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

Cash Flow
A report which shows the flow of money in and out of the business over a period of time.

Cash Flow Forecast
A report which estimates the cash flow in the future (usually required by a bank before it will lend

Cash In Hand
See Undeposited funds account .

Cash Inflows
Any current or expected revenues or savings directly associated with an investment.

Cash Outflows
The initial cost and other expected outlays associated with an investment.

Cash Over And Short
An account used to record overages and shortages in petty cash.

Cash Receipts Journal
A special journal in which all cash received, from sales, interest, rent, or other sources, is recor

Cash-Basis Accounting
A system of accounting in which transactions are recorded and revenues and expenses are recognized o

Cashiers Check
A check issued by a bank, drawn on its own funds and signed by the cashier.

Ceiling
The maximum market amount at which inventory can be carried on the books

Certificate Of Deposit (CD)
A timed deposit that may be protected by the FDIC, incurs penalty charges if money is withdrawn befo

Certified Public Accountant (CPA)
A special designation given to an accountant who has passed a national uniform examination and has m

Charge Back
Refers to a credit card order which has been processed and is subsequently cancelled by the cardhold

Chart Of Accounts
A systematic listing of all accounts used by a company.

Chart Of Accounts
A list of all the accounts held in the nominal ledger.

Charter (Articles Of Incorporation)
A document issued by a state that gives legal status to a corporation and details its specific right

Check Register (Ledger)
A record of all activity that happens within a checking account

Checking Account
An account from which the account holder can write checks.

Circulating Assets
The opposite to Fixed assets . Circulating assets describe those assets that turn from cash to goods

Classified Balance Sheet
A balance sheet in which assets and liabilities are subdivided into current and noncurrent categorie

Closed Transaction
A transaction that is completed within the accounting period

Closing Entries
Entries that reduce all nominal, or temporary, accounts to a zero balance at the end of each account

Closing The Books
A term used to describe the journal entries necessary to close the sales and expense accounts of a b

Code Of Professional Ethics
Rules set by the AICPA's Committee on Professional Ethics, which govern the conduct of CPAs.

Commission
A fee to a third party for assisting a business transaction, such as buying or selling an asset.

Common Stock
The most frequently issued class of stock

Companies House
The title given to the government department which collects and stores information supplied by limit

Comparative Financial Statements
Financial statements in which data for two or more years are shown together.

Compensating Error
A double-entry term applied to a mistake which has cancelled out another mistake.

Compensation
The total wage or salary and benefits that an employee receives. (See income.)

Compound Annual Growth Rate (CAGR)
The year on year growth rate required to show the change in value (of an investment) from its initia

Compound Interest
Interest credited daily, monthly, quarterly, semi-annually, or annually on both principal and previo

Compound Interest
Apply interest on the capital plus all interest accrued to date. Eg. A loan with an annually applied

Compound Journal Entry
A journal entry that involves more than one debit or more than one credit or both.

Compounding Period
The period of time for which interest is computed.

Conduit Principle
The idea that all income earned by an entity must be passed through to the owners and reported on th

Consignee
A vendor who sells merchandise owned by another party, known as the consignor, usually on a commissi

Consignment
An arrangement whereby merchandise owned by one party (the consignor) is sold by another party (the

Consignor
The owner of merchandise to be sold by someone else, known as the consignee.

Consolidated Financial Statements
Statements that report the combined operating results, financial position, and cash flows of two or

Contingent Liability
A potential obligation, dependent upon the occurrence of future events.

Contra Account
An account created to offset another account. Eg

Contributed Capital
The portion of owners' equity contributed by investors (the owners) in exchange for shares of stock.

Control Account
An account held in a ledger which summarises the balance of all the accounts in the same or another

Control Activities
Policies and procedures used by management to meet its objectives

Control Environment
The actions, policies, and procedures that reflect the overall attitudes of top management, the dire

Convertible Bonds
Bonds that can be traded for, or converted to, other securities after a specified period of time.

Convertible Preferred Stock
Preferred stock that can be converted to common stock at a specified conversion rate.

Cook The Books
Falsify a set of accounts. See also creative accounting .

Corporation
A legal entity chartered by a state

Corporation Tax (CT)
The tax paid by a limited company on its profits. At present this is calculated at year end and due

Cost Accounting
An area of management accounting which deals with the costs of a business in terms of enabling the m

Cost Centre
Splitting up your expenses by department. Eg. rather than having one account to handle all power cos

Cost Insurance Freight (CIF)
A contract (international) for the sale of goods where the seller agrees to supply the goods, pay th

Cost Of Finished Goods
The value (at cost) of newly manufactured goods shown in a business's manufacturing account. The val

Cost Of Goods Sold (COGS)
A formula for working out the direct costs of your stock sold over a particular period. The result r

Cost Of Sales
A formula for working out the direct costs of your sales (including stock) over a particular period.

Cost Principle
The idea that transactions are recorded at their historical costs or exchange prices at the transact

Cost-Based Pricing
Where a company bases its pricing policy solely on the costs of manufacturing rather than current ma

Cost-Benefit
Calculating not only the financial costs of a project, but also the cost of the effects it will have

Coupon Bonds
Unregistered bonds for which owners receive periodic interest payments by clipping a coupon from the

Creative Accounting
A questionable! means of making a companies figures appear more (or less) appealing to shareholders

Credit
A column in a journal or ledger to record the 'From' side of a transaction (eg. if you buy some petr

Credit Card Draft
The part of the multiple-page credit form that is sent by the retailer to the credit card company fo

Credit Counseling
Professional guidance from trained credit counselors, who will work with an individual to help him o

Credit Laws
Fair Credit Reporting Act (as amended 1997) Federal law that covers the reporting of debt repayment

Credit Note
A sales invoice in reverse. A typical example is where you issue an invoice for

Credit Report
Financial information collected by businesses and used by lenders to determine creditworthiness of i

Credit Unions
Not-for-profit cooperatives of members with some type of common bond (e.g., employer) that provide a

Creditor
A person to whom a debt is owed.

Creditors
A list of suppliers to whom the business owes money.

Creditors (Control Account)
An account in the nominal ledger which contains the overall balance of the Purchase Ledger.

Cumulative-Dividend Preference
The rights of preferred stockholders to receive current dividends plus all dividends in arrears befo

Current (Or Working Capital) Ratio
A measure of the liquidity of a business

Current Assets
These include money in the bank, petty cash, money received but not yet banked (see 'cash in hand'),

Current Cost Accounting
The valuing of assets, stock, raw materials etc. at current market value as opposed to its historica

Current Liabilities
These include bank overdrafts, short term loans (less than a year), and what the business owes its s

Current-Dividend Preference
The right of preferred shareholders to receive current dividends before common shareholders receive

Customs And Excise
The government department usually responsible for collecting sales tax (eg. VAT in the UK).

Date Of Record
The date selected by a corporation's board of directors on which the shareholders of record are iden

Days Sales Outstanding (DSO)
How long on average it takes a company to collect the money owed to it.

Debenture
This is a type of share issued by a limited company. It is the safest type of share in that it is re

Debentures (Unsecured Bonds)
Bonds for which no collateral has been pledged.

Debit
A column in a journal or ledger to record the 'To' side of a transaction (eg. if you are paying mone

Debit Card
Bank cards that allow the payment of goods and services to be subtracted directly from a bank accoun

Debt Financing
Acquiring funds by borrowing money from creditors in the form of long-term notes, mortgages, leases,

Debt Securities
Financial instruments issued by a company that carry with them a promise of interest payments and th

Debt-Equity Management Ratio
A measurement of the relative utilization of debt and equity

Debtors
A list of customers who owe money to the business.

Debtors (Control Account)
An account in the nominal ledger which contains the overall balance of the Sales Ledger.

Declaration Date
The date on which a corporation's board of directors formally decides to pay a dividend to sharehold

Deduction
Business expenses or losses that are subtracted from gross income in computing taxable income.

Deferred Expenditure
Expenses incurred which do not apply to the current accounting period. Instead, they are debited to

Deferred Income Taxes
An account used to record the difference between income tax expense on the income statement and inco

Deflation
A broad, overall drop in the price of goods and services

Depletion
The process of cost allocation that assigns the original cost of a natural resource to the periods b

Depreciation
The value of assets usually decreases as time goes by. The amount or percentage it decreases by is c

Dilutive
If a company acquires another and says the deal is 'dilutive to earnings', it means that the resulti

Direct Deposit
Prearranged payments from a third party directly into a bank account (e.g.,paychecks, Social Securit

Direct Method
A method of reporting net cash flow from operations that shows the major classes of cash receipts an