Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
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Definition of shrinkage
a decrease in units arising from an inherent characteristic
The excess of inventory listed in the accounting books of record, but which
Any uncontrolled loss of inventory, such as through evaporation or theft.
A term describing the loss of products from inventory
A shortfall between inventory based on actual physical counts and inventory
The expected loss of some proportion of an item during the
A method for dividing inventory into classifications,
A collection of systems and processes used to record, report and interpret business transactions.
A broad, all-inclusive term that refers to the methods and procedures
Administrative proceedings or litigation releases that entail an accounting or auditing-related violation of the securities laws.
An alteration in the accounting methodology or estimates used in
Earnings of a firm as reported on its income statement.
A business for which a separate set of accounting records is being
The representation of the double-entry system of accounting such that assets are equal to liabilities plus capital.
The formula Assets = Liabilities + Equity.
An equation that reflects the two-sided nature of a
Unintentional mistakes in financial statements. Accounted for by restating
The change in the value of a firm's foreign currency denominated accounts due to a
Total liabilities exceed total assets. A firm with a negative net worth is insolvent on
Intentional misstatements or omissions of amounts or disclosures in
The ease and quickness with which assets can be converted to cash.
The period of time for which financial statements are produced – see also financial year.
The 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
A set of accounts that summarize the transactions of a business that have been recorded on source documents.
The recording of revenue when earned and expenses when
Well, frankly, accrual is not a good descriptive
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 actual expenditure made to acquire an asset, which includes the supplierinvoiced
actual cost system
a valuation method that uses actual direct
The physical commodity underlying a futures contract. Cash commodity, physical.
Mortgage pass-through securities whose principal and interest payments are
Aggregate Production Function
An equation determining aggregate output as a function of aggregate inputs such as labor and capital.
A forceful and intentional choice and application of accounting principles
Allocation base A measure of activity or volume such as labour
hours, machine hours or volume of production
An annuity with n payments, wherein the first payment is made at time t = 0 and the last
Annuity where the payments are to be made at the beginning of
a series of equal cash flows being received or paid at the beginning of a period
Level stream of cash flows starting immediately.
Asian currency units (ACUs)
Dollar deposits held in Singapore or other Asian centers.
Average accounting return
The average project earnings after taxes and depreciation divided by the average
Average-Cost Inventory Method
The inventory cost-flow assumption that assigns the average
The beginning inventory for a period, plus the amount at the end of
Base probability of loss
The probability of not achieving a portfolio expected return.
Blanket inventory lien
A secured loan that gives the lender a lien against all the borrower's inventories.
Large and creditworthy compAny.
The 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 VALUE
What a compAny collected when it sold stock for more than the par value per share.
Capital in excess par
Amounts 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.
The difference between the net cost of a security and the net sale price, if that security is sold at a loss.
The 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.
A method of accounting in which profit is calculated as the difference between income
Change in Accounting Estimate
A change in accounting that occurs as the result of new information
Change in Accounting Estimate
A change in the implementation of an existing accounting
Change in Accounting Principle
A change from one generally accepted accounting principle to another generally accepted accounting principle—for example, a change from capitalizing expenditures
The market model applied to a single security. The slope of the line is a security's beta.
Assets acquired to create money. May include plant, machinery and equipment, shares of another compAny etc.
company cost of capital
Expected rate of return demanded by investors in a compAny, determined by the average risk of the compAny’s assets and operations.
Related: Unsystematic risk
See asset-specific risk
Comprehensive due diligence investigation
The investigation of a firm's business in conjunction with a
Constant dollar accounting
A method for restating financial statements by reducing or
Any reduction in units that occurs uniformly
Method of accounting for sales or service agreements where completion
Also called private-label pass-throughs, Any mortgage pass-through security not
Corporate processing float
The time that elapses between receipt of payment from a customer and the
a 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 the
relative costs and benefits that result from a specific course
Cost company arrangement
Arrangement whereby the shareholders of a project receive output free of
cost of production report
a process costing document that
Cost Plus Estimated Earnings in Excess of Billings
Revenue recognized to date under the percentage-of-completion method in excess of amounts billed. Also known as unbilled accounts
Creative Accounting Practices
Any and all steps used to play the financial numbers game, including
Creative Acquisition Accounting
The allocation to expense of a greater portion of the price
A loan receivable that has proven uncollectible and is written off.
Cumulative Effect of a Change in Accounting Principle
The change in earnings of previous years
Cumulative Effect of Accounting Change
The change in earnings of previous years assuming
Date of record
Date on which holders of record in a firm's stock ledger are designated as the recipients of
Days' sales in inventory ratio
The 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
A conception of the way a stock's price changes that assumes that the price takes on all
a reduction in units that occurs at a specific
inventory intended for shipment to customers, usually
dollar days (of inventory)
a measurement of the value of inventory for the time that inventory is held
See accrual-basis accounting.
An instrument evidencing the obligation of a seller to deliver securities sold to the buyer.
The 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
The 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
Unused production capacity.
A situation in which demand exceeds supply.
Any excess of actual reserves above required reserves.
Reserves of commercial banks in excess of those they are legally required to hold.
Excess return on the market portfolio
The difference between the return on the market portfolio and the
Also called abnormal returns, returns in excess of those required by some asset pricing model.
A situation in which supply exceeds demand.
Extraordinary Gain or Loss
Gains and losses that are judged to be both unusual and nonrecurring.
extraordinary gains and losses
No pun intended, but these types of gains
Factor of Production
A 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
CompAny engaged in making loans to individuals or businesses. Unlike a bank, it does not receive deposits from the public.
The production of financial statements, primarily for those interested parties who are external to the business.
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