Copy of `Superglossary - Accounting`

The wordlist doesn't exist anymore, or, the website doesn't exist anymore. On this page you can find a copy of the original information. The information may have been taken offline because it is outdated.

Superglossary - Accounting
Category: Economy and Finance > Accounting
Date & country: 16/12/2013, US
Words: 614

Integration Account
See Control Account .

Intercompany Transaction
A transaction between a parent company and a subsidiary company.

The payment (cost) for the use of money. Money paid to savers and investors by financial institution

Interest Rate
The cost of using money, expressed as an annual percentage.

Internal Auditors
An independent group of experts in controls, accounting, and operations, who monitor operating resul

Internal Control Structure
Safeguards in the form of policies and procedures established to provide management with reasonable

A subsidiary ledger which is usually used to record the details of individual items of stock. Invent

Inventory Cutoff
The determination of which items should be included in the year-end inventory balance.

Inventory Turnover Ratio
A measure of the efficiency with which inventory is managed

The process of setting money aside to increase wealth over time and accumulate funds for long-term f

Investing Activities
Transactions and events that involve the purchase and sale of securities (excluding cash equivalents

People investing in securities, such as stock and bonds, to achieve long-term financial goals.

A term describing an original document either issued by a business for the sale of goods on credit (

Issued Stock
Authorized stock originally issued to stockholders

Itemized Deduction
Amounts paid by an individual taxpayer for personal and quasi-business expenses that can be deducted

JIT (Just-In-Time) Inventory
An inventory system that allows for the elimination of inventory stockpiles and inefficiency and was

An accounting record in which transactions are first entered

Journal Entries
A term used to describe the transactions recorded in a journal.

Journal Entry
A recording of a transaction where debits equal credits

Journal Proper
A term used to describe the main or general journal where other journals specific to subsidiary ledg

A book or set of books where your transactions are first entered.

Junk Bonds
Bonds issued by companies in weak financial condition with large amounts of debt already outstanding

Landed Costs
The total costs involved when importing goods. They include buying, shipping, insuring and associate

A procedure used to conceal the theft of cash by crediting the payment from one customer to another

A contract that specifies the terms under which the owner of an asset (the lessor) agrees to transfe

A book of accounts in which data from transactions recorded in journals are posted and thereby class

Legal Capital
The amount of contributed capital not available for dividends

The party that is granted the right to use property under the terms of a lease.

The owner of property that is rented (leased) to another party.

See Gearing .

Obligations measurable in monetary terms that represent amounts owed to creditors, governments, empl

This includes bank overdrafts, loans taken out for the business and money owed by the business to it

The right to perform certain activities, generally granted by a governmental agency.

A court order where a creditor places a claim on property or other types of security owned by the de

LIFO (Last-In First-Out)
An inventory cost flow whereby the last goods purchased are assumed to be the first goods sold so th

Limited Liability
The legal protection given stockholders whereby they are responsible for the debts and obligations o

The process of dissolving a business by selling the assets, paying the debts, and distributing the r

A company's ability to meet current obligations with cash or other assets that can be quickly conver

Long Term Liabilities
These usually refer to long term loans (ie. a loan which lasts for more than one year such as a mort

Long-Term Investment
An expenditure to acquire a non-operating asset that is expected to increase in value or generate in

Long-Term Liabilities
Debts or toher obligations that will not be paid within one year.

See Net loss .

Loss Per Share
The amount of net loss related to each share of stock

Costs that provide no benefit to an organization.

Lower Cost Or Market (LCM)
A basis for valuing certain assets at the lower of original cost or current market value.

Long-term incentive payments. These can come in a variety of combinations and formats including but

A person (entity) who signs a note to borrow money and who assumes responsibility to pay the note at

Management Accounting
The area of accounting concerned with providing internal financial reports to assist management in m

Management Accounting
Accounts and reports are tailor made for the use of the managers and directors of a business (in any

Manufacturing Account
An account used to show what it cost to produce the finished goods made by a manufacturing business.

Matching Principle
The concept that all costs and expenses incurred in generating revenues must be recognized in the sa

Matching Principle
A method of analysing the sales and expenses which make up those sales to a particular period (eg. i

Maturity Date
The date on which a note or other obligation becomes due.

Maturity Value
The amount of an obligation to be collected or paid at maturity

MD and A
Management Discussion and Analysis. Usually seen in a financial report. The information disclosed ha

A federal government program of transfer payments for certain health care expenses for citizens 65 o

Memo Billing (Memo Invoicing)
Goods ordered and invoiced on approval. There is no obligation to buy.

Memorandum Accounts
A name for the accounts held in a subsidiary ledger. Eg. the accounts in a sales ledger .

The acquisition of one company by another company whereby the companies combine as one legal entity,

Minority Interest
A minority interest represents a minority of shares not held by the holding company of a subsidiary.

Monetary Measurement
The idea that money, as the common medium of exchange, is the accounting unit of measurement, and th

Money Market Account
A type of savings account that may or may not be protected by the FDIC, with minimum balance require

Money Wire (Transfer)
The process of moving money from one bank to another, sometimes between countries.

Mortgage Amortization Schedule
A schedule that shows the breakdown between interest and principal for each payment over the life of

Mortgage Payable
A written promise to pay a stated amount of money at one or more specified future dates

Moving Average
A way of smoothing out (i.e. removing the highs and lows) of a series of figures (usually shown as a

Mutual Agency
The right of all partners in a partnership to act as agents for the normal business operations of th

Mutual Funds
Investment companies that pool money from shareholders and invest in a variety of securities, includ

A comment appended to an entry in a journal. It can be used to describe the nature of the transactio

Natural Resources
Assets that are physically consumed or waste away, such as oil, minerals, gravel, and timber.

Net Assets (Owners Equity)
The ownership interest in the assets of an entity

Net Income (Or Net Loss)
A measure of the overall performance of a business entity

Net Loss
The value of expenses less sales assuming that the expenses are greater (ie. if the profit and loss

Net Of Tax
The price less any tax. Eg. if you sold some goods for $12 inclusive of $2 sales tax, then the 'net

Net Proceeds
The difference between maturity value and discount when a note receivable is discounted.

Net Profit
The value of sales less expenses assuming that the sales are greater (ie. if the profit and loss acc

Net Realizable Value
The selling price of an item less reasonable selling costs.

Net Sales
Gross sales less sales discounts and sales returns and allowances.

Net Tax Liability
The amount of tax computed by subtracting tax credits from the gross tax liability.

Net Worth
See Equity .

No-Par Stock
Stock that does not have a par value printed on the face of the stock certificate.

Nominal Accounts
Accounts that are closed to a zero balance at the end of each accounting period

Nominal Accounts
A set of accounts held in the nominal ledger. They are termed 'nominal' because they don't usually r

Nominal Ledger
A ledger which holds all the nominal accounts of a business. Where the business uses a subsidiary le

Noncash Items
Items included in the determination of net income on an accrual basis that do not affect cash

Noncash Transactions
Investing and financing activities that do not affect cash

Nonoperating Assets
Investment and other assets not used in a business but held to earn a return separate from operation

Nonprofit Organization
An entity without a profit objective, oriented toward providing services efficiently and effectively

This term can be applied to many aspects of accounting. It means to average or smooth out a set of f

Note Payable
A debt owed to a creditor, evidenced by an unconditional written promise to pay a certain sum of mon

Note Receivable
A claim against a debtor, evidenced by an unconditional written promise to pay a certain sum of mone

Notes To Financial Statements
Explanatory information considered an integral part of the financial statements.

Number Of Days Of Inventory On Hand
An alternative measure of how well inventory is being managed

Number Of Days Sales In Receivables
A measure of the average number of days it takes to collect a credit sale

Open Transaction
A transaction that is not completed at the end of the accounting period

Opening The Books
Every time a business closes the books for a year, it opens a new set. The new set of books will be

Operating Activities
Transactions and events that enter into the determination of net income.

Operating Assets
Long-term, or noncurrent, assets acquired for use in the business rather than for resale

Operating Lease
A simple rental agreement.

Operating Leverage
The extent to which fixed costs are part of a company's cost structure