Inherent risk
The susceptibility of an assertion to a material misstatement before considering any related controls.
OpenFinancial Dictionary
Accounting & Finance Terms (English)
Input tax
VAT paid on purchases that can be recovered.
OpenInput VAT
Input VAT is VAT paid on purchases that may be recoverable, subject to tax rules.
OpenInsolvency
Insolvency: Inability to pay obligations when they fall due. Some consider a company to be insolvent when its current liabilities exceed its current assets.
Openinsolvent
The inability to pay liabilities as they become due. Some consider a company to be insolvent when its current liabilities exceed its current assets.
OpenIntangible Asset
An intangible asset is a non-physical resource such as trademarks, software, patents, or goodwill. It provides long-term benefits and may be amortized.
OpenIntangible Assets
intangible assets Some examples of intangible assets include copyrights, patents, goodwill, trade names, trademarks, mail lists, etc. These assets will be reported at cost (or lower) on the balance sh...
OpenInterest
An interest in law is a legal right or share in something or a financial involvement in something; In finance, it is a fixed fee for borrowing money; Usually a percentage of the amount borrowed.
OpenInternal audit
An independent function within an entity that evaluates risk management, controls, and governance.
OpenInternal Audit
Internal audit is an independent, objective assurance and consulting activity within an organization.
OpenInternal auditor
Internal auditor is an auditor who works directly for a company auditing its activities throughout the year. Internal auditors of corporations are often not certified auditors, though they usually hav...
OpenInternal Control
Internal control is the process designed to provide reasonable assurance regarding operational effectiveness, reporting reliability, and compliance.
OpenInternal Control
Internal control is a process designed and implemented by management to provide reasonable assurance regarding the achievement of objectives related to reliable financial reporting, efficient operatio...
OpenInternal control system
Policies and procedures designed to ensure reliable reporting and safeguard assets.
OpenInternal events
events that directly affect the financial position of the company but do not involve an exchange transaction with another entity.
OpenInternational Financial Reporting Standards (IFRS)
International Financial Reporting Standards is accounting Proccures and standards guidline issued by The International Accounting Standards Board ( IASB ).
OpenInventories
Inventory is an existing asset whose closing balance should report the cost of a merchant's products waiting to be sold. A manufacturer's inventory should report the cost of raw materials, work in pro...
OpenInventory
Inventory consists of goods held for sale, in production, or materials to be used in production.
OpenInventory
Inventory represents goods held for sale, goods in production, or materials used in production. It is considered a current asset because it is expected to be sold or consumed within a short period. In...
Openjob costing
Job costing, in general, is the allotment of all time, materials, and expenses to an individual project or job; Specifically, job costing is typically software-based and provides budgeting, forecastin...
OpenJoint costs
Costs incurred in the production of multiple products simultaneously.
OpenJoint Venture
A joint venture is an arrangement in which two or more parties have joint control and share rights to the net assets of the arrangement.
OpenJoint Venture
A joint venture is when two or more people or organizations pool capital to offer a product or service. It is often carried out as a partnership.
OpenJournal
Journal A record of journal entries that appear in order by date. Some refer to the journal as the original entry book, where entries are recorded for the first time in the journal. From the journal, ...
OpenJournal Entry
A journal entry is the beginning of the accounting cycle. Journal entries are the recording of business transactions and their monetary value in the t accounts of the accounting journal either as debi...
OpenJournal Entry
A journal entry records a business transaction using debits and credits.
Openjunk bond
Junk bonds: Bonds issued by a company with low creditworthiness and carrying a high risk of default; It generally offers a high interest rate to compensate for the high risk
OpenJust In Time - JIT
A system of stock systems to receive raw materials in a timely manner to the needs of manufacturing, and therefore there is no need to store raw materials, and it needs to coordinate production with s...
Openkiting
This activity, which involves playing with a kite, is sometimes used when a company faces an overdrawn checking account. Assume that a company has a checking account at the Bank of New York that is ab...
Openland improvements
Land Improvements A long-term asset that refers to the cost of improvements built on land, such as driveways, driveways, lighting, and parking. Land improvements will be depreciated over their useful ...
Openlease
A lease contract is a contract in which one party, being the owner (lessor) of the asset (the leased asset), provides the asset for use by the lessee in exchange for consideration (rents), either fixe...
OpenLease liability
The present value of lease payments under a lease contract.
OpenLease modification
A change in the scope or consideration of a lease agreement.
OpenLegitimacy Theory
Legitimacy theory posits that corporations are bound by a social contract in which corporations agree to perform various socially desirable actions in exchange for approval of their goals and other re...
OpenLessee
is the party to whom the possession of specified property has been conveyed for a period of time in return for rental payments.
Openlessor
A lessor is a party who transfers specific property to another person for a period of time in exchange for receiving rent.
OpenLetter of Credit
Letter of Credit A conditional bank commitment issued on behalf of a customer to pay a third party according to certain terms and conditions. The two basic types are commercial letters of credit and s...
OpenLevel 1 inputs
Quoted prices in active markets for identical assets or liabilities.
OpenLevel 2 inputs
Observable inputs other than quoted prices for identical items.
OpenLevel 3 inputs
Unobservable inputs used when observable data is unavailable.
OpenLiabilities
It is the amounts and accounts that the company owes to others, and it is considered an obligation on the company to others, and it is called in the analysis and economy the sources of external financ...
OpenLiability
A liability is a present obligation of the company arising from past events that will require the transfer of economic resources such as cash or other assets. Liabilities represent amounts the company...
OpenLiability
A liability is a present obligation that will result in an outflow of economic resources.
OpenLIFO
last in , first out, it is an inventory cost flow whereby the last goods purchased are assumed to be the first goods sold so that the ending inventory consists of the first goods purchased.
OpenLIFO (last-in, first-out)
is an inventory cost flow whereby the last goods purchased are assumed to be the first goods sold so that the ending inventory consists of the first goods purchased.
OpenLiquid Assets
Liquid Assets it Is mean Cash, Cash, Equivalent, and Marketable Securities, also called Quick Assets
OpenLiquidation
The liquidation process that ends the company's existence after distributing its assets. A liquidator is an insolvency practitioner who liquidates a company.
Openliquidity
Liquidity: The proportion of cash in a company's assets. As well as assets that can be easily converted into cash.
OpenLiquidity
Liquidity is the ability to meet short-term obligations as they fall due.
OpenLong Term Assets
Long-term assets mean non-current assets and are the property of the economic entity from economic resources that serve more than a year, and it is not expected to change during the twelve months foll...
Open