The International Association of Book-keepers (IAB) is a globally recognized institute offering bookkeeping and financial management qualifications.
The International Association of Book-keepers (IAB) is a professional association that offers qualifications and memberships for book-keepers and aims to standardize and enhance the professional practice of book-keeping and accounting worldwide.
Investment costs are the expenditures incurred when an individual or organization allocates money to acquire investments or assets, often with the anticipation of generating returns over time.
Investment software is a computer program designed to track and manage investments in shares, cost, and revenue. These programs often include price and dividend histories of securities, enabling users to make comparisons with major market indicators and analyze tax ramifications of investment decisions.
Job costing involves tracking the expenses linked to specific projects or jobs which are typically broken down into direct materials costs, direct labour costs, and overheads.
A joint account is a bank or building-society account held in the names of two or more people, allowing any of the account holders to operate it independently. It is commonly used by spouses, partners, or business collaborators.
Leakage refers to the loss of potential business revenue when customers choose to spend their money on goods or services outside of a given company or location.
The designation LIAB stands for Licentiate of the International Association of Book-keepers, a professional accreditation that recognizes the expertise and skills of bookkeepers affiliated with the IAB.
Liquidity management refers to the combination of day-to-day operations carried out by the financial management of an organization with the objective of optimizing its liquidity so that it can make the best use of its liquid resources.
A majority shareholder is an individual or entity that holds more than half of the outstanding shares of a corporation, thereby having significant influence and control over company decisions.
Menu costs refer to the costs associated with changing prices, named after the expense that restaurants incur when they reprint menus following a price change. This concept is key to understanding price stickiness in economics.
The minimum payment is the smallest amount that a consumer must pay on a revolving charge account to keep the account in good standing. Failure to make this payment can lead to late fees and eventual loss of credit privileges.
Monetary Working Capital Adjustment refers to the changes made to the working capital of a company to reflect its current operational needs and financial health. It involves adjusting the components of working capital to ensure that they are aligned with the company’s operational activities and financial strategies.
Multiple breakeven points refer to two or more activity levels at which an organization breaks even, often occurring when cost and revenue functions are nonlinear and intersect more than once on breakeven charts.
A Negotiable Order of Withdrawal (NOW) account is a type of deposit account that allows the owner to write drafts against the deposited funds, permitting the account holder to earn interest while maintaining the ability to withdraw funds on demand.
Net Contribution refers to the excess of the selling price over variable costs per unit, signifying the residual positive effect from an action taken. It's a critical metric in assessing the profitability and efficiency of various business operations and decisions.
Net current assets, also known as working capital, refer to the excess of current assets over current liabilities and represent the capital available to run day-to-day operations within a business.
In the USA and Canada, stock (shares) that have no par value or assigned value printed on the stock certificate, thus avoiding contingent liabilities and simplifying accounting entries.
Non-controllable costs, also known as uncontrollable costs, refer to expenses that cannot be influenced or managed by individual managers or departments within an organization.
A situation where an account does not have enough funds to cover a transaction, such as a presented check. This often results in the check being dishonored by the bank.
The profit or loss generated by a company's core business activities, calculated before accounting for extraordinary items, interest, and taxes.
Out-of-pocket costs refer to the additional expenses that a company or individual will have to pay as a direct result of a specific business decision. These costs can play a crucial role in decision-making, especially in scenarios where cash resources are limited.
Outlay cost refers to the initial expenditure incurred for a project or activity, which can include both capital expenditures and working capital expenditures like raw material stocks.
An overdraft is a loan provided by a bank or building society for a customer with a cheque account, allowing the account to go into debit, up to a specified limit known as the overdraft limit.
Overhead costs refer to ongoing business expenses not directly attributed to creating a product or service. These costs help businesses operate and maintain their daily functions.
The Overhead Efficiency Variance measures the difference between the standard overhead cost allocated based on standard hours and the actual overhead cost incurred based on actual hours worked.
Overtrading occurs when a business expands its operations too rapidly, straining its financial resources and potentially causing liquidity problems.
Detailed exploration of partial liquidation in corporate finance, including examples, FAQs, related terms, resources, and suggested books for further studies.
A passive investor is an individual or entity that invests money but does not actively manage the business or property in which they invest. They typically seek long-term investment returns with minimal day-to-day involvement.
A payable is an amount that is owed by a company to its suppliers or creditors, typically from the purchase of supplies or inventory (accounts payable), but it can also include amounts owed for other purposes such as bank loans (bank loans payable).
Payroll is the aggregate periodic amount a business pays its workers and a list of employees along with their compensation.
A budgeting system developed particularly for use in non-profit organizations, such as national and local government. The system is based on the grouping together of activities with common objectives and a long-term plan relating to the objectives of the organization as a whole, which is subdivided into programs. Conventional annual expenditure budgeting procedures are applied within this framework.
A pivotal area within an organization where production activities are conducted, focusing on tracking and managing production-related expenses.
Profits available for distribution refer to the earnings or surplus that a company can allocate to its shareholders in the form of dividends or other forms of payouts.
A purchase discount is a financial incentive offered by sellers to buyers for early payment of an invoice. It is commonly known as a cash discount.
Quicken is a popular financial recordkeeping software produced by Intuit, designed to manage personal and small business finance.
Receivership is a process where an appointed receiver manages a company's assets to repay debt owed to a lender due to the company's default or insolvency.
Remit refers to the process of paying for purchased goods or services by cash, check, or electronic payment. It encompasses various methods of transferring funds to settle debts or obligations.
In accounting, a reserve refers to a part of a company's capital, other than its share capital. This capital can largely arise from retained profits or from the issuance of share capital at more than its nominal value. Reserves differ from provisions as they represent undistributed surpluses, with some being non-distributable. Directors may earmark these funds for specific purposes.
A system in management accounting designed to provide information to all levels of an organization, based on the responsibility of individual managers for specific items of expenditure or income.
A revenue reserve is a distributable reserve, meaning it is part of a company's retained earnings that can be distributed to shareholders in the form of dividends or used to cover future uncertainties and contingencies.
RAFT, or Revolving Acceptance Facility by Tender, is a financial arrangement commonly used to manage and facilitate short-term financing needs of corporations. This instrument is widely adopted in the banking and corporate finance world due to its flexibility and efficiency.
A revolving bank facility, also known as standby revolving credit, is a flexible loan agreement between a bank or a group of banks and a company, which allows the company to draw and repay funds multiple times during the loan's term.
Revolving credit is a type of credit that does not have a fixed number of payments, allowing the borrower to reborrow money as they repay the principal.
The concept of ring-fencing is used in finance and corporate restructuring to isolate a certain portion of assets, liabilities, or operations to protect the rest of the company or to dedicate specific funds for particular purposes.
The Sales Ledger Control Account, also known as the Debtors' Ledger Control Account, is a summary account in the general ledger that consolidates all individual debtor balances from the sales ledger.
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Senior refunding refers to the process of replacing securities maturing in 5 to 12 years with issues that have original maturities of 15 years or longer. Objectives can include reducing the bond issuer's interest costs, consolidating several issues into one, or extending the maturity date.
Serial bonds are a type of bond issue where parts of the total amount mature at different intervals over a period, rather than all at once on one maturity date. This structure allows issuers to spread out the repayment burden and provides investors with a series of maturing investments over time.
An agreement between the parties involved to offset one debt against another or one loss against a gain. Commonly used in banking to balance credit and debit balances across different accounts.
Shareholder Value Analysis (SVA) is a financial management method that focuses on increasing the value delivered to shareholders through strategic decision-making and performance evaluation.
A 'shortfall' occurs when the amount of something, such as revenue or contributions, is smaller than what was planned or budgeted for, leading to a deficit.
A limited reserve set aside systematically by an issuer over time to repay debt or to replace an asset in the future.
Under a standard costing system, the standard cost allowance refers to the level of expenditure permitted for variable costs, based on actual levels of activity. It helps in budgeting and controlling costs efficiently.
A Statement of Changes in Financial Position details the sources and uses of an entity's financial resources during a specific period. It is commonly referred to as a Cash-Flow Statement.
Statements of Standard Accounting Practice (SSAPs) are formal standards for financial reporting and accounting, issued by recognized authorities to ensure consistency, transparency, and adherence to best practices across organizations.
In accounting, stores oncost refers to the indirect costs or overheads associated with handling and storing materials used in production. These costs are not directly attributed to the cost of the raw materials themselves but are necessary for the overall production process.
Stretchout refers to two distinct concepts: accelerating the work pace without additional compensation for workers and extending the time needed to pay for a purchase.
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.
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.
Transaction exposure refers to the risk that a firm's exposure to exchange-rate fluctuations will impact the value of anticipated cash flows from a transaction when the contractual obligation is settled.
A treasurer is a key financial executive responsible for managing the financial assets and liabilities of an organization, ensuring sound financial practices, and maintaining strategic relationships with financial markets.
A trust account is a separate bank account, segregated from a broker's own funds, where the broker is required by state law to deposit all monies collected for clients. This account is often also known as an escrow account in some states.
A trustee in bankruptcy is an individual or entity appointed to manage the property and financial affairs of a bankrupt individual or entity. The trustee's responsibilities include collecting and liquidating assets, distributing the proceeds to creditors, and ensuring that the bankruptcy process is conducted in accordance with applicable laws.
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.
In cost accounting, the situation where an insufficient amount of factory overhead was charged to the products manufactured.
An unearned premium is an insurance premium that is paid in advance for coverage that extends beyond the current accounting period. If the policy is canceled before the coverage period ends, the insured is entitled to a refund of the unearned premium.
Unsecured debt is an obligation or loan that is not backed by the pledge of specific collateral as security for the repayment of the debt.
Variable costing, also known as direct or marginal costing, is a managerial accounting method where only variable costs are included in the cost of a product.
Variable costs, or variable expenses, are business costs that fluctuate in direct proportion to changes in production or sales volume. They contrast with fixed costs, which remain constant regardless of production levels.
In certain systems of budgetary control, virement is an agreed practice allowing for the transfer of funds from one part of the budget to another within the financial year. This can help manage projected surpluses and deficits across different budget heads.
The weighted average cost of capital (WACC) represents a firm's average cost of capital from all sources, including both equity and debt, weighted by their respective usage in the firm's capital structure.
