Terms starting with
Knock-In Option (Accounting Treatment)
A knock-in option is a derivative contract that becomes active only if the underlying asset reaches a specified price level. In accounting, such derivatives are…
READ MOREKernel of Earings
Kernel of earnings refers to a company’s core, sustainable profit generated from regular business operations. It excludes one-time gains or extraordinary items to present a…
READ MOREKey Control Account
A key control account is a summary ledger account that consolidates balances from subsidiary ledgers, such as accounts receivable or accounts payable. It helps verify…
READ MOREKnowledge Capital
Knowledge capital represents the intangible value derived from a company’s expertise, proprietary processes, and specialized skills. Although not always recognized directly on the balance sheet,…
READ MOREKeeper of Records
Keeper of records refers to the individual or department responsible for maintaining accurate financial documentation and supporting evidence. Proper record-keeping ensures compliance with accounting standards,…
READ MOREKey Audit Matter (KAM)
A Key Audit Matter refers to significant issues identified by auditors during the financial statement audit that required substantial professional judgment. These matters are disclosed…
READ MOREK-1 Form (Schedule K-1)
Schedule K-1 is a tax document issued to partners, shareholders, or beneficiaries to report their share of income, deductions, and credits from partnerships, S corporations,…
READ MOREKickback
A kickback is an illegal payment made to secure favorable treatment in procurement or contract decisions. In accounting and auditing, kickbacks represent fraudulent activity that…
READ MOREKey Ration Analysis
Key ratio analysis involves evaluating financial ratios to assess a company’s liquidity, profitability, efficiency, and solvency. Ratios such as current ratio, debt-to-equity ratio, and return…
READ MOREKaizen Costing
Kaizen costing is a continuous cost reduction approach applied during the production phase of a product’s lifecycle. Instead of setting costs upfront, it focuses on…
READ MOREKnockdown Cost
Knockdown cost refers to the total landed cost of goods received in an unassembled form, including purchase price, freight, insurance, and duties. It’s often used…
READ MOREKickoff Balance
A kickoff balance is the initial balance used when setting up a new accounting system or beginning a new financial year. It includes the closing…
READ MOREKnowledge Process Outsourcing (KPO)
KPO involves outsourcing high-end analytical or financial services such as valuation, financial modeling, and risk management. In accounting, KPO providers deliver expert-level insight that supports…
READ MOREKnown Liability
A known liability is an obligation that is certain in amount and due date, such as wages payable, accounts payable, or taxes owed. These liabilities…
READ MOREKnock-for-Knock Agreement
A knock-for-knock agreement is a contractual arrangement where each party bears its own losses, regardless of fault. In accounting, this simplifies claims and settlements, especially…
READ MOREKeyman Insurance
Keyman insurance is a policy taken by a business to protect against the financial loss that may occur due to the death or disability of…
READ MOREKiting
Kiting refers to the fraudulent practice of inflating bank balances by exploiting timing differences between cheque deposits and withdrawals. It temporarily overstates available funds and…
READ MOREKey Performance Indicator (KPI)
A KPI is a measurable value used to evaluate how effectively a company is achieving its financial or operational goals. In accounting, KPIs may include…
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