|Abnormal Spoilage||Unacceptable units that are not espected to occur under an efficient|
|Absorbed Overhead||That portion of factory indirect cost that has been allocated to a specific
product,or saleable service.(Also called Applied Overhead.)
|Absorption Costing||Acosting system that assigns to inventory all types of manufacturing costs,
including direct,indirect,fixed and variable.(Also called Full Absorption Costing.)
|Accelerated Depreciation||Apattern of depreciation in which the amount of depreciation computed in early
years is greater than the amounts computed in the later years.
|Accounting||The process of identifying ,classifying,measuring,recording
and communicating in monetary terms transactions and events
of an cnomic
entity that are of a financial character.
|Accounting Profit||Revenue less all expenses included in the entity's income statement.|
|Accounting Standards||Principles and procedures to be followed by accountants as formulated by
an authoritative body.(Also called Accounting Principles.)
|Accounting System||Methods,procedures,and standards followed in accumulating,classifying,recording and
reporting business events and transactions.
|Accounts Payable||Monies that are due to a vendor (supplier) for merchandise or services rendered.|
|Accounts Payable Turnover||A financial ratio used to measure the rate at which an entity pays off its suppliers.|
|Accounts Receivable||Monies due to an entity from customers who have bought merchandise or received
services on account.
|Accounts Receivable Turnover||A financial ratio used to
measure asset utilization and a company's ability
to collect cash from credit sales to its customers.
|Accrual Accounting||The method of recognizing
and recording (a)reveues when earned,and(b)expenses when
incurred,both irrespective of the time when cash is received or paid.
|Accrued||The accumulation of income that is due but has not been received or a cost
that is incurred but has not been paid by an entity during the accounting period.
|Accumulated Depreciation||The amount of depreciation expense related to a fixed asset that has
been recognized as an expense from the date of acquisition of that asset.
|Acid-Test Ratio||A ratio that measures an entity's ability to pay off short-term obligations
using the most liquid current assets(excluding inventory).(Also called Quick Ratio.)
|Acquisition Cost||The value of cash or other resources given up in exchange for goods or
services. It includes all costs necessary to get the asset ready for
its intended use. (Also called Historical Cost or Original Cost.)