Name:

Nayelis Amador

ID:

2021-0961

Title:

Final work on an English dictionary referring to accounting

Teacher:

Eddy Antonio Rodríguez.

Accelerated Depreciation is any depreciation method that allows for the
recognition of higher depreciation expenses during the earlier years. The key
accelerated depreciation methods include double-declining balance and sum
of the years' digits.

Account: An account is a record in an accounting system that tracks the

financial activities of a specific asset, liability, equity, revenue, or expense.
These records increase and decrease as the business events occur throughout
the accounting period.

Account payable: Accounts Payable is a liability due to a particular creditor

when it order goods or services without paying in cash up front, which means
that you bought goods on credit.

Account receivable: refer to the money a company's customers owe for

goods or services they have received but not yet paid for.

Accountant: a person whose job is to keep, inspect, and analyse financial

accounts.
Accounting: is the recording of financial transactions along with storing,
sorting, retrieving, summarizing, and presenting the results in various reports
and analyses. Accounting is also a field of study and profession dedicated to
carrying out those tasks.

Accounting entry: is a formal record that documents a transaction. An

accounting entry is made using the double entry bookkeeping system, which
requires one to make both a debit and credit entry, and which eventually
leads to the creation of a complete set of financial statements.

Accounting period: is a period of time that covers certain accounting

functions, which can be either a calendar or fiscal year, but also a week,
month, or quarter, etc.

Accounting principles: are the rules and guidelines that companies and
other bodies must follow when reporting financial data.

Accounting procedure: is a standardized process that is used to perform a

function within the accounting department.

Accrued Depreciation is the loss in value from reproduction or replacement

cost new due to all causes except depletion, as of the date of appraisal.

Actual cost: is an accounting term that means the amount of money that
was paid to acquire a product or asset.

Adjusting Entry are changes to journal entries you've already recorded.

Specifically, they make sure that the numbers you have recorded match up
to the correct accounting periods.

Amortization: Is paying off a debt over time in equal installments. Part of

each payment goes toward the loan principal, and part goes toward interest.
Balance: is the amount of money present in a financial repository, such as a
savings or checking account, at any given moment.

Balance Sheet: is a financial statement that communicates the so-called

“book value” of an organization, as calculated by subtracting all of the
company's liabilities and shareholder equity from its total assets.

Bad Debt Expense: are those that a company can no longer recover after
having demonstrated, for example, a sale on credit. That is, uncollectible
accounts correspond to an amount of the total value of sales that customers
or debtors do not get to cancel.

Bank Discount: A bank discount is understood as an operation in which a

financial entity advances to the client the amount of an unexpired credit that
he has from a third party. In other words, it allows the client, usually a
company, to have immediate liquidity that would otherwise be difficult to
obtain.

Bank Statement: A bank statement or statement of account: it is said of that

personal document that details our bank movements and the balance of our
accounts through what would seem to be numerous figures, letters, sections
and abbreviations difficult to decipher.
Capital Account: In macroeconomics, and in international finance, the
capital account is one of the three main components of the balance of
payments; the others are the current account and the financial balance.

Capital Stock: The social capital is the sum of the contributions made by
the partners when forming a commercial company. It is formed with the set
of money, assets and property rights, economically valued at its constitution
or at a future time.

Cash: In accounting, we understand Cash to be the accounting account that

records all the inflows and outflows of cash.Therefore, the Cash will be
where all the money movements that are not registered by the bank are
reflected.

Cash entry: is a term used to describe all funds received by an organization

as a result of its activities. Input may be due primarily to goods or services
sold to consumers, but may also include the return on investment activities
conducted by a business or other type of organization, as well as any lending
or financing activities that the organization may to offer.

Cash Out: are all those movements that decrease the cash and cash
equivalents of an entity, in a given period.
Data Processor: Accounting data processing refers to the analysis,
manipulation and management of all accounting information of a company.
In other words, it refers specifically to the accounting that is developed in
the company, something of great importance in the financial analysis in a
company.

Database: In general, a database is a structure that allows you to store

information collected by some entity and that can be modified, managed and
controlled through a management system.

Date of Payment: The payment date: It is the day that the bank gives you to
pay your debt without charging you any interest or charges.

Debtors: A debtor is a person or entity that has a financial obligation to

another person or entity. Conversely, a creditor is a person or entity that has
a financial claim against another person or entity.
Earnings Per Share: Basic earnings per share will be calculated by dividing
profit or loss for the period attributable to ordinary equity holders of the
parent company (the numerator) by the weighted average number of ordinary
shares outstanding (the denominator) during the period.

Economic Value Added: The Added Economic Value. EVA is the result
obtained once all expenses have been covered and a minimum return
expected by shareholders has been satisfied. Added Economic Value or
Added Economic Value: It is a specific type of residual income calculation.

Effective Interest Method: The real interest rate or real interest rate is the
rate of interest, reducing the effect of inflation. We must bear in mind that
the value of money is not the same now as it is in the future, that is, with a
certain amount of money, we cannot buy the same today as in 3 years.

Effective Interest Rate: The interest rate does not include the fees you are
charged for the loan. The Annual Percentage Rate (APR) is the cost you pay
each year on the money you borrow, including fees, increased as a
percentage.
Financial Accounting: It is the field of accounting that is responsible for
summarizing, as well as analyzing and reporting the financial transactions
belonging to a business. This implies the preparation of financial accounting
statements available for public consultation.

Financia Audit is the examination of the information contained in the

financial statements by an internal or external auditor of a company, entity
or state.

Financial Situation: The financial situation is represented by a series of

resources to be used by the company, called ASSETS, and the demands on
those resources represented by the LIABILITIES and NET WORTH.

Financial Resources: Financial resources are those assets that a company

owns, and that have some degree of liquidity. These resources can be both
cash and goods that the company sells to obtain capital. Assets also include
debts receivable or shares in other companies.
Grade: The purpose of the Degree in Finance and Accounting is to train
professionals capable of carrying out financial and accounting management
and advisory tasks, both in the public and private spheres, as well as
developing their professional career in the areas of investment analysis and
management, banking , audit.

Gross Profit: Net profit, also known as bottom line, net income, or net
earnings, is a measure of a company's profitability after accounting for all
costs and taxes. It is actual profit and includes operating expenses that are
excluded from gross profit.

Gross Earnings: It is the total money you receive before the corresponding
withholdings and contributions are made in each payroll.
Half-Year Convention: The practice of taking 6-month depreciation in the
year of acquisition and year of retirement, rather than calculating
depreciation for partial periods to the nearest month.

High-Low Method: Fixed assets are made up of the resources and facilities
necessary to carry out operations. Fixed assets are acquired with money
from long-term financing sources, contributions from partners (stockholders'
equity) and through temporary cash surpluses.

Historical Costs: The real cost or also known as historical cost, are all those
costs already incurred, that is, that have already been incurred in the
production process to guarantee the production of material goods and
services provided.

Horizontal Analysis: The horizontal analysis calculates the absolute and

relative variation suffered by each of the items in the balance sheet or income
statement in two consecutive periods of time.
Ideal Standards: An ideal standard is calculated using utopian conditions
for a given manufacturing process. Ideal standards assume that direct
materials items, direct labor, and manufacturing overhead will be purchased
at the minimum price in all cases.

Immaterial: Intangible Fixed Assets are assets of an intangible nature,

which will be used in the productive activity of the company for a period of
more than one year, these are research and development, goodwill, etc.

Implementation: The implementation of an accounting system within

companies is fundamental, since this is the one that allows to carry out a
control of commercial and financial negotiations and in addition to satisfying
the urgent need for information in order to obtain greater productivity and
use of resources. means.

Inadequacy: The insufficiency in updating stockholders' equity is basically

represented by the accumulated result from monetary position and by the
result from holding non-monetary assets, which represents an increase in the
updated value of these assets, applying specific costs.
Job Order Systems: it is the possibility of being able to quantitatively
segregate or identify the product being manufactured in the factory or
workshop, at any given moment. This system allows each of the cost
elements (direct materials, direct labor, and indirect manufacturing costs) to
be collected separately for each job or work order in process.

Journal: The daily book or account book is an accounting book where the
economic events of a company are recorded, day by day. The annotation of
an economic event in the daily book is called a seat or item; that is, all the
transactions carried out by a company are recorded in it.

Joint-Products: When two or more different products are obtained

simultaneously from the same raw material or the same production process.
The so-called joint products or connected products result.

Joint Costs: Joint production costs occur when one or more processes
applied in industries produce two or more different products simultaneously
or in some cases an additional process has to be used to obtain them.
Kaizen: Permanent improvement method.

Kaizen Budget: Kaizen budget.

Labor Efficiency Variance: is the product (multiplicative) of the difference

between the actual direct labor hours and the standard for the wage rate.

Labor Efficiency Variance: It is the measure of difference between the

actual hours required to complete a job vs. Asianized standard hours
multiplied by the standard hour rate

Labor Rate variance: It is the ratio of the difference between the current
rate of labor per hour and the rate Dermitid standard. multiplied by the
number of hours worked during the period.

Labor Resources: The intellectual and physical labor used in the process of
transforming goods and services to obtain a best product or service.

5
Make Or Buy Decisions: It is the decision in which it is defined whether an
item will be manufactured internally or bought made from a supplier.

Maker Of A Note: is the person who signs the promissory note and who
agrees to pay it when due.

Management Advisory Services: It is the activity in which public

accountants provide advice to managers; services should include the design
and installation of accounting systems. Advice on the acquisition of a new
computer system. o Assist in budgeting or selecting benefit plans for
employees.

Management by Exception: Analytical technique used by managers to

focus on the most significant variances and give less attention to areas where
performance is satisfactory.
Negative Financial Leverage: It is the situation in which the fixed return to
creditors and preferred stockholders is greater than the return on assets. In
this situation, the participation return of the common stockholders will be
less than the return on total assets.

Net Cash Flow: It is the cash inflows minus the directly related cash
expenses.

Net Identifiable Assets: It is total assets, excluding goodwill or goodwill,

less liabilities.

Net Income: It is the excess of income over expenses.

Net Interest Cost: The cost of the interest paid after considering the fiscal
benefit that said interest grants.

Net Loss: Decrease in net assets, as a result of the company's operations.

Net Method of Recording Purchases: It is the method of recording

purchases at the invoice price less the discount.

Net Operating Income: La utilidad de una organización antes de

deducírsele intereses e impuestos sobre la renta.

Net Pay: Es la cantidad remanente que queda después de haber deducido

los impuestos y las deducciones voluntarias del sueldo bruto del empleado.
Net Present Value: It is calculated by subtracting the net investment
required for the project from the present value of the scheduled cash flows.
This method is used to evaluate capitalizable investment projects.

Net Realizable Value: It is the selling price of an item minus any additional
selling costs.

Net sales: Sales that have been reduced by discounts and rebates given to
customers

Objectivity principle: Accounting guidance that requires information

within financial statements to be supported by evidence other than
someone's imagination or opinion; it is the objectivity added to the
confidence of the accounting information.

Off-Balance-Sheet Financing: It is the agreement in which the use of

resources is financed without having the obligation that future payments
appear in liabilities within the general balance. Operating leases are a
common example of non-statement of financial position financing.

Office Equipment Ledger: Subsidiary ledger that records each item of

office equipment separately.

One Dividend: The shareholder's right to receive a part of the profit

distribution.

One Vote per Share: It is the shareholder's right to have a vote for the
board of directors.

Operating Assets: Cash, accounts receivable, inventory, plant and

equipment, and all assets held for productive use within an organization.
Operating Cycle of Business: It is the average time it takes for a business
to pay cash for the salaries of employees who provided their services or to
pay for merchandise and then receive cash from customers in exchange for
the sale of merchandise and services.

Operating Leases: Leasing that only gives the lessee the rights to use the
leased asset for the time stipulated in the contract; an operating lease does
not meet any of the criteria established by the FASB that can convert it into
a capital lease.

Operating Leverage: It is the ability of operating costs to increase the

effect of variations in the company's sales revenue on profits before taxes
and interest. The higher the company's fixed operating costs, the higher its
operating leverage.

Operation Costing: Cost system used when products are manufactured in

batches and when products have some common characteristics and some
individual characteristics. This system handles materials equal in job-to-
order, labor, and manufacturing costs and process costs.

Operational Assets: They are the assets, whether tangible or intangible,

that a company owns and that it uses for its operations.

Opportunity CostIt is the potential benefit of an alternative that has

been lost by choosing another.

Opportunity Cost: It is the return that could have been obtained if the
capital had been invested in a risky investment. Commonly called cost of
capital.
Paid-In Capital: Category within the Social Capital of the Company,
created for the registration of the purchases of the company shares.

Participating Preferred Stock: They are preferred shares whose holders

receive dividends greater than those established participating with ordinary
shareholders in distributions that go beyond a certain level.

Partnership: it is a business organization owned by two or more individuals.

Partnerships are the least common form of business organization. Partner
income is taxed as income. Privately, and generally the partners have
unlimited liability, although certain partners of A limited company has
limited liability.

Partnership Contract: It is the agreement between the partners that

establishes the terms under which the transaction will be carried out society.

Payback Period: It is the number of years that a company needs to recover

the necessary net investment in a project through the cash flows it generates.

Payroll Bank Account: It is the special bank account that a company uses
solely for the purpose of paying customers. employees, depositing in the
account each pay period an amount equal to the total salaries net and
withdrawing payroll checks from that account.

Payroll Register: It is the salary payment record of each employee where

the date, hours worked, pay periods, gross pay, deductions and net pay.

Payroll Taxes: Taxes collected from employers are based on the amount of
gross wages for each employee, including social security, medicare and
unemployment taxes.

Peak Pricing: It is the strategy of increasing prices in the high season, when
the product is in great demand. The intent is to maximize revenue and shift
excess demand to periods where demand is not as high.
Preferred Stock: It is a form of participation whose holders have certain
privileges, especially the right to receive a fixed periodic return. The titles of
preferred shareholders have priority in liquidation over those of ordinary
shareholders. Preferred shareholders do not have voting rights.

Premium on Bonds Payable: It is the difference between the face value of

the bond and its issue value when the bond is sold for an amount greater than
its face value.

Premium on Stock: The difference between the par value of the share and
its issue price when it is issued at a value greater than its par value.

Prepaid Expenses: Assets created by payments of economic benefit and

that do not mature in a certain short time; and then when this benefit expires
or is used, the asset becomes an expense.

Present Value: It is the present or discounted value of a future sum or

annuity. The value is discounted to the present value at a certain interest rate
and for a certain period.

Product Costs: They are all those costs involved in the purchase or
manufacture of goods. In the case of manufactured products, these costs
consist of materials, labor, and inventoriable costs.

Product Diversity: Range of products that differ substantially in volume,

batch size, or design complexity.

Product Life Cycle: They are the stages of development, process and that
of bringing the product or service to the consumer in its concept of serving
the ultimate consumer.
Qualified Opinion: It is the opinion issued by a certified public accountant
who falls between the opinion not authorized and an adverse or negative
opinion. This opinion means that most of the information contained in the
financial statements are in compliance with the Principles of Generally
Accepted Accounting; but the auditors have their reservations about certain
information within the Financial Statements or have other reasons for not
expressing an opinion authorized. The auditor's report will contain an
explanation of the reasons why an opinion authorized was ruled.

Quality Cost Report: It is the report that crosses department lines and
accumulates all identifiable costs for the quality program.

Quality of Conformance: The degree to which the currently manufactured

product or service provided meets its design specifications and is free from
defects or other problems that may affect its appearance and performance.

Quelite of Design: The degree to which the company's design specifications

for a product or service meet customer expectations at the chosen grade level.

Quantity Schedule: Part of the production report that shows the flow of
units through a department during a period.

Quantity Variance: The difference between the revenue budget and the
actual revenue or cost caused by the difference between the actual number
of units sold or used and the number of units budgeted.

Quick Assets: They consist of cash, accounts receivable, promissory notes

receivable, and negotiable securities.

Quick Ratio: They are current assets (cash, marketable securities, and
accounts receivable) divided by current liabilities. It is a measure to know
the availability of liquidity in short-term debt.
Raw Materials Inventory: Raw material purchased to be used in the
production of products; large amount is used as direct raw material and
another is used as indirect raw material.

Receiving Report: A form used within the business to notify the appropriate
persons that items ordered have been received, the quantity and condition are
also described on this form of the items received.

Registered Bonds: Bonds that have the name and address of their owner,
registered by the issuing corporation; the Interest payments are distributed
by check from the corporation to its owners.

Relevant Cost: It is the cost that is applied to a particular decision, in the

sense that there will be a situatio about which alternative will be selected by
the administrator. This term is synonymous with cost avoidable differential
and cost.

Report Form Balance Sheet: It is a vertical format that places assets above
liabilities and equity.

Required Rate of Return: It is the minimum rate of return that an

investment project must generate in order to be accepted.

Residual Income: It is that part of the operating profit that an investment

center receives, and that exceeds a established minimum level of return on
assets.

Residual Interest: Name given to the account that represents the owner's
interest in the business, and your right to the assets.

Restricted Retained Earnings: They are the retained earnings not available
for distribution, due to legal limitations or contractual.
Restrictiv Covenants: They are the special provisions contemplated in the
bond, which are designed to prohibit the administration to take certain
actions that put the holder of the bonds at risk.

Retail Inventory Method: Procedure to estimate the cost price of the final
inventory, in this method, a relationship between the cost and selling price
that applies after the retail price of the Ending inventory of merchandise
available for sale minus net sales to arrive at the market price cost.

Retail Method Cost Ratio: It is the ratio of the goods available for sale at
their cost divided by the product available for sale at their selling prices.

Retained Earnings: Name of the account used to record retained earnings,

less dividends, in a corporation.

Retained Earnings Statement: It is the financial statement that reports the

changes in the corporation's retained earnings that occurred during an
accounting period.

Return on Assets: It is operating income expressed as a percentage of

average total assets. Is for measure the efficiency in how management uses
the company's assets.

Return on Common Stockholders' Equity: It is the measure of

profitability in the use of the assets provided by the common shareholders.
is the measure for expressing net earnings less preferred dividends as a
percentage of the average capital of common shareholders.

Return on Investment: It is the measure of profitability within an

organization that is calculated by multiplying the margin by rotation.
Salaries Payable: They are the salaries already earned by the employees
themselves that will be paid at a future date.

Salary: It is the fixed amount of remuneration for a certain amount of fixed

time.

Salary Allowance: It is the assignment of a salary that has been granted for
belonging to the collective society and working within it.

Sales Budget: It is the plan that shows the units of goods that will be sold
and the profits or income that will be derived from the sales. It is the main
point in the budgeting process because the plan of the other departments is
related to sales.

Sales Discount: It is a deduction from the invoice price granted to customers

for prompt payment.

Sales Forecast: It is the expected sales ratio of the company.

Sales Journal: Original entry book where the sales of merchandise are
recorded within the inventory account.

Sales Mix: It is the volume ratio of various products sold by the company.

Sales Returns and Allowances: It is the contraaccount of the sales account

indicating the value of the invoice of the products returned by the clients.

Schedule of Accounts Payable: It is a list of the balances of all the accounts

within the accounts payable book and which add up to the total of accounts
payable.

Schedule of Accounts Receivable: It is the list of the balances of all the

accounts within the accounts receivable book, which added together show
the total of outstanding accounts receivable.
T-Accounts: It is a simple form of account that is used throughout
accounting education to illustrate the charges and credits required in
recording a transaction.

Tangible Assets: They are the assets that can be "touched", such as
equipment, machinery, natural resources, and land.

Target Costing: It is the process of determining the maximum allowable

costs for a new product and after the development of the prototype it can be
manufactured and distributed profitably for the maximum scope of the cost
objective to be achieved.

Tax Accounting: It is the field of accounting that includes the preparation

of personal taxes; the future planning of transactions to minimize the amount
of taxes that must be paid; it involves public, private and governmental
accountants.

Temporary Account: It is the account that is used only in one accounting

period.

Term Bonds: These are bonds that mature on a specified date.

Tests of Liquidity: Quotients that measure the capacity that a company has
to cover its debts as are due in the current exercise.

Tests of Solvency: Quotients that measure the ability of a company to pay

its long-term debts. Management concept that holds that the primary focus
of management should be on discover, then relax or overcome the factors
that limit the company's operations. It is the added value (the sale price less
direct production costs) of the products completed in process through the
system.

Total Asset Turnover: It is the complement of operational efficiency and

its usefulness; and is calculated by dividing net sale between the average
total assets.
Unadjusted Balance per Bank: The final balance reported by the bank on
the date of issuance of the account statement.

Unadjusted Balance per Books: It is the cash balance as of the

reconciliation date before any adjustments.

Unadjusted Trial Balance: It is the trial balance prepared before recording

any adjustments.

Unclassified Balance Sheet: It is the balance sheet that represents a single

list of assets and a single row of unclassified liabilities by category.

Uncontrollable Costs: They are the costs that the manager does not have
the power to determine or a strong influence on them.

Underabsorbed Overhead: It is the total of the applied overhead less than

the actual overhead.

Underapplied Overhead: It is when the actual indirect expenses (incurred)

within a period exceed the expenses predetermined indirect costs under the
predetermined indirect cost rate.

Unearned Revenues: They are the liabilities created by receiving cash from
customers in payment for products or services that have not yet been
provided or shipped; the liability will be canceled as soon as the product or
service has been provided or sent to the customer.

Unissued Shares: Shares that a company has been authorized to issue, but
have not yet been issued.

Unit Contribution Method: It is the method to calculate the break-even

point in which the fixed costs are divided by the contribution margin per unit.
Variable Cost: They are the changes in production volumes.

Variable Cost per Unit: It is the decrease in the cost of a production line.
The variable cost cost per unit is a marginal cost approximation using
variable and fixed costs.

Variable Costing: Cost method that only includes variable production costs,
direct materials, labor direct labor, and variable, indirect costs in the cost of
production per unit.

Variable Interest Rate: It is the interest rate that fluctuates from one period
to another during the life of the bond.

Variable Overhead Efficiency Variance: It is the difference between the

actual and standard usage of the base allowance times the standard
application rate of variable overheads.

Variable Overhead Spending Variance: t is the difference between the

actual indirect variable costs incurred within a period and the standard cost
established through the predetermined indirect cost rate.

Variable Overhead Variance: It is the difference between the actual and

applied costs of variable overhead costs.

Variance Analysis: It is the process of examining the differences between

actual and budgeted revenues and costs and describe in monetary terms the
result of these differences by price and quantity.
Wage: It is the fixed amount paid for a fixed amount of time (usually in
hours) or a fixed amount of work.

Wage Rate Variance: It is the difference between the actual wage rate and
the standard rate for actual hours worked.

Weighted-Average Inventory Method: It is the inventory system in which

the price per unit of the initial inventory and that of each purchase is averaged
between the number of units in the beginning inventory and the number of
purchases. The total is divided by the total number of units available for sale
to find the cost per ending inventory unit and the number of units sold.

Withholding Allowances: The number used to reduce the federal payroll

tax withholding amount of the employee, and corresponds to the personal
exceptions allowed to the employee to subtract from his annual income in
calculating taxable income.

Worker's Compensation: Required insurance policy provided by the

employer on work accidents of the employee.

Worksheet: It is the working paper where the accountant shows the

unadjusted trial balance; shows effects of adjustments on account balances,
calculation of net income or loss and some of the amounts adjustable
according to the financial statements where the amounts will appear.

Write-Down ( of an Asset): It is the reduction in the value of an asset by

becoming obsolete, or damaged. It implies a credit to the asset account,
offsetting it with a charge to the loss account.
Yield: This term is synonymous with internal rate of return and time-
adjusted rate of return.

Year-end Adjustment: Close fit of exercise.

Year-end Dividend: Dividend of closing.

Year Of Account: accounting year.

Yield Curve: Curva de rendimiento.

Rield Rate: Yield rate.

Yield To Maturity: Yield to expiration.

Zero-Base Budget: It is the budgeting method in which managers are

required to start their budgets each year at zero and they have to justify all
the costs as if they had started the program in question for the first time

Zero-Coupon Bond: Debt title zero coupon, zero coupon bond.