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.
The accountant in performing the reporting function should follow existing accounting conventions that apply to the given situation. a proprietor's accounting entity might be the business whereas the legal entity would include personal assets.The formula used to prepare a balance sheet: assets = liability + equity.The difference between total revenues and total explicit costs.e. trusts. consistency and prudence. Accounting equation .Transaction entered in the accounting records of a business.This covers everything from opening the books at the start of the year to closing them at the end. Accounting principles . A system of accounts is kept for the entity..Methods or procedures employed generally by accounting practitioners. but can also be expressed as assets . Accounting entity . An example of an accounting principle is accrual. Examples of accounting entities are corporations. Accounting convention .
. partnerships. A distinction should be made between an accounting entity and a legal entity. The "ground rules" for financial reporting are referred to as generally accepted accounting principles (GAAP). Accounting entity assumption . Accounting period .. An accounting entity is isolated so that recording and reporting for it are possible. such as recording a sale. usually it is one year.Are the basic underlying assumptions that are adhered to in the preparation of financial statements. and industry segments. going concern. Accounting cost – The value of an economic resource used up in production.g. theses include the assumptions of accruals. They determine such matters as the measurement of assets. Accounting profit . Accounting event .g. industry segments). It can be an external transaction-that is..Rules and guidelines of accounting. affiliated companies can be differently organised for legal and accounting purposes (e. everything you need to do in one accounting year accounting wise. the timing of revenue recognition.Refers to the time period for which accounts cover.Accounting concepts . Also. They are based on custom and are subject to change as new developments arise. In Hong Kong the accounting year is from April 1st to March 31st. one with an outsider. It can also refer to an internal transaction such as making an adjusting entry (e. Accounting cycle . In other words. expense or revenue accrual). For example. in the corporate environment.Business or other economic unit (including subdivisions) being accounted for separately. and the accrual of expenses.This assumption treats the firm as a separate legal entity from the owner.liabilities = owner's equity. i.
recording. and aging of wine. Accounting software . Accounts payable . and the right package must be selected given the client's circumstances and needs.Programs used to maintain books of account on computers. The ratio compares net credit sales to average accounts receivable. Accounts payable to sales (creditors turnover ratio) .1. and reporting business events and transactions. maintain account balances. and standards followed in accumulating. growth in assets through mergers. Accretion . adjustment of the difference between the face value of a bond and the price of the bond bought at an original discount. procedures. livestock.An account in the General Ledger which contains the overall balance of the Sales Ledger. insurance company). inventory. Accounts receivable turnover (debtors turnover ratio) . accounts receivable. Accounting system .g.Accounting ratio . A single control account is held in the General Ledger which shows the total balance of all the accounts in the sales ledger.This is a measure of the speed by which customers pay there bills.Methods. accounts payable. and prepare financial statements and reports.An account in the General Ledger which contains the overall balance of the Purchase Ledger.Usually is the comparing of two or more sets of accounting data. classifying. Ratios help with the interpretation of financial statements by focusing on specific relationships. and internal expansion. spreadsheet and word processing abilities). The accounting system includes the formal records and original source data.A subsidiary ledger which holds the accounts of a business's suppliers. Often this is done by dividing or in some other way manipulating one f item on the financial statement by another. Or 2.. Accounts receivable ledger . acquisitions. Some modules are used to account for the general ledger. Accounts payable ledger . Regulatory requirements may exist on how a particular accounting system is to be maintained (e. The software can be used to record transactions.Is a measure of the speed with which a firm pays suppliers compared to sales.
.A subsidiary ledger which holds the accounts of a business's customers. An accounting software package typically contains numerous integrated modules (for example. Many different accounting software packages exist. Accounts receivable . Examples are timber. nursery stock. and fixed assets. payroll. A single control account is held in the General Ledger which shows the total balance of all the accounts in the purchase ledger.
process of compounding. etc. Accrual method of accounting . Or 2. but for which payment is not yet made.Most businesses use the accrual method of accounting (because it is usually required by law).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).This is a liability which was incurred.1.Expenses incurred during an accounting period for which payment is postponed. Accrual . When you issue an invoice on credit (i. regardless of whether it is paid or not). Each fixed asset will have its own accumulated depreciation account. Accumulated depreciation account . an adjustment can be made to correct the estimate.Accretive . just that it must be included in that year's profit and loss account). Accrued liability . Or 4. investment of a fixed dollar amount regularly and reinvestment of dividends and capital gains. during a given financial period.The recognition of when expenses when incurred or revenue when earned or regardless of when the actual cash is received or payed.This refers to income earned during an accounting period but not paid by the end of that period. Accruals . taxes. A typical example is interest payable on a loan where you have not yet received a bank statement. Common examples would be: wages. periodic addition of interests to the principal amount. it is treated as a taxable supply on the date it was issued for income tax purposes (or corporation tax for limited companies).. cumulative retained profit.If a company acquires another and says the deal is 'accretive to earnings'. When the real invoice is received. Accrued expenses .
. Accumulation . Accrued assets .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). The same applies to bills received from suppliers. it means that the resulting PE ratio (price/earnings) of the acquired company is less than the acquiring company. Accruals can also apply to the income side. Or 3. (This does not mean you pay income tax immediately.e.Assets from revenues earned but not yet received. Accrued income . These items (or an estimate of their value) should still be included in the profit & loss account. Accrued revenue – Money that has been earned but not yet received as of the end of the accounting period.
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.
It consists of four elements.A shift in the aggregate supply curve. Cities form and grow to exploit economies of agglomeration.Economies of agglomeration is used in urban economics to describe the benefits that firms obtain when locating near each other. the curve thus relates the total amount of output that will be demanded to the price level of that output. Aggregate expenditure (AE).The relationship between planned rates of total production for the whole economy and the price level. investment (I). there may be advantages because that cluster attracts more suppliers and customers than a single firm could alone.M).Total desired purchases by all the buyers of an economy's output. Aggregate demand . in that the more related firms that are clustered together.A curve showing the total number of people willing and able to work at different average real wage rates.A strategy which allows a business to react to rapidly changing conditions.Agglomeration (economics) . less any expenditure on imports of goods and services (M): AD = C + 1+ G + (X -M). It is related to the idea of economies of scale and network effects. Aggregate supply shock . representing the four major components of aggregate desired expenditure.
.A curve showing the combinations of real national income and the price level that makes aggregate desired expenditure equal to national income. Aggregate . Agile manufacturing . Aggregate demand (AD) curve . Aggregate supply of labour curve . Aggregate supply .A curve showing the total demand for labour in the economy at different levels of real wage rates.Total desired expenditure on final output of the economy. Even when multiple firms in the same sector (competitors) cluster.A shift in the aggregate demand curve. the lower the cost of production (firms have competing multiple suppliers. consumer spending (C).the sum or total. Aggregate expenditure (AE) function . Aggregate demand for labour curve . greater specialization and division of labour result) and the greater the market that the firm can sell into.The function that relates aggregate desired expenditure to national income. AE = C + 1 + G + (X . Aggregate demand shock . Aggregate supply curve .The sum total of planned production for the whole economy. government spending (G) and the expenditure on exports (X).
allocating costs is the assignment of costs to departments or products over various time periods. Private efficiency is achieved where marginal private benefit equals marginal private cost (ME = MC). Allocate . products. desire. products. A representation letter is prepared that depends on the nature of the engagement and the specified users. Or 2.when no one can be made better off without making someone else worse off. AIDA model .The situation that occurs when no resources are wasted .Simple way of planning an adverts' design: it stands for attention. the company also has a opportunity cost of funds tied-up in the receivable that could be invested elsewhere for a return. Allocative efficiency in any activity is achieved where any reallocation would lead to a decline in net benefit. It is achieved where marginal benefit equals marginal cost. charge a cost or revenue to a number of departments. For example. Allocative efficiency .Aging of accounts . action. Agreed upon procedures .1.The act of distributing by allotting or apportioning. Or
. distribution according to a plan. e. The longer a customer's account remains uncollected or the longer inventory is held. Aid (Foreign) . the greater is its realisation risk. Allocation . Or 2.Classifying accounts by the time elapsed after the date of billing or the due date. a cost may be assigned to divisions of a company based on sales. an acceptable reduction in quantity or quality such as normal spoilage in a manufacturing operation. See allocate.g.Applies to engagements relating to agreed-upon procedures to specified elements or accounts. In this engagement.. or investments. Spread a cost over two or more accounting periods usually based on time. Social efficiency is achieved where marginal social benefit equals marginal social cost (MSB = MSC) Allowance -1. the accountant does not express an opinion or negative assurance. Instead. Or 3. The users of the report agree upon the procedures to be conducted by the accountant that the user believes are suitable. If a customer's account is past due.Administered transfer of resources from a donor country or international agency or NGO organisation to an LDC to encourage economic growth. distribute the cost associated with the acquisition of two or more items based on their relative fair market values. The user takes responsibility for the adequacy of the procedures. operations. 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. This relates to a lump sum purchase. Agreed-upon procedures is when the accountant is hired to issue a report of findings based on specified financial statement items. a reduction in the amount owed a supplier because of damaged goods received or delays encountered. interest. or activities on some rational basis. processes.
week or month.A consolidation or merger.Evaluation prepared by companies at the end of the reporting year which might be either on a calendar or fiscal basis.g. Annualised hours contracts .The allowance method results in a good matching of bad debt expense against sales.A statistical technique whereby figures covering a period of less than one year are extended to cover a 12-month period.. audit report. to be accurate.A legal requirement for all companies.An account established to record a subtraction from accounts receivable. Allowance method ..Normally is used to refer to something lesser or extra importance. When it is known that a customer will actually not pay the balance. all shareholders may attend. because of bankruptcy. for example. must take seasonal variations into consideration.g.3. as of several corporations. to allow for those accounts that will not be paid. the entry is to debit allowance for bad debts and credit accounts receivable.The depreciation (or reduction) of an (usually) intangible asset (e. research and marketing efforts) helpful in evaluating the entity's financial position and operating performance. reverse the last entry and make a second entry debiting cash and crediting accounts receivable. Ancillary . Annual report . In business. It should be noted that firms other than small financial institutions are required to use the direct write off method for tax purposes. there is a recovery. Allowance for bad debts (provision for bad/doubtful debts) . Amortisation . but a flexible number of hours each day. supplementary schedules. loan. Contained in the annual report are the company financial statements including footnotes. and other explanatory data (e.A payment system based on a fixed number of hours to be worked each year. the distinction being that the surviving entity incorporates the asset base of others into its base.000 is amortized over 1 year with no interest. a valuation account reducing the cost of an asset such as the allowance to reduce marketable securities from cost to market value. Annualise . 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. Annual general meeting (AGM) . Example: if a loan of 12. The annual report is read by
. mortgage) over a fixed period of time. the monthly payments would be 1000 a month. managements discussion of analysis and earnings. 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.. president's letter. Amalgamation . The technique. The journal entry at year-end to record anticipated uncollectibility of accounts receivable is to debit bad debts and credit allowance for bad debts. If for whatever reason the customer does pay at a later date.
in finance. Appropriate / Appropriation / Appropriated . (2) determining the amount of hazard insurance to carry.g. and other conditions. It is something that is irregular and difficult to explain using existing theory or rules.either as dividends or kept in the company as retained profits.
. and other interested financial statement users.An inflation rate that has been correctly forecast.An exception from the common rule. Or 2. e.g. Examples may include the fact that some small stocks to outperform large stocks on occasion. regulatory bodies. for example.To share out or divide according to a plan. in-process items. or for the lifetime of a person. Ansoff matrix . Antitrust policy . activities such as inspection and testing of materials. Appreciation . employees. In the case of property. finished goods. in which case it would be called a life-contingent annuity or simply life annuity. as distinguished from increases in value due to improvements or additions made to it. Appropriation account . usually over a fixed number of years. Appraisal – 1. or a precious metal. Anomaly . which is due to economic.Policy designed to prohibit the acquisition and exercise of monopoly power by business firms. Apportion . land. and (4) determining a reasonable asking price in a sale. new equipment. An asset may be a piece of property. Anticipated inflation .. Annuity . creditors. an appraisal is made for the purposes of: (1) allocating the purchase price to the assets acquired (e.stockholders.A model which identifies growth strategies for businesses based on an analysis of their products and their markets.Distribution of net income to different accounts and may also include the allocation of retained earnings for a specific or designated purpose. building. a collectible. estimate of the value of an asset.The increase in the value of an asset in excess of its depreciable cost. Or 2. potential investors.The part of the profit and loss account which shows how the profit after tax is distributed . equipment). and packaging. is a series of fixed payments. Or an increase in the value of a domestic currency in terms of other currencies. evaluating the usefulness of the employee the business. (3) determining the value at death for estate tax purposes.
Arbitrage .Appropriate technology . Thus labour intensive technology would be appropriate in a labour abundant economy and capital intensive technology would be inappropriate. money in the bank.A measure of the average responsiveness of quantity to price over an interval of the demand curve.A trading block of countries in SE Asia. Singapore. amount of tax due to a the governmental or other association. buildings.The primary legal document of a corporation.Anything of value that is owned by a business or in other words assets represent what a business owns or is due. thereby avoiding any semblance or accusation of conflict of interest.Four Asian nations. under certain assumed conditions. if you have forgotten to pay your last 3 months rent. such movements quickly eliminate any such differences. then you are said to be 3 months in arrears on your rent. Asset . they serve as a corporation's constitution. The articles contain basic information on the corporation as required by law. creditors. The term "bid" refers to the highest price a trader will pay to purchase the stock. That difference is refereed to as the "spread".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. For example. Arrow's impossibility theorem . there is no scheme for aggregating individual preferences into a valid set of social preferences Articles of incorporation .Bills which should have been paid.Is when the transaction is conducted as though the parties to the transaction were unrelated. Or 2. Hong Kong.The movements of funds to take advantage of differences in exchange or interest rates. Traders make money on the difference between the bid price and the ask price. ASEAN is focused on developing a free trade area among the member nations.A mathematical result showing that. Assessment .The term "ask" normally refers to the lowest price at which a trader will sell stock at any given time. Arrears . cash are all examples of the assets of a business. Equipment. South Korea and Taiwan. Ask price .A technology which accords with the factor endowments of the country. vehicles.1. Arm’s length transaction . Arc elasticity . proportionate share of a shared expense. Arbitrator . with spectacularly high growth rates of manufactured exports. Asian tigers . Typical breakdown includes 'Fixed
. ASEAN (Association of Southeast Asian Nations) .
as opposed to. is when one person is brought together with another person or company into a relationship to perform some aspect of business.000. Asymmetric Information .Where one party in an economic relationship (e. Fixed refers to equipment.Tax term.g. What is considered a high ratio for one industry. Asset turnover . If the cash investment and personal debt incurred were $35. an agent) has more information than another (e. Asset stripping . Asset-based (asset-led) marketing . plant. Higher ratios reflect favourably on the firm's ability to employ assets effectively.g. Assisted areas . If there is a low turnover. At cost .Where a business develops and markets products based on its main strengths.A measure of the productivity of assets.In business. A higher ratio is desired. the principal). as to whether financial statements fairly present financial position and operating results. the retail price. buildings. Asset structure – The proportion of capital employed in each type of asset. 'Current assets' and 'non-current assets'. vehicles etc.Automatic teller machine. Asymmetric Shocks . Note there is an expansion of the at-risk amounts to real estate only to include certain non-recourse loans from qualified lenders.Formal statement by an auditor after thorough examination and consideration. Associate . Current refers to cash. At-risk amounts are restricted to the cash investment and the debt for which the taxpayer is personally liable. debtors etc. ATM .The selling off of profitable sections and closing down of loss making sections of business following an acquisition. Attest .000. This ratio measures the efficiency of corporate assets in generating revenue. may be considered a low ratio for another industry.The 'at cost' price usually refers to the price originally paid for something. Asset turnover ratios can also be calculated for specific assets such as the ratios of sales to cash and sales to inventory.
. regions or countries. Assume an individual incurs losses from real estate activities of $40. however.assets'. A taxpayer can deduct losses for tax purposes only to the degree of risk.Shocks (such as an oil price increase or a recession in another part of the world) that have different-sized effects on different industries.Areas that are designated as having problems by the UK or EU and are eligible for support in a variety of forms. the most that could be deducted as losses is $35.000. money in the bank. say. At risk . it may be an indication that the business should either utilize its assets in a more efficient manner or sell them.
Report rendered by the independent CPA at the end of an audit investigation. The degree to which evidence gathering is necessary partly depends on the quality of the client's internal control system.Reduction in numbers usually as a result of resignation. if travel expense went from 2% of sales last year to 25% of sales this year.A list of transactions in the order they occurred. Audit . Auditing evidence . The auditor reports on the nature of his or her work and on the degree of responsibility assumed. this inconsistency requires close examination.An accountant usually certified by a national professional association of accountants. or certified by another country's recognized national association of accountants. It selects and appraises the performance of the CPA firm. the public accountant provides an objective evaluation to aid financial statement users. 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. retirement. Auditing – An accounting procedure which checks thoroughly the authenticity of a company’s accounts. This.The process of checking every entry in a set of books to make sure they agree with the original paperwork (eg. Auditing standards . where the trades are negotiated.Body formed by a company's board of directors to oversee audit operations and circumstances. or death. Some examples are the NYSE and AMEX.Proof the auditor uses to substantiate a recorded item so that proper reliance may be placed on financial statement figures. Auction (market) – A trading market in which the buyers enter bids and sellers enter competitive offers at the same time.With an attest. if one exists in the corporation’s country. Auditor . Test checks of accounts and transactions are necessary. Attrition . as different to the over-the-counter market. the trend in an account should be looked at over time as a basis for determining the extent of testing required. Corporations will often work with both internal auditors and external auditors. Proof of accounting data includes examining source documents in support of a transaction.Guidelines that auditors follow when examining financial statements and other data. Audit trail . checking a journal's entries against the original purchase and sales invoices). Also.
. Audit committee . For example. Audit opinion .
Autonomous consumption .Is the signed.A step-by-step record by which financial. 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.The part of consumption that is independent of. Automatic stabiliser . the level of disposable income. Average age of inventory .The maximum number of shares of common stock that can be issued under a company's Articles of Incorporation.The right to command a situation. Automatic teller machine (ATM) . document which gives the results of the audit. elements of expenditure that do not vary systematically with other variables. Authorised share capital – The maximum amount which can be legally raised by a company. Audit trail . business. The instructions and strategies are issued from above with little opportunity for contributions to decision-making from less senior employees. such as national income and the interest rate.Audit report . Authority .
. and conclusions or opinions.A situation in which a country engages in no foreign trade.A mechanism that decreases the size of fluctuations in aggregate expenditure. or does not depend on. Changes in autonomous consumption shift the consumption function. the bigger the stabilising effect on national income. calculated by dividing the total cost by output. and quality assurance data can be traced to its source. Average cost or unit cost – The cost of producing one unit. Authorised capital stock .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. also recommendations may be made.In macroeconomics. a task or an activity. Issued shares are normally less than the number of authorised shares. Autarky . The more they change with income. Autonomous expenditure .A leadership style where the leader makes all decisions independently. Autocratic leadership . but are determined by forces outside of the theory. Automatic fiscal stabilisers .Tax revenues that rise and government expenditure that falls as national income rises.Calculated by the formula: 365 / inventory turnover. Results of the audit may include the findings.
Saving divided by disposable income.Consumption divided by disposable income for any given level of income.Total fixed costs divided by the number of units produced.Total revenue per unit of output. it is the cost that can be saved by dropping a particular product line or department (e. Average propensity to save (APS) .Average (total) cost . salaries paid to employees working in a particular product line or department). also called escapable cost. The proportion of total disposable income that is consumed. All costs are avoidable. Average rate of return (ARR) .Cost that will not be incurred if an activity is suspended.
. Average fixed costs . Average variable costs (AVC) . Average cost method . For example. The proportion of total disposable income that is saved.Total variable costs divided by the number of units produced.The total tax payment divided by total income.A method of investment appraisal which measures the net return per annum as a percentage of the initial spending.Total product divided by the number of units of the variable factor used in its production. except (1) sunk costs and (2) costs that will continue regardless of the decision..Is calculated: For Debtors = Trade Debtors X 365 days / Credit Sales For Creditors = Trade Creditors X 365 days / Credit Purchases. When all output is sold at the same price. Average settlement period . The proportion of total income paid in taxes.g.Total cost (fixed plus variable) per unit of output. Avoidable cost . average revenue will be the same as price. Average revenue (AR) . Average total costs (ATC) .Is using a weighted average cost for items in inventory rather than actual cost for each specific item. Average propensity to consume (APC) . Average product (AP) . Average cost pricing or mark-up pricing .Total costs divided by number of units produced. Average tax rate (ATR) .Where firms set the price by adding a profit mark-up to average cost.
An excessive amount of back orders may indicate to the accountant that poor inventory planning exists. This cannot be deducted as an expense against tax liability.. balance of a loan.Account or note receivable that proves to be entirely or partially uncollectible despite collection efforts.g.An account used to record an estimate of bad debts for the year (usually as a percentage of sales).. 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).
. balance in a bank account. the entry is to debit bad debt expense and credit accounts receivable. If the direct write-off method is employed. accounts receivable) and the total balance of all accounts in the subsidiary ledger (e. 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.An account in the General Ledger to record the value of un-recoverable debts from customers. There usually exists a company policy of how long an unshipped order remains an order without some sort of confirmation or communication. Back up . As soon as the product is available.Merging with a firm involved with the previous stage of production. the difference between total debits and total credits in an account. Or 2. Or 3. customer accounts).Back order .1. Bad debts reserve account .To make a duplicate copy of original data or files usually stored on a separate data storage medium. If the allowance method of estimating bad debts is used. Or 4.Customer's order that cannot be filled at the present time usually because the merchandise is not currently in stock. Balance . it will be shipped to the customer. Bad debt . Or 5.g. Backward vertical integration . the entry at time of uncollectibility is to debit allowance for bad debts and credit accounts receivable. Bad debts account .the equality of total debits and total credits of all accounts in a general ledger in the preparation of a trial balance.
they are not backward looking). Balance on trade in goods . gifts. It has a budget deficit if expenditures are greater than revenues. The balance of trade simply records trade in goods.g. The customer.
. Internal process measures examine the company's success in improving critical business processes..The difference between the value of visible exports and the value of visible imports. Services include freight. and innovation). and learning and growth. internal processes. and grants.. Balancing charge . And learning and growth measures examine the company's success in improving its ability to adapt.. customer. internal processes. There are three main accounts in the balance of payments: (I) the current account. as well as transfer payments.Exports of goods minus imports of goods.One in which total expenditures equal total revenue. The capital account records purchases and sales of investments. and (3) there is a balance of backward-looking measures (e.e. An entity has a budget surplus if expenditures are less than revenues. customer. Balanced scorecard . royalty payments. Having financial measures is critical even if they are backward looking.g. and interest payments.An approach to performance measurement that also focuses on what managers are doing today to create future shareholder value. After reviewing these measures. Balance sheet .g. Transfer payments consist of remittances. This is called a balancing charge.. number of defects) are balanced with qualitative measures (e. such as stocks. Balance of payments (BOP) . ratings of customer satisfaction). After all. note how "balance" is achieved: (I) performance is assessed across a balanced set of dimensions (financial..The change in income divided by the tax-financed change in government expenditure that brought it about. Balanced budget multiplier .Record of the transactions of a country with the rest of the world. The term 'balance sheet' implies that the combined balances of assets exactly equals the liabilities and equity (aka net worth). Balance on trade in goods and services (or balance of trade) . The dimensions are financial. A balanced scorecard is a set of performance measures constructed for four dimensions of performance. and grow. Balance on trade in services . they have a great effect on the evaluation of the company by shareholders and creditors. internal processes.A summary of all the accounts of a business.When a fixed asset is sold or disposed of.Exports of services minus imports of services. (2) quantitative measures (e. (2) the capital account. bonds and land. and (3) gold. financial measures like growth in sales) and forward-looking measures (e. and learning and growth measures are generally thought to be predictive of future success (i.Exports of goods and services minus imports of goods and services. Balance of payments on current account – The balance of trade in goods and services plus net investment income and current transfers. Usually prepared at the end of each financial year.Balanced budget . innovate. number of new patents as an innovation measure). Customer measures examine the company's success in meeting customer expectations. The current account records trade in goods and services.g. Balance of trade (BOT) . any loss or gain on the asset can be reclaimed against (or added to) any profits for income tax purposes.
indicated on a bank statement. a bank reconciliation is required.Paper money issued by commercial banks. a debt agreement might provide for a balloon payment when future refinancing is anticipated. Bankrupt . Balloon payment . Barriers to entry . Barter . Bankruptcy . Bank balance .Barriers that make it difficult for firms to enter an industry and offer competition to existing producers or suppliers. Bank statement .Bills that have been accepted by another institution and hence insured against default.1.A chart where numerical information is represented by blocks or bars. Bank bills . or be declared by its creditors.A statement from a financial institution reporting all transactions in the accounts held by the account holder. Bank notes .A system of exchange in which goods or services are exchanged for goods or services without the use of money. It is also a court action under which a debtor may be discharged for unpaid debts. For example. the person or business can petition for. Bank reconciliation -Term used when settling differences contained in the BANK STATEMENT and the cash account in the books of the bank's customer. the term used is insolvent .Amount in a bank deposit account.Balancing item . Rarely do the ending balances agree. The individual can file for bankruptcy in order to seek to legally eliminate some or all of his debts.Last loan payment when it is significantly more than the prior payments.The estimated net value of omissions from all other items recorded on the balance of payments accounts. also called partially amortized loans. (Business) situation in which a business' debt exceeds the fair market value of its assets. as of a certain specified time or date. To reflect the reconciling items. in whole or in part.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).
. In the case of a limited company or corporation in the same position. such as a checking or savings account. Bank (or deposits) multiplier . Barometric firm price leadership . and in which creditors receive distributions of assets from the debtor's property under the supervision of the court. bankrupt.Where the price leader is the one whose prices are believed to reflect market conditions in the most satisfactory way.If an individual or unincorporated company has greater liabilities than it has assets. Or 2. Bar chart . (Personal) legal process that is available for an individual who is overextended financially and is unable to pay his debts.
however. the numerator being the number of months the shares have been outstanding and the denominator being the number of months in the period (e. the dividends are deducted even if they are not declared in the current year. applying to most people's incomes. batch production. e. 12 months for annual reporting). preferred stock dividends are subtracted only if they are declared during the year. Net income available to common stockholders is net income less declared preferred dividends for the year.Brought Down (T-accounts). From the batch cost is is possible to then calculate the unit cost by dividing it by the number of components in the batch. Basis of accounting . Batch .01% in yield.. depreciation.05%. Base year . Expenses are recognized in the period when the related revenue is recognized and the difference is the net income figure for a particular period.g. a tennis rackets player with tennis balls.Net income available to common stockholders divided by the weighted-average number of shares outstanding. (marketing) A form of price discrimination where products are joined or packaged together in order increase sales i. 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. Basic earnings per share . Base amount .The amount from which something numerical is begun or developed or calculated or explained.An economy where people exchange goods and services directly with one another without any payment of money. where basis is the amount on which depreciation is calculated. Cash basis financial statements.The collecting and organising of incoming invoices before processing. For example.
. revenues are recognized only when money is received and expenses are recognized only when money is paid.e. distort financial position and operating results of an organization. Under the accrual basis of accounting.The year which is chosen as the point of reference for comparison. in an asset sale.The main marginal rate of tax. B/D .The identification and assigning of relevant costs incurred in completing the manufacturing process of a specified batch of components or items.Is given as 0. gain is proceeds minus basis. If the preferred stock is noncumulative. Under the cash basis of accounting. Workers would be paid with bundles of goods.Refers to a collection of things or items that are to be handled or processed at the same time i. Basis . Basic economic problem – How scarce resources with different uses are allocated to satisfy wants. For example. Batching (accounting) . Basic rate of tax . 2.g..Barter economy . Batch production – A method which involves completing one operation at a time on all units before performing the next.The starting value or used point in calculating the gain or loss.Method of recognizing revenues and expenses.e. Batch costing . the yield increases by a total of five basis points. Basis points .00% to 6. in increasing from 6. If the preferred stock is cumulative. amortisation and depletion. revenues are recognized as goods are sold and services are rendered regardless of the time when cash is received. base year.
the process of searching for new and better procedures by comparing your own procedures to that of the very best. Also profit centres engage a manager's ego because the financial results of the entity are a direct reflection of the manager's performance.Theories which state that business objectives are determined jointly by groups of interested parties. Beneficiary . an appropriate stock or bond index can be used to gauge the performance of an investment such as a mutual fund. In human resource accounting. Behavioural accounting .
. 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.The estimated useful life period of time that an asset will be productive. norm.Individual who will receive an inheritance upon the death of another.1. Below the line . a firm examines the end product or service of another company.This term is applied to items within a business which would not normally be associated with the everyday running of a business. Behavioural theories .Refers to the individual who enjoys the benefits of ownership even though the title may be in a different name. 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. a budget should be participative so departmental managers who are involved with it will internalize the goals. A standard measurement or metric used to evaluate the performance of a portfolio. Benchmark . Beneficial owner . theory that the management accounting function is essentially behavioural. Benefit period . The proceeds of an insurance policy may be in the form of a lump-sum or annuity. For example. In results benchmarking. See above the line . focusing on product/service specifications and performance results. or yardstick to judge one's performance as an individual or company.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).1. approach to accounting that stresses psychological considerations in decision making. A standard. For example. Participative budgeting is a simple application of behavioural accounting.Beggar-my-neighbour policies . 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. Or 2. Or 2. Benchmarking applies to services and practices as well as to products and is an ongoing systematic process. a valuation is placed on people and reflected as an asset in the balance sheet. also called human resource. Benchmarking (best practices) .
Standard & Poor's 500) to which it is being related.Are bills which have been accepted. the two prices represent a quotation in that stock. It also evidences receipt of goods. Bill of exchange .A certificate promising to repay a stated amount on a certain date.Written document that transfers goods.
." and are entered in a ledger account under that name. these are called "bills payable. It cannot be precisely measured because it fails to go through official accounts. an invoice from a supplier). Black market I parallel market . Bid and asked . If it equals I.Is the authority to act without having to gain further approval.Where a monopsony buyer faces a monopoly seller.The number of births per 1000 people in the population per year.Unofficial economic activity. place. Bid is the highest price an investor is willing to pay while asked is the lowest price a seller is willing to take. it is less volatile than the market average. A beta coefficient of more than 1 means that the company's stock price has shown more volatility than the market index (e. title. that indicates it is a risky security.An illegal trading arrangement in which buyers and sellers do business at a price higher than the legally imposed price ceiling.Refers to the costs and/or other expenses that are covered by the contractual agreement between two parties that may be billed. Bilateral monopoly . Benefits principle . usually. Together. Billable . typically three months from the issue of the bill. Bill of lading . person named for receipt) for delivery of goods.A term typically used to describe a purchase invoice (eg. title is passed to the goods.The idea that people should pay taxes based on the benefits they receive from government services. instability in operations. Alternatively. Bill of sale . the state can subsidise the private sector to provide them. and low quality of earnings.. A spread is the difference between the bid and asked prices. Blanket authorisation . Beta .Measure of systematic or undiversifiable risk of a stock.Benefits in kind . or other interests from a seller to a buyer and specifies the terms and conditions of the transaction. Birth-rate . Black economy I parallel economy .g.Term in the over-the-counter market for unlisted securities. Bid and offer are the more common terms in discussing listed securities. Billable hours . High variability in stock price may indicate greater business risk. Bills payable . thereby earning a rate of discount for the purchaser. Upon transfer of the bill.Normally refers to those hours a professional has worked and then billed to their client. If the beta is less than I.Written document issued by a carrier that specifies contractual conditions and terms (such as time. but are sold at a discount and redeemed at face value. Bills pay no interest as such. Bill . its risk is the same as the market index.Goods or services which the state provides directly to the recipient at no charge or at a subsidised price.
a written promise by a company. Blue chip . or in other words the amount paid to get the asset. During inflation.Blind trust .e. Often used when people gain public office to avoid conflict of interest.
.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. debt is paid back in cheaper dollars. Typically. Periodic interest payments are usually required. the Board consists of top management executives (inside directors) and representatives external to the company (outside directors).A graphical approach to linear programming which deals with resource allocation subject to constraints. Senior management is appointed by the Board. such as with zero-coupon bonds.Usually an extra payment made in recognition of the contribution a worker has made to the company. When bonds are issued at a discount. the entry is to debit cash and credit bonds payable. A registered bond has the name of the owner on the issuer's records. Bonus . The Board has significant influence over accounting and financial policies of the business entity. At maturity. Bond premium .. the entry is to debit cash and bond discount and credit bonds payable. Board of directors . Book cost .e.The amount below face value at which a bond is issued.This is the cost when asset is purchased or realised. a bond issue has several advantages over a stock issue. whereas the holder of a bearer bond presents coupons for interest payments. The entry to record the interest each period is to debit interest expense and credit cash.The amount in excess of face value (maturity value) at which a bond is issued. Blending . whereas dividend payments are not. Bond .In accounting is used to refers to the ledgers or journals (for example: general journal). They have low risk and provide modest but dependable return. the amount in the sinking fund (principal plus interest) is sufficient to pay the face of the bond. Blue chip may also refer to a high-quality bond that is secure and stable in price and interest payments.Trust where the assets are not disclosed to their owner. Book/s . or other institution to pay the face amount at the maturity date. contractor depositing a performance bond on a construction project to be completed by a specified date).Group of persons elected by a company's stockholders to run the business according to the corporate charter. When bonds are issued at face value. Examples are International Telephone and Telegraph and Minnesota Mining and Manufacturing. Bond discount . Bonds may be secured by collateral or unsecured (debenture). the cash or property given to assure performance (i. Interest expense is tax deductible.1. From the company's perspective. Bonded warehouse .Common stock of high quality that has a long record of earnings and dividend payments. Blue chip stocks are often viewed as long-term investment instruments. government. i. Used a verb it means to the recording of an entry (e. type of insurance compensating employer for employee dishonesty. Bonds are typically stated in $1000 denominations.g to book the sale). Or 3. Or 2. Sinking fund bonds require the company to make annual deposits to a trustee.
Accounting support functions performed by the book keeper. Brand .1. including the opportunity cost of capital. Break-even price .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. Brand name . Brand loyalty .Where a business sells just enough to cover its costs.The view or opinion held by consumers/customers about a particular brand of an item.Breaking of terms agreed in the contract of employment by the employers and the employees. net amount shown for an asset on the balance sheet.The level of output where total revenue and total cost are the same.A name given by a business to one or more of its products.This is used to refer to the situation when a consumer is unlikely or reluctant to switch from consumption of this good. Or 2.Normally means the accounting for regions separated geographically or sections of enterprises. Break-even point .Means an identifiable or recognised name given to a product or service often registered as a trademark e. Since book value is based on HISTORICAL COST.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.The price at which a firm is just able to cover all of its costs. Brand image . A stronger the brand image is more likely to have an inelastic the demand curve.A graph containing the total cost and total revenue functions. Breach of contract . Boom . the book value of an auto is its initial cost less the accumulated depreciation. Book value is a going-concern value. Or 2.Bookkeeping . Bookkeeping is the most basic of the accounting duties and requires less education and experience.g. 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. Branch accounting . carrying value of a liability equal to its face value less unamortised discount. illustrating the break-even point. An example is the sales generated from an advertising campaign.1. Break-even chart . expression as to the end-result of something.Theses are the financial records of an entity. net income after taxes. Bounced cheque . it will differ from market value. Break-even . Break-even analysis . Nike. Book value . For example. The consumer is said to be "loyal" to the brand. where total revenue is equal to total cost. as a means of identification by the customer.
. It equals the gross cost less the related valuation account.The stage when an economy is at the peak Bottom line .e. Books of account .
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.A quantitative economic plan prepared and agreed in advance. The USA maintained convertibility of the dollar into gold at the rate of $35 to an ounce.Cab be either the business of a broker who charges a fee to arrange a contract between two parties. also called a swing loan.short-term loan that is made in expectation of intermediate. Budgetary accountability . Budget . process of recording budgetary amounts in the accounts of a fund.In government accounting. the government sector has a budget surplus. If expenditure exceeds revenue.
.or long-term loans. Broad Money in UK (M4) . The need for such recording is consistent with the responsibility of fund accounting. it itemizes spending programmes and their costs.The process of collecting the data and preparing the budget for future activities of an entity or activity. Recording the balances has a dual effect. If revenue exceeds expenditure.Areas of land which were once used for urban development. Budget surplus (or budget deficit) . comparing the actual results with the planned objectives and then investigating causes of any differences.Brentton Woods system . e. It is used for planning and control purposes. Bridge loan (bridging loan) . Budgetary control – A business system which involves making future plans.The annual statement by the government of its financial plan.Contrary to financial accounting. 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. tax revenues and the proposed deficit or surplus. Budgeting process . Budget (government) . and (2) recognition is given to the legal foundations of the budget. Brought forward .Cash in circulation plus retail and wholesale bank and building society deposits. Broad definitions of money .The act of bringing a previously recognised value that was determined in the past.Occurs when expenditures are greater than revenues. Brownfield site .The difference between government sector revenue and expenditure in a given period of time.Items in narrow definitions plus other items that can be readily converted into cash. a balance brought forward from the previous accounting period at the start of a new accounting period. (1) The control aspect of the budgetary function is stressed.The planning of intended revenues and expenditures over a specified time period. the place where a broker carries out their business. Budgeting . looks forward: it measures the cost of planned acquisitions and the use of economic resources in the future. It is concerned with performance in terms of authority to act and the action itself. Budgetary deficit . the government sector has a budget deficit Budgetary accounting . The interest rate on the bridge loan is generally higher than on longer term loans.g. or. Brokerage .
The legal form under which a business is conducted. Business structure – The way in which a business is organized. Business cycle I trade cycle . 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). Examples of business entities are sole proprietorship. Business ethics .These include strategic decisions (very important ones which can affect the overall success of the business). A business plan should includes the product(s) and/or service(s). Example: if a company had cash reserves of $120m and it was currently spending $10m a month.Is something that stands in between two other things e.The treasury of a public institution or religious order.Fluctuations of national income around its trend value.The price that a hypothetical buyer (estimate) would pay for a business or entity under a given set of circumstances.. Business segment .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. By laws . Business plan . It is often characterised by low prices.
.Can mean the provisions of corporate policies or refer to local council rules and regulations. general partnership. after seasonal fluctuations have been removed. and the financial rewards/results if the business plan is successful. outlining the way it will attempt to achieve its objectives. Bursary . that attempts to smooth out fluctuations in prices by the purchase and sale of stocks. then you could say that at the current 'burn rate' the company will run out of cash in 1 year. the market situation. Buffer stocks (accounting) . an analysis of competitors.Stocks held as a precaution to cope with unforeseen demand. Buyer’s market .The rate at which a company spends its money. Buffer Stock (economics) . usually run by producers or the government. the key people involved in the business. Business entity principle . an inventory buffer would be additional inventory kept on hand over and above the committed or planned level of inventory. Business entity .A firm or business is seen as separate from its owner(s) in the presentation of the final accounts and financial statements.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. Burn rate . corporation. financing needs and projections.A statement made by a business. or. a limited liability company.The influence of values and beliefs upon the conduct and operation of the business. Business decisions .An organisation.g.Buffer . Business valuation . that follow a wavelike pattern.
Materials which are produced as a result of a process designed to produce a different material. See also option.
CAC . A call provision is often issued on a security when the inte one that has no call provision. This is because investors consider yield to call as opposed to yield-
CAP (The Common Agricultural Policy) .1.
Call . option to buy (or call) an asset at a specified price within a specified period.The government body responsible for union recognition. Or at a specified price that happens within a certain specified period. It is designed to stabilise by fixing minimum prices for agricultural products.of the European Community. Or stock or bond issue prior to its maturity.By-products .
Craft union .A.Inflation that has its origin in cost increases. The re The formula is: Opening stock + purchases + direct expenses . C. which are then passed higher prices. based on calculated ratios.The savings in operating costs expected after two companies.Sales revenue where payment has been made through the use of recognized/authorised credit receipts/payments.A formula for working out the direct costs of your sales (including stock) over a particular period.
Cost synergy . if you buy some petrol using a c the bank to the petrol account.closing stock. .A column in a journal or ledger to record the 'From' side of a transaction (e. CPI .The principle where a company is obliged to record its fixed assets at their actual pur Cost-push inflation .A functional cost unit which establishes standard cost per workload element of activity. type of skilled worker.
Cost plus pricing – A method of determining payment based on the actual cost of production or service provisioning p profit. Credible threat (or promise) .
Covenant .P.Inflation which occurs as a result of .
Counter-cyclical policy .One that is believable to rivals because it is in the threatener’s interests to carry it out.
.Examines the behaviour of total revenue.
Cost volume profit analysis (break even analysis) (CVPA) .
Cost of Sales . who compliment each other's strengths
Cost unit .
Creative accounting .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.When firms price their product by adding a certain profit or mark-up to average Cost-push inflation . total costs an output level.Consumer price index. Credit card .Cost-plus pricing (full-cost pricing) .The annual interest rate of a bond.. Credit control . selling price and variable costs per unit or fixed costs.g.The process of monitoring and collecting the money owed to a business. for example. Credit card receipts . certain things. or refrain from doing.Certified Public Accountant. It is usually a rest a lender. a cost-plus government contract.When the power ( monopolistic/oligopolistic seller is offset powerful buyers who can prevent t Coupon rte .A card authorising purchases on credit at a predetermined interest rate and/or payment conditions.The use of fiscal and monetary policy to offset. businesses facing increased costs. see Cost of Goods Sold .A clause in a contract that requires one party to do. moving them to the assets section rather than declaring them in the Profit
Cost principle (historical cost . booms and slumps by concretionary and exp
Countervailing power .A trade union which represents a particular. Also. you would therefore credit the bank when making the journal entry).
"If you are failing to plan.
.The date at which those who owned/own shares will receive the dividends.An organised collection of data stored electronically with instant access.
Database . Data – A collection of information.Development Assistance Committee of the OECD. you are planning to fail. searching an Date of record ." Tariq Siddique
Director’s report . it is up to the firm or individual to decide.following equation [(standard rate . without the use of intermediaries such as w
Direct material . such as an applicant for a job.Refers to when there is a difference between two sources of data. Or 3.The cost of raw materials and other components that can be identified with individual units of product Direct materials variances . reduction payment.Refers to the difference between the actual costs of materials and the standard costs of Directors .can be changed at the discretion of the individual decision maker.
Discount . 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. Or 2.Refers to when something is not mandatory or compulsory.. This means some information should be given as accompa items are outstanding lawsuits or other known factors that could affect the business.Financial report prepared for company directors.actual rate) X actual hours]. Direct tax .
Discrimination .Is used to mean the paying of money in order satisfy an expense or debt.To make a. where there is no government intervention in the foreign exchange market. Disbursement . the rate of interest used to discount a stream of future payments to arrive at their present value Discouraged workers . Direct write-off method – A method of recognition of uncollectible accounts only when known to be such. Discrepancy .
Discount rate .A freely floating exchange system that involves governments intervening to stabilize the valu compared with a 'clean' float. Discretionary .e.People elected by shareholders to run companies. The term is often use
.A method of investment appraisal which takes interest rates into account by calculating income.This principle says that all relevant information that may or does affects the full understanding a financial statements must be included with final statements. selection or choice from alternatives.Tax liability targeted at one person on the basis of income.1. more generally. difference between the face value (i.
Direct marketing . future value) and the present value of a payment.
Dirty or managed float .A reduction of the invoice amount for early payment of the invoice value. Discount allowed . The report is typically prepared on a quarterly and items such as the accountant's financial analyses and management recommendations.1.
Discounted cash flow (DCF) .A method of distributing products directly to consumers. the rate at which the central bank is prepared to lend Or 3 3. in banking.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.
Disclosure principle .The process of reducing future flows to give them a present valuation. excess of the par value (face value) of a financial instrument over the price paid for it. Or 2.
Discretionary fiscal policy – Deliberate changes in tax rates or the level of government expenditure in order to influen demand. Discretionary cost . Discounting .
g. Or 2. See also earnings per share (EPS).Income from personal services.." Yanny Natashah
Earliest finish time (EFT) . revenues earne as compensation and passive income (e.
Earnings . dividends).Discounted present value of future profit of a business.
Earned income ... Net income of a business. interest.In program review and evaluation technique (PERT). salar employee compensation Earning power .. earliest time at w completed."Sometimes. the hardest decision made is the right thing to do. Earned income generally includes wages.
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.The time that it takes to put policies in place after a decision has been made.The property of a good whereby a person can be prevented from using it.(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 tax on the sale of a particular product. For example exempt from a specific tax.The price in terms of one currency at which another currency.
Expectations-augmented Phillips curve .
Excise duties (taxes) . Execution lag .Inflation that occurs because decision makers raise prices (so as to keep their relative price the price level is going to rise. on average. Exchange rate regime .
Excess supply .Where a currency is allowed to float between an upper and lower exchange rate. can be bought and sold amount of one currency that is necessary to purchase one unit of another currency (e.A situation in which.
Exchange rate overshooting . usually done on a voluntary basis. Exempt . Normally taxes levied on fuel.Not being subject to an obligation or liability of something.A situation in which. believe that the price level will rise.Money supply that does not depend on the demand for money but is set by the authoritie
Exogenous variable .
Exchange rate . quantity demanded exceeds quantity supplied. at the given price.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. Pe happening now (such as a change in price).In foreign exchange. People's actions are influenced by their expectations.The rate at which people.The system under which the government allows the exchange rate to be determined.Reserves held by a commercial bank in excess of the legally required minimum.A variable that influences endogenous variables but is itself determined by factors outside the th Expansionary gap .
Exchange rate index . or claims on it. at the given price.When the value of a country's currency rises compared to other currencies. tobacco and betting. Also called a Excess reserves . Excludability .When the value of a country's currency falls compared with other currencies.
Expectational inflation .
. in which both parties to the trade are better off.
Exchange rate band . may be a specific tax (fixed tax per unit of product) or percentage of the value of the product). but is not allo Exchange rate depreciation .The act of trading. Exchange rate appreciation . but to what anticipate will happen in the future.60 = £1). refers to the position of a firm in relation to changes in the exchange rates. quantity supplied exceeds quantity demanded.
Expectations – Beliefs about what will happen in the future.
Exogenous money supply .Excess demand . $1.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. alcohol.g. Exchange rate risk . Also called a s Exchange .
" Vance Havne
Face value . Factor services .Nominal amount of a debt obligation (e."The vision must be followed by the venture.we must step up the stairs.g. mortgage) or equity security a instrument. note. It is not enough to stare up the steps .Markets in which the services of factors of production are sold. Factor mobility . Factor market . bond..
. It excludes interest and dividends.The services of factors of production that are used to produce outputs.The ease with which factors can be transferred between uses.
in the long run they are variable. .
Fixed price . and equipment.Purchases.Plant.Used to refer to types of investment that give or yield a regular or fixed amount.The one-for-one adjustment of the nominal interest rate to the inflation rate. and tax all income at the same low tax rate.The expenses of a firm that remain constant regardless of changes in output or sales volume.
Fixed costs . By using the budget formula). Fixed factor . wareho Flash earnings . property. It is a proportional tax. the price at which investment bankers agre public in a public offering of new security issues. the price that must be charged under a contract regardless of production costs.
Fixtures & fittings . and loopholes.Economic plans set up by the central government in a country that plots the future course of its econ
Fixed assets . made by business. pensions which give a fixed income or fixed income investm Fixed investment.
Fixed asset turnover .
Flat tax . It is dynamic by its nature rather than static. filing cabinets. etc. It is an extremely useful tool for t incurred to the cost that are allowed for a given activity level.1. of capital goods.. w goods) in standard costing.
Flat (rate of) interest . Flexible budgeting is a way o
.A budget that does not get adjusted for any changes in the level of sales or service.This is a class of fixed asset which includes office furniture. A pure flat tax wou exemptions. Or 4. utilities. Fixed expenses . raw materials.A news release issued by a company that shows its latest quarterly results.
Flexible budget (variable budget) – A budget based on different volumes of activity.Fisher effect .
Five-year plans .the price that serves as a standard for the valuation of certain inventory accounts (i.. Fixed income can als income which does not change in each period of time e.These consist of assets which are likely to be kept by the business for more than one year.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. net of the accumulated depreciation or the depletion of the asset.
Fixed assets (net) . such as machinery and office equipment. . OR 2. 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.One in which the income tax rate is the same for all income levels. Most fixed a over time so the value of these will fall on the balance sheet from one year to the next.expenses like rent.e.The costs that do not vary with output. that do not change when sales volume increases or are those expenses which vary or change directly with output.A measure of the management's ability to be able to generate revenue flow from the firms inve Fixed budget . loan payments. Fixed costs include such things as rent on a building and the pric fixed for a certain period of time.An input that cannot be increased in supply within a given time period
Fixed income .
Fixed overhead .
Fixed exchange rate . display cases.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..g. a series of budgets can be developed easily for various levels of activity.
any extended guarantees or warranties. are printed on paper."The important thing to recognize is that it takes a team. and the team ought to get credit for the wins and the losses. The computer's responses. The soft costs would be any additional fees or charges for serv installation charges.Refers to the price paid to purchase the actual assets. The user types commands. as well as the information entered. Successes have many fathers.
Hard costs . the price paid fo would be considered the hard cost. failures have none.Knowledgeable computer user who attempts to break into and corrupt a computer system
Hard copy .Computer term for output printed directly on paper. wh permanent copy of the input. instru keyboard." Philip Caldwell
Hacker . or extra service and support contract
. For example.
international short-term bond funds usually hedge most o term funds have substantial exposure. The formula is then given as y = a + bx.A internationally recognised and agreed classification system for international trade.
. but that value has not bee value of the firm. currency movements. financing an a maturity. (2) commodities. In general. Or 2. interest rates.
Hedge fund ..
Hedge .Countries with very high income levels to oil exports but with the economic st countries. Hierarchy – The order or levels of management of a business. H such as customer lists or intellectual property. the process of protecting oneself against unfavourable changes in prices.The unit that stores information (e. from lowest to highest. or directional movements based on certain events such as mergers and in order to minimize an exposure to currency risk.g.1.A chart which measures continuous data on the horizontal axis and class frequencies on the vertical axis.
Hardware . Or 2.
Histogram . By this method customs/tariff duty calculations are more predictable. a = fixed c rate. or 2) The original amoun owns. or other things which are of significant value. commodity prices.An algebraic procedure that is used to classify a semi-variable cost into its variable and the fixed p extreme highest and lowest x . It provides are used to specify every item's classification.
High income oil producing countries . stock. can be valued at what they originally cost.
Harmonised system .Employment that is sufficient to produce the economy's potential output.An asset (with value) that has not been included in the reported book value of a firm or organisation.
Hire purchase/credit sale .
High employment (full employment) .The transport of bulk goods or products. Hedging in relation to securities is the taking two offsetting posit the financial risk has been limited.
Historical Cost .
Historical cost accounting . etc. and (3) securities. raw materials etc.A loan with commercial rates of interest and terms of repayment (see soft loan).Methods used to buy goods now and payoff the balance over a period of time. a mutual fund that seeks to particular bond market. a limited partnership of investors that invests in speculative stocks.The name given to all the electronic and mechanical devices that make up a computer. Or 3. usually refers to road transport but can also refer to rail transport. In the case belong to the buyer when the final payment is made.The idea that workers are motivated by recognition given to them as a group. a unemployment is frictional.y pairs in the cost volume formula. seasonal and structural.1.Assets. Hard loan .
High/low method .Hard disk . Hawthorne effect . data files and programs) within the computer.The accounting practice requiring all financial items reported in the firm's financial statem cost. 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.
Hidden asset . as opposed to soft Haulage . 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.
The largest volume of output possible if a facility maintained continuous operation allowing for no losses of any kind. also called capacity. even those deemed normal or unavoidable. Idle balances . Idiosyncratic risk .Risk that affects only a single economic actor."Everything that irritates us about others can lead us to an understanding of ourselves." Carl Jung
IB – International baccalaureate
Ideal capacity .Money held for speculative purposes: money held in anticipation of a fall in asset
. or engineered capacity.
Means an event that is occurring between different companies. Or 3. For example MYOB (Mi package integrates the accounting software with database software. the payment for current rather than future command over resources.
Itemised deductions .Marketing. casualty and other sundry expenses. franchises.An intangible asset of property that is said to be the result of the creativity of an individual or firm copyrights.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. patents.
Instalment sale – The selling property/items and receiving the sales price via a series of different payments. an investigation. This recognition will affect their decisions.
Insider trading – Refers to the buying and selling of the company's securities based on material information relating to made public.Input-output analysis . refers to an agreement that specifies or instructs a media outlet about aspects related to a
Inside information . instead o at the time the sale was closed.g. the money.
Intellectual capital .Assets of a non-physical or financial nature. The technique examines how these inputs and outputs can be matched to the total resources available in the Inquiry . such as loss
Insurance claim . copyrights.
Integrated software – A software package that combines many applications in one program. Inter-company . e. catalogs.
Intellectual property . charitable contributions. formulas.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. Insider trading according to this definition is against the law in most countries Insolvent . Each firm will be affected by its rivals" will affect its rivals. will p insured a specified sum of money. that one party.
Interdependence (under oligopoly) . medical expenses.Privileged information obtained regarding material business results and pending security transac until a certain date. Interest . and mailing amortisation. An asset such as a loan or an endowment policy are g intangibles and include trademarks.This involves dividing the economy into sectors where each sector is a user of inputs from and sectors. the return paid to owners of capital. goodwill. termed a policy. Or 2. the cost of obtaining credit.
.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. contingent upon the specified conditions within the insurance contract. Firms recognise this interdependence.
Insertion order .A written letter or form notifying the insurance company of a request for payment of an amount spe the insurance policy. brands. for an agreed premium. Taking advantage of inside information for the purpose of making a profit is illegal (called insider tra
Insiders .1.A company is insolvent if it has insufficient funds (all of its assets) to pay its debts (all of its liabilities).
Intangible assets .A request for information or.One of the two key features of oligopoly.An agreement through an insurance contract.
The way in which the trade balance may initially worsen after an exchange rate deprecia JIT – Just-in-time manufacturing
Job analysis ."If you don't do it excellently. it won't be profitable or fun.The allocation of costs such as time. collecting and subsequent reporting on the va revenues that can be attributed to individual projects or jobs. Because if it's not excellent. such as the skills. what the hell are you doing there?" Robert Townsend
J-curve . and if you're not in business for fun or profit. material and other expenses to an individual method that provides for the forecasting. don't do it at all. tasks and performance expected
Job costing .A study of what the job entails.
Joint costs are the costs associated with a single process of production that makes many products at the sam Joint float .Giving an employee more work to do of a similar nature.
Job specification . For example. where joint prod products.Discussion between management and employee representatives before a decision is taken.
Job enrichment . Job enlargement .A production method that involves reducing or virtually eliminating the need to hold stocks of the finished product.A document which outlines the requirements. Joint venture – Two firms sharing the cost.Job description .
Joint stock company .A company that has some of the features of a corporation and also has features that are norm Joint supply . referred to as the split off point.A single product is made at a time.
Just-in-time manufacturing (JIT) . court order to pay money.A single production process that yields multiple products simultaneously.
Journal Proper . Journal(s) .Changing the tasks and activities of a job.A term used to describe the transactions recorded in a journal. Job satisfaction . Job rotation . responsibility and profits of a business venture.A method used by businesses to comp the value of different jobs and perhaps set wages or salaries.
Joint costs . Besides interpreting the meaning of the situat determine its perceived implications.Common manufacturing costs incurred prior to the point. Job production .Where a group of currencies pegged to each other jointly float against other currencies.1.The changing of jobs or tasks from time to time. Journal entries . Or 2. usually to the customer's exact specifications.Document which outlines the responsibilities and duties expected to be carried out by someone emp Job design (redesign) .Where the production of more of one good leads to the production of more of another. accountant's opinion regarding a set of facts or evidence.An attempt to give employees greater responsibility and recognition by 'vertically' extending their rol
Job evaluation . Job search .The process by which workers find appropriate jobs given their tastes and skills. Joint product . the degree of audit testing required in a given situation depends on quality of the internal control system. qualifications and expertise required from a person t Joint consultation .that you have done a good job.A term used to describe the main or general journal where other journals specific to subsidiary ledge
Judgment .Enjoyment derived from feeling .A book or set of books where your transactions are first entered. Job order – A customer order for a specific number of specially designed. made-to-order products.
. perhaps in an attempt to motivate workers.
. such as a month or year. Kaizen costing ." Robert Greenleaf
k percent rule . Kaizen . through the elimination of waste Kaizen budgeting .Determines target cost reductions for a period.The proposition that the money supply should be increased at a constant percent year out."Many attempts to communicate are nullified by saying too much.incorporates expectations for continuous improvement into bud budget cannot be successfully achieved unless the improvements are carried out. irrespective of cyclical changes in national income.A Japanese term meaning continuous improvement.
derived from the work of John Maynard Keynes. Kiting is to the manipulate and/or infl Knowledge management (KM) .
Keynesian macroeconomics .
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"I don't think anybody yet has invented a past time that's as much fun. In the context of securities.A Keynesians Economist holds the view." Fredrick Hudson Ecker. Often the term encompasses economists who advocate active policy interventio
Keynesian growth models .
Keynesian short-run aggregate supply curve .Kanban . Can also mean ill cheque by altering the amount written on the cheque. Or 2.The process associated with connecting people to people and people to information advantage.A model of pricing in an oligopolistic market structure where rivals follow one firm's decision to price increase. 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. that active use be effective in stabilizing the economy. or keeps you as young. In relation to banking. Chairman Metropolitan Life
.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.A horizontal aggregate supply curve indicating that when national inc in national income can occur with little or no accompanying changes in pnces. as a good job. The demand curve is thus bent or kinked and the associated marginal revenue curve has a discontinuo
Kiting – 1.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.
Kinked demand curve .A card which acts as a signal to move or provide resources in a factory.
Cost allocation base that provides a systematic and contemporaneous method of costs to work-inprocess inventory.
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"Avoid having your ego so close to your position that when your position falls. multiplied by the standard rate.
Lump sum .
Low-income Developing Countries . which is to be all paid at one time in complete and final settlement of a Lump-sum tax .A situation in which the quantity of real GNP demanded equals the supplied.The total number of persons employed. plus the number of persons who are unem
Labour force participation rate .
. and the rate of economic growth.A tax that is the same amount for every person.A factor of production consisting of all physical and mental efforts provided by people. such as total output.An agreed upon amount of money.
Macroeconomic equilibrium ." Colin Powell
Machine hour .
Labour efficiency variance .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.
Labour force . the price level. An overhead rate of cost per hour of work expended by a mach work-in-process.Labour .The study of the determination of economic aggregates.Difference between the amount of labour time that should have bee labour that was actually used.The percentage of the population of working age that is ac (either working or seeking work). your ego goes with it.
Benefits whose amount depends on the recipient's income or assets.The average deviation of all figures from the mean. Materiality .A mathematical result showing that if voters are choosing a point along a line and each voter
Matrix organisation .The value within any set of data at which half of the observations are greater and half are less.
Maximin criterion . direct or indirect.The (usually projected) value of an intangible asset on the date it becomes due. Thus half of a the median income. An example is steel to make a car. Maturity value . Maximin .The importance of an event or other information that has an influence on a company's share price.
Materials quantity variance (MQV) . When materials are transferred to work-in-process. If a rule is to be ignored. and half earns income below the median.is the physical items (cost of) used in the manufacture of other products. Or significant in dollar amounts. Maximax . inventory is credited.Where a firm superimposes a interdisciplinary team or group of project specialists on top of a fu Maturity date .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.
Material control . The price is not allowed to rise above th fall below it).1. multiplied by the standard price per unit. The term material is mainly used to refer to the direct materials.
Mean (or arithmetic mean) .Difference between the actual quantity of materials used in production and the s allowed for actual production.The claim that the government should aim to maximize the well-being of the worst-off person in so
Maximum price .A price ceiling set by the government or some other agency. The principle also states the reader of the financial statements ab not be impaired.Refers to the particular department that is responsible for the control of any specified materials withi of a firm.Is the date at which a financial asset is converted into a money or other assets. which ignores plus or minus signs in its calculatio Means .Material .Difference between what is paid fora given quantity of materials and what should ha actual quantity of materials used.
Materials price variance (MPV) . Materials variance (MV) . Usually accounted for separately by a d and a credit to accounts payable or cash. raw material. 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.
Materials .The methods of achieving one's goals.
Median .The sum of the values of each of the members of the sample divided by the total numbe
Mean deviation .
Materiality principle .The strategy of choosing the policy that has the best possible outcome. the pr income must not be in any way significantly affected.The strategy of choosing the policy whose worst possible outcome is the least bad.Difference between the actual and standard costs of materials. Median voter theorem . Means-tested benefits .
Items of money that can be spent directly (cash and money in che accounts). his loyalty is. where the other side of the entry went to (or came from).
Narrow definitions of money . non accelerating or non decelerating inflation can be susta called the natural rate of unemployment. His heart is where his enthusiasm."You can buy a person's hands but you can't buy his heart. The rate of unemployment national income and at which a steady.
.A comment appended to an entry in a journal." Stephen Covey
NAIRU . It can be used to describe the nature of often in particular.Short for ‘nonaccelerating inflationary rate of unemployment’.
This is usually done using a Moving average . It is an inevitable consequence of the production process under efficient o therefore considered to be unavoidable.000 training him. No. Why would I want somebody to hire his experience?" Thomas J.
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"Recently. NPV .Trade unions and management agree to have pay disputes settled by an independent arbitrat Numerical flexibility .
Normal profit .Where employers can change the size of their workforce as their labour requirements change.
Notes to the financial statement – This is a detailed set of notes that are submitted with the financial statements. in a p an opinion that cannot be verified by observation. in an ethical sense. Norma what economists (but not businesspersons) call total costs.The opportunity cost of capital and risk taking just necessary to keep the owners in the industry.
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. Losses greater or less are refereed to as abnormal gains or losses and may improved efficiency.The rate of return (after taking risks into account) that could be earned elsewhere.
No-strike agreements .Normalise . I was asked if I was going to fire an employee who made a mistake that cost the company $600.Net Present Value.A statement about what ought to be.This is the loss that can be considered under normal efficient operating procedures in the production pro through evaporation in chemical production.
Normative statement .This term can be applied to many aspects of accounting.000. Watson
. I just spent $600.
Normal loss . I replied. as opposed to what actually is. It is inherent a Costs of normal spoilage are allocated to the remaining good units in inventory. Normal rate of return . The relation to parts or items on the statements.
goals tend to general in their nature.
Owners equity . we'd all be millionaires.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. Dependent upon how it is used.The sum or total cost involved in the production an item.
Objective .Object code .The interest of the owners in the assets of the business represented by capital contributions and reta
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"If we could sell our experiences for what they cost us." Abigail Van Buren
.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.Is used to designate or list the type of revenue or expense that is to be charged to
Object cost . while objectives tend
Overtime ban . It consists of the direct cos the overhead cost = the total object cost.
The physical container or wrapping for a product.Pac Ioli. was part of a work Summa de Arithmetica. Luca – The author of the first statement and commentary on double-entry bookkeeping.The statement of what is included in the contents of a specific container. 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. Geometria Proportioni et Proportiona
Packaging . in Venice in 1494. also used for promotional purpose
Packing list (slip) .
a union agrees to changes in working practices that will incre
Productivity ratio – Shows the ratio of outputs as compared to inputs. product quality. maturity. volume of output. direct labour. Or 2) involves planning an product that will satisfy fully the needs of customers. introduction. measured by tot amount of labour used. Also called the p
Productive activity . e.A description applied to a business whose main focus of activity is on the product itself. A product has several dimensions.until the products/items are sold. it is treated as a expense. or produc cost. in economics. in ordinary usage. including research.Markets in which outputs of goods services are sold. human and capital resources into goods and services. de
Product mix (product portfolio) – The particular mix of products that the firm is marketing. produ product testing.A group of products or services that have a defined relationship because of physical and production s
Product life cycle . management practices etc.When.The stages a product will pass through from its introduction. warranties and after sales services and the like. quality.Slight differences in products which may be real or perceived.e. i. frequently used to refer to labour productivity. Productivity can be affected by different work methods.g. Product differentiation . Once the product/item is sold. it is thus the boundary between attainable and unattainable output combinations. These dimensions are collectiv mix for example may consist of size and weight of the product.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 . so that profits are econ
. Also called goods markets.A functional relation showing the maximum output that can be produced by each and every com
Production possibility frontier (curve) .1. in return for a wage increase. Cost of Good Sold (COG considered to be product costs.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.The schedule for expected units to be produced. the higher the productivity.
Production function .
Product-orientated .A curve that shows which alternative combinations of commodities can just b resources are used. in return for an increase in produc
Productivity deal .An approach to business which places the main focus of attention upon the production process Production . product design. development. the difference between value of outputs and the value of inputs. It sets forth the units expected to be manufactu inventory requirements.Output produced per unit of some input.A situation where firms producing the maximum output for a given amount of inputs.Workers and management agree an increase in benefits.The moral principles and standards of conduct guiding professionals such as CPAs in performin
Profit .. The closer to 1:0. th productivity. Product orientation .
Product family .
Production budget .
Productivity agreement . direct material and factory overhead. technology. the d received from the sale of goods and the value of inputs. through its growth until it is mature an Product markets . See also
Professional ethics .The conversion of natural. Or 2. includes the opportunity cost of capital.
Product life cycle .
Or 2. reference in the audit report to a material limitation placed on the auditor's exam regarding a specific item in the financial statements."There is less to fear from outside competition than from inside inefficiency.
Qualification ." Anonymous
Q Ratio . technical competence to perform a particu the CPA examination and meeting experience requirements in order to be licensed as a certified p
. Or 3. discourtesy and bad service.1.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. reservation in a proposed agreement m unenforceable unless a specified condition is met.
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.
Quantitative factors . Quality – Features of a product that allow it to satisfy customers’ needs.Are considerations relevant to a decision that can be measured in terms of money or quantitativ
Quantitative information – Different from qualitative.
Quality control circles – Small groups of workers in the same area of production which meet regularly to study and so problems. Included are proper uation of internal control.The number of of labour services that households supply to firms.
Qualitative information – Different from quantitative which relates to numerical amount qualitative information is that w relating to. Or 2. Quantity demanded . both internally
Quality control . Quantitative is information relating to. The monitoring of a CPA firm's sys reviewer involves consideration of the adequacy and relevance of the CPA firm's procedures. and complianc professional development. and employment of generally accepted auditing standards. A number of tests and to determine that a part meets required specifications. policies and techniques used to assure tha been achieved. the velocity of money. or involving quality or kind. Variances from established norms are identified and rec procedures to achieve a desired level of satisfaction of the operation or product being produced.The amount of a product that producers wish to sell in some time period.
.1. procedures to establish an optimal level of audit performance by practitioners.
Quantity theory of money . and the d output of goods and services.Are financial report issued every three months between annual reports.The equation M X V = P X Y.Quasi Autonomous Non-Governmental Organisations. practices. detecting.The amount of a product that consumers wish to purchase in some time period.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. and quality of the CPA firm's practice aids.
Quantity equation .The proposition the increase in the quantity of money leads to an equal percentage increa Quarterly reports . Quantity of labour demanded . or expressible in. QUANGOs . and eliminating processes are tailored to the appropriate groups.
Quality review . which relates the quantity of money. Quantity supplied . Quality chains – when employees from a series of links between customers and suppliers in business.collection of mathematical and statistical methods used in the solution of manageria also called operations research (OR) and management science. It may refer to some standard of excellence. Included are controls in design and inspection. Quantity of labour supplied . terms of
Quantitative models (methods) .The number of labour hours hired by all the firms in an economy.
"Whenever you are asked if you can do a job. 'Certainly. 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. tell 'em.
Safe harbour rule – A legal concept whereby a person who has meet the required listed rules and protected from any adverse legal proceedings.
Rate base . Patton
Sacrifice ratio . in output over a 12-month period. a safety margin of 400 units exists. Tell them what to do and they will surprise you with their ingenuity.The path of a variable whose changes are impossible to predict. If the break-even po actual sales volume is 4400 units. Frequently.The percentage increase . Random walk .
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"Never tell people how to do things.The total allowable investment to which the rate of return allowed by a regulatory com Rate of economic growth .The number of percentage points of annual output lost in the process of reducing percentage point." 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. I can!' Then get busy and find out how to do it." George S. also called chance variances.
Stratified sampling – is a sampling method where the population is divided into homogenous sub groups.Decisions concerning policy that have a long term impact on a business.Physically checking a business's stock for total quantities and value. e.Valuing a stock of goods bought for manufacturing or re-sale. How you think others likely to influence your own behaviour.The way in which a business is organised. an electronic depository for goods.1. If any mon
. wip & finished goo sales revenue of a given product. becomes insolvent ).
Stock turns – A ratio that is used to show the number of times per year that the stock (raw material.
Subordinated debt .1. supplies.If a company is liquidated (i. Firms.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. Calculation . the process of storing information in a computer memory or on a magnetic tape or disk.
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 .Stock taking . Structure of a business . a stockroom or warehouse. and sup chased because the storekeeper is accountable for them. it will depreciate to zero in exactly 5 years to as
Straight line method . for example. If you depreciate it at a rate of $2000 a year. the secured creditors are paid first. The Stores Control account is supported by an underlying su Or 2. 3.000.Depreciating something by the same (ie.
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. retail outlets.g. wip & f Stock valuation .A form of industrial action where employees refuse to work. All purchases of materials. Each sub-g Strike . and parts.
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. Stock turnover .Stock turns = Sales turnover of products / Value of raw material.The number of times in a trading year a firm sells the value of its stocks. Can be risky. People often think and behave strategically. when considering a price or product change will often take i their rivals Strategic decisions .
Stores . fixed) amount every year rather than as a percenta a vehicle initially costs $10. the control account for all purchases of materials and supplies.
Structural unemployment .
Straight-line depreciation . parts. the raw materials. Strategy – The pattern of decisions and actions that are taken by a business to achieve its goals and objectives.e.Unemployment due to a mismatch between characteristics required by available jobs and unemployed labour. Or 2.
Strategic behaviour – Behaviour based on strategy.
excessive advertisin competition. There are five types of basic accounts are equity. Only a handful see it for what it really is ."Some regard private enterprise as if it were a predatory tiger to be shot.Calculated." Winston Churchill
T Account . There may be unwritten 'rules' of collusive behaviour such as price leadership. and credits and associated information on the right.the strong horse that pulls the whole cart.A particular method of displaying an account where the debits and associated informa left.
Tacit collusion . May be used to implement strategic de
. medium term decisions.Where oligopolists take care not to engage in price cutting. Others look upon it as a cow that they can milk.
Tactical decisions . revenue and expenses.
e. ass profit.A consequence of reduced trade barriers among a set of countries whereby trade with the group rep place with countries outside the group.
Trade union / labour union .g. billing costs.The analysis of pricing and output decisions of the firm various market conditions.The difference between the import and export of services.
Trade payable – This term is more commonly known as an account payable. Coca Cola. is an amount owed to a creditor for good
Trade receivables .
Trade (brand) name – Refers to the distinctive and identifiable name that is used to identify a company or product and large companies.Words used in identifying an individual's personality.
Transactions balances .An account which shows the gross profit or loss of a manufacturing or retail business. but also made by businesses and private individuals in the form of charitable contributions. Often a trade name is protected by copyright law. and bad Transaction date . Transaction . and other specific identities assigned to a product. Countries that join together to restrict trade or 2.A group of workers organized principally for the purpose of increasing wages and improv
Trading account . Transfer payments . Trade in services (net invisibles) . A trade bloc is a large free trade zone or near-free tax. 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. Trading blocs . Traits . Ford.Means an firm that derives its business from selling products> The firm buys from one source and s
Traditional theory of the firm .Two or more entries made in a journal which when looked at together reflect an original document such receipt.This term is more commonly known as an account receivable.The difference between imports and exports of physical products. symbols. i.
Trading concern . Nike.1. sales less words subtracting cost of sales from turnover. as in welfare payments.The date on which an specified transaction occurred.Costs incurred in effecting market transactions (such as negotiation costs.Money balances held to finance payments because payments and receipts are not perfectly
Transactions costs . etc.e.Trade discount – The producer gives a discount to retail trades people to in order to help them to increase the sales o
Trade diversion . Trademark – Is a legal protection afforded names. Trade in goods (balance of trade) .A payment to a private person or institution that does not arise out of current productive activity. tariff and trade agreements.
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
"I learned that the only way you are going to get anywhere in life is to work hard at it. If you do.
Unabsorbed costs – The costs that occurs when the specific cost structure that is being used do fixed and/or variable costs. you'll win—if you don't.
. you won't. a writer. 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"). there is no getting around it. Whether you're a musician. an athlete or a businessman." Bruce Jenner.
Unallocated costs – These costs represent the entity's costs that are not associated either in a d providing a item or service for sale.
not yet banked or spe money. Or 2.
Unearned revenue . an such like. credit card payments. An examp attorney. underrecorded costs. 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.
Unaudited opinion – Refers to the giving of a qualified opinion by a person who is a CPA but who has not conducted a statements.
Unavoidable costs – These costs will need to be incurred regardless of the decision to make or buy a certain part or line. these costs cannot be recovered or saved. This type of account is also commonly referred to as a 'cash
Underbudgeted . Underemployment . Underwriting – Is the acceptance of risk in return for payment.1. Since an obligation exists on the pa goods or services for which the advance payment was received.g. Unfavorable balance of payments . cheques.Those members of the labour force who are willing and able to work cannot find a job. Much or all of fixed costs in those cases are unavoidable costs. revenue is then earned.
. note receivable.The term indicating that financial information is stated in terms that enable users to perceive its si
Undeposited funds account . When the services are performed. in taxation.
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.An account used to show the current total of money received (ie.Earnings of a firm that are not distributed to shareholders as dividends but are retained by the earnings. e.g. unearned revenue is recorded as a liability. e. Unexpired . Unexpired costs are carried to future periods as assets because they represent future benefits.
Undistributed profits .This means it has not come to an end or been terminated yet.Refers to an item within a specific budget where the amount that has been budgeted is not sufficie amount that is needed. everything except the official settlements account).
Unexpired cost – This refers to all costs.
Uncollectible account (bad debt) – This refers to account receivable. that a future periods. revenues.When an outcome mayor may not occur and its probability of occurring is not known.Where people who want full time work are only able to find part-time work. Uncertainty . revenue obtained other than from Unemployment . including inventory costs and miscellaneous prepaid or deferred costs.A debit balance on some part of the international payments accounts (payments the balance on current plus capital account (that is. pr Unbudgeted – Refers to any items and/or different amounts of monies that are not currently in the budget. bankers drafts etc. 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. population.Unanticipated inflation – Inflation that catches people by surprise. The payment received prior to providing a good or service.
I would have been a locksmith." Albert Einstein
Validate -1. Another example is the counting of petty cash t the amount in the financial records. Or 2. which closes the deal. An example of validation is the examination an employee's expense request form by a supervisor. An example is sign of sale. A valid ACCOUNTANT to satisfy the legitimacy of the item. to make something legal or effective."If I had only known.
Validity test – Is an audit procedure that ascertains whether a recorded financial statement item i
Valuation date .This is the day when the evaluation has been made or the date when the evalua
. to attest to the correctness and reliability of a financial item.
Variable expenses – Refers to those business expenses that usually fluctuate dependent upon production or sales vo Variable factor .Those inputs whose quantity used can be varied in the short run. Value chain – Refers to a linked set of all value-creating processes or activities that convert basic input materials into consumer. a cost variance is the difference between actual cost and standard cost in the categories of direct ma overhead. It should not be confused with the term cost even though it is frequently measured. Value (of a business) . or VAT as it is usually called is a sales tax wh goods.5%). Value in use – Refers to the discounted value of net cash receipts to be obtained from the corporate asset. Variable .A procedure designed to reduce and avoid unnecessary costs before production begins.The amount a business is worth to a stakeholder or any other interested party. and 2. ~ Value for money – Refers to the perception of the buyer or receiver of goods and/or services.The average deviation of all figures from the mean.
Variance analysis . or money necessary to co commodity.
Value added tax (VAT . equated. Proof of good value for concluding that the goods/services received was worth the price paid. Value added . Or 2. value of goods equals price multiplied by quantity. services. This is done by com budgeted or predicted results and investigating any discrepancies.g. usually an expression of monetary worth applied to a particular asset.A procedure to evaluate a product after manufacture to see how costs may be reduced.applies to many countries) . Value analysis .Any well-defined item.the amounts at which items are stated in financial records and statements.5%. At the time of writing the UK VAT standard rate is 17.A cost that varies with output levels. Value is expenditures or amount periods. Variable inputs . 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. and identified b with an appropriate modifying adjective. Value of the marginal product . In economic terms. represented by the amount of goods. 1. such as the price of a good or its quantity. Value engineering .
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.An input that can be varied by any desired amount in the short run.
. Variable cost . VAT – Value added tax.
Variance . that can take on various specific values. Or 3.1. which removes plus and minus signs by 'squaring' the d is the difference between a projected number and the actual number.The value of a firms output minus the value of inputs bought from other firms.The process of calculating variances and attempting to identify their causes.
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.Value Added Tax.Value . group of as rendered.The marginal product of an input times the price of the output. highly subjective term. a budget variance is spending either more budgeted. e.
also called the wage price spiral."Perpetual devotion to what a man calls his business.
Wage and price controls . See also salary.
Wage-cost push inflation ." Robert Louis Stevenson
Wage .An increase in the price level caused by increases in labour costs tha associated with excess aggregate demand for labour. usually weekly.Direct government intervention into wage and price formation with leg government's decisions on wages and prices.
. is only to be sustained by perpetual neglect of many other things.A payment for work. other as the aggregate demand curve continually shifts to the right and the aggregate supply curv upwards.
Waste management . Wealth . a fixed asset with limited life and su excludes land. according to its importance. Beginning work-in-process inv costs of the current period.
Weighted average costing – Is the procedure for computing the unit cost of a process. having a limited useful life and subject to depletion primarily due to the extraction of the valued commodity held by these assets.The study of how the allocation of resources affects economic well-being. also called a white book. Welfare economics .
White paper .
Walk – The theory that stock prices behave in an unpredictable fashion because the stock market is efficient. Weighting – A process which adjusts and index number to take into account the relative importance of a variable.1.
Weighted average cost of capital (WACC) – This method weights the percentage cost of each component by the per financial structure.A union which represents non manual workers (office workers.A guarantee that faulty products will be repaired or replaced within a period of time.Government programs that supplement the incomes of the needy.
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.Payments made to the employees of a business for their work on behalf of the business. is a government report.Any material which is no longer of use to the system that produced it and which has to be disposed of. a short treatise whose purpose
. and timber. Warranty . such as warranting the performance of another party.The unlimited desires or wishes that people have for goods and services. a natural resource such as oil.1. Or 2. government accounting. Or 2.
Warrant . security whose value expires at a specified time in the future. where each item is ascribed a weight. bound in white. These are classed a confused with 'drawings' taken by sole-proprietors and partnerships (see Drawings ).
White-collar union . Wants . Or 3. 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. order drawn authorising the payment to a particular desi the occurrence of something.Wages .The way in which businesses deal with the problem of waste materials.The total assets of a household. coal. Weighted average . firm or government minus its total liabilities. The mar goes randomly around real (intrinsic) value.
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.1. Welfare .The average of several items. Waste . see stock warrant.
Wasting asset . then a weighted average is obtained by dividing the combined costs by equivalent units.
. even if the so that the economy is at a point inside its production possibility boundary.eXtensible Business Reporting Language.
X-inefficiency . the value of all domestic production sold abroad.Exports." Winston Churchill
XBRL ."Success is going from failure to failure without a loss of enthusiasm.The use of resources at a lower level of productivity than is possible.See net exports. It is one of a family of "XML" languages which communicating information between businesses and on the internet. X-M .
he can never tell where his influence stops.[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." Henry Brooks Adams
and reflecting unusual transactions.
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"Work is the refuge of people who have nothing better to do.Year to date.g. reclassification.Refers to the effective rate on a bond. Or 2.Starting a budget at zero and justifying every cost that increases tha
Zero-based budgeting ." Abraham Lincoln
Zero Based Account (ZBA) .
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"My father taught me to work..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. he did not teach me to love it.1.
Zero rated .
Zero Based Budget (ZBB) . say.Usually applied to a personal account (checking) where the balance as possible by transferring money between that account and. YTD . the return from an asset or service provided. 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. a deposit account.
Yield variance – Is the effect of varying the total input of a factor of production (e. also called the effective interest rate. It differs from the nominal interest rate.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. Types of required adjust deferral of a revenue or expense item.
Yield to maturity (YTM) . real rate of return to the investor or e of a security for a specified time period.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). adjustments to conform book figures inventory)." Oscar Wilde