Ending Cash Equipment

Balance
The cash/balance of the cash account at the end of the A noncurrent or long-term asset account which reports the cost
accounting period computed using the beginning balance of the equipment.
plus the net cash change in cash for the current period.
Expense
Ending There are decreases in economic benefits during the accounting
Inventory
Total cost of inventory unsold at the end of the accounting period in the form of outflows of the assets or incidences of
liabilities that result in decreases in equity.
cycle.

Equity External
It is the residual interest in the assets of the enterprise Auditing
Examination of financial statement by an independent CPA
with the purpose of expressing an opinion as to fairness of
after deducting all the liabilities.
presentation and compliance with the Generally Accepted
Equity Accounting Principles (GAAP).

Ratio
An investment leverage or solvency ratio that measures External Users
the amount of assets that are financed by owners' Individuals and organizations outside a company who want
investments by comparing the total equity in the company
financial information about the company.
to the total assets.

Hedge Human Resource

An investment to reduce the risk of adverse price
movements in an asset.
Hidden Assets
Assets that are undervalued on a company's balance sheet
and therefore may not be incorporated into or reflected in
the company's share price.
Accounting
The process of identifying and reporting investments made in
the human resources of an organization that are presently
unaccounted for in the conventional accounting practices.
Hurdle Rate
The minimum rate that a company expects to earn when
investing in a project. Hence the hurdle rate is also referred to
as the company's required rate of return or target rate.

Horizontal
Analysis
(also known as trend analysis) is a financial statement
analysis technique that shows changes in the amounts of
corresponding financial statement items over a period of
time.
Equity
Ratio
a quantification of the economic value of a worker's skill
set. This measure builds on the basic production input of
labor measure where all labor is thought to be equal.
Qualitative Quantity Discount
Information
Information that is descriptive in nature, relating to, or A reduction in the price of a product if the buyer chooses to
involving quality or kind. acquire goods in a large quantity.

Quality Quarter
The standard of something as measured against other Three-month intervals of the year
things of a similar kind; the degree of excellence of
something.
Quick Assets
Quality Costs Assets that can be converted to cash quickly. Typically, they
include cash, accounts receivable, marketable securities, and
The costs associated with preventing, detecting, and sometimes (not usually) inventory.
remediating product issues related to quality. is a degree
or grade of excellence or worth; can be highly subjective.
Quick Ratio
Quantitative (or Acid Test Ratio) is a more rigorous test than the Current
Ratio of short-run solvency, the current ability of a firm to pay
Information
Information relating to, or expressible in, terms of its current debts as they come due.
quantity.

Rate Return Real Account

The earnings from an investment, stated as a percentage of An account that retains and rolls forward its ending balance
the invested amount. from period to period.

Ratio Real
a comparison of one number to another. The concept is
commonly used in financial analysis to gain insights into
property
Land and other assets that are permanently attached to the land
the financial performance, condition, and cash flows of an Receivable
organization
Turnover
A measure of how quickly a company is collecting its sales
Ratio Analysis that were made on credit (i.e., sales for which cash payment
was delayed until after the sale date).
The comparison of line items in the financial statements
of a business. Ratio analysis is used to evaluate a number Receivables
of issues with an entity, such as its liquidity, efficiency of
operations, and profitability. These are monetary obligations owed to an organization by its
customers and debtors.

Raw Materials Receiving Report

The constituent parts input into a production process,
A report is used to document the contents of a delivery to a
where they are transformed into finished goods.
business.
Unadjusted Trial Useful Life
Balance
An internal accounting report that is prepared prior to This is the period of time that it will be economically feasible to
recording the adjusting entries. use an asset. Useful life is used in computing depreciation on an
asset, instead of using the physical life.
Uncleared
Utilities
Check
A check that has been issued but has not yet been paid by
the bank on which it is drawn. An uncleared check is also Expense
Under the accrual basis of accounting, this account reports the
known as an outstanding check. cost of the electricity, heat, sewer, and water used during the
period indicated in the heading of the income statement.
Uncollected Funds
The amounts in a company's bank account that are not yet Utilities
accessible because the checks deposited into the account
have not yet cleared the bank on which they were drawn. Payable
A current liability account that reports the amounts owed to
the utility companies for electricity, gas, water, phone as of the
Undeposited Checks date of the balance sheet.
Checks received from customers and others that are not yet
deposited into a bank account.

Unearned Revenue
A liability account that reports amounts received in
advance of providing goods or services.

Variable Cost Vertical Analysis

A cost or expense where the total changes in proportion to A type of financial analysis involving income statements and
changes in volume or activity. balance sheets. All income statement amounts are divided by the
amount of net sales so that the income statement figures will
Variable Cost become percentages of net sales.

Ratio
Variable costs and expenses divided by net sales.
Volume
Variance
A term used with standard costs to report a difference Sometimes referred to in the context of cost or expense behavior
between actual costs and standard costs. such as "variable expenses increase as volume increases."

Vehicles
A long-term asset account that reports a company's cost of
automobiles, trucks, etc. The account is reported under the
balance sheet classification property, plant, and
equipment. Vehicles are depreciated over their useful lives.

Vendor Invoice
The name used by a buyer of goods or services for the sales
invoice or bill received from the supplier of the goods or
services.
Wages Withholdings
The compensation earned by employees who are paid on an The term associated with payroll deductions from an employee's
hourly basis gross wages or gross salary.

Wages Expense Withholdings

The compensation earned by hourly-paid employees during The term associated with payroll deductions from an employee's
the interval of time indicated in the heading of the income gross wages or gross salary.
statement.
Warranties Work In Progress
A promise to repair, replace, refund, etc. a product during
a specified period. The company making the promise has a Sometimes referred to in the context of cost or expense behavior
contingent liability and a warranty expense that should such as "variable expenses increase as volume increases."
be recorded at the time the product is sold.
White collar worker
A term often used when referring to office workers,
managers, professionals, and executives.

Withdrawals
Also referred to as draws. These are a reduction of owner's
equity, but are not a business expense and they do not
appear on the sole proprietorship's income statement.

XD – Ex Dividend Zero Based Budgeting

A stock trading term that specifies when a declared a method of budgeting which requires each cost element to be
dividend is owned by the seller rather than the buyer. specifically justified, as though the activities to which the
budget relates were being undertaken for the first time.
Year
Zero Coupon Bond
A period of twelve months
A bond which carries no interest, but which is issued at a
discount and so provides a capital gain when it is redeemed at
Year End face value
The end of the financial year, when a company’s accounts
are prepared.

Year End Adjustment

Final adjustments to an entry in accounts to ensure
complete accuracy in the presentation of a financial
statement

Year To Date
The period between the beginning of a calendar or
financial year and the present time.
T Account Telephone Expense
a graphic representation of a general ledger account. The The cost associated with all land lines, fax lines, and cell phones
name of the account is placed above the "T" . during a usage period.

Tangible Temporary
Assets
A tangible asset is physical property - it can be touched.
Account
An account in which transactions are accumulated for one
accounting year, after which the account is zeroed out and used
The term is most commonly associated with fixed assets,
again in the next accounting year to accumulate a new set of
such as machinery, vehicles, and buildings.
transactions.
Tax
A charge imposed by a government on an individual or Trade Discount
corporate entity. the amount by which a manufacturer reduces the retail price of
a product when it sells to a reseller, rather than to the end
Tax Accounting customer.
Refers to the rules used to generate tax assets and
liabilities in the accounting records of a business or Transaction
individual.
a business event that has a monetary impact on an entity's
financial statements, and is recorded as an entry in its
Tax Income accounting records.
A taxpayer's gross income, minus any allowable tax
deductions.

Savings Accounts Selling Expenses

A bank account intended to provide incentive for the Directly related to the main purpose of a merchandising
deposit to save money. business . The sale and delivery of merchandise. Does not
include Cost of Good Sold and Contra Revenue Accounts.
Sales
Stale Check
The total amount of revenue that the company was able
to generate from selling products. A check with a bank will not accept and exchange for money
or payment because it was written more than a certain number
Sales Discount of months ago.
Discounts were given to customers who pay earlier or Statement in Changes
before the deadline. in
ReportEquity
all the changes (increases/decreases to the owner’s
Sales Journal interest on the company during the period.

Book of first entry for sales invoices issued to customers Statement of

for goods supplied or services rendered. Comprehensive
Contains the result of the company’sIncome
operations for a specific
Sales Return period of time; known as Income statement

Occurs when customers return the products for reasons Statement of Financial
such as but not that limited to defect or change of
preference.
Position
An accounting report that shows financial position of the
business entity.
Records permanent accounts as of the end of an accounting