Accelerated-depreciation method: Depreciation method that produces higher depreciation expense in the early years than in the later years.
Account: A record of increases and decreases in specific asset, liability, or equity items.
Accounts payable (creditor's) subsidiary ledger: A subsidiary ledger that collects transaction data of individual creditors.
Accounts receivable: Amounts owed by customers on account.
Accounts receivable (customer's) subsidiary ledger: A subsidiary ledger that collects transaction data of individual customers.
Accounts receivable turnover ratio: A measure of the liquidity of accounts receivable, computed by dividing net credit sales by average net accounts receivable.
Accounting: The informatuon system that identifies, records, and communicates the economic events of an organization to interested users.
Accrual-basis accounting: Accounting basis in which companies record transaction that change company's financial statement in the periods in which the events occur.
Accruals: adjusting entries for either accrued revenues or accrued expenses.
Accrued expenses: Expenses incurred but not yet paid in cash or recorded.
Acid-test (quickly) ratio: A measure of a company's immediate short-term liquidity; computed by dividing the sum of cash, short-term investments, and net receivable by current liabilities.
Additions and improvements: Costs incurred to increase the operating efficiency, productive capacity, or useful life of a plant asset.
Adjusted trial balance: A list of accounts and their balances after the company has made all adjustments.
Adjusting entries: Entries made at the end of an accounting period to ensure that companies follow the revenue and expense recognition principles.
Aging the accounts receivable: The analysis of customer balances by the length of time they have been unpaid.
Allowance for Doubtful Accounts: As account that shows the estimated amount of claims on customers that the company expects will become uncollectible in the future.
Allowance method: A method of accounting for bad debts that involves estimating uncollectible accounts at the end of each period.
Ammortization: The allocation of the cost of an intangible asset to expense over its useful life in a systematic and rational manner.
Annuities: A series of equal dollar amounts to be paid or received at evenly spaced time intervals (periodically).
Assets: Resources a business owns.
Asset turnover: A measure of how efficiently a company uses its assets to generate sales;computed by dividing net sales by average sales.
Asset turnover ratio: A measure of how efficiently a company uses its assets to generate sales; calculated as net sales divided by average total assets.
Associate: An investor company that an investor has significant influence over, but not control.
Auditing: The examinitation of financial statements by an indeendent accountant in order to express an opinion as to the fairness of presentation.
Authorized shares: The amount of shares that a corporation is authorized to sell as indicated in its charter.
Available-for-sale (AFS) securities: Securities that are held with the intent of selling them sometimes in the future.
Average collection period: The average amount of time that a receivable is outstanding; calculated by dividing 365 days by the accounts receivable turnover ratio.
Average cost method: Inventory costing method that uses the weighted-average unit cost to allocate to ending inventory and cost of goods sold thecost of goods available for sale.
Basic accounting equation: Assets = Liabilities + Equity
Bookkeeping: A part of accounting that involves only the recording of economic events.
Book value: The difference between the cost of a depreciable asset and its related accumulated depreciation.
Account: A record of increases and decreases in specific asset, liability, or equity items.
Accounts payable (creditor's) subsidiary ledger: A subsidiary ledger that collects transaction data of individual creditors.
Accounts receivable: Amounts owed by customers on account.
Accounts receivable (customer's) subsidiary ledger: A subsidiary ledger that collects transaction data of individual customers.
Accounts receivable turnover ratio: A measure of the liquidity of accounts receivable, computed by dividing net credit sales by average net accounts receivable.
Accounting: The informatuon system that identifies, records, and communicates the economic events of an organization to interested users.
Accrual-basis accounting: Accounting basis in which companies record transaction that change company's financial statement in the periods in which the events occur.
Accruals: adjusting entries for either accrued revenues or accrued expenses.
Accrued expenses: Expenses incurred but not yet paid in cash or recorded.
Acid-test (quickly) ratio: A measure of a company's immediate short-term liquidity; computed by dividing the sum of cash, short-term investments, and net receivable by current liabilities.
Additions and improvements: Costs incurred to increase the operating efficiency, productive capacity, or useful life of a plant asset.
Adjusted trial balance: A list of accounts and their balances after the company has made all adjustments.
Adjusting entries: Entries made at the end of an accounting period to ensure that companies follow the revenue and expense recognition principles.
Aging the accounts receivable: The analysis of customer balances by the length of time they have been unpaid.
Allowance for Doubtful Accounts: As account that shows the estimated amount of claims on customers that the company expects will become uncollectible in the future.
Allowance method: A method of accounting for bad debts that involves estimating uncollectible accounts at the end of each period.
Ammortization: The allocation of the cost of an intangible asset to expense over its useful life in a systematic and rational manner.
Annuities: A series of equal dollar amounts to be paid or received at evenly spaced time intervals (periodically).
Assets: Resources a business owns.
Asset turnover: A measure of how efficiently a company uses its assets to generate sales;computed by dividing net sales by average sales.
Asset turnover ratio: A measure of how efficiently a company uses its assets to generate sales; calculated as net sales divided by average total assets.
Associate: An investor company that an investor has significant influence over, but not control.
Auditing: The examinitation of financial statements by an indeendent accountant in order to express an opinion as to the fairness of presentation.
Authorized shares: The amount of shares that a corporation is authorized to sell as indicated in its charter.
Available-for-sale (AFS) securities: Securities that are held with the intent of selling them sometimes in the future.
Average collection period: The average amount of time that a receivable is outstanding; calculated by dividing 365 days by the accounts receivable turnover ratio.
Average cost method: Inventory costing method that uses the weighted-average unit cost to allocate to ending inventory and cost of goods sold thecost of goods available for sale.
Basic accounting equation: Assets = Liabilities + Equity
Bookkeeping: A part of accounting that involves only the recording of economic events.
Book value: The difference between the cost of a depreciable asset and its related accumulated depreciation.
