Terms starting with
Withdrawals (Owner’s Drawings)
Withdrawals refer to funds or assets taken out of the business by the owner for personal use. These are recorded in the drawings account and…
READ MOREWorking Trial Balance
A working trial balance is an internal report prepared before finalising financial statements. It includes all ledger accounts and adjustments, serving as a tool for…
READ MOREWork Order Accounting
Work order accounting tracks the costs, materials, and labour associated with specific projects or manufacturing jobs. It helps determine actual costs, monitor efficiency, and compare…
READ MOREWarranty Liability
Warranty liability is the estimated cost a company expects to incur for repairing or replacing defective products sold under warranty. It is recorded as a…
READ MOREWorkforce Turnover Cost
Workforce turnover cost refers to the total expense incurred when employees leave and must be replaced. It includes recruitment, onboarding, training, and lost productivity costs.…
READ MOREWeighted Average Cost of Capital (WACC)
WACC represents a firm’s overall cost of capital from all sources, debt, equity, and preferred stock, weighted by their proportion in the capital structure. It’s…
READ MOREWindow Dressing
Window dressing refers to the deliberate manipulation of financial statements to make a company’s performance appear more favourable than it actually is. This may involve…
READ MOREWithholding Tax
Withholding tax is the portion of income tax deducted at source by the payer on payments like salaries, rent, interest, or dividends. The payer remits…
READ MOREWorking Capital Turnover
This ratio measures how efficiently a business uses its working capital to generate revenue. Calculated as Net Sales ÷ Average Working Capital, it shows how…
READ MOREWrite-Down
A write-down is a reduction in the book value of an asset when its fair market value falls below the carrying amount. It reflects asset…
READ MOREWeighted Average Cost
This inventory valuation method calculates the cost of goods sold and ending inventory based on the average cost of all similar items available for sale…
READ MOREWarrant
A warrant is a financial instrument that gives the holder the right (but not the obligation) to buy a company’s shares at a specified price…
READ MOREWork in Progress (WIP)
Work in Progress refers to partially completed goods in a production process. It includes the cost of raw materials, labour, and overhead incurred so far.…
READ MOREWrite-Off
A write-off is the accounting action of removing an asset or receivable from the books because it no longer holds value. Common examples include bad…
READ MOREWorking Capital
Working capital is the difference between current assets and current liabilities. It measures a business’s short-term financial health and ability to meet operational expenses and…
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