at a specified time in the future. Weighted average cost of capital (WACC) – This method weights the percentage cost of each component by the per financial structure. then a weighted average is obtained by dividing the combined costs by equivalent units.A union which represents non manual workers (office workers.1. The mar goes randomly around real (intrinsic) value. Or 2. Or 3. a natural resource such as oil. Wants .1. also called a white book.Government programs that supplement the incomes of the needy. having a limited useful life and subject to depletion primarily due to the extraction of the valued commodity held by these assets. Weighted average . White paper .1. where each item is ascribed a weight. according to its importance.The way in which businesses deal with the problem of waste materials. These are classed a confused with 'drawings' taken by sole-proprietors and partnerships (see Drawings ). a short treatise whose purpose .A guarantee that faulty products will be repaired or replaced within a period of time. Warrant .The average of several items. and timber. order drawn authorising the payment to a particular desi the occurrence of something. Warranty . Welfare economics . Wealth . Walk – The theory that stock prices behave in an unpredictable fashion because the stock market is efficient.

even if the so that the economy is at a point inside its production possibility boundary.Exports."Success is going from failure to failure without a loss of enthusiasm. It is one of a family of "XML" languages which communicating information between businesses and on the internet. XBRL .eXtensible Business Reporting Language.See net exports." Winston Churchill X .The use of resources at a lower level of productivity than is possible. . the value of all domestic production sold abroad. X-inefficiency . X-M .

" Henry Brooks Adams .[A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K] [L] [M] [N] [O] [P] [Q] [R] [S] [T] [U] "A teacher affects eternity. he can never tell where his influence stops.

This is the term given to goods on which the buyer does not have to pay value-added tax (VAT) even thou that they paid. direct materials or labor) while ho proportions of the types of materials or labor used) and the weighted average unit price of the factor of production. and reflecting unusual transactions.g.Starting a budget at zero and justifying every cost that increases tha Zero-based budgeting . Zero Based Budget (ZBB) .A system of budgeting where no money is allocated for costs or spendin justified by the fund holder (the items are given a 'zero' value). [A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K] [L] [M] [N] [O] [P] [Q] [R] [S] [T] [U] "Work is the refuge of people who have nothing better to do. Yield variance – Is the effect of varying the total input of a factor of production (e." Oscar Wilde .Refers to the effective rate on a bond.Year to date. a deposit account. say." Abraham Lincoln Zero Based Account (ZBA) . It differs from the nominal interest rate.Usually applied to a personal account (checking) where the balance as possible by transferring money between that account and. real rate of return to the investor or e of a security for a specified time period. he did not teach me to love it.1. Or 2. Yield . the return from an asset or service provided. Zero rated .Year end adjustments – Is the process of adjusting the entry to an account at the end of the order to properly state it for financial statement preparation purposes. [A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K] [L] [M] [N] [O] [P] [Q] [R] [S] [T] [U] "My father taught me to work. Yield to maturity (YTM) .. Types of required adjust deferral of a revenue or expense item. reclassification. YTD . adjustments to conform book figures inventory). also called the effective interest rate.

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