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Definition of Control account
An account maintained in the general ledger that holds the balance without the detail. The detail is maintained in a subsidiary ledger.
Refers to forms used and procedures
An accounting record giving the detailed transactions in an account; the subtotals of the debits and credits are posted to the control account maintained in the general ledger. It helps to keep the general ledger free of clutter.
the additional value inherent in the control interest as contrasted to a minority interest, which reflects its power of control
an amount or percentage deducted from a pro rata share of the value of 100% of an equity interest in a business, to reflect the absence of some or all of the powers of control.
The change in the value of a firm's foreign currency denominated accounts due to a
Earnings of a firm as reported on its income statement.
Total liabilities exceed total assets. A firm with a negative net worth is insolvent on
The ease and quickness with which assets can be converted to cash.
Money owed to suppliers.
Money owed by customers.
The ratio of net credit sales to average accounts receivable, a measure of how
The average project earnings after taxes and depreciation divided by the average
The weighted-average age of all of the firm's outstanding invoices.
Net result of public and private international investment and lending activities.
A single centralized account into which funds collected at regional locations
50% of the outstanding votes plus one vote.
A service that provides for a single presentation of checks each day (typically in
Controlled foreign corporation (CFC)
A foreign corporation whose voting stock is more than 50% owned
The corporate manager responsible for the firm's accounting activities.
Cumulative Translation Adjustment (CTA) account
An entry in a translated balance sheet in which gains
Net flow of goods, services, and unilateral transactions (gifts) between countries.
accounts over which an individual or organization, other than the person in whose
Dupont system of financial control
Highlights the fact that return on assets (ROA) can be expressed in terms
Governmental restrictions on the purchase of foreign currencies by domestic citizens or
The management of a firm's costs and expenses in order to control them in relation to
Foreign exchange controls
Various forms of controls imposed by a government on the purchase/sale of
Generally Accepted Accounting Principals (GAAP)
A technical accounting term that encompasses the
Special accounts where you can save and invest, and the taxes are deferred until money
An agreement between two or more firms to share risk and financing responsibility in
Margin account (Stocks)
A leverageable account in which stocks can be purchased for a combination of
Money market demand account
An account that pays interest based on short-term interest rates.
An account carried by one futures commission merchant with another futures commission
Arrangement whereby sales are made with no formal debt contract. The buyer signs a receipt,
Method of accounting for a merger in which the acquirer is treated as having purchased
Regulatory accounting procedures
accounting principals required by the FHLB that allow S&Ls to elect
Risk controlled arbitrage
A self-funding, self-hedged series of transactions that generally utilize mortgage
Statement of Financial Accounting Standards No. 8
This is a currency translation standard previously in
Statement of Financial Accounting Standards No. 52
This is the currency translation standard currently
account in which the bank takes all of the excess available funds at the close of each business
Treasury tax and loan account at a bank.
Zero-balance account (ZBA)
A checking account in which zero balance is maintained by transfers of funds
Amounts a company owes to creditors.
Amounts owed to a company by customers that it sold to on credit. Total accounts receivable are usually reduced by an allowance for doubtful accounts.
An explanation or report in financial terms about the transactions of an organization.
The 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.
A collection of systems and processes used to record, report and interpret business transactions.
The representation of the double-entry system of accounting such that assets are equal to liabilities plus capital.
The period of time for which financial statements are produced â see also financial year.
Accounting rate of return (ARR)
A method of investment appraisal that measures
A set of accounts that summarize the transactions of a business that have been recorded on source documents.
âBucketsâ 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.
A method of accounting in which profit is calculated as the difference between income when it is earned and expenses when they are incurred.
The process of ensuring that actual financial results are in line with targets â see variance
A method of accounting in which profit is calculated as the difference between income
The profit made by a division after deducting only those expenses that can be controlled by the
The process of either reducing costs while maintaining the same level of productivity or maintaining costs while increasing productivity.
The production of financial statements, primarily for those interested parties who are external to the business.
The production of financial and non-financial information used in planning for the future; making decisions about products, services, prices and what costs to incur; and ensuring that plans are implemented and achieved.
Profit and Loss account
A financial statement measuring the profit or loss of a business â income less expenses â for an accounting period.
Strategic management accounting
The provision and analysis of management accounting data about a business and its competitors, which is of use in the development and monitoring of strategy (Simmonds).
The formula Assets = Liabilities + Equity.
Amounts 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.
Amounts owed to the company, generally for sales that it has made.
Allowance for doubtful accounts
A contra account related to accounts receivable that represents the amounts that the company expects will not be collected.
An offset to an asset account that reduces the balance of the asset account.
An account that reduces an equity account. An example is Treasury stock.
The accounts found on the Balance Sheet; these account balances are carried forward for the lifetime of the company.
The format used for a general ledger page. The name of the account is put on the top line, and a vertical line is dropped from the top line (hence the "T"). Debits are recorded on the left side, and credits are recorded on the right.
The accounts found on the Income Statement and the Statement of Retained Earnings; these accounts are reduced to zero at the end of every accounting period.
A broad, all-inclusive term that refers to the methods and procedures
An equation that reflects the two-sided nature of a
Short-term, non-interest-bearing liabilities of a business
Short-term, non-interest-bearing debts owed to a
accounts receivable turnover ratio
A ratio computed by dividing annual
Well, frankly, accrual is not a good descriptive
See accrual-basis accounting.
generally accepted accounting principles (GAAP)
This important term
This is difficult to define in a few wordsâindeed, an
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
Certified Management Accountant (CMA)
a professional designation in the area of management accounting that
a graphical presentation of the results of a
a cost over which a manager has the ability to authorize incurrence or directly influence magnitude
the budget variance of the two variance approach to analyzing overhead variances
the chief accountant (in a corporation) who is responsible
the process of exerting managerial influence on
a discipline that focuses on techniques or
Cost Accounting Standards Board (CASB)
a body established by Congress in 1970 to promulgate cost accounting
cost control system
a logical structure of formal and/or informal
a discipline in which historical, monetary
Institute of Management Accountants (IMA)
an organization composed of individuals interested in the field of management accounting; it coordinates the Certified Management
any measure used by management to protect
a discipline that includes almost
Management Accounting Guidelines (MAGs)
pronouncements of the Society of Management accountants of
management control system (MCS)
an information system that helps managers gather information about actual organizational occurrences, make comparisons against plans,
the fixed overhead volume variance;
the implementation of all practices and policies
responsibility accounting system
an accounting information system for successively higher-level managers about the performance of segments or subunits under the control
Society of Management Accountants of Canada
the professional body representing an influential and diverse
Statement on Management Accounting (SMA)
a pronouncement developed and issued by the Management
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