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Home Dictionary A Accounting Principles Accounting standards are being implemented to improve the quality of financial information provided by companies. In the United States, the Financial Accounting Standards Board (FASB) issues the Generally Accepted Accounting Principles (GAAP). GAAP is required for all public companies in the US; it is also commonly used by non-listed companies. Internationally, the International Accounting Standards Board (IASB) issues International Financial Reporting Standards (IFRS). FASB and IASB sometimes work together to issue joint standards on topical issues, but the US is not going to switch to IFRS in the foreseeable future. Operating Cash Flow Demand (OCFD)
September 25, 2022 Demand for operating cash flow is the amount of operating cash flow required by an investor to achieve its strategic investment objectives. Accounting Standard
September 25, 2022 An accounting standard is a set of methods and policies used to systematize accounting and other accounting functions across firms and over time. Accounts Payable (AP)
September 25, 2022 Accounts payable (AP) represents amounts owed to sellers or suppliers for goods or services received that have not yet been paid for. Accounts Payable Turnover Ratio
September 25, 2022 The accounts payable turnover ratio is a measure of short-term liquidity used to quantify the speed at which a company pays its suppliers. Accounts Receivable (AR)
September 25, 2022 Accounts receivable is the asset account on the balance sheet, which represents the money owed to the company in the short term. Accrual Accounting
September 25, 2022 Accrual accounting is a method of accounting in which revenue or expenses are recorded at the time of the transaction, and not at the time the payment is received or made. Accruals
September 25, 2022 Accruals are required for any income received or expenses incurred for which funds have not yet been exchanged. Accrued Expense
September 25, 2022 Accrued expenses are recognized in the books when they are incurred, not when they are paid. Accumulated Other Comprehensive Income
September 25, 2022 Accumulated other comprehensive income (OCI) includes unrealized gains and losses, which are reflected in the equity section of the balance sheet. Activity-Based Management (ABM)
September 25, 2022 Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses. Adjusting Journal Entry
September 25, 2022 Adjusting journal entries are used to record transactions that have occurred but have not yet been properly accounted for in accordance with the accrual basis. Agency Problem
September 25, 2022 An agency problem is a conflict of interest inherent in any relationship where one party is expected to act in the interests of the other. Annual Report
September 25, 2022 The annual report is a corporate document distributed to shareholders, which sets out the financial position and activities of the company for the previous year. Appropriation
September 25, 2022 Appropriation is the act of allocating money for a particular purpose. Asset
September 25, 2022 An asset is a resource with economic value that is owned or managed by an individual, corporation or country with the expectation that it will provide benefits in the future. Asset Financing
September 25, 2022 Asset financing allows a company to obtain a loan by pledging its balance sheet assets. Asset-Liability Committee (ALCO)
September 25, 2022 Asset and Liability Management Committees (ALMCs) are responsible for overseeing the asset and liability management of a company or bank. Audit Committee
September 25, 2022 The Audit Committee consists of members of the company’s board of directors and oversees its financial reporting and reporting. BCG Growth-Share Matrix
September 25, 2022 The BCG Growth Share Matrix is an internal tool used by management to assess the current state of the value of a firm’s divisions or product lines. Balance Sheet
September 25, 2022 The balance sheet is a financial statement that reflects the assets, liabilities and share capital of the company. Bank Capital
September 25, 2022 Bank equity is the difference between a bank’s assets and its liabilities and represents the bank’s net worth or the value of its equity to investors. Buy-In Management Buyout (BIMBO)
September 25, 2022 Management buyout (BIMBO) occurs when an external management team joins the company (buy-in) and also buys out the existing management team. Capital Asset
September 25, 2022 Fixed assets are assets that are used in a company’s business operations to generate income for more than one year. Capital Leases
September 25, 2022 A capital lease is a contract that gives the lessee the right to temporarily use an asset. Capital Markets
September 25, 2022 Capital markets refer to places where funds are exchanged between providers and those seeking capital for their own use.