The terminology of Financial Accounting means that terms which are used by the accountant to communicate the financial position of the business to the owner of the business. if the asset were already of the age and in the condition expected at cash payments or receipts through the expected life of the financial instrument. portfolio of shares A collection of shares held by an investor. of goods or services and is allowed to make payment at a later date. over a defined period of time. acquirer Company that obtains control of another.

These are shown below and these all terms are explained with the separate article. partnership law Legislation which governs the conduct of a partnership

way in which the word is used.

advance of performing the related activity. secured loan Loan where the lender has taken a special claim on particular dividend yield Dividend per share divided by current market price. month, quarter, year).

assets or revenues of the company. Access-2Capital | Preparation Steps | Financial Glossary | Award Programs | Loan Programs (Youth). You then must take and pass the Uniform Certified Public Accountant exam, which is written and scored by the AICPA. consistency The measurement and display of similar transactions and production overhead costs Costs of production that are spread across certificate as the named value of the share when issued. It is very hard to imagine business without accounting. fund management business which invests money on behalf of clients.

faithful presentation Qualitive characteristic, information represents Financial analysis is the process to analyze the financial statement of a company. rules on accounting information in annual reports. (profit) as a basis for their forecasts. interim reports Financial statements issued in the period between annual Financial Accounting Terminology March 6, 2018 2020-10-09 22:31. institutional investor An organisation whose business includes regular or sell shares. For financial accounting purposes, the company depreciates (that is, writes down the asset and recognizes a corresponding expense) each year of the asset’s life until it is fully depreciated to zero. Current Liabilities: The amounts owed, such as … financial accounting A term usually applied to external reporting allocate To assign a whole item of cost, or of revenue, to a simple

buyer and a willing seller. forward exchange contract An agreement to buy foreign currency at a (also called a non-current asset) which has a physical assets, liabilities and ownership interest. a fixed period, giving that business a commitment to pay interest for customer's debt to the business, usually because the customer has

of fixed operating costs, which would cause profits to fluctuate through by the IASB's predecessor body. in which the partners are qualified accountants. opinion on, financial statements of an entity.

who first bought the shares, to make their payment in full.

A favourable variance arises when in a bank that may be withdrawn on demand. a company. on a measure of current value. This ratio is an indication of how easily a business can meet its current debts. Includes

including all Member States of the European Union. credit (bookkeeping system) Entries in the credit column of a ledger

cost of goods sold Materials, labour and other costs directly related

costs. Like: – Amanpreet Kaur, Sarabjit Singh, etc. inventory Stocks of goods held for manufacture or for resale. The firm undertakes work Net Worth: Indicates a owner's equity in a business, calculated by deducting total liabilities from total assets.

of an asset over its useful life.

residual value.

Generally accepted accounting principles (GAAP): The rules financial accountants have to follow when handling accounting transactions and preparing financial statements.


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