Sundry expenses refer to small, miscellaneous costs that are not easily classified under a specific heading in the accounting records.
A surcharge is an additional fee or levy added to an existing charge, cost, or tax. It is commonly applied to manage varying expenses or to cover costs that aren't accounted for in the primary charge.
Surplus Advance Corporation Tax (ACT) refers to the excess amount of advance corporation tax paid within an accounting period that surpassed the maximum amount allowable for set-off against gross corporation tax. This taxation mechanism was abolished effective 1 April 1999.
An approach to auditing focused on evaluating an organization's internal control system to determine the quality of its accounting system, thereby assessing the required level of substantive testing for financial statements.
A visual representation used in accounting to represent individual accounts where debits and credits are recorded. Resembling the capital letter 'T', it simplifies the tracing of transactions and helps ensure accurate bookkeeping.
Taking inventory involves the physical counting and valuation of stock in trade. Typically performed at year-end, it can also be conducted more frequently or at different times.
A tally is a count of specific items or occasions, often used in contexts like voting, inventory counting, and record keeping. It is a fundamental method of tracking occurrences to aid decision-making and analysis.
A Tangible Asset is any asset with physical existence, such as real estate, gold, or machinery.
A tax accountant is a professional specializing in preparing, filing, and managing tax returns for individuals and businesses, ensuring compliance with tax laws and maximizing tax efficiency.
Tax accounting is an accounting specialization focusing on tax preparation, compliance, and planning. It involves the application of accounting principles to adhere to tax laws and accurately report tax-related information.
The process of distributing a tax charge among different sources of income to ensure appropriate tax liability allocation.
The specified domain on which a tax is levied, such as an individual's income for income tax, the estate of a deceased person for inheritance tax, and the profits of a company for corporation tax.
Minimizing tax liabilities illegally, typically by not disclosing taxable income or providing false information to tax authorities. It contrasts with tax avoidance, which is the legal practice of reducing tax liabilities through lawful means.
Tenor refers to the duration of time that must elapse before a financial instrument such as a bill of exchange or promissory note becomes due for payment.
A three-column cash book is an extended form of the cashbook which includes columns for discounts allowed and received in addition to cash and bank transactions.
Tick marks are symbols used by auditors to indicate that they have performed a certain operation during an audit, such as verifying a number on a trial balance against a source document or checking the addition of a column of numbers. A legend should appear on the work papers to indicate the meaning of each tick mark.
In accounting, the time of supply refers to the date when goods are removed or made available to a customer, or when services are completed for a customer, marking the point at which tax is chargeable.
The sum of all expenditure incurred during an accounting period within an organization, on a product, or on a process. Total costs are often analyzed into fixed costs and variable costs.
The Total Standard Cost is the sum of the Total Standard Production Cost and the Standard Cost Allowance for non-production overhead, which provides a comprehensive measure of the standard expenses incurred during the production process.
The concept of 'Trade or Business' encompasses all activities and operations undertaken with the aim of generating profit through commercial or trading transactions. It is a critical term for both taxation and business regulation purposes.
Trade payables represent the amounts a business owes to its suppliers for goods and services received but not yet paid for. They are recorded as current liabilities on the balance sheet.
A transaction is an external or internal event that causes a change affecting the operations or finances of an organization.
In banking, truncation refers to the elimination of the service of returning canceled checks to customers. In computing, truncation involves dropping digits to the right of the decimal point of a number.
A two-column cash book that records receipts and payments made but does not record discounts allowed or discounts received.
The unamortized bond discount represents the difference between a bond's face value (par value) and the proceeds received from the bond's sale by the issuing company, less the portion that has been amortized over time.
Unappropriated profit refers to the portion of an organization's profit that has not been distributed as dividends or allocated for a specific purpose. These profits remain retained in the company for future use.
Unearned income or revenue is income received by a business but not yet earned. It is typically classified as a current liability on a company's balance sheet.
The balance of an item of expenditure that has not yet been written off to the profit and loss account, representing the value of goods or services that will provide future economic benefits.
The unit of account is a fundamental concept in economics and accounting that enables the quantification and comparison of the value of goods, services, and transactions, as well as the standardization of a country's currency.
The Units of Production Method is a depreciation approach in which expense is based on the real usage of an asset, typically used for machinery and production equipment. This method relates an asset’s depreciation expense to the total production output or usage during its useful life.
An unpaid dividend is a dividend declared by a corporation's board of directors that has not yet been distributed to shareholders. Once declared, it becomes a corporate liability until paid.
An unqualified opinion is an independent auditor's opinion that a company's financial statements are fairly presented, in all material respects, in conformity with generally accepted accounting principles (GAAP). It is also referred to as a clean opinion.
Unrealized depreciation refers to the excess of the adjusted basis of an asset over its fair market value, for determining losses on the sale or other disposition of the asset.
The unrecovered cost represents the unexpired book value of an asset, typically calculated as the original cost less accumulated depreciation.
The useful economic life, or useful life, is the period for which the present owner of an asset will derive economic benefits from its use.
Vertical analysis is a financial analysis method wherein each line item in a financial statement is listed as a percentage of a base item.
Volume variances refer to the differences between the actual volume of sales or production and the expected (budgeted or planned) volume. These variances can be further divided into specific categories like fixed overhead volume variance and sales margin volume variance.
A voucher serves as a receipt for money or any document that supports an entry in a book of account, acting as evidence for financial transactions.
A voucher register is a book or electronic record used to list vouchers, generally in chronological and numerical order. Vouchers are original documents serving as evidence for a business transaction.
Wages costs are expenses incurred by businesses to compensate employees for their labor. These are a critical part of operating costs in any organization.
Wear and tear refers to the reduction in value of a fixed asset as a result of its regular usage and the inevitable damage it sustains over its working life. It is one of the primary reasons behind asset depreciation.
A write-down is a reduction in the book value of an asset on a company's financial statements, typically due to a decline in the asset's market value. This accounting procedure adjusts the carrying value of an asset to reflect its current estimated recoverable amount.
Written-Down Value (WDV) refers to the depreciated value of an asset after accounting for depreciation or amortization up to a specific date. It represents the current book value of an asset in the financial statements.
