Detailed examination of accounting procedures, which are standardized methods a company utilizes to manage its routine accounting tasks. These procedures are often documented in a manual for training purposes.
Accounting records are essential documents that provide information on financial transactions and the economic status of an organization.
A comprehensive overview of the Accounts Payable Ledger, detailing its significance, structure, and the role it plays in financial management.
Accounts Receivable (AR) is a financial term referring to the amount of money owed to a creditor by customers for goods or services provided on credit. This entry explores the concept, its importance, examples, related terms, and more.
An in-depth look into the Accounts Receivable Ledger, detailing its importance, structure, and relationship with the General Ledger in accounting practices.
Accounts Receivable Turnover is a financial ratio that measures the efficiency with which a company collects its credit sales from customers.
Accredited in Business Valuation (ABV) is a designation awarded by the American Institute of Certified Public Accountants (AICPA) to Certified Public Accountants (CPAs) who have met specific education, examination, and experience requirements. The resulting designation is CPA/ABV.
A detailed understanding of the accrual basis (accrual method) accounting, including its principles, applications, advantages, disadvantages, and a comparison with the cash basis accounting method.
Accrue refers to accounting to recognize income, expenses, or liabilities when they occur rather than when cash changes hands.
Detailed insight into accrued depreciation, its significance in accounting, and comparison with accumulated depreciation.
Accrued interest or accrued income represents interest or other income that has been earned but not yet paid, playing a significant role in finance and accounting.
An in-depth exploration of accrued liabilities, their accounting treatment, and their significance in financial reporting.
Detailed coverage of accrued taxes, including definitions, examples, historical context, applicability, and more.
A comprehensive definition and explanation of Accumulated Benefit Obligation (ABO) in pension accounting, with illustrations, historical context, comparisons to projected benefit obligation (PBO), and FAQs.
Understanding accumulated depletion as a contra-asset account for depletable assets and its implications in financial accounting.
Accumulated Depreciation is a critical concept in accounting, representing the total amount of depreciation expense that has been claimed to date on an asset.
The actuarial present value of an employer's postretirement benefits other than pensions, such as retiree medical or retiree life insurance benefits, attributed to employee service rendered to a specific date.
A comprehensive look at the Accelerated Cost Recovery System (ACRS), including its principles, applications, historical development, and its modification into the Modified Accelerated Cost Recovery System (MACRS).
Detailed explanation of Additional First-Year Depreciation, an increased depreciation deduction that allows businesses to rapidly deduct the cost of capital expenditures during the first year.
An in-depth analysis of Additional Paid-In Capital, also referred to as Capital Contributed in Excess of Par Value, its types, implications, and examples.
Adjusted Basis refers to the original cost or other basis of property, reduced by depreciation deductions and increased by capital expenditures, used to measure gains and losses for tax purposes.
An in-depth look at adjusting entries in accounting, including their purpose, types, and examples.
Comprehensive coverage of administrative expenses, detailing their nature, examples, historical context, and their role in accounting.
Understanding the various contexts and applications of the term 'allocate' in different fields such as general usage, accounting, finance, and resource management.
A comprehensive look into allowance for bad debts, its significance, calculation methods, examples, and impact on financial statements.
Comprehensive article detailing the concept of Allowance for Depreciation, also known as Accumulated Depreciation, its calculation methods, implications, and examples.
An amended tax return is filed to correct or supplement an original tax return. For corporations, Form 1120X is commonly used, while Form 1040X is typically employed by individuals.
A comprehensive overview of Annual Earnings, including definitions, tax implications, and reconciliation processes.
An in-depth look at the Application of Funds in financial statements, exploring the Working Capital and Cash concepts, and their implications.
A comprehensive overview of auditing practices, types of audits, historical context, and their essential role in financial accuracy and organizational integrity.
An Audit Limited is an examination with a restricted focus, such as being confined to specific accounts, a shorter time span, or restricted access to records.
An Audit Program is a detailed listing of the steps to be taken by an auditor, such as a Certified Public Accountant (CPA), when analyzing transactions to determine the acceptability of financial statements. Major accounting firms may prepare an audit program for each client and require the person who does the work to sign or initial each step performed.
An auditor is a professional entrusted with examining, verifying, and ensuring the accuracy of financial records for public and private entities. Delve into different types, functions, historical significance, and applicability in the modern context.
An in-depth look at an auditor's certificate, opinion, or report, which provides an independent assessment of a company's financial statements.
An automatic extension allows a taxpayer more time to file a tax return by filing the appropriate form with the IRS by the original due date, although tax payments based on the taxpayer's best estimate remain due on the original date.
An in-depth exploration of Average Fixed Cost, including its characteristics, calculations, and importance in economics and business.
A comprehensive exploration of backdating involves the manipulation of dates on financial instruments and its implications in various fields, including finance, accounting, and legal contexts.
Comprehensive explanation of bad-debt recovery, its processes, examples, historical context, and implications in various financial and business contexts.
A comprehensive guide on Bad-Debt Reserve, its application, historical context, and impact of the Tax Reform Act of 1986 on its usage.
Balance Sheet Reserves refer to the amounts in pension plans expressed as a liability on the insurance company's balance sheet for benefits owed to policyowners. These reserves must be maintained according to strict actuarial formulas.
Basis refers to the amount representing the taxpayer's cost in acquiring an asset, used for computing gain or loss on sale, exchange, and depreciation purposes.
An overview of Before-Tax Cash Flow (BTCF), its significance in financial analysis, calculation methods, and its applications in various industries.
A comprehensive guide to below-the-line deductions, also known as itemized deductions, which can reduce your taxable income when filing taxes.
A comprehensive guide to understanding Billing Cycle, including its definition, types, historical context, and practical applications.
Black-Box Accounting refers to accounting methodologies so complex that they obscure the clarity of financial statements, despite being accurate and legal.
A detailed explanation of 'Book' in various financial and accounting contexts, including its significance in underwriting, securities, and record-keeping.
An in-depth guide to Book Depreciation in Accounting: Its significance, methods, examples, and related concepts.
A detailed exploration of what constitutes a book of account, its types, importance, and usage in accounting.
Understanding the concept of book profit or loss, its implications in accounting and finance, and its distinction from realized profit and loss.
Book value refers to the value of individual assets calculated by subtracting depreciation from the actual cost. This value often differs from the market value.
A bookkeeper meticulously records financial transactions, ensuring the accuracy and organization of accounting systems. While not often holding the advanced education of an accountant, a bookkeeper's role is fundamental to the accounting process.
Definition and applications of BOY in various contexts like finance, accounting, and business.
Break-Even Analysis is a financial analysis method that identifies the point where total revenue equals total expenses, resulting in neither profit nor loss. This is crucial for businesses to determine the minimum sales needed to avoid financial loss and understand the impact of cost and revenue changes on profitability.
A comprehensive guide to understanding budget deficits, including their implications, causes, examples, and methods of management across governments, corporations, and individuals.
A comprehensive guide to understanding Business Bad Debt, how it arises in the course of trade or business, and the implications for taxpayers.
Understanding the limitations and exceptions of the business gift tax deduction, including allowable advertising items.
Six-digit code numbers for principal business activities, utilized to classify enterprises by type of activity for IRS administrative purposes. Similar in format to the North American Industry Classification System codes.
An in-depth explanation of Business Property, its tax implications, and various types. Understand how Business Property is categorized and managed under tax law.
A detailed exploration of the business purpose doctrine, its relevance, criteria, and applications in validating transactions for tax purposes.
A comprehensive overview of the calendar year, its applications, significance, and comparison with the fiscal year.
Capital Contributed in Excess of Par Value refers to the amount paid for stock above its stated par value, as shown in the Owner's Equity section of a balance sheet.
A comprehensive guide to understanding capital contributions, their types, examples, historical context, and impact on corporation and shareholder basis.
Capital Expenditure (CapEx) refers to funds used by an organization to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment.
Capital Expenditure (CAPEX) refers to funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment. These expenditures are capitalized and depreciated over time.
A detailed overview and explanation of Capital Expense, also known as Capital Expenditure, its financial implications, examples, and related concepts.
Capital improvement refers to a betterment to a building or equipment that extends its life or increases its usefulness or productivity. The cost of a capital improvement is added to the basis of the asset improved and then depreciated.
A capital lease is a lease that must be reflected on a company's balance sheet as an asset and corresponding liability. This generally applies to leases where the lessee acquires essentially all of the economic benefits and risks of the leased property.
An in-depth look into Capital Outlay, its definitions, categories, and relevance in finance and accounting.
An in-depth look at the concept of capital paid in excess of par value, also referred to as additional paid-in capital, including its definition, importance, and implications for financial reporting.
An in-depth exploration of the term 'capitalize' and its various applications in finance, accounting, and economics.
Carryover refers to the practice of carrying forward certain financial statements or taxable amounts to future periods, allowing businesses and individuals to more effectively manage their finances and tax liabilities.
The cash basis, or cash method, is an accounting approach used by most individual taxpayers that recognizes income and deductions when money is received or paid.
Comprehensive analysis and detailed explanation of Cash Disbursement, including types, examples, historical context, related terms, and applicability in various fields.
Cash Earnings refer to the net income derived from cash revenues minus cash expenses, explicitly excluding any non-cash expenses like depreciation. Learn more about its significance in financial analysis.
An in-depth examination of cash flow, covering its definitions, importance, types, examples, and differences from taxable income.
An in-depth look into cash throw-off, often referred to as cash flow, covering its significance in finance and business.
A comprehensive guide to understanding the Cashbook, an accounting book that combines cash receipts and disbursements, and ties its balance to the cash account in the general ledger.
A detailed explanation of Certified Financial Statements, including components, certification process, examples, historical context, and significance.
The Certified Management Accountant (CMA) credential is awarded by the Institute of Management Accountants (IMA) to individuals who have successfully passed a rigorous examination and met specified educational and professional experience requirements.
A Certified Public Accountant (CPA) is a professional who has met specific educational and experiential criteria, passed rigorous exams, and fulfilled all licensing requirements of the state. CPAs conduct accounting, auditing, and tax preparation for individuals and corporations.
A detailed overview of what comprises a change in accounting method, including regulatory requirements, examples, and FAQs.
A detailed log, book, or journal used to record individual checks issued by an account holder, listed in the order they were written.
A check stub is a part of a check that is retained for record-keeping purposes, typically containing information concerning the transaction. This entry provides a comprehensive explanation, historical context, and usage of check stubs.
A comprehensive guide to the Claim for Refund process, criteria, and special considerations for taxpayers seeking refunds from the Internal Revenue Service.
An in-depth look at Class Life Asset Depreciation, its mechanics, types, considerations, examples, and significance in various industries.
The term 'clean' encompasses various meanings in accounting, finance, international trade, and securities. This includes the unqualified audit report, debt-free balance sheets, undocumentary drafts, and block trades without inventory risk.
A clean opinion is an auditor's unqualified report indicating that the financial statements of an entity are fairly presented without any reservations, exceptions, or errors noted.
A comprehensive definition of Clerical Error, its examples, distinctions from Judgment and Technical Error, and its implications in various fields.
Comprehensive explanation of 'Close' ranging from finance and trading to accounting and computing environments.
An overview of Closed Accounts in banking and accounting, including definitions, examples, and related concepts.
A detailed exploration of 'Closing' in the context of real estate transactions and accounting procedures, including definitions, processes, historical context, and related terms.
A comprehensive definition of closing entry in accounting, its importance, examples, historical context, and implications for financial statements.
Understand the concept of Closing Inventory, its valuation methods, importance in financial accounting, and impact on financial statements and business operations.
A comprehensive definition of a closing statement, which accounts for funds from a real estate sale, provided separately to both the seller and the buyer.
Detailed exploration of the process of assigning identification numbers to accounts in financial statements, including examples, historical context, and applicability in business environments.
The Collection Ratio, also known as the average collection period, measures how efficient a company is at converting its accounts receivable into cash. This metric is essential for managing cash flow and assessing the effectiveness of credit policies.
A Columnar Journal is a specialized bookkeeping tool with structured columns to facilitate the accurate and organized entry of numerical data in accounting.
A method to compare financial statements of different companies by converting account groupings to a percentage of sales revenues, facilitating easier comparisons of financial performance.
Financial statements covering different dates but prepared consistently, facilitating comparative analysis as per accounting conventions.
