Return on Capital Employed (Roce)
Return on Capital Employed (ROCE) - This ratio is arguably the most vital for the control of performance in large, delegated, businesses. It is made up from the...
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finance
accounting
Accounting
Return on Investment (ROI)
Return on investment (ROI) - The earning power of an asset or activity measured as a ratio of the net income of the activity to the operational cost. ROI lets a...
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finance
accounting
Secured Loan
Secured Loan - Loan where the lender has taken a special claim on particular assets or revenues of the company to give extra protection in the event of the loan...
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finance
accounting
Securities
Securities - Government bonds, ordinary shares in companies, debentures, loans, preference shares, etc. are all collectively described as securities.
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finance
accounting
Security
Security - Typically required by lenders against a loan, such as premises or plant equipment.
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finance
accounting
Share Capital
Share Capital - Name given to the total amount of cash which the shareholders have contributed to the company.
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finance
accounting
Share Certificate
Share Certificate - A document providing evidence of share ownership.
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finance
accounting
Share Premium
Share Premium - The price paid for shares in a company over and above their nominal value.
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finance
accounting
Shareholders
Shareholders - Owners of a limited liability company.
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finance
accounting
Sme
SME - Small or Medium Sized Enterprises. A business is deemed an SME if it meets two of three criteria: it has a turnover of £25m or less, it employs fewer ...
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finance
accounting
Sole Trader
Sole Trader - An individual owning and operating a business alone.
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finance
accounting
Stakeholders
Stakeholders - A general term devised to indicate all those who might have a legitimate interest in receiving financial information about a business because the...
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finance
accounting
Tangible Fixed Assets
Tangible Fixed Assets - A fixed asset (also called a non-current asset) which has a physical existence. Used to differentiate it from an Intangible fixed asset.
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finance
accounting
Trade Creditors
Trade Creditors - Persons or businesses who supply goods or services to a business in the normal course of trade and allow a period of credit before payment mus...
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finance
accounting
Trade Debtors
Trade Debtors - Persons or businesses who buy goods or services from a business in the normal course of trade are allowed a period of credit before payment is d...
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finance
accounting
Turnover
Turnover - The total sales of a business during a specified period.
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finance
accounting
Variable Costs
Variable costs - Costs that vary in some kind of proportion to throughput (production), e.g. materials. Each same product takes the same amount of material, so ...
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finance
accounting
Venture Capital
Venture capital - Capital invested into projects with long term growth potential but also higher risks, such as start-up businesses.
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finance
accounting
Work in Progress
Work in progress - As its name implies, it is the value of the products on which work has been started but is not yet complete.
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finance
accounting
Radio Frequency Identification
radio frequency identification - (RFID) Micro processes embedded in inventory that emit radio frequency signals that enable a computer to automatically track...
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accounting
Raw Materials
raw materials - The components that will be used in manufacturing units that are not yet started -- also known as direct materials
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accounting
Registered Bond
registered bond - A bond for which ownership records are maintained, and interest is paid to the registered owner
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accounting
Relevancy
relevancy - A fundamental quality of accounting such that information should be timely and bear on the decision-making process by possessing predictive or co...
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accounting
Relevant Range
relevant range - The level of activity for which assumptions underlying CVP are expected to hold true
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accounting
Responsibility Center
responsibility center - The part of an organization under the control of a manager
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accounting
Revenue
revenue - Inflows and other benefits received in exchange for the providing of goods and services
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accounting
Revenue Expenditure
revenue expenditure - Not a capital expenditure; to be expensed as incurred
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accounting
Revenue Recognition
revenue recognition - The point at which revenue is recognized in the accounting records; ordinarily the point of sale
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accounting
Reversing Entry
reversing entry - Optional accounting procedure which may prove useful in simplifying record keeping; a journal entry to "undo" an adjusting entry
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accounting
Rules-based
rules-based - The idea that accounting standards must be very specific to provide adequate guidance and drive consistency in reporting
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accounting
Sales Discounts
sales discounts - A cash discount offered to customers to encourage prompt payment of invoices
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accounting
Scorecards (Balanced)
scorecards (balanced) - A system for evaluating elements that are important to the organization and under the control of an employee holding that position
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accounting
Securities and Exchange Commission
Securities and Exchange Commission - "SEC" -- regulatory body with which public companies must file and report
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accounting
Serial Bond
serial bond - A bond issue that has multiple repayment dates, rather than the entire issue maturing at one fixed maturity date
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accounting
Significant Influence
significant influence - The ability to sway management and decision making of another entity, but generally not enough to assert absolute control
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accounting
Simple Interest
simple interest - Interest calculations that do not provide for periodic inclusion of accumulated interest into the base on which interest is calculated
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accounting
Sinking Fund Bond
sinking fund bond - A bond issue that requires periodic setting aside of monies into a separate fund to provide for eventual repayment of the debt at maturity
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accounting
Sole Proprietorship
sole proprietorship - A non-corporation business owned by a sole individual
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accounting
Source Document
source document - A document evidencing a transaction or event and potentially providing for the initiation of a journal entry
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accounting
Special Order
special order - A customer order that is outside of the normal pricing and terms
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accounting
Stable Currency Assumption
stable currency assumption - An accounting assumption that presumes the currency is not impacted over time by inflation
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accounting
Standards
standards - Benchmarks against which actual productive activity is compared
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accounting
Stock
stock - Transferable units of ownership in a corporation
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accounting
Stock Split
stock split - A corporate action to increase the number of shares and reduce the par per share by a stipulated ratio (e.g., 2 for 1)
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accounting
Straight-line Depreciation
straight-line depreciation - A simple depreciation method by which the depreciable base is spread uniformly over the service life
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accounting
Straight-line Method
straight-line method - A method for amortizing premiums and discounts on bonds; the premium or discount is spread uniformly over the life of the bond as an a...
2 min read
accounting
Subsidiary Account
subsidiary account - A subcomponent account record providing individual balance details; e.g., the record for one customer out of a group of customers compri...
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accounting
Sunk Cost
sunk cost - Historical amount expended on a project or object; not relevant to current decisions or future actions
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accounting
Sustainability
sustainability - Development without depletion of natural resources or negative effects on the environment
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accounting
T-account
T-account - An abstract representation of an account, with the left side of the "T" representing debits and the right side credits
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accounting
Temporary Accounts
temporary accounts - Accounts that will be reset to a zero balance with each new accounting period; revenue, expense, and dividend accounts (also called "nom......
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accounting
Theory of Constraints
theory of constraints - (TOC) Efficiency is improved by seeking out and eliminating constraints within the organization
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accounting
Time Value of Money
time value of money - Conceptual notion holding that money to be received sooner is worth more than money to be received later
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accounting
Timeliness
timeliness - An enhancing quality of accounting such that information is available in sufficient time to be capable of influence
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accounting
Total Paid-in Capital
total paid-in capital - The sum of legal capital plus paid-in capital in excess of par
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accounting
Total Quality Management
total quality management - (TQM) A process for continuous improvement by focusing on customer service and systematic problem solving via teams made up of fro...
2 min read
accounting
Trade Discount
trade discount - A reduction from list price that is not entered in the accounting records; customarily offered in "setting" the invoice amount
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accounting
Trade Receivables
trade receivables - Amounts due from customers from credits sales of products or services
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accounting
Transfer Pricing
transfer pricing - The system of setting prices at which goods are exchanged between affiliated units; usually involving cross-border transactions
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accounting
Treasury Stock
treasury stock - Shares of a company's own stock that it has reacquired
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accounting
Trial Balance
trial balance - A listing of account balances from the ledger, used to test the equality of debits and credits
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accounting
Understandability
understandability - An enhancing quality of accounting such that information is clear and concise to those with reasonable business knowledge
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accounting
Units-of-output Depreciation
units-of-output depreciation - A depreciation approach where the depreciable base is allocated to the expected total units of output; mileage, hours, etc.
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accounting
Variances
variances - Deviations from the norm that may provide warning signs of situations requiring corrective action by managers
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accounting
Verifiability
verifiability - An enhancing quality of accounting such that different knowledgeable and independent observers reach similar conclusions
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accounting
Workers Compensation Insurance
workers compensation insurance - Insurance paid by the employer to cover work related injuries sustained by employees
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accounting
Machine to Machine
Machine to Machine - (M2M) enables connected devices to communicate with each other
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accounting
Maker
maker - The party creating the note and agreeing to make payment
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accounting
Management by Exception
management by exception - A management focus of attention on areas where corrective measures appear necessary
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accounting
Managerial Accounting
managerial accounting - An area of accounting concerned with reporting results to managers and others who are internal to an organization
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accounting
Market-level Activity
market-level activity - Activities that relate to the number of markets in which an entity operates; independent of the number of products, customers, etc.
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accounting
Matching Principle
matching principle - To associate expenses with revenues, and record them in simultaneous accounting periods
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accounting
Materiality
materiality - A matter of accounting judgment; when amounts involved are slight, expediency may dictate waiving the technically correct alternative in lieu o...
2 min read
accounting
Materials Price Variance
materials price variance - A variance that reveals the difference between standard price for materials purchased and amounts actually paid for those material...
2 min read
accounting
Materials Quantity Variance
materials quantity variance - A variance comparing standard quantity to actual quantity of materials; variation is measured at the standard price per unit [(...
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accounting
Maturity Date
maturity date - The date on which a note and related interest are due to be paid
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accounting
Maturity Value
maturity value - The amount due at maturity of a note; includes principal and interest
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accounting
Monetary Unit Assumption
monetary unit assumption - Accounting measures transactions and events in units of money, in contrast to some other unit of measure (e.g., acres of land)
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accounting
Natural Business Year
natural business year - Applicable to certain businesses that have a seasonal business pattern, and an attempt is made to establish an accounting fiscal year...
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accounting
Net Loss
net loss - The excess of expenses over revenues for a designated period of time
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accounting
Net Method
net method - A method of recording purchases of inventory at invoice price less available cash discounts
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accounting
Net Present Value
net present value - Or NPV, a method of evaluating capital projects that uses a predetermined interest rate to determine the present value of an investment's...
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accounting
Net Realizable Value (Receivables)
net realizable value (receivables) - The amount of cash expected to be collected on outstanding accounts receivable; accounts receivable minus the allowance ...
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accounting
Nominal Accounts
nominal accounts - Accounts that will be reset to a zero balance with each new accounting period; revenue, expense, and dividend accounts (also called "tempo......
2 min read
accounting
Nonredeemable Bond
nonredeemable bond - A bond that cannot be paid off before scheduled maturity
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accounting
Nonrefundable Bond
nonrefundable bond - A bond that cannot be paid off with the proceeds of a new debt issue
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accounting
Nontrade Receivables
nontrade receivables - Amounts due from transactions and events not directly related to sales of products or services
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accounting
Notes Payable
notes payable - Formal short-term borrowings usually evidenced by a specific written promise to pay
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accounting
Notes Receivable
notes receivable - A written promise from a client or customer to pay a definite amount of money on a specific future date
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accounting
Nsf Check
NSF check - Non-sufficient funds check; a customer check returned for lack of funds (a "hot check")
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accounting
Operating Cycle
operating cycle - The period of time it takes to convert cash back into cash (i.e., purchase inventory, sell the inventory on account, and collect the receiv...
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accounting
Ordinary Annuity
ordinary annuity - Also known as an annuity in arrears; involves a level stream of payments, with the payments being made at the end of each time period
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accounting
Outsourcing
outsourcing - Utilization of independent parties to manufacture products (sometimes known as make-or-buy) or manage data processing, tech support, payroll se...
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accounting
Outstanding Checks
outstanding checks - Checks entered on company records but not yet cleared by the bank
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accounting
Owner Investments
owner investments - Resources provided to an organization by a person in exchange for a position of ownership in the organization
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accounting
Paid-in Capital in Excess of Par
paid-in capital in excess of par - The amount by which a stock's issue price exceeds its par value; also referred to as "additional paid-in capital"
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accounting
Par Value
par value - Par value is a technical provision establishing the “legal capital” of the firm and is frequently associated with common and preferred stock to s......
2 min read
accounting
Par Value on Bonds
par value on bonds - The face or contract amount of a bond; the amount to be repaid at maturity along with any interest
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accounting
Partnership
partnership - A non-corporation representing an association of two or more persons organized to carry out a business plan for a profit motive
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accounting
Payback Method
payback method - Easy method for evaluating capital projects; calculated by dividing the initial investment by the annual cash inflow
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accounting