Accounting And Finance Dictionary

Financial Accounting For Dummies

This is another version of backdating. Generally used only when the total amount of collections is highly uncertain. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Gross income reduced by business and other specified expenses of individual taxpayers. Generally it is deductible regardless of whether it is business or personal.

Assumption that a business can remain in operation long enough for all of its current plans to be carried out. This is an individual that is not a citizen, but who has a residence in the United States.

Sole Proprietorship See Proprietorship. Note Written promise to pay a specified amount to a certain entity on demand or on a specified date.

Dictionary of Accounting - Oxford Reference

The law of negligence is founded on reasonable conduct or reasonable care under all circumstances of particular care. Its members are professional accounting bodies in countries. The intermediate steps are bypassed. Career Center Post a resume or job listing in our Career Center to connect with hundreds of employers or job seekers.

Following is a glossary of words and phrases crucial to the accounting profession. With its authoritative and straightforward definitions and its wide-ranging coverage, this dictionary is essential for students and professionals in accounting and finance. Regressive Rate Rate that decreases as the calculation base increases.

Key Financial Accounting Terms and Definitions

The accounts are numbered in order, usually starting with assets and continuing through to miscellaneous gains and losses. An expense that has occurred but is not recognized in the accounts.

Financial accounting


If the election is not made then the expenses are not deductible and may only be recovered when the business ceases operation or is sold. Certain minimum choices and nondiscriminatory rules apply. Specialized Mutual Fund Fund that limits its investments to a particular sector of the marketplace. An interval of time with a specified length or characterized by certain conditions. Statement Summary for customers of the transactions that occurred over the preceding month.

Dictionary of Accounting - Oxford Reference

Financial Accounting For Dummies

Key Financial Accounting Terms and Definitions - dummies

Various sales taxes and certain excise taxes. Seasonality Variations in business or economic activity that recur with regularity as the result of changes in climate, holidays, and vacations. Safe Harbor Rule Concept in statutes and regulations whereby a person who meets listed requirements will be preserved from adverse legal action. Defalcation To misuse or embezzle funds.

Stock Options Right to purchase or sell a specified number of shares of stock at specified prices and times. Arrangement in which one party borrows or takes possession in the present by promising to pay in the future. Help develop a strong network of connections. This is a person whose husband or wife died during the tax year. Confirm whether controls have been placed in operation.

Call Loan Loan repayable on demand. Legally married but separated and living apart but not legally divorced. The average number of days required to sell the current inventory of products available for sale.

Financial presentations to comply with contractual agreements or regulatory provisions. Group that has authority to establish standards of financial reporting for all units of state and local government. Rate that decreases as the calculation base increases. Obsolescence The process of becoming out-of-date. Generally used by government entities and not-for-profits.

Person skilled in the recording and reporting of financial transactions. The deduction for stock options in not usually limited. Probable future economic benefits obtained as a result of past transactions or events. The act or an instance of taking control of something, especially by force.

Apply for membership today! These laws are coordinated with federal acts. Instead, you take depreciation deductions over the building's estimated useful life.

Spread Difference between two prices, usually a buying and selling price. The auditor is required to disclaim depending on the limitation in scope. Want to save this page for later? Push Down Accounting Definition Push down accounting is a convention of accounting for the purchase of a subsidiary at the purchase cost rather than its historical cost.

The rules financial accountants have to follow when handling accounting transactions and preparing financial statements. The record of all financial transactions taking place within a business during a particular accounting cycle, patriotic music ordered by chart of account number.