Terms starting with
Cash Management
Cash management is the process of collecting, managing, and investing cash in a way that ensures a business has enough liquidity to meet its short-term…
READ MOREContractual Obligations
Contractual obligations refer to the legal duties a company is required to fulfill under agreements, such as leases, loan payments, or supply contracts. These obligations…
READ MORECost Behavior
Cost behavior refers to how costs change in relation to the volume of business activity, such as production or sales. Understanding cost behavior is essential…
READ MORECapital Structure
Capital structure refers to the mix of debt and equity that a company uses to finance its operations and growth. A well-balanced capital structure is…
READ MORECost Allocation
Cost allocation refers to the process of assigning a portion of an indirect cost to a specific cost object, such as a department, product, or…
READ MOREComprehensive Income
Comprehensive income includes all changes in equity during a period, except those resulting from investments by owners or distributions to owners. It encompasses both net…
READ MORECapital Gain
A capital gain is the profit earned from the sale of an asset, such as property, stocks, or bonds, when the sale price exceeds the…
READ MORECapital
Capital refers to the funds or assets invested in a business by its owners or shareholders. It includes both cash and other resources used to…
READ MOREControlling Interest
Controlling interest in the ownership of more than 50% of a company’s voting shares, giving the holder authority to make strategic and financial decisions. It…
READ MOREConservatism Principle
An accounting concept requiring that potential losses be recognised immediately, but gains only when realised. It ensures financial statements are not overstated, maintaining reliability and…
READ MOREContribution Margin
The difference between sales revenue and variable costs. It shows how much income is available to cover fixed costs and generate profit. A higher contribution…
READ MOREConsolidated Financial Statement
A combined financial report that shows the financial position and performance of a parent company and its subsidiaries as a single entity. It eliminates intercompany…
READ MORECost Accounting
A branch of accounting focused on recording, analysing, and controlling costs of production or operations. It helps management identify cost drivers, assess profitability by product…
READ MORECapital Lease
A long-term lease that essentially functions as a purchase. The lessee assumes ownership-like risks and benefits, and the asset is recorded on the balance sheet,…
READ MORECash Equivalent
Short-term, highly liquid investments that can be quickly converted into a known amount of cash typically within three months. Examples include treasury bills and money…
READ MOREContingent Liability
Contingent liability is a potential obligation that may arise depending on the outcome of a future event, like a lawsuit or product warranty claim. It’s…
READ MOREClosing Entries
Journal entries made at the end of an accounting period to reset temporary accounts like revenue and expenses to zero. These balances are transferred to…
READ MORECash Accounting
An accounting method that records income when cash is received and expenses when cash is paid. It’s simpler than accrual accounting and works well for…
READ MORECurrent Liabilities
Obligations a business must settle within one year. This includes accounts payable, short-term loans, accrued expenses, and taxes payable. Managing current liabilities is crucial for…
READ MORECurrent Assets
Assets expected to be used, sold, or converted into cash within one year. Common examples include cash, accounts receivable, inventory, and short-term investments. They’re essential…
READ MOREChart of Accounts
A structured list of all accounts used in a business’s accounting system. It includes categories for assets, liabilities, equity, revenue, and expenses. The chart of…
READ MOREContra Account
A contra account offsets the balance of a related account. For example, accumulated depreciation is a contra asset account that reduces the value of fixed…
READ MORECredit
In accounting, a credit is an entry that increases liabilities, equity, or revenue accounts and decreases asset or expense accounts. It’s also used in sales…
READ MORECost of Goods Sold
The direct costs of producing goods or services sold during a period. It includes raw materials, labor, and manufacturing overhead. COGS is subtracted from revenue…
READ MORECash Flow
Cash flow tracks the movement of money into and out of a business over time. It’s broken down into operating, investing, and financing activities. Positive…
READ MORECapital
Capital refers to the funds or assets invested in a business by its owners or shareholders. It includes both cash and other resources used to…
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