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Mekari Jurnal
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Accounting dictionary

Find Accounting terms
according to your needs

A

Accident
Unexpected event causing losses
Account
Record used to note financial transactions
Account Classification
Classification of accounts based on transaction type
Account receivable
Trade receivables from sales of goods/services.
Accountability
Responsibility to provide accurate and timely financial reports
Accounting Changes
Changes in accounting policies or methods.
Accounting Cycle
Steps in the accounting process from recording to reporting.
Accounting Depreciation
Accounting method for recording decrease in fixed asset value
Accounting Documentation
Collection of documents supporting accounting records
Accounting Information System
Integrated system managing accounting data.
Accounting Journal
Formal record of financial transactions in accounting
Accounting Ratios
Ratios used in financial statement analysis.
Accounting Standards
Standardized rules for preparing financial statements (e.g., GAAP, IFRS).
Accounting Validity
The validity of data/concepts in accounting.
Accounting Validity
The validity of data/concepts in accounting.
Accounts Payable
Record of company debts to other parties
Accounts Payable
Records of a company’s liabilities and receivables with other parties.
Accounts Receivable
Record of company receivables from customers
Accounts Receivable
Trade receivables (redundant term).
Accounts Receivable
Money expected to be received from others.
Accounts Receivable Value
The amount of receivables owed to a company.
Accounts Receivable Value
Value of trade receivables from operations.
Accounts payable
Debt arising from purchase of merchandise
Accounts payable
Liabilities to suppliers or business partners.
Accounts receivable
A company’s right to receive payment.
Accounts receivable
Trade receivables.
Accrual of Expenses
Recording expenses that are already obligations even if not yet paid
Accrual of Liabilities
Recording debts or obligations that have arisen but not yet settled
Accrual-Based Accounting System
Accrual-based accounting system.
Accruals
All types of transaction records recognized even if cash has not moved
Accrued Debt
Liabilities from expenses incurred but not yet paid.
Accrued Interest
Recording loan or investment interest that has arisen even if not yet paid
Accumulated Debt
Accumulated liabilities from prior periods.
Accumulated Debt
Accumulated liabilities from prior periods.
Accumulated Deficit
Total company losses accumulated over time
Accumulated Depreciation
Total depreciation of fixed assets recorded up to now
Activity Ratio
Ratios measuring asset utilization efficiency.
Adjustment Money
Money used for financial adjustments.
Administrative Expenses
Costs for company administrative activities
Administrative Fee Debt
Liabilities for administrative expenses.
Administrative and General Expenses
General and administrative expenses of a company
Allowance for Bad Debts
Provision to anticipate receivable losses.
Allowance for Doubtful Accounts Receivable
Allowance for bad debts.
Allowance for Doubtful Accounts Receivable
Allowance for uncollectible accounts.
Allowance for Losses on Accounts Receivable
Allowance for doubtful trade receivables.
Amortization Period
The period over which an intangible asset is amortized.
Annual Financial Report
Annual financial statements
Annual Interest Expense
Annual interest expenses incurred.
Annual report
Annual report
Assembly Period
The time required to assemble a product.
Asset Account
Account recording company’s assets.
Asset Change Report
Report on changes in company assets
Asset Impairment
Decrease in the carrying value of assets.
Asset Loss Provision
Reserve for asset losses.
Asset Tracking
Tracking the use and condition of assets.
Asset Use
Utilization of assets for operations or investments.
Audited Financial Report
Audited financial statements
Auditor
Person or party who reviews financial statements to ensure accuracy and compliance
Automatic Logging
Automated recording of transactions.

B

Back-End
Part of a system or application that works behind the scenes and is not directly seen by users
Bad Debt
Receivable that cannot be collected from a customer
Bad Debts
Uncollectible receivables.
Bad Debts
Another term for uncollectible receivables.
Bad Debts
Receivables that cannot be collected, turning into losses.
Balance
Balance: difference between debits and credits.
Balance Sheet
A statement of financial position at a given date.
Balance Sheet Format
Presentation format of the financial position report showing assets, liabilities, and equity
Bank Charges
Fees charged by a bank for certain services
Bank Debt
Company debt owed to a bank
Bank Debt
Loans obtained from banks.
Bank Debt Payment
Repayment of bank loans.
Bank Debt Report
Report on bank debts
Bank Financial Report
Financial statements of a bank
Bank Name
Name of the banking institution in a transaction.
Bank Statement
Official document showing records of transactions and bank balance
Bankruptcy Protection
Legal protection for a company or individual in bankruptcy
Base Currency
Main currency used as reference in transactions
Beginning balance
Account balance at the beginning of a period.
Bill of Materials
List of raw materials needed to make a product
Bond
A medium/long-term debt instrument paying interest.
Bond Certificate
Certificate proving ownership of a bond
Bond Debt
Bond liabilities issued by a company.
Bond Mutual Funds
Mutual fund primarily investing in bonds.
Book Depreciation
Depreciation of fixed assets recorded in accounting books
Branch Shares
Shares issued by a company’s branch.
Breakage
Loss caused by damaged or missing goods
Breakdown Expense
Costs incurred due to equipment or machine breakdowns
Budget
Plan of company income and expenses
Budget Constraint
Limitation of funds in budgeting
Budget Holder
Person responsible for using the budget
Budget Line Review
Review of budget line items
Budget Review
Overall evaluation of the budget plan
Budget Surplus Analysis
Analysis of surplus funds in the budget
Budget Variance
Difference between budget and actual spending
Budget Variance Analysis
Analysis of causes of budget and actual differences
Budgetary Slack
Budget made looser than actual needs
Burden
All company expenses that reduce profit
Business Combination
Merger of two or more companies into one entity
Business Income Tax
Income tax from business activities.
Business Plan
Business plan outlining vision, mission, finances, and operations.

C

CAPM Model
Capital Asset Pricing Model to estimate investment returns.
Capital
Capital used to finance a business.
Capital Account
Account recording owners’ capital or equity.
Capital Asset
Long-term asset used in business activities
Capital Budget
Plan for company long-term investment spending
Capital Budgeting
Planning of long-term investments
Capital Changes
Changes in company’s capital.
Capital Contribution
Funds contributed by shareholders as capital
Capital Expenditure
Expenditures to purchase or improve long-term assets
Capital Expenditure
Capital expenditures for fixed assets.
Capital Gain
Profit from selling an asset or investment
Capital Gains
Profit earned from increase in investment value
Capital Gains Tax
Tax on gains from asset/capital sales.
Capital Investment Fund
Funds used for long-term capital investment
Capital Lease
Long-term lease treated as asset purchase
Capital Money
Capital funds used to finance a business.
Capital Rationing
Limiting the amount of funds for investment
Capital Reserve
Reserve funds set aside from company profits
Capital Return Debt
Liabilities for returning capital to shareholders.
Capital Stock
Shares issued by a company as capital
Capital Structure
Company capital structure from debt and equity
Capital Structure Ratio
Ratio showing comparison of debt to equity
Capital Surplus
Additional profits recorded in equity
Capitalization Rate
Rate of return used to value an investment
Cash
Cash owned by the company
Cash
Cash on hand used for daily transactions.
Cash Book
Book recording cash inflows and outflows
Cash Disbursement Report
Report on cash expenditures
Cash Dividend Report
Report on distribution of cash dividends
Cash Dividends
Dividend paid in cash
Cash Expenses
Cash outflow to pay specific expenses
Cash Flow
Company cash inflows and outflows
Cash Flow Forecast
Projection of future cash flows
Cash Flow Statement
Official report of company cash flows
Cash Flow Statement
Report of cash inflows and outflows
Cash Inflow Report
Report of cash inflows
Cash Liquidity
Ability to meet obligations with cash
Cash Out Report
Report of cash outflows
Cash Receipt Report
Report on cash receipts
Cash Receipts
Cash inflows to the company.
Cash Reserves
Funds used to purchase inventory.
Cash Withdrawal
Cash withdrawn from an account.
Cash flow
Flow of company cash inflows and outflows
Cash operations
Operating activities involving cash flows.
Certified Public Accountant (CPA)
Certified professional accountant authorized to provide audit services
Changes in Equity
Changes in shareholders’ equity.
Charity Fund
Funds collected for charitable activities
Checking account
Bank statement showing account movements in a given period.
Closed Company
A private company not publicly traded.
Closing Entries
Closing journal entries at the end of an accounting period
Cloud-Based Accounting System
Cloud-based accounting system.
Collection of Items
Group of goods recorded as inventory
Commercial Debt
Liabilities arising from commercial activities.
Commitment Debt
Liabilities arising from contractual commitments.
Common Stock
Common stock with voting rights and dividends.
Company Consolidated Financial Statements
Consolidated financial statements within one company group
Company Expansion Report
Report on company expansion
Company Expenses
All types of expenses incurred by the company
Company Financial Report
Company financial statements
Company Profit and Loss Report
Company income statement
Company name
Official name of a business entity.
Compensation Debt
Liabilities for employee compensation.
Compensation Dividend
Dividend given as additional compensation
Compensation Money
Compensation funds paid for losses.
Competition
Competition between companies
Comprehensive Income
Total profit including unrealized items
Comprehensive Income Statement
Comprehensive income statement
Computer Based Accounting System
Computer-based accounting system.
Consignment Debt
Liabilities for consigned goods sold.
Consistency
Accounting principle of using consistent methods over time
Consistency Principle
Principle of consistency in applying accounting methods
Consolidated Balance Sheet
Consolidated balance sheet of parent and subsidiaries.
Consolidated Financial Statements
Combined financial statements of parent and subsidiary companies
Consolidated Financial Statements
Process of preparing consolidated financial statements
Consolidated Financial Statements
Consolidated financial statements of parent and subsidiaries
Consolidated Report
Report consolidating several financial statements
Consultant
Professional advisor in a specific field
Consulting Fee Debt
Liabilities for consulting services.
Consumer Debt
Liabilities owed to consumers.
Contact Debt
Liabilities arising from contractual agreements.
Contingency Plan
Backup plan for emergencies or risks
Contingent Assets
Potential assets recognized only if certain conditions are met
Contingent Liabilities
Potential liabilities arising if certain conditions occur
Contingent Liabilities
Potential liabilities depending on future events.
Continuous Audit
Audit performed continuously
Contra Account
Account used to offset another account balance
Controllable Costs
Costs that can be controlled by management
Controllable Profit
Profit influenced by management decisions
Convertible Money
Money used for currency exchange or conversion.
Corporate Debt
Total company debts
Corporate Finance
Finance field managing company capital structure
Corporate Income Tax
Income tax levied on corporate profits.
Corporate Income Tax Burden
Income tax payable by the company
Corporate Income Tax Report
Corporate income tax report
Corporate Utilities
Utility services provided for company operations.
Correlation Analysis
Analysis of the relationship between two or more financial variables
Cost
All expenditures made to run a business
Cost Accounting
Recording and analyzing costs of producing goods or services
Cost Accounting
Accounting focused on recording and analyzing costs
Cost Allocation
Distribution of costs to various departments or products
Cost Analysis
Examination and calculation of production or operational costs
Cost Behavior
Pattern of cost changes when production volume changes
Cost Driver
Factor that causes costs
Cost Pool
Total costs accumulated for a specific purpose
Cost Volume Profit Analysis
Analysis of the relationship between costs, volume, and profit
Cost of Capital
Cost incurred to obtain capital
Cost of Equity
Cost of capital from company equity
Cost of goods sold
Direct costs for producing goods sold
Cost of goods sold
Direct costs of producing goods sold
Cost-Volume-Profit (CVP) Ratio
Ratio to analyze relationship of cost, volume, and profit
Credit
Recording transaction that increases liabilities or reduces assets
Credit Card Debt
Liabilities from credit card balances.
Credit Debt
Liabilities from credit facilities.
Credit Memo
Credit document issued by seller to buyer
Credit Memorandum
Official note about receivable reduction or adjustment
Credit Money
Money obtained through loans or credit facilities.
Credit Note
A document used to reduce the amount owed.
Credit Terms
Terms governing repayment of loans or credit purchases.
Creditor Debt
Liabilities to creditors.
Cross Subsidy
Subsidy where one product/business unit supports another.
Current Assets
Current assets easily converted into cash in the near term
Current Liabilities
Current liabilities due in the short term
Current Liabilities
Current liabilities due within one year.
Current Loss
Loss incurred during the current period
Current Portion of Long-Term Debt
Portion of long-term debt due within a year
Current Year Financial Report
Current year financial statements
Customer Debt
Liabilities owed to customers.
Customer Name
Name of a customer purchasing goods/services.

D

Daily Journal
Daily record of all transactions
Database Vendor
A company’s database of vendors.
Debit
Recording transactions that increase assets or decrease liabilities
Debit
Another term for debit in accounting records
Debit Balance
Account balance showing debit greater than credit
Debit Memo
Document from seller to buyer increasing the billed amount
Debit Note
A document used to increase the amount owed.
Debt
Company obligation to pay others
Debt
A company’s financial obligations to others.
Debt Account
Account recording company’s liabilities.
Debt Consolidation
Consolidated debt from multiple obligations.
Debt Interest Burden
Interest costs payable on company loans
Debt Interest Payment
Obligation to pay loan interest.
Debt Liabilities
Total debt liabilities
Debt Management
The management of liabilities to maintain company stability.
Debt Obligation Report
Report on debt liabilities
Debt Payment
Settlement of financial liabilities.
Debt Payment Report
Report on debt payments
Debt Receipt
Funds received from borrowing.
Debt Repayment
Liabilities for refunds or returns.
Debt Report
Report on company debts
Debt Service
Liabilities for service-related expenses.
Debt to Equity Ratio
Debt-to-equity ratio.
Debtor
Party that owes money to the company
Debtor Bill
Party obliged to pay an invoice
Debtor Receivables
Customer or party that owes receivables to the company
Debts and receivables
Record of company debts and receivables
Deferred Debt
Deferred liabilities.
Deferred Debt
Liabilities postponed to future periods.
Department Name
Name of a company’s organizational department.
Deposit
Money allocated for covering certain costs.
Deposit Money
Money deposited in a bank or financial institution.
Depreciation
Decrease in fixed asset value due to use or age
Depreciation Money
Funds allocated to record depreciation of assets.
Depreciation Period
The period over which a fixed asset is depreciated.
Depreciation Value
The amount of depreciation of fixed assets.
Depreciation of Fixed Assets
Depreciation of fixed assets.
Depreciation of Fixed Assets Based on Useful Life
Depreciation based on asset’s useful life.
Depreciation of Intangible Assets
Amortization of intangible assets.
Depreciation of Other Assets
Depreciation of other tangible assets.
Depreciation of Tangible Assets
Depreciation of tangible assets over useful life.
Development Debt
Liabilities for construction projects.
Direct Investment
Direct investment in a company or asset
Discount
Discount or reduction in the value of a security
Diversification
Strategy of spreading investments to reduce risk
Dividend
Distribution of company profit to shareholders
Dividend Debt
Company obligation to pay dividends.
Dividend Payment
Distribution of profits to shareholders.
Dividend Payment Report
Report on dividend payments
Dividend Receivables
Receivables for declared dividends.
Dividend Report
Report on dividend distribution
Dividends Payable
Dividends declared but unpaid to shareholders.
Division Financial Report
Financial statements by company division
Down payment
Down payment made before receiving goods/services.

E

EOQ Model
Economic Order Quantity model for inventory management.
Earnings Credit
Credit earned from interest on account balances
Earnings Management
Management’s effort to influence reported earnings
Earnings Per Share
Earnings per share
Earnings Retention Ratio
Ratio of retained earnings compared to those distributed
Earnings Yield
Ratio of earnings to stock price
Earnings per Share (EPS)
Net profit per share
Economic Order Quantity (EOQ)
Optimal order quantity to minimize inventory costs
Education Fees
Funds allocated for education expenses.
Effective Tax Rate
Effective percentage of tax paid by the company
Efficiency Ratio
Ratios measuring operational efficiency.
Electronic Money
Digital payment instrument stored electronically.
Embezzlement
Misappropriation of company funds or assets
Emergency Fund
Funds used during emergencies
Employee Debt
Liabilities to employees (wages, benefits).
Employee Name
Name of an employee in a company.
Employee Provident Fund
Employee retirement fund managed by the company
Encumbrance
Burden or claim on a specific asset
End of Year Debt
Debts outstanding at the end of the fiscal year.
Ending balance
Account balance at the end of a period.
Energy Conservation
Effort to save energy usage
Entity
Organizational unit with legal identity
Environmental Accounting
Accounting that includes environmental impacts in reports
Equipment Depreciation
Depreciation of equipment.
Equity
Ownership rights of shareholders over company assets
Equity Index Fund
Mutual fund that tracks a stock index
Equity Investment
Investment in the form of equity or shares
Equity Market
Market where shares are bought and sold
Equity Multiplier
Ratio showing how much assets are financed by equity
Equity Mutual Funds
Mutual fund primarily investing in stocks.
Equity Ratio
Ratio of equity to total assets
Equity Risk Premium
Extra return on stocks compared to bonds
Equity Swap
Agreement to exchange equity returns
Equity Valuation
The valuation of a company’s equity.
Equivalent Units
Equivalent units in cost accounting
Error of Principle
Error caused by violating accounting principles
Escrow Account
Special account to hold funds temporarily
Escrow Agreement
Agreement regulating funds held in escrow
Estimated Useful Life
Estimated useful life of an asset
Estimated costs
Estimate of costs to be incurred
Ex-Dividend
Condition where stock trades without dividend rights
Ex-Dividend Date
Date stock begins trading without dividend rights
Excess Capacity
Production capacity exceeding demand
Excess of Loss Insurance
Insurance covering losses beyond a set limit
Exchange Rate Risk
Risk from changes in currency exchange rates
Exchange-Traded Fund (ETF)
Investment fund traded on an exchange
Executive Compensation
Compensation received by company executives
Executive Director
Chief or executive director of a company
Exemption
Exemption from specific obligations
Expendable Asset
Assets consumed quickly and not usually capitalized.
Expenditure
The amount of money spent on goods, services, or specific activities.
Expenditure
Cash outflows for operations/investments.
Expenditure Budget
A budget allocating expenditures for a specific period.
Expenditure Variance
The difference between actual expenditure and the budgeted amount.
Expense
Costs incurred in generating revenue.
Expense Account
An accounting account that records operating expenses.
Expense Ratio
The ratio of expenses to revenue or assets.
Expense Recognition
The principle of recording expenses when incurred, not when paid.
Expropriation
Forced seizure of assets by the government.
External Audit
An audit of financial statements by an independent auditor.
External Audit Report
Audit report conducted by an external auditor
External Financing
Funds obtained from external sources such as loans or investments.
Extraordinary Item
Unusual and infrequent financial items.

F

FOB (Free On Board)
Trade term: seller covers costs until goods are on board the ship.
Featured Product Name
Flagship product with competitive advantages.
Fiduciary
A collateral arrangement where ownership is transferred under trust.
Fiduciary Responsibility
The responsibility to manage assets with trust and care.
Fiduciary Trust
A legal relationship where one party manages assets for another.
Financial Accounting
Recording transactions and preparing company financial statements
Financial Analyst
A professional analyzing financial data for investment/business decisions.
Financial Assets
Assets in the form of financial instruments such as stocks or bonds
Financial Balance Report
Balance sheet of a company
Financial Consolidation
Consolidation of financial statements from several entities
Financial Control System
Mechanisms for controlling and monitoring finance.
Financial Derivative
A financial instrument whose value depends on another asset.
Financial Distress
A state of serious financial difficulty threatening business continuity.
Financial Engineering
The use of financial instruments to maximize value or minimize risk.
Financial Expansion Report
Report on financial expansion
Financial Institution
An organization providing financial services (banks, insurers, etc.).
Financial Instrument
A contract creating an asset for one party and a liability for another.
Financial Instruments
Various contracts/tools used in financial markets.
Financial Leverage
The use of debt to increase potential returns.
Financial Liability Report
Report on company liabilities
Financial Ratio Analysis
Calculations to assess company financial health by comparing figures in financial statements
Financial Ratios
General ratios assessing financial health.
Financial Reporting
Presentation of financial statements under accounting standards.
Financial Risk
The risk of loss due to financial uncertainties.
Financial Statement
Formal reports of a company’s financial condition (balance sheet, income statement, cash flow).
Financial Surplus
A financial condition where income exceeds expenditures.
Financial statements
Official report of company’s financial condition
Financing Accounting
Accounting related to recording and managing financing
Financing Lease
A lease where the lessee gains most economic benefits of the asset.
Financing Period
The duration of financing or a loan.
Fine
Extra charges imposed for rule or contract violations
Fiscal Year
A 12-month period used for accounting/tax purposes.
Fixed Asset
Long-term assets used in operations, not for resale.
Fixed Charges
Costs that do not change even if production volume changes
Fixed Cost
Costs that remain constant regardless of production volume.
Fixed Costs
Costs that remain unchanged even if production levels change
Fixed Costs
Company’s fixed expenses (e.g., rent, salaries).
Fixed Load Analysis
Analysis of fixed costs that remain unchanged despite production changes
Fixed Overhead
Fixed overhead costs in production.
Fixed Variables
Costs or variables that remain constant regardless of production volume.
Fixed assets
Tangible assets used long term such as land and buildings
Fixed overhead
Fixed overhead costs.
Fixed-Income Security
Financial instruments providing fixed interest payments.
Fixed-Interest Security
Securities with a fixed interest rate.
Foreign Accounting
Recording transactions and reports of companies abroad
Foreign Currency
Any currency other than the domestic currency.
Foreign Debt
Liabilities owed to foreign entities.
Foreign Transactions
Transactions involving foreign parties or assets.
Forensic Accounting
Use of accounting to investigate financial fraud
Forward P/E Ratio
Price-to-earnings ratio based on projected earnings.
Forward Pricing
Setting the price of a transaction for a future date.
Franchise Name
Name of a business under a franchise.
Fraudulent Financial Reporting
Financial reporting manipulated to mislead.
Free Cash Flow
Cash available after operating expenses and capital expenditures.
Free Cash Flow to Equity
Free cash flow available to shareholders after obligations.
Freight-in
Shipping cost borne by the buyer to bring goods into inventory.
Full Disclosure Principle
The principle of disclosing all material information in financial statements.
Fund Manager
A professional managing investment portfolios.
Fungible Assets
Assets interchangeable without difference in value.

G

Gain from Operations
Profit derived from main business operations.
Gain from Sale of Assets
Profit from sale of company assets
Gain on Investment
Profit earned from investments.
Gain on Sale
Profit from selling assets.
General Journal
A journal recording all financial transactions chronologically.
General Journal Report
Report of general journal
General Ledger
Ledger containing all accounting accounts
General Ledger Account
Account in the general ledger
General Ledger Control Account
Control account summarizing other accounts
General Lien
General right to hold assets until obligations are settled
General and Administrative Costs
General and administrative expenses of a company.
General ledger
General journal for recording transactions not in special journals
Generally Accepted Accounting Principles (GAAP)
Widely accepted accounting standards and principles.
Giral Money
Demand deposits in banks used via checks, transfers, or giro.
Going Concern
Assumption that a company will continue operating
Going Concern Assumption
Accounting assumption that company will continue
Gold Stocks
Golden shares with special rights despite small holding.
Goods and Services Tax (GST)
Tax on goods and services
Goods in Transit
Goods currently being transported
Goodwill Impairment
Reduction in the value of goodwill
Goodwill Write-Off
Elimination of goodwill value from financial statements
Government Accounting
Recording and reporting finances in government institutions
Government Debt
Government liabilities to creditors.
Government Financial Report
Government financial statements
Government Grants
Funds granted by the government
Gross Earnings
Gross profit before expenses
Gross Fixed Assets
Total fixed assets before depreciation
Gross Investment
Total amount of investment
Gross Lease
Lease where all costs are borne by the tenant
Gross Margin Analysis
Analysis of the difference between sales and cost of goods sold
Gross Operating Profit
Operating profit before expenses
Gross Payroll
Total gross salary before deductions
Group Account
Combined account representing several related accounts
Guarantee
Asset pledged as loan security

H

Harmonized Standards
Standards harmonized for international application
Health Money
Funds allocated for employees’ healthcare expenses.
Hedge Effect
Effect of hedging against market risk
Hedge Fund
Investment fund using high-risk strategies
Hedge Fund Manager
Manager of a hedge fund
Hedged Portfolio
Portfolio protected by hedging strategy
Hedging Instrument
Financial instrument used for hedging
Heterogeneous Assets
Diverse and non-homogeneous assets
Hidden Reserves
Reserves not shown in financial statements
High Water Mark
Highest point reached by an investment portfolio
High-Cost Financing
Financing with high interest cost
High-Frequency Trading
Stock trading using high-speed automated systems
High-Growth Company
Company with rapid growth rate
High-Risk Investment
Investment with high risk
High-Tech Company
Company engaged in advanced technology
High-Tech Stock
Stock of high-tech companies
High-Volume Business
Business with high transaction volume
High-Yield Bond
Bond with high interest rate
Highly Leveraged
Company condition with very high debt
Historical Basis
Basis of recording using historical costs
Historical Cost
Acquisition cost of an asset at purchase time
Historical Financial Statements
Financial statements based on past data
Historical Information
Financial information from previous periods
Historical Variance
Difference between current and historical financial data
Holding Company
Parent company holding shares of other companies
Holding Gain
Gain from unrealized increase in asset value
Holding Gain or Loss
Profit or loss from unrealized changes in asset value
Holding Loss
Loss from unrealized decrease in asset value
Holding Period Capital Gain
Capital gain during asset holding period
Holding Period Return
Percentage return from an investment over a specific period
Holding Period Yield
Yield on investment during holding period
Horizontal Combination
Merger of companies at the same production level
Horizontal Integration
Strategy where company expands at the same production stage
Horizontal Relationship
Relationship between companies in similar fields
Hostile Bid
Acquisition offer without management approval
Hostile Takeover
Forced takeover of a company by another party
House Banking
Company’s internal banking system
Hybrid Accounting
Accounting system combining two different methods
Hybrid Capital Structure
Capital structure combining debt and equity
Hypothetical Tax
Tax calculated on hypothetical scenarios

I

IFRS (International Financial Reporting Standards)
International Financial Reporting Standards
Idle Capacity
Unused production capacity
Imprest System
Petty cash system with fixed balance
Incentive Debt
Obligation to pay employee incentives.
Income
Revenue earned from business activities.
Income Statement
Report on company income
Income Summary
Summary account to close revenues and expenses
Income Tax Burden
Tax expenses charged on company income
Income Tax Debt
Liabilities for income tax.
Income Tax Expense
Company income tax expense
Income Tax Payment
Payment for income tax obligations.
Income Tax Receipt
Government revenue from income tax.
Income Tax Report
Income tax report
Income Tax for Companies
Income tax specifically applicable to companies.
Income tax
Tax levied on individual or corporate income.
Indirect Tax
Indirect tax borne by consumers
Information Disclosure
Principle of transparency in providing financial information
Initial deposit
Initial deposit into an account/business.
Installment Debt
Liability repaid in installments.
Installment Payment Debt
Liabilities paid in installments.
Insurance
Protection from risk by paying premiums to an insurance company
Intangible Asset
Intangible asset providing economic benefit
Intangible Assets
Assets that are intangible but have economic value
Intangible Assets
Assets without physical form but with economic value such as trademarks
Intangible Assets
Assets without physical form that provide economic benefit
Intangible Assets
Plural form of intangible assets
Intangible assets
Assets without physical form such as trademarks or copyrights
Intercompany Transaction
Transaction between companies in the same group
Interest Expense
Interest cost incurred from borrowing
Interest Payment
Cash outflow for loan interest payments.
Interest Payment Report
Report on loan interest payments
Interest Rate Debt
Liabilities for paying loan interest.
Interest expense
Cost arising from using loans
Interest-Free Debt
Interest-free debt or liabilities.
Interim Financial Report
Interim financial statements
Intermediary Accounting
Intermediate accounting bridging basic and advanced concepts
Internal Audit Report
Audit report conducted by internal company auditor
Internal Control
A system ensuring reporting reliability and compliance.
Internal Reporting
Financial reporting for internal purposes
Internal Revenue Service (IRS)
United States tax authority
International Accounting
Accounting standards used across different countries
International Consolidated Financial Statements
International consolidated financial statements
International Taxation
Taxation involving cross-border activities.
Intracompany Transaction
Transaction between units within the same company
Inventory
Company inventory list
Inventory
Goods available for sale or use
Inventory Shrinkage
Loss of inventory due to theft, damage, or errors
Inventory Valuation
Valuation of inventory
Inventory Write-Off
Write-off of worthless inventory
Investment Capital
Capital invested to generate returns.
Investment Cash Receipts
Cash inflows from investments.
Investment Center
Company division responsible for investments
Investment Debt
Liabilities arising from investment activities.
Investment Fund
Funds allocated for investment activities
Investment Holding Company
Parent company holding investments
Investment Loans
Loans used to finance investments.
Investment Portfolio
Collection of investment assets
Investment Receipt
Funds received from investments.
Investment Receivables
Receivables from investment activities.
Investment Report
Report on company investments
Investment Reserve Fund
Reserve funds specifically allocated for investments
Invoice
An invoice documenting sales of goods or services.
Issuance Debt
Liabilities from issuing securities.
Issued Shares
Issued shares offered to investors.

J

Joint venture
A joint venture between two or more parties.
Journal
Book for recording financial transactions
Journal Report
Report of journal entries

L

Labor Costs Payable
Liabilities for wages and labor expenses.
Last Dividend
Last dividend paid before company closes its books
Lease
Contract to rent an asset for a set period
Lease
Lease with option to purchase asset at end.
Leaseback
Sell an asset then lease it back
Leasing Debt
Liabilities from lease agreements.
Ledger
Main book for recording all financial transactions
Ledger
General ledger containing all accounts
Ledger Account
Individual account in the ledger
Leverage
Using debt to amplify returns
Leverage Ratio
Ratio measuring level of debt use
Liabilities
Obligations payable
Liability Insurance
Insurance covering liability claims
Liability Ratio
Liabilities to assets or equity ratio
Liquidation Preference
Priority right in liquidation proceeds
Liquidation Value
The value of assets if a company is liquidated and sold quickly.
Liquidity Management
Management of cash and liquid assets to meet obligations.
Liquidity Ratio
Ratios measuring ability to meet short-term obligations.
Loan
Funds obtained from lenders.
Loan Covenant
Conditions set by lenders in a loan agreement.
Lockbox
A banking system to speed up customer payment processing.
Long Term Investment
Investment lasting more than one year
Long-Term Accounts Receivable
Long-term trade receivables.
Long-Term Debt
Debt with a term longer than 5 years.
Long-Term Debt Payment
Repayment of long-term debt.
Long-Term Debt Receipt
Long-term borrowings received.
Long-Term Debt Report
Report on long-term company debts
Long-Term Liabilities
Obligations due in over one year
Long-Term Receivables
Long-term receivables.
Long-Term Trade Payables
Trade payables due in more than one year.
Long-term
Period longer than one year
Long-term Assets
Assets providing economic benefits for more than one year.
Long-term Debt
Debt obligations due in more than one year.
Long-term Investment
Investments intended to be held for the long term.
Long-term Liabilities
Company liabilities due after one year.
Long-term debt
Debt due in more than one year
Loss Burden
Expenses arising from specific losses
Loss Debt
Liabilities for compensating losses.
Loss Prevention
Strategies to prevent financial or asset losses.
Loss Probability Analysis
Analysis of the possibility of loss from a certain decision
Loss Provision Expense
Expense reserved to cover possible losses
Loss Provision Report
Report on loss reserves
Loss Report
Report of company losses
Luxury Goods Sales Tax
Luxury goods sales tax.

M

Machine Debt
Liabilities for machinery purchases.
Machine Depreciation
Depreciation of machinery.
Main Customer Name
Name of a major or key customer.
Maintenance Fee
Funds set aside for asset maintenance.
Maintenance Fee
Funds used for routine maintenance costs.
Maintenance Fund
Funds allocated for asset or facility maintenance
Management Accounting
Accounting to support managerial decision making
Managerial Accounting
Recording costs and internal reports for management
Marginal Cost
The additional cost to produce one more unit.
Marginal Cost Analysis
Analysis of additional cost of producing one more unit
Marketing Expenses
Costs for promotion and sales activities
Medium Debt
Medium-term debt (1–5 years).
Medium-Term Debt
Debt with a term of 1–5 years.
Minority Shareholders
Shareholders owning less than 50%.
Mixed Mutual Funds
Mutual fund investing in a mix of stocks, bonds, and money market instruments.
Money Management
Funds managed specifically for management needs.
Money Market Mutual Funds
Mutual fund investing in short-term money market instruments.
Money Needed
Money required for a specific purpose.
Monthly Financial Report
Monthly financial statements
Mortgage Creditors
Lender providing loan with mortgage security
Mortgage Debtor
Borrower with a mortgage obligation
Multi-Currency
A system supporting multiple currencies.
Multi-Term Debt
Liabilities with multiple payment terms.
Multinational Financial Reports
Multinational company financial statements
Mutual Funds
A pooled investment fund managed by a fund manager.
Mutual Investment Fund
Funds collected from many investors and managed together

N

Name of goods
Name of the goods in transactions or reports.
National Debt
Government debt owed to creditors.
National Tax
Taxes levied by the central government.
Natural resources
Natural resources used in production processes.
Net Operating Profit
Operating profit after expenses
Net Profit After Income Tax
Net profit after income tax
Net Profit After Tax
Profit after income tax
Net Receivables Value
Receivables net of allowance for doubtful accounts.
Net profit
Profit after deducting all expenses and taxes
Newspaper Journal
Financial transaction record published in newspapers
Non-Audited Financial Statements
Unaudited financial statements
Non-Cash Dividends
Dividend distributed in non-cash forms such as other assets
Non-Cash Liabilities
Non-cash liabilities.
Non-Cash Money
Non-cash assets with economic value.
Non-Current Assets
Assets not easily converted to cash in the near future
Non-Current Debt
Non-current liabilities due in more than one year.
Non-Operational Debt
Non-operational liabilities.
Non-Performing Debt
Non-performing liabilities (bad debts).
Non-Permanent Debt
Liabilities with uncertain or variable amounts.
Non-Trade Receivables
Non-trade receivables.
Non-cash operations
Operating activities not involving direct cash flows.
Notebooks
General notebook used for accounting purposes

O

Objection
A formal disagreement in legal or transaction processes.
Obligation
Company debts or obligations
Obsolescence
Loss in value of assets due to becoming outdated.
Obsolescence reserve
A reserve for covering losses from obsolete assets.
Office Stationery Debt
Company debt for office supplies purchases.
Oligopolistic competition
Competition among a few large firms in a market.
Oligopoly
A market dominated by a few sellers.
One-Step Cost Analysis
Cost analysis at each step of production or process
Open-end fund
A mutual fund allowing unlimited share issuance/redemption.
Operating Cash
Cash allocated for routine operational activities.
Operating Expenses
Costs for running the company’s main activities
Operating Income Statement
Operating income statement
Operating Profit
Profit from main company activities
Operating Profit and Loss
Profit or loss from main operations
Operating cycle
The period from inventory purchase to cash collection.
Operating expenses
Regular operating expenses of a company.
Operating profit
Profit from company business activities
Operational Cash Flow Statement
Cash flow report from main business activities
Operational Cost Money
Funds allocated to cover daily operational activities.
Operational Funds
Funds used for company daily operations
Operational Money
Funds used to finance operational activities.
Opportunity Cost Analysis
Analysis of costs arising from choosing one option over another
Optimal capital structure
The debt-equity mix that minimizes cost of capital.
Option
A derivative contract giving the right, not obligation, to buy/sell an asset.
Original Document
Official original document, not a copy
Other Comprehensive Income
Other comprehensive income beyond main revenue.
Other Debts
Miscellaneous liabilities.
Other Income Statements
Report on other income
Outstanding shares
The number of shares outstanding in the market.
Over-the-counter (OTC)
Securities trading outside formal exchanges.
Overdraft
A withdrawal exceeding account balance.
Overdraft fee
A fee charged for overdrawing an account.
Overdrawn account
An account showing a negative balance due to overdraft.
Overhead
Indirect costs supporting business operations.
Overhead Cost Analysis
Analysis of indirect costs such as electricity or rent
Overhead variance
Variance between budgeted and actual overhead costs.
Overtime
Work beyond normal hours with extra pay
Ownership equity
Owners’ equity in a business.

P

Partner Debt
Liabilities owed to business partners.
Passive
Balance sheet section recording liabilities and equity.
Pawn Debt
Debt secured with pledged assets.
Payment Management
Management of company payment flows.
Payroll Accounting
Recording wages, benefits, and employee obligations
Payroll Journal
Journal to record payroll transactions
Pension fund
Funds collected to finance employee pensions
Performance assessment
The process of evaluating company/employee performance.
Personal Finance
Management of personal finances
Personal Income Tax
Tax imposed on personal income.
Petty Cash
A petty cash fund for minor operational needs.
Petty cash
Small cash fund for daily expenses
Pocket money
Small allowance for daily personal needs.
Preferred Stock
Preferred stock with fixed dividends and priority rights.
Preferred Stock Debt
Liabilities to preferred shareholders.
Priority Dividends
Dividend paid first to certain shareholders
Privatization Fund
Funds allocated for privatization process
Pro Forma Balance Sheet
Projected or hypothetical balance sheet.
Processing Debt
Liabilities for processing costs.
Procurement Debt
Liabilities from procurement activities.
Product Debt
Liabilities for acquired products.
Product Service Debt
Liabilities for services received.
Product name
Name of a marketed product/service.
Production Debt
Liabilities related to production costs.
Production Goods Debt
Debts arising from purchasing production materials.
Production Unit
A unit within an organization that produces goods/services.
Professional Services Debt
Liabilities for professional services (accountants, lawyers, etc.).
Profit Report
Report on company profit
Profit Surplus
Profits not distributed, retained as reserves.
Profit before Income Tax
Profit before income tax
Profit before tax
Profit before tax
Profit from Non-Operational Activities
Profit from non-operating activities
Profit in Public Companies
Profit earned by a public company
Profit in Subsidiaries
Profit generated by a subsidiary
Profit in Subsidiary Companies
Same as profit from subsidiary
Profit in a Closed Company
Profit earned by a private company
Profitability Ratio
Ratios measuring profit relative to revenue/assets.
Project Debt
Liabilities arising from financing a project.
Project Financing Debt
Liabilities for project financing.
Project Name
Name identifying a project.
Provision for Losses
Reserve set aside for potential losses.
Provision for Losses on Non-Current Assets
Allowance for losses on non-current assets.
Public Company
A public company listed on a stock exchange.
Public Company Financial Reports
Public company financial statements
Public Company Financial Reports
Private company financial statements
Public Financial Accounting
Accounting for government or public institutions
Purchase Debt
Liabilities from purchases.
Purchase Journal
Journal to record purchase transactions
Purchase Money
Money used for purchasing goods/services.
Purchase Returns
Return of purchased goods to suppliers.

Q

Qualified Audit Opinion
Audit opinion with certain qualifications.
Qualified Audit Report
Audit report containing qualifications.
Qualified Distribution
A distribution meeting specific tax/legal criteria.
Qualified Domestic Trust
A trust meeting domestic legal requirements.
Qualified Expenditure
Expenditure meeting specific qualifications.
Qualified Foreign Corporation
A foreign corporation meeting specific requirements.
Qualified Institutional Buyer
Institutional investor meeting legal qualifications.
Qualified Investment
An investment that meets specific criteria.
Qualified Loan Originator
Entity qualified to originate loans.
Qualified Opinion
Audit opinion containing qualifications.
Qualified Pension Plan
Pension plan meeting tax requirements.
Qualified Plan Assets
Assets in a qualified pension plan.
Qualified Retirement Plan
A retirement plan meeting legal standards.
Qualified Small Business Stock
Small business stock qualifying for special tax treatment.
Qualified Trust
A trust legally recognized as qualified.
Qualifying Asset
Asset meeting criteria for special treatment.
Qualifying Transaction
Transaction meeting legal/accounting criteria.
Qualitative Analysis
Analysis based on non-quantitative information.
Qualitative Characteristics
Characteristics of useful accounting information.
Qualitative Credit Analysis
Credit analysis based on qualitative factors.
Qualitative opinion
Non-quantitative opinions in audit or analysis reports.
Quality of Earnings
The reliability of reported earnings.
Quantitative Asset Management
Asset management using quantitative models.
Quantitative Cost Analysis
Cost analysis using quantitative methods.
Quantitative Credit Scoring
Credit scoring using numerical models.
Quantitative Disclosure
Disclosure of numerical data in reports.
Quantitative Easing Policy
Monetary policy increasing money supply.
Quantitative Finance
Finance based on mathematical/statistical models.
Quantitative Finance Theory
Theories explaining markets using quantitative models.
Quantitative Financial Reporting
Financial reporting using quantitative measures.
Quantitative Internal Control
Internal control measured quantitatively.
Quantitative Investment Analysis
Investment analysis using quantitative data.
Quantitative Portfolio Analysis
Portfolio analysis using quantitative models.
Quantitative Risk Management
Risk management using quantitative measures.
Quantitative Techniques
Analytical techniques using quantitative methods.
Quantitative Value Investing
Value investing strategy based on quantitative metrics.
Quarterly Consolidated Financial Statements
Quarterly consolidated financial statements
Quarterly Dividend
Dividends paid quarterly.
Quarterly Expense Report
Expense report issued quarterly.
Quarterly Financial Report
Quarterly financial statements
Quarterly Financial Statement
Quarterly financial statements.
Quarterly Report
General report issued quarterly.
Quarterly Review
Quarterly review of finance/operations.
Quarterly Tax Payment
Quarterly tax payments.
Quasi-Cash Instruments
Near-cash instruments with high liquidity.
Quasi-Equity
Financial instruments resembling equity but not full stock.
Quasi-Equity Financing
Financing through quasi-equity instruments.
Quasi-Equity Instruments
Instruments resembling equity financing.
Quasi-Equity Loans
Loans with equity-like features.
Quasi-Fiscal Activities
Government activities with fiscal effects outside the budget.
Quasi-Public Entity
Private entity performing public functions.
Quasi-Subsidiary
A subsidiary operating nearly independently.
Quasi-Subsidiary Reporting
Financial reporting for quasi-subsidiaries.
Quasi-Taxation
Levies resembling taxes.
Quasi-Treasury Stock
Shares treated similar to treasury stock.
Query
A request for information in a database system.
Quick Assets
Highly liquid current assets.
Quick Assets Turnover
Turnover ratio of quick assets.
Quick Ratio
Liquidity ratio excluding inventory.
Quick Ratio
Same as quick ratio.
Quick Turnover Ratio
Ratio measuring speed of quick asset turnover.
Quickbooks
Popular accounting software for SMEs.

R

Rate of Return
The profit rate from an investment.
Rate of Return on Investment
Return earned on invested capital.
Real Estate
Property consisting of land or buildings.
Real Estate Financing
Financing for property acquisitions or projects.
Real Estate Portfolio
A collection of real estate assets owned by an investor.
Real Options
Investment options in real projects.
Realized Gain
Gains actually realized.
Realized Loss
Losses actually realized.
Realized Value
The realized value of an asset/investment.
Recapitalization
Restructuring capital by changing debt/equity composition.
Recapitalized Cost
Cost after recapitalization
Receivable Turnover
Receivables turnover
Receivables Aging
Aging of receivables
Reclassification
Reclassification
Recourse
Right of recourse
Recovery Rate
Recovery rate
Recurring Cost
Costs that recur periodically, such as monthly or yearly (e.g., salaries, rent).
Recurring Expenses
Regular expenses incurred continuously for business operations.
Recurring Transactions
Transactions that occur periodically and repeatedly.
Redeemable Bond
A bond that the issuer can redeem before maturity.
Redeemable Preference Shares
Preference shares that can be redeemed under certain conditions.
Redeemable Shares
Shares that can be bought back by the company under terms.
Regional Tax
Taxes levied by local governments.
Regional Tax Debt
Liabilities for local government taxes.
Regional Tax Report
Regional tax report
Regulatory Accounting
Accounting practices adjusted to comply with industry regulators.
Regulatory Compliance
Adherence to laws and regulations governing business.
Regulatory Risk
Risk arising from changes in government or regulatory rules.
Regulatory Risk Management
Managing risks that come from regulatory changes.
Reimbursable Expenses
Expenses initially borne by employees and reimbursed by the company.
Reinsurance
Insurance purchased by insurers from other insurers.
Remaining Debt
Remaining liabilities after partial payment.
Removal Method
The method of writing off assets or receivables.
Rent
Agreement to use assets for periodic payments.
Rent Debt
Liabilities for lease payments of property or assets.
Rental expenses
Rental expenses paid by the company for using assets
Repatriated Earnings
Profits returned to the home country of the parent company.
Repatriation
Process of moving profits/capital back to the home country.
Replacement Cost
The cost to replace an asset with a similar new one.
Replacement Debt
Liabilities for replacements.
Replacement Money
Funds provided as reimbursement for expenses.
Replacement Value
The current value required to replace an asset.
Report Name
Title of a financial/accounting report.
Reporting Period
The specific time frame for financial reporting.
Repossession
Taking back an asset due to default.
Repurchase Agreement
Agreement to sell and repurchase securities.
Repurchase Option
Option to repurchase an asset or security.
Rescheduling
Restructuring payment schedules of debt.
Research Funds
Funds used to finance research activities.
Reserve Capital
Capital set aside for emergencies not yet called up.
Reserved fund
Funds set aside for emergencies or future needs
Reserves
Funds set aside to cover potential losses or expenses.
Residual Claim
Shareholders’ right to remaining assets after liabilities are paid.
Residual Claimant
Party entitled to residual claims of company assets.
Residual Dividend Policy
Policy of paying dividends from leftover profits after investments.
Residual Value
The residual value of an asset after its useful life.
Residual Value
The salvage value of an asset at end of its useful life.
Resource
Resources owned or controlled by a company to achieve objectives (e.g., people, capital, technology).
Resource Allocation
Distribution of resources to achieve efficiency.
Resource Planning
Planning the use of resources for future needs.
Resource-Based Theory
Strategic theory focusing on competitive resource advantages.
Resource-Based View
Strategic view emphasizing unique company resources.
Restricted Shares
Shares subject to restrictions on sale/transfer.
Restructure
The process of restructuring organizational or financial aspects.
Restructuring Charge
Costs incurred due to restructuring activities.
Retained Capital
Capital retained for reinvestment.
Retained Earnings
Profits kept after dividends are paid.
Retained Surplus
Remaining profits retained by the company.
Retained earning
Earnings retained by the company
Retention Bonus
Bonus given to retain key employees.
Retention Ratio
The proportion of earnings retained versus net income.
Retrospective Adjustment
Adjustments applied to prior period financial statements.
Retrospective Rating
Insurance premium rating based on past claims.
Retrospective Reimbursement
Reimbursement of expenses based on prior periods.
Retrospective Review
Review of past reports or data.
Return on Assets (ROA)
Ratio of net income to total assets.
Return on Capital Employed (ROCE)
Ratio of operating profit to capital employed.
Return on Equity (ROE)
Ratio of net income to shareholders’ equity.
Return on Investment (ROI)
Ratio of profit to total investment.
Return on Net Assets (RONA)
Ratio of profit to net assets employed.
Return on Sales (ROS)
Ratio of profit to net sales.
Revaluation
Reassessment of asset values at current worth.
Revaluation Reserve
Reserve created from asset revaluation.
Revaluation Surplus
Increase in asset value due to revaluation.
Reverse Repurchase Agreement
Agreement to buy and later resell securities.
Reversing Journal
Journal to reverse certain transactions in the next period
Reversionary Interest
Ownership rights that revert after a period ends.
Rework Cost
Costs of reworking defective products.
Rights Issue
Issuance of new shares to existing shareholders.
Rights Offering
Offering new shares with special rights to current holders.
Risk Analysis
Analysis to identify and measure risks.
Risk Appetite
The level of risk a company is willing to accept.
Risk Assessment
Process of evaluating potential risks.
Risk Communication
Communicating risk information to stakeholders.
Risk Exposure
Potential losses from specific risks.
Risk Factors
A factor that could cause potential losses (risk factor).
Risk Financing
Financing strategies to cover risks.
Risk Identification
Identifying potential risks.
Risk Management
The process of managing risks to minimize impacts.
Risk Management Framework
Framework guiding risk management.
Risk Management Policy
Formal policy for managing risks.
Risk Profile
Overall risk characteristics of a company.
Risk Quantification
Measuring risks quantitatively.
Risk Retention
Decision to retain risks instead of transferring.
Risk Tolerance
The level of risk an entity can tolerate.
Risk Weight
Risk weighting in capital adequacy calculations.
Risk-Free Rate
The return on a risk-free investment (e.g., government bonds).
Risk-Weighted Assets
Assets weighted by risk for capital adequacy.

S

Salary Expense
Employee salary expenses recognized by the company.
Salary expense
Cost incurred from employee salaries
Sales Debt
Liabilities arising from sales transactions.
Sales Journal
Journal to record sales transactions
Sales Journal
Specialized journal recording sales transactions.
Sales Ledger
Ledger recording customer receivables.
Sales Ledger Control Account
Control account for reconciling customer receivables.
Sales Mix
Proportion of different products sold.
Sales Returns
Return of goods sold by customers.
Sales Tax
Tax imposed on sales of goods/services.
Sales invoice
A sales invoice issued by a seller to a buyer.
Sales order
A formal customer purchase order.
Sales tax
Tax imposed on the sale of goods or services.
Salvage
Recovery of value from disposal/recycling of assets.
Salvage Value
Residual value of an asset after useful life.
Sarbanes-Oxley Act
US law improving corporate accounting transparency.
Savings Money
Money saved for future use.
Scenario Analysis
Financial analysis using alternative scenarios.
Schedule of Accounts Receivable
Detailed schedule of accounts receivable.
Schedule of Investments
Detailed schedule of investment holdings.
Scrip Dividend
Dividend paid in the form of scrip/shares.
Script
Temporary certificate representing shares/dividends.
Seasonal Debt
Seasonal liabilities.
Secondary Offering
Additional stock offering by a public company.
Section 179 Deduction
US tax rule allowing immediate deduction of business assets.
Secured Loan
Loan backed by collateral.
Securities Debt
Liabilities arising from securities issuance.
Security
Protection of company assets or data
Selling Expenses
Expenses related to sales activities.
Semi-Variable Cost
Costs with both fixed and variable components.
Service Charge
Extra charge for services beyond the base price.
Service Fee
Money allocated for public or internal service expenses.
Service Provider Name
Name of a service provider/vendor.
Settlement Money
Money used to settle debts or obligations.
Share
Shares representing company ownership.
Share Capital
Capital raised from issuing shares.
Share Premium
Excess amount over nominal value from share issuance.
Share Purchase Debt
Liabilities for stock purchases.
Share Repurchase
Buyback of shares by the company.
Share Repurchase Program
Company’s official program to repurchase shares.
Shared-Based Payment
Payments to employees in the form of shares.
Shareholder Activism
Shareholder efforts to influence company policy.
Shareholder Agreement
Formal agreement among shareholders.
Shareholder Equity Ratio
Ratio of shareholders’ equity to total assets.
Shareholder Meeting
Formal meeting of shareholders.
Shareholder Return
Total returns earned by shareholders.
Shareholder Voting Rights
Shareholders’ rights to vote in meetings.
Shareholders' Capital
Shareholders’ equity in a company.
Shareholders' Equity
Portion of equity belonging to shareholders.
Shareholders' Equity Statement
Statement of changes in shareholders’ equity
Sharia Accounting
Accounting based on Islamic sharia principles
Short-Term Asset
Assets with a life less than one year.
Short-Term Cost Analysis
Cost analysis valid only for a short period
Short-Term Debt
Debt payable in less than one year
Short-Term Debt
Liabilities due within one year.
Short-Term Debt Payment
Repayment of short-term debt.
Short-Term Debt Report
Report on short-term company debts
Short-Term Liabilities
Obligations due within one year
Short-Term Receivables
Short-term receivables.
Short-Term Trade Payables
Trade payables due within a short period.
Short-term
Period shorter than one year
Single Entry Accounting
Simple accounting system with single entries.
Sinking Fund
Fund set aside to repay debt/bonds.
Sinking Fund Requirement
Requirement to allocate funds for debt repayment.
Small Journal
Petty cash journal for small cash transactions
Small Money
Small denomination money.
Small change
Coins or very small denominations of money.
Social Accounting
Accounting that considers social impacts of a company
Social Accounting
Accounting incorporating social impacts.
Social Cost
Social costs of economic activities.
Social Enterprise
Business with both social and profit goals.
Social Fund
Funds used for social activities
Social Responsibility Accounting
Accounting measuring company’s social impact.
Solvency
Company’s ability to meet long-term obligations.
Solvency Ratio
Ratios measuring long-term solvency.
Solvency Ratio
Ratio measuring long-term solvency.
Source Document
Original document serving as transaction evidence.
Special Journal
Journal for recording specific transactions
Spot Rate
Exchange rate for immediate currency transactions.
Staff Accountant
Accountant handling transaction recording, account reconciliations, and daily financial reporting.
Stand-Alone Financial Statements
Financial statements prepared for a single entity without consolidation.
Stand-Alone Principle
Principle that each entity should be evaluated on its own financial performance.
Standard Cost
Predetermined cost used as a benchmark in production.
Standard Deviation of Return
A measure of statistical dispersion of investment returns.
Standard Operating Procedure (SOP)
Written standard procedures for carrying out operational activities.
Statement of Account
A summary of transactions between a company and a third party.
Statement of Cash Flow
Report of a company’s cash inflows and outflows.
Statement of Cash and Cash Equivalents
Report of cash and cash equivalents
Statement of Changes in Equity
Report on changes in company equity
Statement of Changes in Equity
Report showing changes in shareholders’ equity.
Statement of Changes in Financial Position
Report on changes in financial position
Statement of Financial Accounting Standards (SFAS)
Financial accounting standards issued by regulatory boards.
Statement of Financial Changes
Report on changes in financial condition
Statement of Financial Condition
Report showing the financial condition of a company at a point in time.
Statement of Financial Position
Official report of company’s financial position
Statement of Financial Position
Balance sheet showing assets, liabilities, and equity.
Statement of Retained Earnings
Report showing changes in retained earnings over a period.
Statement of changes in capital
Report on changes in shareholder capital
Statutory Reserve
Reserves mandated by law.
Stock
Inventory of goods owned by a company for sale or production.
Stock Appreciation Rights
Compensation program based on stock price appreciation.
Stock Appreciation Rights (SAR)
Employee right to receive benefits from stock price increases.
Stock Debt
Company obligations to shareholders.
Stock Dividend
Dividend distributed in the form of shares, not cash.
Stock Dividend Payment
Dividends paid in shares instead of cash.
Stock Dividends
Dividend paid in the form of shares
Stock Exchange
Marketplace where stocks and securities are traded.
Stock Grant
Direct grant of shares to employees or executives.
Stock Index
An index measuring performance of a group of stocks.
Stock Keeping Unit (SKU)
Unique code identifying a product in inventory.
Stock Option
Right to buy shares at a set price in the future.
Stock Option Expense
Expense recorded for granting stock options to employees.
Stock Option Plan
Company program granting stock options to employees.
Stock Purchase Agreement
Legal contract for the purchase of shares.
Stock Record
Detailed record of stock ownership.
Stock Register
Official register of company shareholders.
Stock Split
Division of outstanding shares to lower per-share price.
Stock Valuation
Process of determining the fair value of a stock using analytical methods.
Stock optimization
Strategies to optimize inventory management.
Stock options
A right to buy company stock at a set price.
Stock-Based Compensation
Employee compensation in the form of shares or stock options.
Stockholder
An individual or entity that owns shares in a company.
Stockholder's Equity
Total shareholders’ equity after liabilities are deducted.
Stop-Loss Order
Order to sell a stock automatically if its price falls to a set level.
Strategic Alliance
A partnership between companies to achieve common goals.
Strategic Asset Allocation
Long-term strategy for allocating assets based on an investor’s risk profile.
Strategic Business Unit
A business unit within a company operating as an independent entity.
Strategic Cost Analysis
Cost analysis used to support strategic decisions.
Strategic Management Accounting
Accounting approach focused on company strategy.
Strategic Vision
Company’s long-term view of its strategic direction.
Strip Bond
A bond stripped of its interest coupons, sold at a discount.
Structured Note
A financial instrument whose value is linked to another asset (derivative).
Subordinated Debt
Debt with lower repayment priority (subordinated debt).
Subordination Agreement
Agreement making one debt claim subordinate to another.
Subsidiaries
Companies owned or controlled by a parent company.
Subsidiary
A child company controlled by a parent company.
Subsidiary Account
A detailed account supporting a main ledger account.
Subsidy
Financial aid from government/other entities to support costs.
Subsidy Money
Subsidy funds provided by the government.
Sukuk Debt
Liabilities arising from sukuk (Islamic bonds).
Summary of Significant Accounting Policies
A summary of key accounting policies applied in preparing financial statements.
Sunk Cost
Costs that have already been incurred and cannot be recovered.
Sunk Costs
Past costs irrelevant to current decision-making.
Superstructure
Social, legal, and institutional structures supporting the economic system.
Supplier
Party that provides goods or services to a company.
Supplier Debt
Liabilities to suppliers.
Supplier Financing
Financing that allows suppliers to receive early payment via a financial institution.
Supply
Inventory available for sale or processing.
Supply Chain
The network of activities from production to delivery to end customers.
Supply Chain Financing
Financing solutions that improve cash flow within the supply chain.
Surcharge
An extra charge added beyond the base price.
Surplus
Excess of assets or income over liabilities or expenses.
Suspense Account
Temporary account for transactions pending proper classification.
Sustainability Report
Report covering company performance in environmental, social, and governance aspects.
Sustainable Accounting
Accounting practices incorporating environmental and social impacts.
Sustainable Dividends
Dividend distributed consistently over time
Sustainable Investment Fund
Investment funds that consider environmental and social factors
Swap
Derivative contract to exchange cash flows or financial assets.
Swap Contract
Formal agreement for exchanging cash flows or assets.
Swingline Loan
A short-term flexible loan for urgent liquidity needs.
Synthetic Lease
Financing structure where assets are treated as leases for accounting but as ownership for tax.
Systematic Risk
Market-wide risk that cannot be diversified away.
Systematic Withdrawal Plan
Plan for systematically withdrawing investment funds.

T

T-Account
Visual “T” representation used to record debits and credits.
Tangible Assets
Assets with physical form such as machinery or buildings
Tangible Assets
Physical assets such as buildings, machinery, or land.
Target Firm
A company targeted for acquisition or merger.
Tax
Mandatory contributions to the state by law.
Tax
Mandatory contributions by taxpayers to the government under law.
Tax Accounting
Recording and calculating tax obligations
Tax Accounting
Branch of accounting focused on tax reporting and compliance.
Tax Anticipation Note (TAN)
Short-term government debt issued in anticipation of tax receipts.
Tax Arbitrage
Strategy exploiting differences in tax rates for profit.
Tax Assessment
Determination of the amount of tax payable by a taxpayer.
Tax Base
The base on which a tax is calculated (e.g., income, sales, assets).
Tax Basis
The base value for tax purposes, usually acquisition cost.
Tax Bracket
Income ranges taxed at specific rates.
Tax Certificate
Certificate confirming tax payment.
Tax Code
Collection of tax rules and regulations.
Tax Compliance
Taxpayer adherence to tax laws and regulations.
Tax Consultant
Consultant providing tax advisory services
Tax Consultant
A professional providing tax advisory and compliance services.
Tax Debt
Company’s tax liabilities.
Tax Debts Due
Taxes payable that are overdue.
Tax Deduction
Reduction of taxable income based on specific expenses.
Tax Deferral
Postponement of tax payment to a future period.
Tax Effort
A measure of a country’s ability to collect taxes relative to its potential.
Tax Escrow
Special account for holding funds designated for tax payments.
Tax Harmonization
Efforts to align tax systems across countries or regions.
Tax Haven
Jurisdiction offering very low or no taxes to attract investments.
Tax Havens
Multiple jurisdictions providing extreme tax advantages.
Tax Holiday
Temporary exemption or reduction of taxes for a set period.
Tax Impact
Tax impact on financial decisions or transactions
Tax Impact
The effect of a policy or transaction on tax obligations.
Tax Incidence
The ultimate distribution of the tax burden.
Tax Incidence Analysis
Analysis of how the tax burden is shared among economic agents.
Tax Jurisdiction
Legal authority of a region to levy taxes.
Tax Levy
Legal seizure of taxpayer’s property to satisfy tax debt.
Tax Liability
The total amount of tax owed by a taxpayer.
Tax Lien
Government’s legal claim against a taxpayer’s property for unpaid taxes.
Tax Lien Sale
Sale of the government’s tax lien rights to a third party.
Tax Loss
A fiscal loss that can offset future taxable income.
Tax Moratorium
Temporary suspension of tax obligations.
Tax Neutral
A situation where tax policy does not distort economic decisions.
Tax Payment
Cash outflow for tax obligations.
Tax Payment Report
Report on tax payments
Tax Penalty
Extra charges arising from tax delays or violations
Tax Penalty
Fine imposed for violations of tax regulations.
Tax Planning
The process of organizing transactions to legally minimize taxes.
Tax Planning Opportunities
Opportunities to optimize tax efficiency.
Tax Planning Strategy
Specific strategies to maximize tax savings.
Tax Policy
Principles and rules governing a tax system.
Tax Preparer
Individual who assists in preparing and filing tax returns.
Tax Professional
A professional with expertise in taxation.
Tax Rate
Percentage of tax applied to a taxable base.
Tax Receipt Report
Report on tax receipts
Tax Receivable
Taxes receivable by the government or company.
Tax Recording
Recording tax liabilities and payments.
Tax Refund
Refund of taxes due to overpayment.
Tax Relief
Reduction of tax burden through deductions or incentives.
Tax Report
Tax report
Tax Reserve Money
Funds reserved for future tax obligations.
Tax Reserves
Funds reserved for paying tax obligations.
Tax Residency
Tax domicile status of an individual or company.
Tax Return
Document reporting tax liabilities and payments.
Tax Revenue
Government revenue from taxes.
Tax Revenue
Government revenue from tax collection.
Tax Salvage Value
Residual value of an asset after depreciation for tax purposes.
Tax Shelter
Strategy or investment designed to reduce tax liability.
Tax Shelter Agreement
Formal agreement to use a tax shelter.
Tax Shelter Annuity
Investment product offering tax benefits.
Tax Shelter Investment
Investment structured to minimize tax obligations.
Tax Shield
Tax savings from deductible expenses (e.g., interest expense).
Tax Software
Software assisting in tax calculation and filing.
Tax Strategy
Structured plan to manage tax obligations.
Tax Table
Table showing tax rates by income or category.
Tax Warrant
Official order authorizing tax collection.
Tax Write-Off
Deduction of expenses or losses to reduce taxable income.
Tax Year
The fiscal year used for tax calculation and reporting.
Tax Year End
The closing date of a fiscal year for tax purposes.
Tax invoice
An invoice used for recording and collecting taxes.
Tax optimization
Legal strategies to minimize tax burden.
Tax-Deferred Growth
Investment growth not taxed until withdrawal.
Tax-Deferred Retirement Account
Retirement account where taxes are deferred until withdrawal.
Tax-Deferred Retirement Plan
Retirement plan deferring tax liability until funds are withdrawn.
Tax-Deferred Savings Plan
Savings plan with tax deferral until funds are withdrawn.
Tax-Exempt Bond
Bond whose interest income is exempt from taxes.
Tax-Exempt Organization
Organization exempt from paying income taxes.
Tax-Exempt Securities
Securities generating income exempt from taxes.
Tax-Free Reorganization
Corporate restructuring not subject to taxation.
Taxable Benefit
Employee benefits subject to taxation.
Taxable Entity
Individual or legal entity subject to taxation.
Taxable Estate
The value of an estate subject to estate tax.
Taxable Event
An event that triggers a tax liability (e.g., asset sale).
Taxable Gain
Gain that is subject to taxation.
Taxable Gift
A gift exceeding a threshold value subject to taxation.
Taxable Supply
Goods/services subject to sales tax or VAT.
Taxable Value
The value on which a tax is calculated.
Taxation System
Legal and procedural tax system.
Taxation of Capital Gains
Tax levied on profits from the sale of capital assets.
Taxes Due
Taxes payable as required by law.
Taxpayer Identification Number (TIN)
Unique identification number for taxpayers.
Technical Insolvency
Situation where current liabilities exceed current assets.
Temporary Accounts
Accounts used to record transactions for a specific accounting period and closed at the end (e.g., revenue, expense, dividend accounts).
Temporary Debt
Temporary and short-term liabilities.
Term Sheet
Preliminary document summarizing the key terms of a business or investment deal before a formal contract.
Terminal Depreciation
The final amount of depreciation recorded when an asset is disposed of or retired.
Terminal Growth Rate
The constant growth rate assumed beyond the forecast period in valuation models.
Terminal Value
The estimated value of a business or investment at the end of a forecast period.
Third-Party Administrator (TPA)
An external entity that manages programs, claims, or benefits on behalf of a company or organization.
Throughput
The amount of output produced or delivered in a given time, often in production/distribution.
Time Horizon
The planned time frame over which investors or companies aim to achieve specific objectives.
Time Value of Money
The concept that money’s value varies over time.
Title Insurance
Insurance protecting owners or lenders against losses from defects in property ownership rights.
Tolerable Misstatement
The maximum error in financial statements that can be tolerated without affecting users’ decisions.
Total Asset Turnover
A ratio that measures how efficiently a company uses its total assets to generate sales.
Total Asset Turnover Ratio
The ratio of sales to total assets, showing how well assets are utilized.
Total Assets
The total value of everything a company owns.
Total Cost
The overall cost incurred in production or operations.
Total Equity
The total shareholders’ equity after liabilities are deducted.
Total Liabilities
The sum of all debts and obligations of a company.
Total Return Swap
A derivative contract exchanging the total return of an asset for fixed/variable payments.
Total Shareholder Return
A performance measure including dividends and stock price appreciation.
Total Shareholder Return (TSR)
The total return ratio for shareholders over a period.
Trade Acceptance
A written promise by the buyer to pay a specific amount at a future date.
Trade Credit
Credit extended by suppliers to buyers allowing delayed payment.
Trade Date
The date on which a financial transaction is executed.
Trade Debt
Liabilities for purchased merchandise.
Trade Debt
Trade payables to suppliers for goods/services.
Trade Debt
Liabilities arising from trade activities of goods/services.
Trade Finance
Financing that supports international or domestic trade activities.
Trade Money
Money used for trade activities.
Trade Name
A business name under which a company operates.
Trade Payables
Amounts a company owes to suppliers.
Trade Receivables
Amounts owed to a company by its customers.
Trading Account
An account used to record trading activities of securities or goods.
Traditional IRA
An individual retirement account in the US funded with pre-tax contributions.
Transaction
A financial event that affects a company’s financial position.
Transaction Date
The official date a transaction is recorded.
Transaction Journal
Record of all types of financial transactions
Transaction Tax
A tax imposed on specific transactions.
Transfer Agent
An entity that maintains records of stock and bond ownership.
Transfer Payment
A payment made without exchange of goods/services, e.g., subsidies.
Transfer Price
The price set for transactions between divisions within a company.
Transfer Pricing
The practice of pricing transactions between affiliated companies.
Transferor
The party transferring rights or assets to another.
Transitory Items
Temporary items affecting financial statements in the short term.
Travel Allowance
Funds allocated for business travel expenses.
Treasury Management
The management of cash, investments, and financing of a company.
Treasury Management System (TMS)
A system used to manage liquidity and financial risks.
Treasury Shares
Shares repurchased and held by the company.
Treasury Stock
Stock repurchased from the market by a company.
Treasury Stocks
Treasury shares repurchased by the company.
Treasury Yield
The yield earned on US government securities.
Trend Analysis
Analysis of patterns of financial data changes over time
Trial Balance
A statement listing account balances to check debit-credit equality.
Trial Balance Worksheet
A worksheet used to prepare and verify a trial balance.
Trial balance
Trial balance of accounts to check equality.
Trust Account
An account managed for the benefit of a third party.
Trust Company
A firm that provides fiduciary and asset management services.
Trust Fund
Funds managed by a trustee for specific purposes
Trust Fund Baby
A person supported by family trust fund income.
Trust Indenture
A legal agreement between a bond issuer and a trustee.
Trustee
A person or entity holding and managing assets for others.
Trustee Fee
The fee paid to a trustee for their services.
Turnkey Solution
A ready-to-use solution requiring no further modifications.
Turnover Ratio
A ratio measuring how quickly assets turnover in a period.
Two-Stage Dividend Discount Model
A stock valuation model based on two stages of dividend payments.

U

Unlevered Beta
A measure of stock risk excluding debt effects.
Unlimited Receivables
Receivables with no maturity limit.
User Management
Management of system user access and identities.
Username
A unique identifier for system access.
Utilities
Public resources used by companies (electricity, water, gas).

V

Valuation Allowance
A reserve set aside to cover potential asset value losses.
Valuation Discount
A reduction in the assessed value of an asset or company.
Valuation Gain
Profit earned from the appreciation of asset value.
Valuation Multiple
A ratio used to value a company relative to its financial metrics.
Valuation Premium
An added value over the market price of an asset/company.
Valuation Range
The estimated value range of a company or asset.
Valuation Reserve
A reserve to account for fluctuations in asset value.
Value Added Tax (VAT)
Official VAT applied in Indonesia.
Value Added Tax Report
Value Added Tax (VAT) report
Value Chain
The sequence of activities creating value in products/services.
Value Chain Analysis
Analysis of the value chain to identify competitive advantages.
Value Creation Drivers
Key factors driving value creation.
Value Creation Index
An index measuring corporate value creation.
Value Date
The effective date of a financial transaction.
Value Date of Transaction
The transaction date used for financial valuation.
Value Destruction
The loss of value due to decisions or conditions.
Value Engineering Change Proposal
A proposal for technical changes to improve product/process value.
Value Gap
The difference between market value and intrinsic value.
Value Investing
An investment strategy of buying undervalued stocks.
Value Proposition Canvas
A tool mapping product value propositions to customer needs.
Value-Added Network (VAN)
A network providing added-value services in data exchange.
Value-Added Reseller (VAR)
A reseller that adds value before reselling a product.
Value-Added Service
Additional services enhancing the main product’s value.
Value-Added Tax (VAT)
Value-Added Tax applied to goods/services.
Value-Based Analysis
Analysis focused on long-term value creation.
Value-Based Management
A management system oriented toward value creation.
Value-Based Management (VBM)
A management approach based on shareholder value creation.
Value-Based Pricing
Pricing strategy based on perceived customer value.
Value-Driven Strategy
Business strategy driven by value creation.
Value-In-Use
The economic value derived from using an asset.
Variable Annuity
A retirement investment product with variable payouts.
Variable Consideration
Consideration dependent on specific conditions.
Variable Cost Ratio
The ratio of variable costs to sales.
Variable Costs
Costs that vary depending on production or activity
Variable Costs per Unit
Variable cost per unit of product.
Variable Dividend
A dividend whose amount may vary.
Variable Expense Ratio
The ratio of variable expenses to revenue.
Variable Lease Expense
Lease expenses that vary over time.
Variable Overhead Efficiency Variance
The variance in efficiency of variable overhead costs.
Variable Overhead Spending Variance
The variance in spending of variable overhead costs.
Vendor
A supplier of goods or services.
Vendor Agreement
A contractual agreement with a vendor.
Vendor Analysis
Evaluation of vendor performance.
Vendor Chargeback
A deduction or penalty charged back to a vendor.
Vendor Consolidation Strategy
A strategy of reducing vendor numbers for efficiency.
Vendor Credit Terms
Credit terms offered by vendors.
Vendor Finance
Financing provided by a vendor to buyers.
Vendor Financing
A financing scheme facilitated by vendors.
Vendor Financing Agreement
A financing agreement with a vendor.
Vendor List
A list of vendors associated with a company.
Vendor Managed Inventory (VMI)
A system where vendors manage inventory at the buyer’s location.
Vendor Scorecard
A tool to measure vendor performance based on specific metrics.
Vendor Selection Criteria
Criteria used to select vendors.
Vendor-Managed Inventory (VMI)
An inventory model directly controlled by the vendor.
Venture Capital
Capital provided to high-risk startup companies.
Venture Capital Debt
Liabilities to venture capital investors.
Venture Capital Fund
Funds prepared to finance startups or new ventures
Venture Exchange
A marketplace for trading startup company securities.
Venture Management
Management of investments and strategies in venture capital firms.
Venture Partner
A partner in a venture capital firm providing non-operational support.
Vertical Equity
Tax fairness principle where higher earners pay more taxes.
Vertical Financial Analysis
Financial analysis comparing line items to total assets or sales.
Vertical Integration
A strategy of controlling supply chain stages through ownership.
Vertical Market
A market focused on a specific industry or sector.
Vertical Merger
A merger of companies at different supply chain stages.
Vertical Relationship
Business relationships between companies at different supply chain stages.
Virtual Account
A virtual bank account for simplified payments and reconciliation.
Virtual Accounting
Online accounting services without physical meetings.
Virtual Card
A digital payment card without physical form.
Virtual Currency
Digital currency without physical form.
Virtual Data Room
A digital data room for securely sharing important documents.
Virtual Data Room (VDR)
A formal version of a digital data room for M&A transactions.
Virtual Meeting
A meeting conducted online via digital platforms.
Virtual Office
A virtual office providing a business address without a physical location.
Virtual Payment Address
A unique identifier used for digital transactions.
Virtual Terminal
A web-based system for processing card payments.
Virtual Workforce
A workforce operating remotely or online.
Vocabulary
Meaning
Volatile Market
A market with high price volatility.
Volatility Index (VIX)
An index measuring expected stock market volatility.
Volatility Spread
An options strategy exploiting volatility differences.
Volume Analysis
Analysis of trading volume to assess market trends.
Voluntary Benefits
Additional benefits voluntarily chosen by employees.
Voluntary Compliance Plan
A voluntary plan to comply with regulations.
Voluntary Compliance Program
A program encouraging compliance without legal enforcement.
Voluntary Conversion
Voluntary conversion of one financial instrument into another.
Voluntary Disclosure
Voluntary disclosure of information to authorities.
Voluntary Dividend
Dividends paid at a company’s voluntary discretion.
Voluntary Environmental Standards
Environmental standards adopted voluntarily.
Voluntary Liquidation Plan
A plan for voluntary company liquidation.
Voluntary Market
A market formed by voluntary transactions.
Voluntary Pension Plan
A voluntary retirement plan for employees.
Voluntary Product Recall
A voluntary withdrawal of products from the market by producers.
Voluntary Reporting
Voluntary disclosure of information.
Voluntary Reporting Standards
Reporting standards voluntarily adopted.
Voluntary Standard
Standards followed voluntarily without legal obligation.
Voluntary Surrender
Voluntary surrender of assets or obligations.
Voluntary Suspension
Voluntary temporary suspension of operations.
Voluntary Transfer
Voluntary transfer of rights/assets.
Voluntary Turnover
Employee turnover from voluntary resignations.
Voluntary Withholding Agreement
Voluntary agreement for tax withholding.
Voting Rights
The rights of shareholders to vote in company meetings.
Voucher
A written document serving as proof of a financial transaction.
value-added tax
Value-added tax on goods and services.

W

Wage Adjustment
Adjustment of employee wages based on certain conditions.
Wage Assignment
Assignment of a portion of wages to pay specific obligations.
Wage Deduction
Deductions from employee wages for taxes or other obligations.
Wage Earner
A worker who earns income from wages or salary.
Wage Garnishment
Court-ordered withholding of wages.
Wage Garnishment Order
A legal order requiring wage garnishment.
Wage Increase
An increase in employee wages.
Wage Reimbursement
Reimbursement of employee-incurred expenses.
Waiver of Subrogation
A waiver releasing the insurer’s right to claim against third parties.
Warehouse Bond
A financial guarantee for warehouse operations.
Warehouse Financing
Financing secured by warehouse inventory.
Warehouse Insurance
Insurance covering goods stored in warehouses.
Warrant
A financial instrument granting the right to buy stock at a set price.
Warrant Exercise Price
The price paid when exercising a warrant.
Warrant Premium
The extra amount paid over the stock’s market price for a warrant.
Warrant Share
The share issued when a warrant is exercised.
Warranty Expense Reserve
A reserve for future warranty expenses.
Warranty Ledger
An accounting record for warranty liabilities.
Warranty Liability
A company’s obligation to cover warranty claims.
Warranty Obligation
The legal duty to repair or replace products under warranty.
Warranty Repair Costs
Costs of repairing products under warranty.
Waste Audit
An evaluation of the amount and type of waste generated.
Waste Disposal Cost
The cost of waste disposal.
Waste Management Policy
Company policies for waste management.
Waste Minimization
Efforts to reduce waste from production activities.
Wasting Asset
An asset that declines in value over time or use.
Wealth Management
Services managing an individual’s wealth.
Wealth Management Services
Specialized services in asset planning and management.
Wealth Tax
A tax levied on individual wealth.
Window Dressing
The practice of manipulating financial statements to appear stronger.
Withdrawal
The removal of funds from an account or investment.
Withdrawal Rate
The percentage of funds withdrawn from a portfolio per period.
Withholding Agent
The entity responsible for withholding tax on payments.
Withholding Allowance
An amount reducing the income tax withheld.
Withholding Certificate
A document specifying the amount of tax withheld.
Withholding Statement
An official statement of taxes withheld.
Withholding Tax
Tax withheld from income at the time of payment.
Withholding Tax Return
A tax return reporting withheld taxes.
Work Opportunity Credit
A tax credit for hiring individuals from target groups.
Work Opportunity Tax Credit
A tax incentive for companies hiring specific workers.
Work Ticket
A document recording assigned work tasks.
Work unit
An organizational unit with specific functions.
Working Capital
The difference between current assets and current liabilities.
Working Capital Financing
Financing to support a company’s working capital.
Working Capital Loans
Loans for working capital needs.
Working Capital Management
Managing current assets and liabilities to ensure liquidity.
Working Capital Turnover
The ratio of sales to net working capital.
Working Control
The level of effective control in company management.
Working Fund
Funds allocated for daily operations.
Working Paper File
A file of supporting documents for financial statements.
Working Trial Balance
A preliminary trial balance before adjustments.
Working capital
The difference between current assets and current liabilities.
Worksheet
An accounting worksheet for preparing financial statements.
Workstation
A computer unit designed for professional work.
Writ of Execution
A court order to enforce a legal judgment.
Write-Down Allowance
A reserve for asset write-downs.
Write-Down Expense
An expense resulting from asset write-downs.
Write-Down Impairment
An impairment reducing an asset’s value.
Write-Off
The removal of an asset or receivable from records.
Write-Off Adjustment
An adjustment related to asset/receivable write-offs.
Write-Off Adjustment Account
An account used to record write-off adjustments.
Write-Off Period
The period in which a write-off is made.
Write-Off Provision
A reserve to cover potential asset/receivable write-offs.
Write-Off Recovery
The recovery of previously written-off receivables.
Written-Down Value
The value of an asset after depreciation/write-down.

X

X-Accounting
Experimental or cross-functional accounting system.
X-Days
Key dates related to financial transactions.
X-Depreciation
Specific depreciation recorded in a given period.
X-Dividend
A stock traded without dividend rights.
X-Expenditure
A specific classified expenditure.
X-inefficiency
Inefficiency caused by lack of competition.
Xenial Accounting
Accounting emphasizing cooperation and goodwill.
Xenial Balance
A balance sheet reflecting inter-party relationships.
Xenial Expenses
Expenses arising from partnership relationships.
Xenophobe
A person who fears or dislikes foreigners.

Y

YTD Profit
Profit earned year-to-date.
YTD Return
Investment return year-to-date.
Yard
A unit of length equal to 0.9144 meters.
Year-End Adjustments
Accounting adjustments at the end of a fiscal year.
Year-End Closing Entries
Closing entries to close temporary accounts at fiscal year-end.
Year-End Statement
Financial statements at the end of the year.
Year-End Tax Planning
Tax planning strategies near fiscal year-end.
Yearly Amortization
Annual amortization of intangible assets.
Yearly Depreciation
Annual depreciation of fixed assets.
Yearly Financial Report
A company’s annual financial report.
Yearly Maintenance Cost
Annual maintenance costs of assets.
Yearly Operating Cycle
The company’s operating cycle within a year.
Yearly Tax Liability
The annual tax liability of a company or individual.
Yellow Book
US Government Auditing Standards issued by GAO.
Yellow Flag Indicator
A warning signal indicating potential problems.
Yellow Flags
Warning signs indicating risks.
Yellow Securities
Securities considered high-risk.
Yellowbook Standards
Government auditing standards per GAO guidelines.
Yen
The currency of Japan.
Yield Curve
A graph showing the relationship between bond maturities and yields.
Yield Curve Risk
Risk from changes in the shape of the yield curve.
Yield Spread
The difference in yields between two debt instruments.
Yield on Assets
The return generated from total assets.
Yield on Cost
Return on investment based on original cost.
Yield on Debt
The yield earned from debt instruments.
Young Companies
Newly established companies in early stages.
Young Firm
A young company with limited operating history.
Young Professional
A young individual at the start of their professional career.
Your Business Number (YBN)
An official business identification number in some countries.
Your Financial Goals
An individual’s or company’s financial objectives.

Z

ZBA (Zero Balance Account) Service
A service using zero balance accounts for cash efficiency.
Zero Balance Account
A bank account maintained at zero balance, funded as needed.
Zero Balance Sweep Account
An account sweeping excess funds to a master account.
Zero Balance Transfer
Transfer of funds across accounts to maintain zero balances.
Zero Cost Strategy
A business strategy requiring no significant additional costs.
Zero Coupon Preferred Stock
Preferred stock paying no dividends until maturity.
Zero Defects Policy
A quality policy aiming for zero product defects.
Zero Inventory
A production system with minimal or no inventory.
Zero-Balance Account
An account maintained at zero balance.
Zero-Base Accounting
Accounting system evaluating all expenses from zero each period.
Zero-Base Budget
A budget prepared from a zero base each cycle.
Zero-Base Forecasting
Forecasting method starting from zero without historical assumptions.
Zero-Based Accounting
Accounting method eliminating historical assumptions.
Zero-Based Budgeting (ZBB) Technique
Budgeting technique starting from zero.
Zero-Based Budgeting Approach
Approach to budgeting from a zero base.
Zero-Based Budgeting Principle
Principle of budgeting that reassesses all costs.
Zero-Based Budgeting Technique
Practical method of zero-based budgeting.
Zero-Based Management (ZBM)
A management system based on complete re-evaluation.
Zero-Based Security
Security system designed from zero base.
Zero-Cost Strategy
A strategy achieving goals with no extra cost.
Zero-Coupon Convertible
A zero-coupon bond that can be converted.
Zero-Coupon Convertible Security
A zero-coupon security with conversion option.
Zero-Debt Capital Structure
A capital structure with no debt.
Zero-Dividend Preference Shares
Preference shares paying no dividends.
Zero-Efficiency Market Hypothesis (ZEMH)
Hypothesis of a market with zero efficiency.
Zero-Entry Barriers
Market condition with no entry barriers.
Zero-Floor Limit
A zero floor limit in financial transactions.
Zero-Growth Stock
A stock showing no growth.
Zero-Inventory Approach
Business approach with minimal inventory.
Zero-Investment Decision
An investment decision requiring no new capital.
Zero-Investment Portfolio
A portfolio constructed without new capital.
Zero-Liability Company
A company with no liabilities.
Zero-Percent Financing
Financing scheme with 0% interest.
Zero-Rate Interest
An interest rate of zero.
Zero-Rated Supplies
Goods/services taxed at 0% VAT.
Zero-Rated Tax
Tax applied at a 0% rate.
Zero-Sum Budget
A budget where all expenses equal revenues.
Zero-Volatility Spread (Z-Spread)
The yield spread of a bond over the risk-free yield curve, adjusted for zero volatility.
Zombie Company
A company that continues operating despite being unable to cover its debt costs.
Zonal Pricing
A pricing strategy that varies based on geographic regions.
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