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Financial Terms | |
shrinkage |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: financial, payroll, credit, money, inventory, tax advisor, inventory control, business, Also see related: homebuyer, home, mortgage, home insurance, buy home, property, condo, first time homebuyer, home buyer, |
Definition of shrinkageshrinkagea decrease in units arising from an inherent characteristic ShrinkageThe excess of inventory listed in the accounting books of record, but which ShrinkageAny uncontrolled loss of inventory, such as through evaporation or theft.
Related Terms:inventory shrinkageA term describing the loss of products from inventory Inventory ShrinkageA shortfall between inventory based on actual physical counts and inventory Shrinkage factorThe expected loss of some proportion of an item during the ABC inventory classificationA method for dividing inventory into classifications, 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. 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. Actual costThe actual expenditure made to acquire an asset, which includes the supplierinvoiced actual cost systema valuation method that uses actual direct ActualsThe physical commodity underlying a futures contract. Cash commodity, physical. Agency pass-throughsMortgage pass-through securities whose principal and interest payments are Aggregate Production FunctionAn equation determining aggregate output as a function of aggregate inputs such as labor and capital. Aggressive AccountingA forceful and intentional choice and application of accounting principles Allocation base A measure of activity or volume such as labourhours, machine hours or volume of production Annuity dueAn annuity with n payments, wherein the first payment is made at time t = 0 and the last Annuity DueAnnuity where the payments are to be made at the beginning of annuity duea series of equal cash flows being received or paid at the beginning of a period annuity dueLevel stream of cash flows starting immediately. Asian currency units (ACUs)Dollar deposits held in Singapore or other Asian centers. Average accounting returnThe average project earnings after taxes and depreciation divided by the average Average-Cost Inventory MethodThe inventory cost-flow assumption that assigns the average Average inventoryThe beginning inventory for a period, plus the amount at the end of Base probability of lossThe probability of not achieving a portfolio expected return. Blanket inventory lienA secured loan that gives the lender a lien against all the borrower's inventories. Blue-chip companyLarge and creditworthy compAny. Book inventoryThe amount of money invested in inventory, as per a compAny’s business process reengineering (BPR)the process of combining information technology to create new and more effective CAPITAL IN EXCESS OF PAR VALUEWhat a compAny collected when it sold stock for more than the par value per share. Capital in excess parAmounts in excess of the par value or stated value that have been paid by the public to acquire stock in the compAny; synonymous with additional paid-in capital. Capital lossThe difference between the net cost of a security and the net sale price, if that security is sold at a loss. capital lossThe negative difference between the adjusted cost base of an investment held as a capital property and the proceeds of disposition you receive when you sell it. When you sell such an investment for less than you paid, you incur a capital loss. Cash accountingA method of accounting in which profit is calculated as the difference between income 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 Characteristic lineThe market model applied to a single security. The slope of the line is a security's beta. Company AcquisitionsAssets acquired to create money. May include plant, machinery and equipment, shares of another compAny etc. company cost of capitalExpected rate of return demanded by investors in a compAny, determined by the average risk of the compAny’s assets and operations. Company-specific riskRelated: Unsystematic risk Companyspecific RiskSee asset-specific risk Comprehensive due diligence investigationThe investigation of a firm's business in conjunction with a Constant dollar accountingA method for restating financial statements by reducing or continuous lossAny reduction in units that occurs uniformly Contract AccountingMethod of accounting for sales or service agreements where completion Conventional pass-throughsAlso called private-label pass-throughs, Any mortgage pass-through security not Corporate processing floatThe time that elapses between receipt of payment from a customer and the cost accountinga discipline that focuses on techniques or Cost Accounting Standards Board (CASB)a body established by Congress in 1970 to promulgate cost accounting cost-benefit analysis the analytical process of comparing therelative costs and benefits that result from a specific course Cost company arrangementArrangement whereby the shareholders of a project receive output free of cost of production reporta process costing document that Cost Plus Estimated Earnings in Excess of BillingsRevenue recognized to date under the percentage-of-completion method in excess of amounts billed. Also known as unbilled accounts 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 Credit LossA loan receivable that has proven uncollectible and is written off. 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 Date of recordDate on which holders of record in a firm's stock ledger are designated as the recipients of Days' sales in inventory ratioThe average number of days' worth of sales that is held in inventory. Depository Trust Company (DTC)DTC is a user-owned securities depository which accepts deposits of Devaluation A decrease in the spot price of the currency
Diffusion processA conception of the way a stock's price changes that assumes that the price takes on all discrete lossa reduction in units that occurs at a specific Distribution inventoryinventory intended for shipment to customers, usually dollar days (of inventory)a measurement of the value of inventory for the time that inventory is held double-entry accountingSee accrual-basis accounting. Due billAn instrument evidencing the obligation of a seller to deliver securities sold to the buyer. Due DiligenceThe process of systematically evaluating information, to identify risks and issues relating to a proposed transaction.(i.e. verify that information is what it is proposed to be). economic production run (EPR)an estimate of the number Ending inventoryThe dollar value or unit total of goods on hand at the end of an equivalent units of production (EUP)an approximation of the number of whole units of output that could have been Excess CapacityUnused production capacity. Excess DemandA situation in which demand exceeds supply. Excess reservesAny excess of actual reserves above required reserves. Excess ReservesReserves of commercial banks in excess of those they are legally required to hold. Excess return on the market portfolioThe difference between the return on the market portfolio and the Excess returnsAlso called abnormal returns, returns in excess of those required by some asset pricing model. Excess SupplyA situation in which supply exceeds demand. Extraordinary Gain or LossGains and losses that are judged to be both unusual and nonrecurring. extraordinary gains and lossesNo pun intended, but these types of gains Factor of ProductionA resource used to produce a good or service. The main macroeconomic factors of production are capital and labor. FIFO method (of process costing)the method of cost assignment that computes an average cost per equivalent Finance CompanyCompAny engaged in making loans to individuals or businesses. Unlike a bank, it does not receive deposits from the public. Financial accountingThe production of financial statements, primarily for those interested parties who are external to the business. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |