(Glossary)

A
Accelerated-Depreciation Method
Account
Account Form
Accounting
Accounting Cycle
Accounting Period Concept
Accounts Payable
Accounts Payable (Creditors) Subsidiary Ledger
Accounts Receivable
Accounts Receivable Analysis
Accounts Receivable (Customers) Subsidiary Ledger
Accounts Receivable Turnover
Accrual-Basis Accounting
Accruals
Accrued Expenses
Accrued Revenues
Accumulated Depreciation
Accumulated Other Comprehensive Income
Acid-Test (Quick) Ratio
Additions and Improvements
Adjusted Trial Balance
Adjusting Entries
Adjusting Process
Administrative Expense (General Expenses)
Aging the Accounts Receivable
Allowance for Doubtful Accounts
Allowance Method
Amortization
Annuity
Assets
Assets Turnover
Associate
Associating Cause and Effect
Auditing
Authorized Shares
1

()

Available-for-Sale (AFS) Securities

Average Collection Period
Average-Cost Method

Basic Accounting Equation

Bad Debts Expense
Balance of the Account
Balance Sheet
Bank Reconciliation
Bank Service Charge
Bank Statement
Basic Accounting Equation
Bearer (Coupon) Bonds
Bond Certificate
Bond Discount
Bonds
Bonding
Bond Indenture
Bond Premium
Bonus
Bookkeeping
Book Value
Book Value of the Asset (or Net Book Value)
Book Value per Share
(Cash) Boot

Business
Business Combination
Business Entity Concept
Business Transaction
By-Laws
C
Calendar Year
Callable Bonds
Capital Expenditures
Carrying Amount
Cash

Cash-Basis Accounting
Cash Receipts Journal
Cash Dividend
Cash Equivalents
Cash Flow per Share
Cash Flows from Financing Activities
Cash Flows from Investing Activities
Cash Flows from Operating Activities
Cash Payments (Cash Disbursements) Journal
Cash (Net) Realizable Value
Cash Short and Over Account
Certified Public Accountant (CPA)
Change in Accounting Principle
Chart of Accounts
Charter
Check
Classified Statement of Financial Position
Clearing Account
Closing Entries
Closing Process
Closing the Books
Common-Size Statement
Comparability
Component Depreciation
Compound Interest
Compound Entry
Compensating Balances
Completeness
Comprehensive Income
Consigned Goods
Consignee
Consignor
Consistency (Concept)
Consolidated Financial Statements
Contingent Liabilities
Contra Asset Account
Contra-Revenue Account
Contractual Interest Rate

Control Environment
Control Account
Controlling Interest
Convergence
Convertible Bonds
Copyrights
Corporation
Correcting Entries
Cost Constraint
Cost Principle
Cost Method
Cost of Merchandise Purchased
Cost of Goods Sold
Credit
Creditors
Credit Memorandum (Credit Memo)
Credit Period
Credit Terms
Cumulative Dividend
Cumulative Preference Share
Current Assets
Current Cost
Current Liabilities
Current Position Analysis
Current Ratio

()

Days in Inventory
Debenture Bonds
Debit
Debit Memorandum (Debit Memo)
Debt Investments
Debt Securities
Debt to Assets Ratio
Declaration Date
Declining-Balance Method
Deferrals
Deficit

Defined-Benefit Plan
Defined-Contribution Plan
Depletion
Deposit in Transit
Depreciable Cost
Depreciate
Depreciation
Depreciation Expense
Direct Method
Direct Write-off Method
Discount (on a Bond)
Discounting the Future Amount(s)
Dishonored (Defaulted) Note
Discontinued Operations
Dividend Yield
Dividend
Dividends per Share
Double-Declining-Balance Method
Double-Entry System

()

Earnings per Share (EPS)

Earnings per Share (EPS) on Ordinary Share
Economic Entity Assumption
Effective-Interest Method of Amortization

()

Effective Rate of Interest

Electronic Funds Transfer (EFT)

Elements of Internal Control

Employee Fraud

Employee Earnings Record

Employee Withholding Allowance Certificate (Form W-

4)
Equity

Equity Method

Equity Securities

Ethics

Expanded Accounting Equation

Expense Recognition Principle (Matching Principle)

Expenses
Expenses and Losses
F

()

Face Value
Factor
Faithful Representation
Fair Value
Fair Value less Cost to Sell
Fair Value Principle
Fair Value through Profit or Loss (FVPL) Securities

Fair Value through Other Comprehensive Income

(FVOCI) Securities

Federal Unemployment Taxes

Feed Earned (Service Revenue)

Feedback Value

Fees

FICA Taxes
FICA
Finance Lease

Financial Accounting

Financial Accounting Standards Board (FASB)

Financial Assets

Financial Assets Measured at Amortized Cost

FOB
FOB

()

Financial Liabilities
Financial Reporting
Financial Statements
Financing Activities
First-in, First-out (FIFO) Method
Finished Goods Inventory
Fiscal Year
FOB (Free on Board) Destination
FOB (Free on Board) Shipping Point
Forensic Accounting
Franchise (license)
Fraud
6

Fraud Triangle
Free Cash Flow
Freight In
Freight Out
Fringe Benefits
Full Disclosure Principle
Future Value of a Single Amount
Future Value of an Annuity

General Journal
General Ledger
General-Purpose Financial Statements
Generally Accepted Accounting Principles (GAAP)
Going-Concern Assumption
Goodwill
Gross Earnings
Gross Profit
Gross Profit Method
Gross Profit Rate
Gross Profit Method
H

Held-to-Collection Securities
Historical Cost
Historical Cost Principle (Cost Principle)
Horizontal Analysis

()

I
Immediate Recognition
Impairment Loss
In Arrears
Income from Operations (Operating Income)
Income Statement
Income Summary
Indirect Method
Installment Note
Intangible Assets
Intercompany Eliminations

()

Intercompany Transactions
Interest
Interest Revenue
Interim Periods
Internal Auditors
Internal Control
International Accounting Standards Board (IASB)
International Financial Reporting Standards (IFRS)
Inventory Analysis
Inventory Shrinkage (Inventory Shortage)
Inventory Subsidiary Ledger
Inventory Turnover
Investee
Investing Activities
Investments
Investment Portfolio
Investors
Invoice
J
Journal
Journal Entry
Journalizing
Just-in-time (JIT) Inventory Method

L
Last-in, First-out (LIFO) Method
Lease
Ledger
Leveraging
Liabilities
Licenses
Limited Liability Company (LLC)
Liquidating Dividend
Liquidity
Liquidity Ratios
Long-Term Investments
Long-Term Liabilities

Lower-of-Cost-or-Net Realizable Value(LCNRV) Basis

M

Maker
Management (or Managerial) Accounting
Management Consulting
Managements Discussion and Analysis (MD&A)
Manufacturing Business
Materiality (Concept)
Market Interest Rate
Matching Concept (or Matching Principle)
Maturity Date
Maturity Value
Merchandise Available for Sale
Merchandise Inventory
Merchandising Business
Monetary Unit Assumption
Mortgage Bond
Mortgage Note Payable
Multiple-Step Income Statement
N

Natural Business Year

Natural Resources
Net Fair Value
Net Income
Net Loss
Net Pay
Net Purchases
Net Realizable Value
Net Sales
Neutrality
Non-Current Liabilities
Non-Trading Securities
No-Par Value Shares
Normal Balance
Notes Receivable
Notes Payable
NSF Check

Number of Days Sales in Inventory

Number of Days Sales in Receivables
Number of Times Interest Charges Are Earned
O

Objectivity Concept
Operating Activities
Operating Cycle
Operating Expenses
Operating Leases
Ordinary Repairs
Organization Costs
Other Comprehensive Income
Other Expenses
Other Income
Other Receivables
Outstanding Checks
Outstanding Shares
Owners Equity

Par
Par Value Shares
Parent Company
Partnership
Patent
Payee
Payment Date
Payout Ratio
Payroll
Payroll Deductions
Payroll Register
Pension Plan
Percentage-of-Receivables Basis
Percentage-of-Sales Basis
Periodic Inventory System
Permanent (Real) Accounts
Perpetual Inventory System
Petty Cash Fund

()

10

Physical Inventory
Plant Assets
Post-Closing Trial Balance
Posting
Postretirement Benefits
Preferred Shares
Premium (on a Bond)
Prepaid Expenses (Prepayments)
Present Value
Present Value of an Annuity
Price-Earnings (P/E) Ratio
Principal
Predictive Value
Price-Earnings (P-E) Ratio
Prior Period Adjustment
Private (or Managerial) Accounting
Privately Held Corporation
Profit
Profit Margin
Profitability
Profitability Ratios
Pro Forma Income
Property, Plant, and Equipment
Proprietorship
Promissory Note
Provision
Prudence
Public Accounting
Publicly Held Corporation
Purchase Allowance
Purchase Discount
Purchase Invoice
Purchase Journal
Purchase Order
Purchase Return
Purchase Returns and Allowances

()
()

Q
11

Quality of Earnings
Quick Assets
Quick Ratio

Rate Earned on Ordinary Shareholders Equity

Rate Earned on Total Assets
Ratio
Ratio Analysis
Ratio of Liabilities to Equity
Ratio of Net Sales to Assets
Raw Materials
Real (Permanent) Accounts
Realizable (Settlement) Value
Receivables
Receivables Turnover
Receiving Report
Record Date
Recoverable Amount
Registered Bonds
Relevance
Reliability
Rent Revenue
Report Form
Research and Development (R&D) Costs
Residual Value
Restricted Cash
Restrictions
Retail Inventory Method
Retained Earnings
Retained Earnings Restrictions
Retained Earnings Statement
Return on Assets
Return on Ordinary Shareholders Equity
Revenue Recognition Principle
Revenues
Revenues and Gains
Revenue Expenditures

()

12

Revenue Recognition Concept

Reversing Entry
Rules of Debit and Credit

Salaries
Sales Discount
Sales Invoice
Sales Journal
Sales Returns and Allowances
Sales Revenue (Sales)
Sarbanes-Oxley Act of 2002
Secured Bonds
Securities and Exchange Commission (SEC)
Selling Expenses
Serial Bonds
Service Business
Share Capital
Share CapitalOrdinary
Share Dividend
Shareholders
Share Investments
Share Split
Short-Term Investments
Simple Entry
Simple Interest
Single-Step Income Statement
Sinking Fund Bonds
Slide
Solvency
Solvency Ratios
Special Journal
Special-Purpose Fund
Specific Identification Method
State Unemployment Taxes
Stated Value
Statement of Cash Flows
Statement of Changes in Equity

2002

13

Statement of Comprehensive Income

Statement of Earnings
Statement of Financial Position (Balance Sheet)
Stock
Stock Dividend
Stock Split
Straight-line Method
Straight-line Method of Amortization

()

()

Substance over Form

Subsidiary (Affiliated) Company
Subsidiary Ledger
Supplies
Systematic and Rational Allocation

()

T-Account
Taxation
Temporary (Nominal) Accounts
Term Bonds
Three-Column Form of Account
Timely
Time Period Assumption
Time Value of Money
Times Interest Earned
Trade Discounts
Trade Receivables
Trade-in Allowance
Trademark (Trade Name)
Trading on the Equity
Trading Securities
Transactions
Transposition
Treasury Shares
Trial Balance

()

Unadjusted Trial Balance

Understandability

14

Unearned Revenue
Unit of Measure Concept
Units-of-Activity Method
Unrealized Gain or Loss
Unsecured Bonds
Useful Life
Utilities Expense

Value in Use
Verifiable
Vertical Analysis
Voucher
Voucher System

Wages
Wage and Tax Statement (Form W-2)
Weighted-Average Unit Cost
Working Capital
Work in Process
Worksheet

15