Terms starting with
Investment Property
Investment property refers to real estate held to earn rental income or for capital appreciation rather than for operational use. It is measured either at…
READ MOREInput Cost Allocation
Input cost allocation distributes production costs, such as materials and labour, across units produced or services delivered. Proper allocation ensures accurate product costing and profitability…
READ MOREIncome Smoothing
Income smoothing is a practice where management attempts to reduce fluctuations in reported earnings across periods. It may involve timing revenue recognition or expense allocation…
READ MOREInsolvency
Insolvency occurs when a business cannot meet its financial obligations as they become due. It may arise from poor cash flow management, excessive debt, or…
READ MOREIssued Share Capital
Issued share capital represents the portion of authorised capital that a company has offered and allocated to shareholders. It reflects funds raised from investors in…
READ MOREInitial Recognition
Initial recognition refers to the process of recording an asset, liability, income, or expense in the financial statements when it first meets accounting criteria. Measurement…
READ MOREIndirect Tax
Indirect tax is a levy collected by an intermediary, such as a retailer, from the end consumer and then remitted to the government. Examples include…
READ MOREIndirect Expense
Indirect expense is a cost that cannot be directly traced to a specific product, service, or department. Examples include utilities, rent, and administrative salaries. These…
READ MOREImputed Cost
Imputed cost is a notional expense assigned to the use of resources owned by a business but not actually paid for. Examples include opportunity cost…
READ MOREIdle Capacity
Idle capacity refers to unused production potential within a business during a specific period. It represents resources such as labour, machinery, or facilities that are…
READ MOREInventory Turnover Ratio
The inventory turnover ratio measures how efficiently a company manages its inventory by comparing cost of goods sold to average inventory. A higher ratio indicates…
READ MOREIntercompany Transactions
These are transactions that occur between entities within the same corporate group, such as sales, loans, or service charges. They are eliminated during consolidation to…
READ MOREInput Tax Credit (ITC)
Input tax credit allows businesses to claim credit for the GST paid on purchases used for business operations. It reduces the overall tax liability by…
READ MOREIncurred Expense
An incurred expense is a cost that a business has become liable for, regardless of whether it has been paid yet. It is recognised when…
READ MOREIncremental Cost
Incremental cost refers to the additional expense incurred when producing one extra unit of output or undertaking a specific decision. It helps management evaluate the…
READ MOREImpairment Loss
Impairment loss occurs when an asset’s carrying value exceeds its recoverable amount. It represents a permanent reduction in the value of an asset due to…
READ MOREInstallment
Installment is a partial payment made on a schedule toward settling a larger debt or purchase. Installments break down the total into manageable chunks, often…
READ MOREInterim Financial Statement
Financial reports prepared for a period shorter than a full fiscal year typically quarterly or monthly. They provide stakeholders with timely updates on performance and…
READ MOREInternal Control
Policies and procedures designed to safeguard assets, ensure accurate financial reporting, and promote compliance with laws. Internal controls reduce the risk of fraud, errors, and…
READ MOREIntangible Asset
A non-physical asset that adds value to a business, such as trademarks, copyrights, patents, brand reputation, or goodwill. These assets can be purchased or developed…
READ MOREInterest
Interest is the cost of borrowing money, or the return earned on invested funds. It's usually expressed as a percentage (interest rate) of the principal.…
READ MOREInvestment
The allocation of money into assets, projects, or ventures with the expectation of generating income or value over time. Investments can include stocks, real estate,…
READ MOREInvoice
Invoice is a formal document sent to a customer requesting payment for goods or services provided. It details the amount owed, payment terms, due date,…
READ MOREInventory
Inventory is a goods a business holds for sale or use in production. It includes raw materials, work-in-progress, and finished goods. Inventory is a current…
READ MOREIncome
Income is a money a business or individual earns from activities like sales, services, investments, or wages. For businesses, income usually refers to revenue, which…
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