accounting changes
Accounting changes are changes from one acceptable accounting method to another acceptable method. The change may be in an accounting principle, accounting estimate, or other method. For example, chan...
OpenFinancial Dictionary
Accounting & Finance Terms (English)
Accounting Concepts
are the assumptions underlying the preparation of financial statements, i.e., the basic assumptions of going concern, accruals, consistency and prudence.
OpenAccounting Cycle
is the sequence of steps in preparing the financial statements for a given period. The procedures needed to process transactions through an accounting system; including journalization, posting, adjust...
OpenAccounting Entity Assumption
states that a business is a separate legal entity from the owner. In the accounts the business’ monetary transactions are recorded only.
OpenAccounting Equation
Accounting Equation states that Assets equals Liabilities plse Onwres Equities Assets = Liabilities + Owners Equities The accounting equation is expressed in the financial statement known as the balan...
OpenAccounting Event
Any event that directly affects the financial position and the statement of profit and loss for the company can be measured in monetary units. Example: the receipt of electricity bill of the company m...
OpenAccounting income
is the income derived through historical accrual based accounting. Income = the change in net assets occurring during the period excluding transactions with owners; i.e. transaction based.
OpenAccounting Measurement and Disclosure
is the concepts of measurement and information disclosure required for decision making.
Openaccounting net income flows
The amounts reported on the income statement. Because of accrual accounting the net income flows will be different from the cash flow
OpenAccounting Period
The accounting period is the period during which financial reports are prepared according to the principle of periodicity to reach the financial position of the economic unit. The accounting period is...
OpenAccounting Policies
Accounting policies are the specific principles, foundations, agreements, rules, and practices that an entity applies in preparing and presenting financial statements. For example, the company chooses...
OpenAccounting Practices
"Accounting practice is the process and activity of recording the day-to-day financial operations of a business entity. Accounting practice is necessary to produce the legally required annual financia...
Openaccounting principles
The standards, rules, guidelines, and industry-specific requirements for financial reporting
OpenAccounting Principles Board (APB)
Accounting Principles Board (APB) The senior technical committee of the American Institute of Certified Public Accountants (AICPA) that issued statements on accounting principles from 1959-1973. The A...
Openaccounting rate of return
Accounting rate of return is an indicator of profitability that is measured by dividing net accounting income by the amount invested.
OpenAccounting Ratio
Accounting Ratio is the result of dividing one financial statement item by another. Ratios help analysts interpret financial statements by focusing on specific relationships.
OpenAccounting Research Bulletin (ARB)
These pronouncements were issued by the Committee on Accounting Procedures of the American Institute of Certified Public Accountants during the years 1953 to 1959. They were and are part of the genera...
OpenACCOUNTING THEORY
Accounting theory attempts to describe the role of accounting and consists of four types of accounting theory: classical inductive theories, income theories, decision utility theories, and information...
Openaccounting timing difference
The accounting timing difference is the effect that a deferred accounting event would have on the financial statements if it were taken into account, for example, releasing a deferred tax asset to the...
OpenAccounting Treatment
is the methods, processes and decisions as to any given accounting decision as to how a transaction is to be or is handled in compliance to GAAP or IFRS and all applicable statutes.
OpenAccounts Payable
Commercial accounts payable and represent obligations to pay suppliers of goods or service providers
OpenAccounts Payable
Accounts payable are amounts owed to suppliers for goods or services purchased on credit.
OpenAccounts Payable
Accounts payable represent amounts the company owes to suppliers for purchases made on credit. They are current liabilities that must be settled within a short period. Effective management helps maint...
OpenAccounts Payable Days
The number of days of trade accounts Payable is a liquidity indicator that measures the number of days the company takes to paid credit commercial accounts for Creditors
OpenACCOUNTS PAYABLE TO SALES
measures the speed with which a company pays vendors relative to sales. Numbers higher than typical industry ratios suggest that the company is using suppliers assets (cash owed) to fund operations.
OpenAccounts Receivable
These are trade accounts receivable and represent money owed to the company by customers for the services performed or goods sold by credit
OpenAccounts Receivable
Accounts receivable represent amounts owed to the company by customers for goods sold or services provided on credit. They are current assets and indicate expected cash inflows. Proper management incl...
OpenAccounts Receivable
Accounts receivable are amounts owed by customers for goods or services sold on credit.
Openaccounts receivable - net
The combined amount of the debit balance in the current asset account Accounts Receivable and the credit balance in the contra asset account Allowance for Doubtful Accounts. The difference between the...
OpenAccounts Receivable Days
The number of days of trade accounts receivable is a liquidity indicator that measures the number of days the company takes to collect debit commercial accounts from debtors, A liquidity metric that p...
OpenAccounts Receivable Ledger
is the ledger in which all accounts for debtors owed to an entity is maintained.
OpenAccounts Receivable Turnover ratio
It is a financial ratio and it measures the ratio of net credit sales to average accounts receivable, which is a measure of how quickly customers pay their bills.
OpenAccounts Reveivables
Trade accounts receivable are the accounts of clients in the economic entity and include amounts that have not been collected or are not yet due. Generally a complete deal to sell products or provide ...
OpenACCRETION
ACCRETION is the adjustment of the difference between the price of a bond purchased at an original discount and the par value of the bond; or, asset growth through internal growth, expansion or natura...
OpenAccrual
is the recognition of revenue when earned or expenses when incurred regardless of when cash is received or disbursed.
Openaccrual basis
Method of accounting that recognizes revenue when earned, rather than when collected. Expenses are recognized when incurred rather than when paid.
OpenAccrual Basis
Accrual accounting recognizes income and expenses when they are earned or incurred, not when cash is received or paid.
OpenAccrual Basis
Under the accrual basis, revenues and expenses are recognized when they occur, not when cash is received or paid. It provides a more accurate picture of financial performance.
OpenAccrual basis
An accounting basis under which transactions and events are recognized when they occur, not when cash is received or paid.
OpenAccrual Basis of accounting
The accounting method under which revenues are recognized on the income statement when they are earned (rather than when the cash is received). The balance sheet is also affected at the time of the re...
OpenAccrual Concept
The concept of accrual, which is the basis of accrual accounting, “the accounting method according to which revenues are recognized in the income statement when they are earned (and not when cash is r...
Openaccrual method of accounting
The accounting method under which revenues are recognized on the income statement when they are earned (rather than when the cash is received). The balance sheet is also affected at the time of the re...
OpenAccrual to Cash Conversion
The process of converting accrual-based financial statements to cash-based statements.
OpenAccrual to Cash Conversion
The process of converting accrual-based financial statements to cash-based statements.
Openaccrual-type adjusting entry
An adjusting entry made at the end of the accounting period in order to report (1) revenues that have been earned but have not yet been entered into the accounting records, (2) expenses that have been...
Openaccrue
To adjust a revenue or expense that has occurred, but has not yet been entered in the accounting records until the end of the accounting period.
OpenAccrued Assets
are assets from revenues earned but not yet received.
OpenAccrued Expense
An expense that has occurred but the transaction has not been entered in the accounting records. Accordingly an adjusting entry is made to debit the appropriate expense account and to credit a liabili...
OpenAccrued Expense
An accrued expense is an expense incurred but not yet paid by the end of the period.
OpenAccrued Expenses
Unpaid expenses that have already been incurred, see Accrued Expense
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