By Kate Mooney
The crucial Accounting Dictionary is an up to date, authorative reference, containing over 3,000 entries explaining the main time-honored accounting phrases in transparent, concise, easy-to-understand language.
This e-book makes a speciality of defining the time period that individuals this present day are probably to come across whilst facing accounting. no matter if you will have a greater knowing of economic statements, funding studies, or information articles, otherwise you easily are looking to speak larger in company, this useful reference can assist you already know the fitting that means of any accounting term.
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Extra resources for The Essential Accounting Dictionary (Sphinx Dictionaries)
Adjusted balance method. N. 0 2738:Layout 1 25 4/22/08 adjusted current earnings owed after all payments, purchases, and adjustments are made to the balance. Usually this method results in the lowest interest charges. Contrast with the average daily balance method, in which the charges are calculated on a weighted-average calculation of the outstanding amount. Also contrast with the previous balance method, in which the charges are calculated on the balance at the end of the last period. The previous balance method usually produces the highest amount of finance charges.
The agency fund is used to hold money collected or withheld that must be paid or sent at a later date. , can later be sent to the appropriate party. agency theory. N. A set of concepts that describes conflicts and behaviors associated with relationships in which the principals or owners of an organization hire a person or another organization, called the agent, to act on behalf of the principal. The agent can make decisions, spend money, and sign contracts for the principal. Agency theory suggests that the agent will not always act in the best interests of the principals without monitoring or incentives.
N. Computer programs auditors use to perform various audit procedures. These programs simplify investigating and analyzing client records and practices. audit trail. N. The evidence of a business transaction’s path through the accounting system. Auditors should be able to trace financial statement amounts back to source documents. For example, the audit trail that verifies salary expense on the income statement would include paychecks to employees connected to the employees’ time cards. authentication.
The Essential Accounting Dictionary (Sphinx Dictionaries) by Kate Mooney