Time scale
A timescale is used in project implementation to arrange tasks by time and determine completion periods.
OpenFinancial Dictionary
Accounting & Finance Terms (English)
Accounting and Finance Terms Explained
Explore accounting, finance, auditing, taxation, and economics terms explained in clear English. Each entry provides a definition, a detailed explanation, practical uses, and examples where available.
Use the search box below to find a term by its name, definition, application, or related financial concept.
Time Value of Money
The time value of money is the concept that money received today is worth more than the same amount received in the future due to inflation and earning potential.
OpenTo Date
To date means up to the current date (prior to today).
OpenTotal Assets
Total assets equals current assets plus non-current assets.
OpenTotal Assets TurnOver
Total assets turnover measures how efficiently a company uses its assets to generate revenue. It is calculated as net revenue divided by total assets (or average total assets).
OpenTotal Current Assets
Total current assets are current assets.
OpenTotal Current Liabilities
Total current liabilities are current liabilities.
OpenTotal Liabilities
Total liabilities equals current liabilities plus long-term (non-current) liabilities.
OpenTotal Liabilities & Net Worth.
Total liabilities and net worth equals total liabilities plus total equity.
OpenTotal Non-Current Assets
Total non-current assets are non-current assets.
OpenTotal Non-Current Liabilities
Total non-current liabilities are non-current liabilities.
OpenTotal Revenue
Total revenue is revenue without deduction of any discounts.
OpenTotal Stockholders' Equity
Total stockholders' equity equals total equity.
Opentrade accounts receivable
Trade accounts receivable are amounts due from customers (accounts receivable).
Opentrade discount
A trade discount is a discount granted based on customer type or volume, typically applied on the invoice and not shown in the price list.
Opentrademark
A trademark is an intangible asset recorded at cost (or less) and may consist of a name or logo. Trademarks are registered with legal authorities.
OpenTransfer pricing
Transfer pricing refers to pricing of transactions between related parties, requiring that prices follow the arm’s length principle for tax purposes.
OpenTrial Balance
A listing of account balances from the ledger where total debits should equal total credits. Prepared at period end to check whether adjustments may be needed.
OpenTrial Balance
A trial balance summarizes all account balances to ensure total debits equal total credits. It is a key step before preparing financial statements.
OpenTrial Balance
It is used to check arithmetical accuracy and as a starting point for preparing financial statements, though it does not guarantee absence of errors.
OpenTrial Balance
A trial balance lists all ledger accounts with their debit and credit balances to verify the equality of total debits and credits.
OpenTrial Balance
A Trial Balance lists all ledger accounts with their debit and credit balances at a specific date to verify that total debits equal total credits and to help identify posting errors before preparing f...
OpenTrial Balance After Adjusting Entries
The trial balance after making the necessary adjustments to complete the financial reporting process.
OpenTurnover
Turnover (if linked to an item) means turnover rate such as inventory turnover, asset turnover, or receivables turnover. Employee turnover means replacement rate. In some countries, turnover may also ...
OpenTurnOver Of Account Recivables
Accounts receivable turnover measures how efficiently a company collects credit sales. It is calculated as net credit sales divided by average accounts receivable.
Openunderwriter
In securities, an underwriter helps a company issue shares or bonds. In insurance, an underwriter evaluates and accepts insurance risk.
OpenUnearned revenue
Payments received for services not yet performed.
OpenUnearned Revenue
Unearned revenue is money received before providing goods or services. It is recorded as a liability until the company fulfills its obligation.
Openunit-level activity
Unit-level activities relate to the number of units produced; each additional unit typically requires additional activity.
OpenValuation
Valuation is the process of determining the value of a company's assets (or the company itself).
OpenValue added tax
Value Added Tax (VAT) is an indirect consumption tax imposed on the incremental value added to goods and services at each stage of production and distribution.
OpenValue Added Tax (VAT)
VAT is applied to taxable supplies, collected from customers (output VAT), and recoverable on eligible purchases (input VAT), with the net payable/remittable to the tax authority.
OpenValue Chain
Value chain is the sequential set of primary and support activities an enterprise performs to turn inputs into value-added outputs for customers (Porter's value chain).
OpenVALUE FOR MONEY
Value for money reflects whether the goods/services received were worth the price paid, considering suitability, quality, skills, price, whole-life costs, and other criteria.
OpenVALUE IN USE
Value in use is the present value of the future cash flows expected to be derived from an asset (in impairment context).
OpenValue in use
The present value of future cash flows expected from an asset.
OpenVALUE MANAGEMENT
Value management uses established techniques to define and improve business needs, delivery strategy and best value by clarifying customer goals/values and success criteria.
OpenVAR
VAR can mean Value-Added Reseller; or in finance, Value at Risk.
Openvariable cost
Variable cost changes in proportion to activity/volume. Example: if materials are $30 per unit, total variable costs increase as production increases.
Openvariable cost ratio
Variable cost ratio is variable costs divided by net sales.
Openvariable costing
Variable costing carries inventory at variable production costs (direct materials, direct labor, variable overhead). Fixed manufacturing overhead is expensed in the period.
OpenVariable Costs
Variable costs are production-related costs that change directly with production volume, such as direct materials and direct labor (if variable).
OpenVariable costs
Costs that change directly with production volume.
Openvariable expenses
Variable expenses are variable costs charged to expense for units sold to determine profit (e.g., variable COGS). Unsold units' variable costs remain in inventory.
Openvariable manufacturing overhead applied
Variable manufacturing overhead applied is variable overhead assigned to products using a predetermined rate; ideally, applied equals actual by year-end.
Openvariable manufacturing overhead efficiency variance
Variable manufacturing overhead efficiency variance is the difference between standard variable overhead for actual output and variable overhead based on actual activity at standard rate.
Openvariable manufacturing overhead incurred
Variable manufacturing overhead incurred is the actual variable overhead cost incurred (excluding direct materials and direct labor) that increases with production volume.
Openvariable manufacturing overhead spending variance
Variable manufacturing overhead spending variance is the difference between actual variable overhead incurred and expected variable overhead based on actual activity.
OpenVariance
Variance is the deviation or difference between an expected/standard amount and the actual amount.
OpenVariance analysis
Variance analysis examines differences between actual results and budgeted/standard results to identify reasons and take corrective actions.
Open