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Definition of Purchase method
Accounting for an acquisition using market value for the consolidation of the two entities'
An accounting method used to combine the financial statements of
a process of service department cost allocation
A method of adjusting accounts receivable to the amount that is expected to be collected based on company experience.
The inventory cost-flow assumption that assigns the average
Gives the lessee the option to purchase the asset at a price below fair market
The proportion of unemployment benefits paid to a company’s
The proportion of total taxable wages for laid off
An arithmetic method for backing an
A method of constructing a replicating portfolio in which the manager purchases a
A transaction in which the purchaser's intention is to reduce or eliminate a short position in
A contract accounting method that recognizes contract revenue
Under this currency translation method, all foreign currency balance-sheet and income
A method of cash budgeting based on detailed estimates of cash receipts and cash
A method of preparing the operating section of the Statement of Cash Flows that uses the company’s actual cash inflows and cash outflows.
a service department cost allocation approach
A format for the operating section of the cash-flow statement that reports actual cash receipts and cash disbursements from operating activities.
Direct stock-purchase programs
The purchase by investors of securities directly from the issuer.
Direct write-off method
A method of adjusting accounts receivable to the amount that is expected to be collected by eliminating the account balances of specific nonpaying customers.
dividend growth method
a method of computing the cost
Accounting method for an equity security in cases where the investor has sufficient
FIFO method (of process costing)
the method of cost assignment that computes an average cost per equivalent
First in, first-out costing method (FIFO)
A process costing methodology that assigns the earliest
First-In, First-Out (FIFO) Inventory Method
The inventory cost-flow assumption that
The practice of reporting to shareholders using straight-line depreciation and
A method of accounting for petroleum exploration and development expenditures
a technique used to determine the fixed
A method of preparing the operating section of the Statement of Cash Flows that does not use the company’s actual cash inflows and cash outflows, but instead arrives at the net cash flow by taking net income and adjusting it for noncash expenses and the changes from last year in the current assets and current liabilities.
A format for the operating section of the cash-flow statement that
judgmental method (of risk adjustment)
an informal method of adjusting for risk that allows the decision maker
Last-In, First-Out (LIFO) Inventory Method
The inventory cost-flow assumption that assigns the most recent inventory acquisition costs to cost of goods sold. The earliest inventory
Log-linear least-squares method
A statistical technique for fitting a curve to a set of data points. One of the
method of least squares
see least squares regression analysis
method of neglect
a method of treating spoiled units in the
For mutual funds, the amount required to open a new account (Minimum Initial
modified FIFO method (of process costing)
the method of cost assignment that uses FIFO to compute a cost per
Monetary / non-monetary method
Under this translation method, monetary items (e.g. cash, accounts
Money purchase plan
A defined benefit contribution plan in which the participant contributes some part and
Moving average inventory method
An inventory costing methodology that calls for the re-calculation of the average cost of all parts in stock after every purchase.
net present value method
a process that uses the discounted
Net Present Value (NPV) Method
A method of ranking investment proposals. NPV is equal to the present value of the future returns, discounted at the marginal cost of capital, minus the present value of the cost of the investment.
The practice of making a charge in the income account equivalent to the tax savings
Open-market purchase operation
A systematic program of repurchasing shares of stock in market
open purchase ordering
a process by which a single purchase
A transaction in which the purchaser's intention is to create or increase a long position in
A capital budgeting analysis method that calculates the amount of
A contract accounting method that recognizes contract
To buy, to be long, to have an ownership position.
method of accounting for a merger in which the acquirer is treated as having purchased
As used in connection with project financing, an agreement to purchase a specific
This legal document records the final understanding of the parties with respect to the proposed transaction.
Purchase and sale
A method of securities distribution in which the securities firm purchases the securities
A contra account that reduces purchases by the amount of the discounts taken for early payment.
Resembles a sinking fund except that money is used only to purchase bonds if they are selling
Price actually paid for a security. Typically the purchase
A contra account that reduces purchases by the amount of items purchased that were subsequently returned.
Purchased In-Process Research and Development
Unfinished research and development that is acquired from another firm.
Items purchased by the company for the purpose of resale.
A journal used to record the transactions that result in a credit to accounts payable.
An agreement with a commitment by the seller (dealer) to buy a security back from
Repurchase of stock
Device to pay cash to firm's shareholders that provides more preferable tax treatment
A method of allocating the purchase price for the acquisition of another firm among the
risk-adjusted discount rate method
a formal method of adjusting for risk in which the decision maker increases the rate used for discounting the future cash flows to compensate for increased risk
Program by which a corporation buys back its own shares in the open market. It is usually
Simple compound growth method
A method of calculating the growth rate by relating the terminal value to
an iterative (sequential) algorithm used to solve multivariable, multiconstraint linear programming problems
a high-performance, data-driven approach to analyzing and solving the root causes of business problems
A method of cash budgeting that is organized along the lines of the statement of cash flows.
a process of service department cost allocation
A firm's repurchase of outstanding shares of its common stock.
Firm buys back stock from its shareholders.
strict FIFO method (of process costing)
the method of cost assignment that uses FIFO to compute a cost per equivalent unit and, in transferring units from a department, keeps the
Successful Efforts Method
A method of accounting for petroleum exploration and development
The firm buys back its own stock from a potential bidder, usually at a substantial
Under this currency translation method, the choice of exchange rate depends on the
weighted average method (of process costing)
the method of cost assignment that computes an average cost per
The last-in, first-out method of inventory cost determination. Assumes that cost of goods
Pooling of interests
An accounting method for reporting acquisitions accomplished through the use of equity.
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