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

Glossary of Financial TermsTermDirect ExpenseDirect MethodDirect Write-Off MethodDisbursementDisclaimer of OpinionDisclosureDiscountDividendDividend YieldDividendDividends In ArrearsDouble Declining-BalanceMethodDouble-Entry AccountingDouble-Entry BookkeepingDraweeDrawerDrawing AccountDefinitionAn expense that is associated with a specific department; an expense thatbenefits only that department and that would not exist if the department didnot exist.A format for the statement of cash flows that discloses each major class of cashinflow and cash outflow from operating activities. It shows the amount ofcash received or paid for revenues and expenses reported on the incomestatement. This is the method recommended by the FASB.A method of accounting for bad debts in which the expense is recorded at thetime of the write-off of a customer's account. A method of accounting foruncollectible receivables, whereby an expense is recognized only when specificaccounts are judged to be uncollectible.Payment by cash or check. Represents the amount of checks issued andelectronic fund transfers, cash or other payments made.Statement by an auditor indicating inability to express an opinion on thefairness of the financial statements provided and the reason for the inability.Process of divulging accounting information so that the content of financialstatements is understood.Reduction from the full amount of a price or debt.A distribution of corporate earnings to the stockholders of the company.A measure of profitability that tells the investor the rate earned on investment.Calculated by dividing the dividend per share of stock by the market price pershare.A distribution of earnings of a corporation to its owners (stockholders).Distribution of earnings to owners of a corporation in cash, other Assets ofthe corporation, or the corporation's capital stock. Cash or stock paymentsfrom a company's profits distributed to stockholders, an equal amount foreach share of stock owned. Listed as dividends on the statement of stockholders'equity.Passed dividends on cumulative preferred stock.A depreciation method that allows greater depreciation in the early years ofthe life of a plant asset and less depreciation in later years. This is achieved byapplying a constant rate to each year's decreasing book value.Each business transaction affects the accounting elements in at least two ways.Recording both effects of a transaction is called double-entry accounting. Asystem fro recording transactions based on recording increases and decreasesin accounts so that debits always equal credits.Method of recording financial transactions in which each transaction is enteredin two or more accounts and involves two-way, self-balancing posting. Totaldebits must equal total credits.The bank on which a check is drawn.The business or person who writes a check.A temporary owner's equity account that is used when an owner withdrawscash or other assets from the business for personal use.123