Terms starting with
Functional Currency
Functional currency is the primary currency in which a business conducts its main economic activities. It reflects the environment where revenue is generated and expenses…
READ MOREFringe Benefits
Fringe benefits are non-wage compensations provided to employees, such as health insurance, bonuses, company vehicles, or retirement contributions. From an accounting perspective, these benefits are…
READ MOREFinancial Risk
Financial risk is the possibility of losing money due to factors like debt obligations, market fluctuations, interest rate changes, or poor cash management. Accountants assess…
READ MOREFund Accounting
Fund accounting is an accounting system used mainly by non-profits and government entities to track resources based on their intended purpose. Instead of focusing on…
READ MOREFinancial Control
Financial control regers to the policies and procedures used to monitor income, expenses, assets, and liabilities. Its purpose is to prevent errors, fraud, and inefficiencies…
READ MOREFactoring
Factoring is a financing arrangement where a business sells its accounts receivable to a third party at a discount to access immediate cash. Instead of…
READ MOREFinance Charge
The total cost incurred for borrowing money or using credit. It includes interest, service fees, and other related costs. In accounting, finance charges are recognised…
READ MOREFixed Deposit
A financial instrument offered by banks where a sum of money is invested for a fixed term at a predetermined interest rate. It provides guaranteed…
READ MOREForeign Exchange Gain or Loss
The financial impact resulting from changes in currency exchange rates during international transactions. When exchange rates fluctuate between the transaction and settlement dates, companies may…
READ MOREFinancial Leverage
The use of borrowed funds to increase the potential return on investment. While leverage can amplify profits, it also magnifies losses if returns fail to…
READ MOREFull Disclosure Principle
A key accounting concept that requires all significant information affecting financial statements to be clearly disclosed. This includes pendings lawsuits, contingent liabilities, or changes in…
READ MOREForensic Accounting
A specialized field that combines accounting, auditing, and investigative skills to detect fraud, embezzlement, or financial misconduct. Forensic accountants analyse financial data, trace hidden assets,…
READ MOREFiscal Policy
Government decision regarding taxation, spending, and borrowing to influence the nation's economy. It affects overall demand, emplyement, and inflation. Accountants and financial analysts montior fiscal…
READ MOREForecasting
Forecasting it the process of estimating future financial outcomes based on historical data, trends, and assumptions. It helps businesses plan for sales, expenses, cash flow,…
READ MOREFinancial Ratios
Metrics derived from financial statements used to evaluate a company’s performance, health, and efficiency. Common ratios include current ratio, return on equity, and debt-to-equity. They…
READ MOREFinancial Accounting
Financial accounting is the process of recording, summarizing, and reporting a company’s financial transactions in accordance with standardized rules like GAAP or IFRS. Its main…
READ MOREFunds Flow Statement
A financial report that shows changes in a company’s working capital over a period. It highlights the sources and uses of funds, especially shifts between…
READ MOREFixed Costs
Fixed cost is an expenses that remain constant regardless of production volume or sales activity. Examples include rent, salaries, insurance, and depreciation. Fixed costs are…
READ MOREFinancial Statements
Financial statements is a standardized reports that summarize a company’s financial activities and position. Key statements include the income statement, balance sheet, cash flow statement,…
READ MOREFair Value
The estimated market price of an asset or liability in an arm’s length transaction between informed, willing parties. It reflects what something is worth under…
READ MOREFixed Assets
Fixed asset is a long-term tangible asset used in business operations that aren’t expected to be sold within a year. Examples include buildings, machinery, vehicles,…
READ MOREFIFO (First-in, First-Out)
FIFO is an inventory valuation method where the oldest inventory costs are recorded as sold first. FIFO assumes earlier purchases are used up before newer…
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