Glossary of Accounting Terms
||A method of costing in which all fixed and variable production costs are charged to products or services using an allocation base.
||The process of satisfying stakeholders in the organization that managers have acted in the best interests of the stakeholders; a result of the stewardship function of managers, which takes place through accounting.
||A collection of systems and processes used to record, report, and interpret business transactions.
||The period of time for which financial statements are produced—see also Financial year.
|Accounting rate of return (ARR)
||A method of investment appraisal that measures the profit generated as a percentage of the investment—see Return on investment.
||See Generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS)
|Accounting Standards for Private Entities (ASPE)
||Standards that set out recognition, measurement, presentation, and disclosure requirements dealing with transactions and events that are important in general-purpose financial statements. Applicable to private companies only.
||A set of accounts that summarize the transactions of a business which have been recorded on source documents.
||“Buckets” within the ledger, part of the accounting system. Each account contains similar transactions (line items) that are used for the production of financial ...|
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