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Definition of Lockbox
A collection and processing service provided to firms by banks, which collect payments from a
A single centralized account into which funds collected at regional locations
Movement of cash from different lockbox locations into a single concentration
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.
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
Generally Accepted Accounting Principals (GAAP)
A technical accounting term that encompasses the
Organizations that furnish investment and other types of information, such as
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.
Include such things as freight, insurance, passenger services, and travel.
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
Short-term investment services
services that assist firms in making short-term investments.
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.
â€˜Bucketsâ€™ 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.
A method of accounting in which profit is calculated as the difference between income
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.
An account maintained in the general ledger that holds the balance without the detail. The detail is maintained in a subsidiary ledger.
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
internal accounting controls
Refers to forms used and procedures
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 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
Institute of Management Accountants (IMA)
an organization composed of individuals interested in the field of management accounting; it coordinates the Certified Management
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
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
total cost to account for
the sum of the costs in beginning
total units to account for
the sum of the beginning inventory
An alteration in the accounting methodology or estimates used in
A business for which a separate set of accounting records is being
Acurrent liability on the balance sheet, representing short-term obligations
A current asset on the balance sheet, representing short-term
The recording of revenue when earned and expenses when
Chart of accounts
A listing of all accounts used in the general ledger, usually sorted in
Constant dollar accounting
A method for restating financial statements by reducing or
Generally accepted accounting principles
The rules that accountants follow when processing accounting transactions and creating financial reports. The rules are primarily
An account that is kept within a subsidiary ledger, which in turn
System whereby customers make payments to a regional collection center which transfers funds to
generally accepted accounting principles (GAAP)
Procedures for preparing financial statements.
Agreement whereby sales are made with no formal debt contract.
Regional bank account to which just enough funds are transferred daily to pay each dayâ€™s bills.
Balance of Payments Accounts
A statement of a country's transactions with other countries.
That part of the balance of payments accounts that records demands for and supplies of a currency arising from purchases or sales of assets.
That 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.
National Income and Product Accounts
The national accounting system that records economic activity such as GDP and related measures.
Negotiable order of withdrawal account, an interest-bearing bank account on which a special check called a negotiable order of withdrawal could be written. Because NOWs are not technically checks, by this means it was possible for banks to circumvent Fed regulations prohibiting payment of interest on checking accounts.
Official Settlements Account
An account within the balance of payments accounts showing the change in a country's official foreign exchange reserves. It is used to measure a balance of payments deficit or surplus.
Flexible Spending Account
A form of cafeteria plan allowing employees to pay
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