E
Excise Duty (Australia)
A tax levied on specific goods manufactured or produced in Australia, such as alcohol, tobacco, and fuel.
READ MOREEmployment Allowance
A UK relief allowing eligible employers to reduce their annual National Insurance liability by a set amount.
READ MOREEstimated Tax Penalty
An IRS penalty applied when a US taxpayer underpays estimated taxes throughout the year.
READ MOREEIN (Employer Identification Number)
A unique nine-digit number issued by the IRS to identify a business entity for tax purposes.
READ MOREExternal Audit
An independent examination of financial statements conducted by a third-party auditor, distinct from internal audits performed by company staff.
READ MOREExpense Report
A document employees submit to claim reimbursement for business-related costs incurred out of pocket.
READ MOREEscheatment
The legal process of turning over unclaimed property or funds (like uncashed payroll checks) to the government after a dormancy period.
READ MOREEnterprise Resource Planning (ERP)
Integrated software systems (like NetSuite or MS Dynamics) that manage core business processes, including accounting, in one platform.
READ MOREEconomic Order Quantity (EOQ)
The ideal order quantity a business should purchase to minimize inventory costs, including holding and ordering costs.
READ MOREEBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization — a common measure of a company's core operating profitability, excluding financing and accounting decisions.
READ MOREEquity Financing
Equity financing involves raising capital by issuing shares to investors in exchange for ownership stakes. Unlike debt, it does not require repayment but dilutes ownership.…
READ MOREEarnings Retention Ratio
The earnings retention ratio measures the proportion of net income retained in the business rather than distributed as dividends. It is calculated as retained earnings divided by net income.…
READ MOREEconomic Depreciation
Economic depreciation reflects the actual decline in an asset’s market value over time due to usage, obsolescence, or external factors. Unlike accounting depreciation, which follows…
READ MOREExpense Recognition Principle
The expense recognition principle states that expenses should be recorded in the same period as the revenues they help generate. This aligns with the matching…
READ MOREEstimated Revenue
Estimated revenue refers to projected income based on forecasts, historical data, and business assumptions. It is used in budgeting and financial planning to anticipate future performance. While…
READ MOREError of Omission
An error of omission occurs when a financial transaction is completely left out of the accounting records. This can happen due to oversight or missing…
READ MOREError of Commission
An error of commission happens when an amount is recorded incorrectly, such as posting the wrong figure or entering data in the wrong account of…
READ MOREError of Principle
An error of principle occurs when a transaction is recorded in violation of fundamental accounting principles, such as treating a capital expenditure as a revenue…
READ MOREEnivronmental Accounting
Environmental accounting tracks and reports costs related to environmental impact, such as waste management, emissions, and sustainability initiatives. It helps businesses measure environmental performance alongside…
READ MOREEnterprise Value (EV)
Enterprise value represents the total value of a company, including equity, debt, and cash adjustments. It provides a more comprehensive valuation than market capitalisation alone. EV is…
READ MOREEmployee Benefits Expenses
Employee benefits expense includes costs incurred by a business for providing benefits such as health insurance, retirement contributions, bonuses, and paid leave. These expenses are…
READ MOREElectronic Funds Transfer (EFT)
Electronic Funds Transfer refers to the digital movement of money between bank accounts without using physical cash or cheques. It includes methods like online banking,…
READ MOREEffective Tax Rate
Effective tax rate is the actual percentage of income a business pays in taxes, calculated by dividing total tax expense by pre-tax income. It differs…
READ MOREEarnings Before Interest and Taxes (EBIT)
Earnings Before Interest and Taxes (EBIT) measures a company’s operating profitability by excluding interest and tax expenses. It focuses purely on core business performance. EBIT…
READ MOREEquitable Charge
An equitable charge is a claim on an asset that does not transfer ownership but grants the lender rights over the asset as security. In…
READ MOREExtended Trial Balance
An extended trial balance is a worksheet that expands the standard trial balance to include adjustment, income statement, and balance sheet columns. It is used…
READ MOREExpense Allocation
Expense allocation is the process of distributing shared or indirect costs across departments, projects, or cost centres. It ensures expenses are matched accurately to activities…
READ MOREExempt Income
Exempt income refers to earnings that are excluded from taxation under applicable laws. Examples may include certain government grants, tax-free interest, or specific allowances. Although…
READ MOREEscrow Account
An escrow account is a temporary holding account managed by a third party to secure funds during a transaction. In accounting, escrow balances are recorded…
READ MOREEquity Method of Accounting
The equity method is used when a company has significant influence over another entity, typically with ownership between 20% and 50%. The investor recognises its…
READ MORE
This website uses cookies to improve your experience. You can accept all or reject non-essential cookies.