Absorption costing The act of allocating all costs (variable and fixed) to each unit of output.
Accounting equation States that assets less liabilities is equal to the shareholders’ funds of a business.
Accounts payable See Creditor
Accounts receivable See Debtor
Accrual A cost that has been incurred but is not yet reflected in the accounts; an accrual is a liability.
Accrual accounting Recognising income when it is earned and costs when they are incurred.
Accrued income Income that has been earned but is not yet reflected in the accounts; accrued income is an asset.
Accumulated depreciation The total amount of depreciation already charged to the P&L account.
Acid test Similar to the liquidity ratio, but ignoring the need to sell ...