Terms starting with
Unit Trust
A unit trust is a collective investment scheme where investors pool funds to invest in diversified assets such as stocks, bonds, or property. Each investor…
READ MOREUnderwriting Commission
Underwriting commission is the fee paid to underwriters for assuming the risk of buying and reselling securities or insurance policies. In accounting, it is recorded…
READ MOREUnearned Discount
An unearned discount is the portion of a financial discount received before it is actually earned, typically on prepaid expenses or early payments. It appears…
READ MOREUnqualified Opinion
An unqualified opinion is the most favourable audit opinion, issued when an auditor concludes that the financial statements present a true and fair view in…
READ MOREUnit-level Activity
Unit-level activity refers to actions performed each time a single unit of product is produced. Examples include direct labour hours, machine operations, or material consumption.…
READ MOREUnder-absorption of Overheads
Under-absorption of overheads happens when the allocated overheads to products or jobs are less than the actual overheads incurred. It indicates underestimation or inefficiency in…
READ MOREUnfavourable Variance
An unfavourable variance occurs when actual costs exceed budgeted or standard costs, or when actual revenue falls short of expectations. It signals inefficiencies or poor…
READ MOREUtility Expense
Utility expense represents the cost of services such as electricity, water, gas, and internet used in business operations. It is classified as an operating expense…
READ MOREUniform Costing
Uniform costing is the practice of using a standardised cost accounting system across multiple firms in the same industry. It enables meaningful comparison of performance,…
READ MOREUseful Life
Useful life is the estimated period over which an asset is expected to generate economic benefits for a business. It determines the depreciation or amortisation…
READ MOREUnpaid Expenses
Unpaid expenses are costs incurred but not yet paid at the end of an accounting period. They are recorded as accrued liabilities and expensed on…
READ MOREUnappropriated Retained Earnings
Unappropriated retained earnings are the portion of net income not designated for a specific purpose (like dividends or reserves). They remain available for reinvestment or…
READ MOREUnit Cost
Unit cost is the total expense incurred to produce, store, and sell one unit of product or service. It includes direct costs like materials and…
READ MOREUncollectible Accounts
Uncollectible accounts are receivables that are deemed unlikely to be recovered, often due to customer default or bankruptcy. These bad debts are written off from…
READ MOREUnsecured Loan
An unsecured loan is a loan that isn’t backed by collateral. Lenders rely on the borrower’s creditworthiness and financial stability. Because of higher risk, unsecured…
READ MOREUnrealised Loss
An unrealised loss occurs when the value of an asset drops below its purchase price, but it hasn’t been sold. Like unrealised gains, these losses…
READ MOREUnrealised Gain
An unrealised gain is the increase in value of an asset that hasn’t yet been sold. It reflects a paper profit, not actual cash flow.…
READ MOREUnearned Revenue
Unearned revenue is money received before a product is delivered or a service is provided. It’s recorded as a liability on the balance sheet because…
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