variances
Variances are deviations from the norm that may warn of situations requiring corrective action by managers.
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.
VAT Digital
VAT digital refers to managing VAT obligations using digital systems, including e-filing, digital record keeping, e-invoice integration, and automated reconciliations. It supports accurate VAT calcula...
OpenVAT Return
VAT returns require accurate sales and purchase records and reconciliation to accounting ledgers to ensure correct tax positions.
OpenVenture Capital
Venture capital is capital invested in high-risk, high-growth potential startups or unproven projects, aiming for capital growth.
OpenWACC
WACC means Weighted Average Cost of Capital.
Openwages
Wages are rewards paid to employees often based on daily or hourly rates; commonly used for production/operating workers.
Openwages expense
Wages expense is compensation earned by hourly-paid employees during the period. Under accrual accounting, payment date does not determine when wages are expensed.
OpenWalkthrough test
A procedure where the auditor follows a transaction from initiation to recording.
OpenWall Street
Wall Street is the financial district of New York (Lower Manhattan) and is used as a synonym for U.S. financial markets.
OpenWithholding tax
Tax withheld at source on certain payments.
OpenWitness
A witness is an individual who testifies at a trial about what they saw, heard, or otherwise observed.
OpenWork Sheet
A work sheet is a schedule/document where an accountant or auditor gathers information to support an opinion about an account balance or transaction testing.
OpenWorking Capital
Working capital equals current assets minus current liabilities; also called net working capital.
OpenWorking Capital
Working capital is the difference between current assets and current liabilities. It measures the company's short-term financial health and its ability to pay obligations due within one year.
OpenWorking Capital
It measures short-term financial health and operational efficiency, showing whether a business can cover its short-term obligations.
OpenWorking Capital Statement (WCS)
Working Capital Statement (WCS) is a statement (often within cash flows/changes in financial position) showing sources and uses of working capital and changes in working capital.
OpenWorking Capital Turnover - WCT
Working capital turnover (WCT) measures net revenue generated per monetary unit of working capital. It varies by industry and is best compared to industry averages.
OpenXBRL
XBRL is a digital reporting language that standardizes financial data to improve comparability, transparency, and regulatory reporting.
Openyear-to-date net income
Year-to-date net income is net income from the start of the current accounting year up to a specified date.
OpenYellow Book
Written by the general accounting office, the yellow book sets forth standards to be followed in auditing the financial statements of entities that receive federal financial assistance. "Yellow Book" ...
OpenYEN
is the currency of Japan. Its subdivisions are 100 sen and 1000 rin.
OpenYield
is the annual return on an investment, expressed as a percentage. The yield to redemption or maturity (the same thing) combines the running yield with the "pull to redemption"; thus a bond which has a...
OpenYIELDDISC
Returns the annual yield for a discounted security; for example, a Treasury bill
OpenYIELDMAT
Returns the annual yield of a security that pays interest at maturity
OpenYTD
is Year To Date; meaning the period beginning of the calendar year, January 1st of the current year, or the fiscal year up until today's date.
OpenZBB
Means Zero based budgeting
OpenZERO BASED BUDGET - ZBB
is where the expenses or costs of the prior year are not taken into consideration when establishing expense or budgetary levels looking forward. Each expense category starts from zero. All expenses or...
OpenZero Rated
denotes goods on which the buyer pays no value-added tax although the seller can claim back any tax he/she has paid.
OpenZero Rated Sales
is when a sale is taxable at the rate of 0%, i.e. no sales tax. Some examples could be: basic groceries, prescription drugs or certain medical devices.
Openzero-based budgeting
Rather than the previous year's budget being the starting point for the next budget, a zero-based budget assumes no activities: everything in the budget must be justified.
OpenZero-minus tick
In stock markets, a price which is the same as that for the previous transaction, but less than that of the trade before that. Also known as a zero-downtick.
OpenZero-plus tick
In stock markets, a price which is the same as that for the previous transaction, but greater than that of the trade before that. Also known as a zero-uptick.
OpenZero-Rated Supply
Zero-rated supplies are still taxable and usually allow input VAT recovery, unlike exempt supplies.
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