A Chartered Certified Accountant (CCA) is a highly qualified financial professional, recognized by the Association of Chartered Certified Accountants (ACCA), equipped to audit company accounts, with a robust training background in various sectors.
Chartered Financial Consultant (ChFC) is a professional designation awarded by The American College in Bryn Mawr, Pennsylvania, recognizing individuals for their expertise and proficiency in financial planning.
The Chartered Property and Casualty Underwriter (CPCU) is a professional designation that signifies expertise in various areas including insurance, risk management, economics, finance, management, accounting, and law. To earn this prestigious designation, candidates must complete 10 national examinations and have at least three years of work experience in the insurance industry or a related field.
A check digit is a form of redundancy check used for error detection, designed to help ensure the accuracy of a number by appending a digit that can be recomputed and then compared to verify the correctness of the original number.
A check register is a log, book, or journal where each check issued is posted sequentially.
A check stub is a portion of a check that is retained for record-keeping purposes and includes details related to the payment.
Close family refers to the family members of an individual or members of the individual's household who are expected to influence or be influenced by that person in their dealings, potentially leading to related party transactions.
Closing refers to multiple contexts related to financial and business operations, computing, and everyday actions. These contexts could include the financial market activities, accounting procedures, concluding agreements, and computing functions.
Closing encompasses the completion of a transaction involving real estate or the final steps in accounting at the end of a fiscal period.
In accounting, a closing entry is one of the final entries made at year-end to close accounts and transfer the amounts to financial statements, ensuring all temporary accounts are reset for the next accounting period.
A corporation that dissolves before realizing a substantial portion of the taxable income to be derived from its properties. The Internal Revenue Service (IRS) treats the gain on the sale or liquidation of a collapsible corporation as ordinary income to the stockholder.
A columnar journal is a specialized accounting book or ledger with pre-printed columns designed to systematically facilitate the recording and categorization of numerical data. Often used in bookkeeping, these journals streamline the process of capturing financial transactions for further processing.
In the USA, a combined financial statement involves the aggregation of the financial statements of a related group of entities to present financial information as if the group was a single entity. Intercompany transactions are eliminated from combined financial statements.
A Comfort Letter, often known as a Letter of Comfort, is a document provided by an accounting firm, lawyer, or financial institution to assure the recipient about the financial stability or intention of a company or individual.
Commerce Clearing House (CCH) is a leading provider of information services, software, and workflow tools for tax, accounting, and legal professionals.
An account used to record commissions received by an organization in a double-entry accounting system.
Commodity codes are numerical identifiers used to categorize goods for inventory, sales, and accounting purposes in an organization. They streamline material and finished goods control systems and ensure effective tracking and management of resources.
Compensated absences refer to certain periods during which employees are paid even though they do not attend work. This concept is crucial for proper financial reporting and management in organizations.
Composite depreciation is a method where a single depreciation rate is applied to an entire asset, despite its components having varying useful lives.
A compound journal entry is an accounting entry that affects more than one account, allowing for multiple debits and/or credits in a single transaction. It is commonly used for complex transactions in double-entry bookkeeping.
The Comprehensive Annual Financial Report (CAFR) is the official annual report of a government entity in the United States. It provides detailed financial statements and analysis of a government's financial health.
A comptroller is a high-level executive who oversees the accounting and financial reporting functions within an organization, often in a governmental or nonprofit entity. The cabinet-level position is usually responsible for ensuring adherence to financial regulations and the accuracy of reported financial data.
A consent letter is a formal document included in a prospectus where an expert, such as a reporting accountant, consents to the issuance of the prospectus and acknowledges the inclusion of their report or any reference made to them.
Consistency refers to the use of the same accounting procedures by an accounting entity from period to period. Consistently applying similar measurement concepts and procedures for related items within the company's financial statements across different periods simplifies comparisons and projections.
Consolidated accounts are financial statements that present the assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries as if the entire group were a single entity.
The Consolidated Statement of Cash Flows - A Key Financial Document Showing Combined Cash Flow Activities in Entities for Investors
The consolidated statement of financial position, often referred to as the consolidated balance sheet, provides a snapshot of a parent and its subsidiaries’ financial situation at a specific point in time.
The process of combining and adjusting financial information from the individual financial statements of a parent undertaking and its subsidiaries to prepare consolidated financial statements, which present financial information for the group as a single economic entity.
Adjustments made in the process of consolidating the accounts of a group of organizations, ensuring the elimination of intra-group transactions' profits or losses from consolidated financial statements.
Consortium relief is a modified form of group relief that applies to consortia, which allows for the surrendering of losses between consortium members and the consortium company. This serves to optimize tax efficiency in complex corporate structures.
Constant dollar is an accounting term used to reflect the value of money after adjusting for inflation, providing a consistent measurement standard across different time periods.
A contingency is a potential event or circumstance that is uncertain but could have either positive or negative consequences on an entity's financial situation or operations. It is often considered in risk management and financial planning.
A contingency fund is an amount reserved for a possible loss, such as those caused by a business setback. Contingency funds and other reserves set aside are not deductible for tax purposes.
A possible asset that arises from past events and whose existence will be confirmed only by the occurrence of one or more uncertain future events, beyond the control of the accounting entity.
A contingent gain is an economic benefit that may be realized when a favorable event occurs, though it is not guaranteed and depends on future uncertainties.
Either a possible obligation arising from past events that will be confirmed by one or more uncertain future events not wholly within an entity's control, or a present obligation from past events that cannot be measured reliably or is not probable to require settlement.
A contingent loss is an economic loss that may occur in the future depending on the outcome of a specific event, typically related to a contingent liability.
A method of accounting that evaluates a company's financial position based on its ability to adapt to changing environments and recognizes general price level changes. While favored by some academics, it has seen limited interest among practitioners.
A contra-asset account is used in accounting to accumulate amounts that reduce the value of a related asset account, such as accumulated depreciation being subtracted from the property, plant, and equipment asset account.
Control accounts are ledger accounts structured to equal the aggregate balances of a large number of subsidiary accounts, serving functions such as consolidating data and providing cross-verification of subsidiary record accuracy.
Control refers to the ability of one entity to direct the financial and operating policies of another entity or to obtain the economic benefits from an asset. This term is central to the consolidation of financial statements and the conceptual framework for financial reporting.
In accounting, a convention refers to a general agreement, customary practice, or accepted norm that is followed by accountants in the preparation and presentation of financial statements. Accounting conventions aim to provide consistency and comparability across financial statements.
A cost center is a non-revenue-producing segment of an organization where costs are separately figured and allocated, and for which someone has formal responsibility. Common examples include departments like Human Resources (HR) and IT services.
Cost control accounts, also known as cost ledger control accounts, are essential for capturing and managing all costs associated with a company's production processes.
A Cost Function is a formula or equation that represents how specific costs behave when visualized on a graph. It typically depicts total cost as the sum of fixed costs and variable costs.
The Cost Method is an accounting technique used by a parent company for investments in subsidiary companies, particularly when ownership is less than 20% of the outstanding voting common stock.
A cost object is any item for which a separate measurement of costs is desired, including products, services, customers, or specific operations.
The effective overall rate of interest that a company pays on its loans, bonds, and other debts, used in calculating the total cost of capital for that firm. This is usually calculated as an after-tax figure.
An essential metric in accounting, Cost of Goods Sold (COGS) represents the direct costs associated with the production of goods sold by a company. This value is critical in determining the business's gross profit and provides insights into the efficiency and cost management of production processes.
Cost of Goods Sold (COGS) represents the direct costs attributed to the production of goods sold by a company. COGS include the cost of materials, direct labor, and manufacturing overhead.
Cost of Sales Adjustment (COSA) refers to modifications made to the cost of goods sold (COGS) to reflect changes in inventory levels, obsolescence, shrinkage, or other factors that may affect the reported cost of sales.
Cost Records refer to documents that provide evidence of the prices at which investments were purchased or the costs incurred in producing goods, providing services, or supporting activities. These records are essential for calculating capital gains and substantiating financial performance.
Cost-plus transfer prices are set by cost-plus pricing, which includes a mark-up to provide a profit for the supplying division. This method incorporates variable costs and fixed costs for the purpose of setting a transfer price that includes a profit margin.
A costing method is a practice that organizations use to value and allocate costs associated with producing goods or services. The choice of costing method can significantly impact the financial reporting and management decision-making processes of a business.
CPA can stand for multiple terms including Certified Public Accountant, Critical-Path Analysis, and Customer Profitability Analysis. Each of these has specific implications in fields ranging from accounting to project management and customer relations.
A term used in accounting to indicate an entry made on the right-hand side of an account ledger, typically representing a decrease in assets or an increase in liabilities and equity.
A credit balance is an accounting term that refers to the situation where the total of credit entries in an account exceeds the total of debit entries. These balances typically represent revenue, liabilities, or capital.
A credit entry is made on the right-hand side of an account, representing an increase in a liability, revenue, or equity item, or a decrease in an asset or expense.
A Credit Note is a financial document issued by a seller that reduces the amount payable by a customer, typically issued when goods are returned or an overcharge needs correction.
A comprehensive guide covering the definition, examples, FAQs, related terms, online resources, and suggested books for further study on Creditors' Ledger Control Account, also known as Purchases Ledger Control Account.
Cross-footing is a verification process used in spreadsheets where the sums of rows and columns of numbers are compared to ensure accuracy.
The term 'current' is often used to denote anything that is not overdue or is occurring within the current period or time frame.
A current asset refers to cash, accounts receivable, inventory, and other assets that are likely to be converted into cash, sold, exchanged, or expensed in the normal course of business, usually within a year.
Current Cash Equivalent (CCE) is a financial concept that refers to the amount of cash or cash-equivalent assets that a company holds, which can be quickly converted into cash without significant loss of value.
In continuously contemporary accounting, Current Cash Equivalent (CCE) refers to the measure of assets and liabilities in terms of their current cash value.
In calculating a corporation's Current Earnings and Profits (E&P), nontaxable or tax-exempt income is added to the taxable income for the tax year. Current E&P, if not paid out, transitions into Accumulated E&P. Distributions are first taken from current E&P, and then from accumulated E&P. These distributions are taxable to shareholders to the extent of current and accumulated E&P.
In accounting, current liabilities are obligations of a company that are expected to be settled within one year or within the operating cycle, whichever is longer. Current liabilities are used to gauge a company’s short-term liquidity and are listed on the balance sheet.
Current-cost depreciation is a depreciation charge calculated on the current cost of an asset rather than its historical cost. It adjusts for changes in the value of assets over time to ensure financial statements reflect more accurate asset values.
A curvilinear cost function represents any cost relationship where the cost does not change proportionally with the level of activity. This type of cost function forms a curved line when plotted on a graph.
The date on which an accounting period ends and the accounts of a business are ruled off. It ensures the accuracy and integrity of financial statements, providing a true and fair view of the business's performance and position.
A specialized book of prime entry recording specific transactions, serving as a foundation for accurate bookkeeping and financial reporting.
A deadbeat is an individual or entity that neglects or intentionally avoids paying their bills for goods or services received, creating financial burdens for service providers and creditors.
A debit is an entry on the left-hand side of an account in double-entry bookkeeping that increases assets or recorded expenditures of an organization. In the context of a bank account, a debit indicates an outflow of funds.
In accounting, a debit (DR) refers to any entry recording an addition to an asset or expense account, or a reduction from a liability or equity account.
A debit balance is the balance of an account where the total debit entries exceed the total credit entries. This typically indicates expenditures or assets on a company's financial statements.
An essential accounting term used in double-entry bookkeeping to record increases in assets or expenses and decreases in liabilities, revenues, or equity.
A debit memorandum is a notice sent by a bank or financial institution indicating a deduction or charge made to an account, often due to reasons such as insufficient funds or returned checks.
A nominal ledger control account recording the total of entries made to individual debtors' ledgers from the sales day book and the cash receipts journal, used to ensure internal accounting controls.
The act of deciding between alternative courses of action. In the running of a business, accounting information and techniques are used to facilitate decision making, employing models like discounted cash flow, critical-path analysis, marginal costing, and breakeven analysis.
The declining balance method is a commonly used depreciation technique in accounting where an asset loses value by a fixed percentage each year, reflecting the reality that assets tend to lose more value early in their useful lives.
Defalcation is a financial crime that involves the embezzlement of property or funds by an individual entrusted with its custody or control.
Deferred Credit represents income received or recorded before it is earned, and it adheres to the accruals concept by being carried forward on the balance sheet until it is matched with the period in which it is earned.
Deferred income, also known as unearned revenue or deferred revenue, refers to payments received by a business for goods or services that have yet to be delivered or completed.
Deferred payments refer to payments that are extended over a period of time or put off to a future date. This arrangement allows the payer to delay full payment until an agreed-upon future date.
In finance, denomination refers to the face value of currency units, coins, and securities. It is an important concept in the fields of accounting, taxation, and investment.
Deposits in transit are checks or money that have been sent to a bank but have not yet been processed and recorded in the bank account or the monthly statement. These deposits need to be accounted for during bank reconciliation.
Cash receipts that have arrived at a company's bank too late in the current month to be credited to the depositor's bank statement. These deposits require an adjustment on the bank reconciliation statement.
A fixed asset that is subject to depreciation to account for its loss in value over time. Depreciation is a systematic process of expensing the cost of tangible assets over their useful lives.
Depreciable Life refers to the period over which the cost of an asset is spread for tax purposes, or the estimated useful life of an asset for appraisal purposes.
The process of systematically reducing the recorded cost of a tangible fixed asset over its useful life.
Depreciated cost, also known as depreciated value or net book value, is the value of an asset after accounting for depreciation. This concept is vital for businesses to manage asset values accurately over time.
Depreciation is the systematic allocation of the cost of a tangible asset over its useful life. It reflects the asset's usage, wear and tear, or obsolescence.
Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life. It is used to account for declines in value as assets age and wear out.
Depreciation is an accounting method that allocates the cost of a tangible asset over its useful life.
Depreciation refers to the reduction in the value of an asset over time, particularly due to wear and tear. It is utilized in accounting to allocate the cost of a tangible asset over its useful life.
Depreciation refers to the methodical reduction in the recorded cost of a tangible fixed asset, allocated over its useful life. It is a key accounting concept employed to denote the impairment of value of assets over time due to wear and tear, age, or obsolescence.
Depreciation methods are accounting techniques used to allocate the cost of a tangible asset over its useful life systematically. These methods are essential for properly matching expenses with revenues.
A Designated Professional Body (DPB) is a professional body registered with financial authorities, possessing statutory responsibility for regulating its professional members.
The diminishing-balance method, also known as the reducing-balance method, is a way of calculating depreciation of fixed assets whereby the annual depreciation charge is a fixed percentage of the depreciated value at the beginning of each period.
A Direct Charge Voucher (DCV) is a financial document used in accounting to record direct expenses incurred by an organization, facilitating efficient and accurate tracking of specific chargeable items to appropriate accounts or projects.
