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Financial Terms | |
Churn |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
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Definition of ChurnChurnSee creative destruction.
Related Terms:ChurningExcessive trading of a client's account in order to increase the broker's commissions. AccountAn explanation or report in financial terms about the transactions of an organization. Account ValueThe sum of all the interest options in your policy, including interest. AccountabilityThe process of satisfying stakeholders in the organization that managers have acted in the best interests of the stakeholders, a result of the stewardship function of managers, which takes place through accounting. AccountingA collection of systems and processes used to record, report and interpret business transactions. accountingA broad, all-inclusive term that refers to the methods and procedures Accounting and Auditing Enforcement Release (AAER)Administrative proceedings or litigation releases that entail an accounting or auditing-related violation of the securities laws. ![]() Accounting changeAn alteration in the accounting methodology or estimates used in Accounting earningsEarnings of a firm as reported on its income statement. Accounting entityA business for which a separate set of accounting records is being Accounting equationThe representation of the double-entry system of accounting such that assets are equal to liabilities plus capital. Accounting equationThe formula Assets = Liabilities + Equity. accounting equationAn equation that reflects the two-sided nature of a Accounting ErrorsUnintentional mistakes in financial statements. accounted for by restating Accounting exposureThe change in the value of a firm's foreign currency denominated accounts due to a Accounting insolvencyTotal liabilities exceed total assets. A firm with a negative net worth is insolvent on ![]() Accounting IrregularitiesIntentional misstatements or omissions of amounts or disclosures in Accounting liquidityThe ease and quickness with which assets can be converted to cash. Accounting periodThe period of time for which financial statements are produced – see also financial year. Accounting PoliciesThe principles, bases, conventions, rules and procedures adopted by management in preparing and presenting financial statements. Accounting rate of return (ARR)A method of investment appraisal that measures accounting rate of return (ARR)the rate of earnings obtained on the average capital investment over the life of a capital project; computed as average annual profits divided by average investment; not based on cash flow Accounting systemA set of accounts that summarize the transactions of a business that have been recorded on source documents. Accounts‘Buckets’ within the ledger, part of the accounting system. Each account contains similar transactions (line items) that are used for the production of financial statements. Or commonly used as an abbreviation for financial statements. Accounts payableMoney owed to suppliers. ACCOUNTS PAYABLEAmounts a company owes to creditors. Accounts payableAmounts owed by the company for goods and services that have been received, but have not yet been paid for. Usually accounts payable involves the receipt of an invoice from the company providing the services or goods. ![]() accounts payableShort-term, non-interest-bearing liabilities of a business Accounts payableAcurrent liability on the balance sheet, representing short-term obligations Accounts PayableAmounts due to vendors for purchases on open account, that is, not evidenced Accounts Payable Days (A/P Days)The number of days it would take to pay the ending balance Accounts receivableMoney owed by customers. ACCOUNTS RECEIVABLEAmounts owed to a company by customers that it sold to on credit. Total accounts receivable are usually reduced by an allowance for doubtful accounts. Accounts receivableAmounts owed to the company, generally for sales that it has made. accounts receivableShort-term, non-interest-bearing debts owed to a Accounts receivableA current asset on the balance sheet, representing short-term Accounts ReceivableAmounts due from customers for sales on open account, not evidenced Accounts ReceivableMoney owed to a business for merchandise or services sold on open account. Accounts Receivable Days (A/R Days)The number of days it would take to collect the ending Accounts receivable turnoverThe ratio of net credit sales to average accounts receivable, a measure of how accounts receivable turnover ratioA ratio computed by dividing annual Accrual accountingThe recording of revenue when earned and expenses when accrual-basis accountingWell, frankly, accrual is not a good descriptive Accruals accountingA method of accounting in which profit is calculated as the difference between income when it is earned and expenses when they are incurred. Aggressive AccountingA forceful and intentional choice and application of accounting principles Allowance for doubtful accountsA contra account related to accounts receivable that represents the amounts that the company expects will not be collected. Allowance for Doubtful AccountsAn estimate of the uncollectible portion of accounts receivable Average accounting returnThe average project earnings after taxes and depreciation divided by the average Average age of accounts receivableThe weighted-average age of all of the firm's outstanding invoices. Balance of Payments AccountsA statement of a country's transactions with other countries. BrokerAn individual who is paid a commission for executing customer orders. Either a floor broker who BrokerAn agent who handles public orders to buy or sell financial assets. Broker loan rateRelated: Call money rate. Brokered marketA market where an intermediary offers search services to buyers and sellers. Buy limit orderA conditional trading order that indicates a security may be purchased only at the designated Capital accountNet result of public and private international investment and lending activities. Capital AccountThat part of the balance of payments accounts that records demands for and supplies of a currency arising from purchases or sales of assets. Cash accountingA method of accounting in which profit is calculated as the difference between income Certified Management Accountant (CMA)a professional designation in the area of management accounting that Change in Accounting EstimateA change in accounting that occurs as the result of new information Change in Accounting EstimateA change in the implementation of an existing accounting Change in Accounting PrincipleA change from one generally accepted accounting principle to another generally accepted accounting principle—for example, a change from capitalizing expenditures Chart of accountsA listing of all accounts used in the general ledger, usually sorted in Clientele effectThe grouping of investors who have a preference that the firm follow a particular financing Commission brokerA broker on the floor of an exchange acts as agent for a particular brokerage house and Concentration accountA single centralized account into which funds collected at regional locations Constant dollar accountingA method for restating financial statements by reducing or Contra-asset accountAn offset to an asset account that reduces the balance of the asset account. Contra-equity accountAn account that reduces an equity account. An example is Treasury stock. Contract AccountingMethod of accounting for sales or service agreements where completion Control accountAn account maintained in the general ledger that holds the balance without the detail. The detail is maintained in a subsidiary ledger. cost accountinga discipline that focuses on techniques or Cost Accounting Standards Board (CASB)a body established by Congress in 1970 to promulgate cost accounting Creative Accounting PracticesAny and all steps used to play the financial numbers game, including Creative Acquisition AccountingThe allocation to expense of a greater portion of the price Creative DestructionThe process whereby new technology creates new jobs and destroys old, less productive jobs. Cross-border riskRefers to the volatility of returns on international investments caused by events associated Cumulative Effect of a Change in Accounting PrincipleThe change in earnings of previous years Cumulative Effect of Accounting ChangeThe change in earnings of previous years assuming Cumulative Translation Adjustment (CTA) accountAn entry in a translated balance sheet in which gains Current accountNet flow of goods, services, and unilateral transactions (gifts) between countries. Current AccountThat part of the balance of payments accounts that records demands for and supplies of a currency arising from activities that affect current income, namely imports, exports, investment income payments such as interest and dividends, and transfers such as gifts, pensions, and foreign aid. Day orderAn order to buy or sell stock that automatically expires if it can't be executed on the day it is entered. Day tradingRefers to establishing and liquidating the same position or positions within one day's trading. Discounting of Accounts ReceivableShort-term financing in which accounts receivable are used as collateral to secure a loan. The lender does not buy the accounts receivable but simply uses them as collateral for the loan. Also called pledging of accounts receivable. Discrete order pickingA picking method requiring the sequential completion of Discretionary accountaccounts over which an individual or organization, other than the person in whose Dividend clienteleA group of shareholders who prefer that the firm follow a particular dividend policy. For double-entry accountingSee accrual-basis accounting. economic order quantityorder size that minimizes total inventory costs. Economic order quantity (EOQ)The order quantity that minimizes total inventory costs. economic order quantity (EOQ)an estimate of the number engineering change order (ECO)a business mandate that changes the way in which a product is manufactured or a Fill or kill orderA trading order that is canceled unless executed within a designated time period. Financial accountingThe production of financial statements, primarily for those interested parties who are external to the business. financial accountinga discipline in which historical, monetary Financial leverage clienteleA group of investors who have a preference for investing in firms that adhere to Flexible Spending AccountA form of cafeteria plan allowing employees to pay Floor brokerA member who is paid a fee for executing orders for clearing members or their customers. A Gain-on-Sale AccountingUp-front gain recognized from the securitization and sale of a pool Generally Accepted Accounting Principals (GAAP)A technical accounting term that encompasses the Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |