|Zero-balance account (ZBA)|
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Definition of Zero-balance account (ZBA)
Zero-balance account (ZBA)
A checking account in which zero balance is maintained by transfers of funds
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.
A statistical compilation formulated by a sovereign nation of all economic transactions
Net flow of goods (exports minus imports) between countries.
Also called the statement of financial condition, it is a summary of the assets, liabilities, and
Total Assets = Total Liabilities + Total Stockholders' Equity
An investment company that invests in stocks and bonds. The same as a balanced mutual fund.
Balanced mutual fund
This is a fund that buys common stock, preferred stock and bonds. The same as a
In a balance of payments, the basic balance is the net balance of the combination of the current
Net result of public and private international investment and lending activities.
An excess balance that is left in a bank to provide indirect compensation for loans
A single centralized account into which funds collected at regional locations
Cumulative Translation Adjustment (CTA) account
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
Method of accelerated depreciation.
Generally Accepted Accounting Principals (GAAP)
A technical accounting term that encompasses the
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.
Net cash balance
Beginning cash balance plus cash receipts minus cash disbursements.
Financing that is not shown as a liability in a company's balance sheet.
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
Receivables balance fractions
The percentage of a month's sales that remain uncollected (and part of
Regulatory accounting procedures
accounting principals required by the FHLB that allow S&Ls to elect
Remaining principal balance
The amount of principal dollars remaining to be paid under the mortgage as of
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
Target cash balance
Optimal amount of cash for a firm to hold, considering the trade-off between the
Treasury tax and loan account at a bank.
Zero coupon bond
Such a debt security pays an investor no interest. It is sold at a discount to its face price
assumption The assumption of payment of scheduled principal and interest with no payments.
Related: tick-test rules.
A portfolio constructed to represent the risk-free asset, that is, having a beta of zero.
A bond in which no periodic coupon is paid over the life of the contract. Instead, both the
A portfolio of zero net value established by buying and shorting component
Zero-one integer programming
An analytical method that can be used to determine the solution to a capital
A type of game wherein one player can gain only at the expense of another player.
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.
A “snapshot” statement that freezes a company on a particular day, like the last day of the year, and shows the balances in its asset, liability, and stockholders’ equity accounts. It’s governed by the formula:
An accelerated depreciation method that calculates depreciation each year by applying a fixed rate to the asset’s book (cost–accumulated depreciation) value. Depreciation stops when the asset’s book value reaches its salvage value.
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 – 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.
‘Buckets’ 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 system of non-financial performance measurement that links innovation, customer and process measures to financial performance.
A financial statement showing the financial position of a business – its assets, liabilities and
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 – income less expenses – 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).
A method of budgeting that ignores historical budgetary allocations and identifies the costs that are necessary to implement agreed strategies.
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.
One of the basic financial statements; it lists the assets, liabilities, and equity accounts of the company. The balance Sheet is prepared using the balances at the end of a specific day.
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.
A method of depreciation.
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 listing of all the accounts and their balances on a specified day.
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
A term often used instead of the more formal and correct
See accrual-basis accounting.
generally accepted accounting principles (GAAP)
This important term
internal accounting controls
Refers to forms used and procedures
A security that makes no interest payments; it is sold at a discount
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
balanced scorecard (BSC)
an approach to performance
Certified Management Accountant (CMA)
a professional designation in the area of management accounting that
a discipline that focuses on techniques or
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