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Definition of Gain-on-Sale Accounting
Up-front gain recognized from the securitization and sale of a pool
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.
If stock X appreciates 1.5% in one month, the annualized gain for that sock over a twelve
The average project earnings after taxes and depreciation divided by the average
Gives the lessee the option to purchase the asset at a price below fair market
A method of securities distribution/ underwriting in which the securities firm agrees to sell
When a stock is sold for a profit, it's the difference between the net sales price of securities and
The price change portion of a stock's return.
A transaction in which the seller's intention is to reduce or eliminate a long position in a stock,
Similar to equipment trust certificates except that the lender is either the
The formal name for the load of a back-end load fund.
The average number of days' worth of sales that is held in inventory.
Average collection period.
Domestic International Sales Corporation (DISC)
A U.S. corporation that receives a tax incentive for
Foreign Sales Corporation (FSC)
A special type of corporation created by the Tax Reform Act of 1984 that
A method for hedging price risk which involves an agreement between a lender and an investor
Generally Accepted Accounting Principals (GAAP)
A technical accounting term that encompasses the
The sale of an asset in exchange for a specified series of payments (the installments).
Limitation on merger, consolidation, or sale
A bond covenant that restricts in some way a firm's ability to
Limitation on sale-and-leaseback
A bond covenant that restricts in some way a firm's ability to enter into
Situation in which the terms of an offering are determined by negotiation between the issuer
A transaction in which the seller's intention is to create or increase a short position in a given
Paper gain (loss)
Unrealized capital gain (loss) on securities held in portfolio, based on a comparison of
Price/sales ratio (PS Ratio)
Determined by dividing current stock price by revenue per share (adjusted for stock splits).
Method of accounting for a merger in which the acquirer is treated as having purchased
Purchase and sale
A method of securities distribution in which the securities firm purchases the securities
Regulatory accounting procedures
accounting principals required by the FHLB that allow S&Ls to elect
Sale and lease-back
sale of an existing asset to a financial institution that then leases it back to the user.
The fee charged by a mutual fund when purchasing shares, usually payable as a commission to
A key input to a firm's financial planning process. External sales forecasts are based on
An arrangement whereby a firm leases its own equipment, such as IBM leasing its own
Selling a security that the seller does not own but is committed to repurchasing eventually. It is
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
A method for hedging price risk that utilizes debt-market instruments, such as interest rate
Also called a swap assignment, a transaction that ends one counterparty's role in an interest rate
Terms of sale
Conditions on which a firm proposes to sell its goods services for cash or credit.
Wholesale mortgage banking
The purchasing of loans originated by others, with the servicing rights
NET SALES (revenue)
The amount sold after customersâ€™ returns, sales discounts, and other allowances are taken away from
NUMBER OF DAYS SALES IN RECEIVABLES
(also called average collection period). The number of days of net sales that are tied up in credit sales (accounts receivable) that havenâ€™t been collected yet.
RATIO OF NET INCOME TO NET SALES
A ratio that shows how much net income (profit) a company made on each dollar of net sales. Hereâ€™s the formula:
RATIO OF NET SALES TO NET INCOME
A ratio that shows how much a company had to collect in net sales to make a dollar of profit. Figure it this way:
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.
A method of accounting in which profit is calculated as the difference between income when it is earned and expenses when they are incurred.
A method of accounting in which profit is calculated as the difference between income
Cost of sales
The manufacture or purchase price of goods sold in a period or the cost of providing a service.
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.
The mix of product/services offered by the business, each of which may be aimed at different customers, with each product/service having different prices and costs.
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 earned by the company from the sale of merchandise or services; often used interchangeably with the term revenue.
A contra account that offsets revenue. It represents the amount of the discounts for early payment allowed on sales.
A journal used to record the transactions that result in a credit to sales.
A contra account that offsets revenue. It represents the amount of sales made that were later returned.
A broad, all-inclusive term that refers to the methods and procedures
An equation that reflects the two-sided nature of a
Well, frankly, accrual is not a good descriptive
See accrual-basis accounting.
extraordinary gains and losses
No pun intended, but these types of gains
generally accepted accounting principles (GAAP)
This important term
internal accounting controls
Refers to forms used and procedures
return on sales
This ratio equals net income divided by sales revenue.
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
a discipline that focuses on techniques or
Cost Accounting Standards Board (CASB)
a body established by Congress in 1970 to promulgate cost accounting
a discipline in which historical, monetary
a discipline that includes almost
Management Accounting Guidelines (MAGs)
pronouncements of the Society of Management Accountants of
responsibility accounting system
an accounting information system for successively higher-level managers about the performance of segments or subunits under the control
the relative combination of quantities of sales of the various products that make up the total sales of a company
sales value at split-off allocation
a method of assigning joint cost to joint products that uses the relative sales values of the products at the split-off point as the proration basis; use of this method requires that all joint products
Statement on Management Accounting (SMA)
a pronouncement developed and issued by the Management
Short sale, short position
The sale of a security or financial instrument not
An alteration in the accounting methodology or estimates used in
A business for which a separate set of accounting records is being
The recording of revenue when earned and expenses when
The gain recognized on the sale of a capital item (fixed asset), calculated
Constant dollar accounting
A method for restating financial statements by reducing or
The profit earned on the sale of an asset, computed by subtracting its book value
Generally accepted accounting principles
The rules that accountants follow when processing accounting transactions and creating financial reports. The rules are primarily
The total sales recorded prior to sales discounts and returns.
Total revenue, less the cost of sales returns, allowances, and discounts.
A reduction in a price that is allowed by the seller, due to a problem
A reduction in the price of a product or service that is offered by the
Sales value at split-off
A cost allocation methodology that allocates joint costs to joint
generally accepted accounting principles (GAAP)
Procedures for preparing financial statements.
percentage of sales models
Planning model in which sales forecasts are the driving variables and most other variables are
terms of sale
Credit, discount, and payment terms offered on a sale.
An increase in the value of an asset.
A tax levied as a percentage of retail sales.
Unintentional mistakes in financial statements. Accounted for by restating
Accounting and Auditing Enforcement Release (AAER)
Administrative proceedings or litigation releases that entail an accounting or auditing-related violation of the securities laws.
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