Terms in Accounting.odt - Account Payable Amount owed to a CREDITOR for delivered goods or completed services Account Receivable Claim against a DEBTOR

Terms in Accounting.odt - Account Payable Amount owed to a...

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Account Payable Amount owed to a CREDITOR for delivered goods or completed services. Account Receivable Claim against a DEBTOR for an uncollected amount, generally from a completed transaction of sales or services rendered. Accountable Plan Any reimbursement or other expense allowance arrangement of an employer that meets all of the following requirements (therefore excluding it from gross w-2 EARNED INCOME and tax): (1) it provides reimbursements advances or allowances including per diem and meals, to employees for any job related deductible business expense; (2) employees must be able to substantiate expenses covered in the plan; (3) employee must return any excess advances or payments. Accountant 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 of performing inquiry and analytic procedures (REVIEW REPORT); (2) results of procedures performed (AGREED-UPON PROCEDURES REPORT); (3) non-expression of opinion or any form of assurance on a presentation in the form of financial statements information that is the representation of management (COMPILATION REPORT); or (4) an opinion on an assertion made by management in accordance with the Statements on Standards for Attestation Engagements (ATTESTATION REPORT). An accountants' report does not result from the performance of an AUDIT.
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Accounting Recording and reporting of financial transactions, including the origination of the transaction, its recognition, processing, and summarization in the FINANCIAL STATEMENTS. Accounting Change Change in (1) an accounting principle; (2) an accounting estimate; or (3) the reporting entity that necessitates DISCLOSURE and explanation in published financial reports. Accounting Cycle The sequence of steps followed in the accounting process to measure business transactions and transform the measurements into FINANCIAL STATEMENTS for a specific period. Accounting Principles Board (APB) Senior technical committee of the AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS (AICPA) which issued pronouncements on accounting principles from 1959-1973. The APB was replaced by the FINANCIAL ACCOUNTING STANDARDS BOARD (FASB). Accounts Payable Subsidiary Ledger A financial record of an individual ACCOUNT PAYABLE in which entries can be made daily. Accounts Receivable Turnover Used to measure a company’s ability to collect cash from credit customers. Found by dividing net sales by average net ACCOUNT RECEIVABLE. Accrual The recognition of an expense or revenue that has occurred but has not yet been recorded.
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Accrual Accounting The attempt to record the financial effects of transactions and other events in the periods in which those transactions or events occur rather than only in the periods in which cash is received or paid by the business, using all the techniques developed by accountants to apply the MATCHING PRINCIPLE.
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