Glossary Of Accounting Terms And Definitions

It aims to secure faster debtor payments to improve the liquidity position of the business. A certified financial planner is a financial planner qualified as per the requirements of the Institute of Certified Financial Planners. Certified Public Accountant is a certification that gives an individual the license to practice public accounting. A special form of […]

Glossary Of Accounting Terms And Definitions

Net is the final amount calculated after all the necessary deductions are made to the gross amount. Net accounts receivable is the total accounts receivable minus a deduction for those accounts, which the company assumes, won’t be collected. Net assets is the difference between total assets and non-capital liabilities. Net book value is the current […]

Glossary Of Accounting Terms And Definitions

It is a ‘plan B’. A contingent is something that occurs due to a condition that is not yet established. The continuity assumption in accounting states that the accounting for the business should be done, assuming that the business will have an unlimited life span. A contra entry is a type of ledger entry that […]

Glossary Of Accounting Terms And Definitions

Down payment is a lump sum payment made at the time of purchase. A draft is a note that signifies a contract between a buyer and seller, saying that the buyer will pay the specified sum of money at the end of the specified period. Return on investment measures the total cash coming into the […]

Glossary Of Accounting Terms And Definitions

Residual value is defined as the book value of a fixed asset after it has been fully depreciated. Resource absorption is when all the limited resources of the company are absorbed. Restricted assets are those whose use or working is restricted by law. Results for operations is the commonly used synonym for financial statement. In […]

Glossary Of Accounting Terms And Definitions

Capitalization refers to the statement of the total capital available with the firm. It is the rate of interest that is required to convert the series of future receivable payments into their present value equivalent. Capitalized costs are those that are deducted over several accounting periods on account of depreciation or amortization. The required forms […]

Glossary Of Accounting Terms And Definitions

Direct Materials includes the cost of purchasing the raw materials for the process of production. The director’s report is written by the director of the company in the annual report as to his analysis and comments on the performance of the company in the past year and the director’s vision for the next year. Direct […]