Tracking Financial Performance Standards of ... - Sa-Dhan

Glossary of Financial TermsAnnex2GLOSSARY OF FINANCIAL TERMSTermAccountDefinitionAccount form of Balance SheetAccount PayableAccount ReceivableAccountantFormal record that represents, in words, money or other unit of measurement,certain resources, claims to such resources, transactions or other events thatresult in changes to those resources and claims. An individual form or recordused to record and summarize information related to each asset, each liability,and each aspect of owner's equity.The form used to record additions anddeductions for each individual asset, liability, capital, revenue, and expense.A balance sheet with assets on the left-hand side and liabilities and capital onthe right-hand side.Amount owed to a creditor for delivered goods or completed services. A liabilitycreated by a purchase made on credit.Claim against a debtor for an uncollected amount, generally from a completedtransaction of sales or services rendered.Person skilled in the recording and reporting of financial transactions.Accountants' Report Formal document that communicates an independent accountant's: (1)expression of limited assurance on Financial Statements as a result ofperforming inquiry and analytic procedures (Review Report); (2) results ofprocedures performed (Agreed-Upon Procedures Report); (3) non-expressionof opinion or any form of assurance on a presentation in the form of financialstatements information that is the representation of management (CompilationReport); or (4) an opinion on an assertion made by management in accordancewith the Statements on Standards for Attestation Engagements (AttestationReport). An accountants' report does not result from the performance of anAudit.AccountingAccounting ChangeAccounting CycleAccounting EquationAccounting PeriodRecording and reporting of financial transactions, including the originationof the transaction, its recognition, processing, and summarisation in theFinancial Statements. The process of recording, summarizing, analyzing, andinterpreting financial (money-related) activities to permit individuals andorganizations to make informed judgments and decisions.The process ofidentifying, measuring, and communicating economic information to permitinformed judgments and decisions by users of the information.Change in (1) an accounting principle; (2) an accounting estimate; or (3) thereporting entity that necessitates disclosure and explanation in publishedfinancial reports.The steps involved in the recording and summarizing processes of accounting.The principal accounting procedures employed to process transactions duringa fiscal period.The equation that expresses the relationship between the accounting elementsin a simple mathematical form: Assets = Liabilities + Owner's Equity.The period of time for which operating and financial statements are regularlyprepared. A period that is typically one year; however, it can be any length oftime for which accounting records are maintained, often for a month.111