Business Glossary - A
Accounting - The recording, classifying, summarizing and interpreting in a significant manner and in terms of money, transactions and events of a financial character.
Accounts Payable - Trade accounts of businesses representing obligations to pay for goods and services received.
Accounts Receivable - Trade accounts of businesses representing moneys due for goods sold or services rendered evidenced by notes, statements, invoices or other written evidence of a present obligation.
Accrual Accounting - A method of reporting income when earned and expenses when incurred, as opposed to reporting income when received and expenses when paid.
Accrual method - reporting income when it is earned, though one may receive payment in a later year. Expenses are deducted in the tax year they are incurred, whether or not they are paid in the same year.
Accrued Interest - The interest that has accumulated since the last interest payment up to, but not including, the settlement date and that is added to the contract price of a bond transaction. There are two methods for calculating accrued interest: the 30-day-month (360-da
Acquisition - The acquiring of supplies or services by the federal government with appropriated funds through purchase or lease.
Actual Expenses - refers to car and truck expenses. Method used to deduct costs of operating and maintaining a car or truck in your business, for example, depreciation, gas, repairs, etc. Expenses must be divided between business and personal use if used in both.
Affiliates - Business concerns, organizations, or individuals that control each other or that are controlled by a third party. Control may include shared management or ownership; common use of facilities, equipment, and employees; or family interest.
Agent - (1) An individual or firm that effects securities transactions for the accounts of others. (2) A person licensed by a state as a life insurance agent. (3) A securities salesperson who represents a broker-dealer or issuer when selling or trying to sell sec
Amortization - reduction of debt through installed payments.
Amortization - (1) The paying off of debt in regular installments over a period of time. (2) The ratable deduction of certain capitalized expenditures over a specified period of time.
Appreciation - The increase in value of an asset.
Assets - cash, property, and other resources owned by a firm.
Assumptions - The act of assuming/undertaking another’s debts or obligations.
Auction - A public sale of goods to the highest bidder.
Authorized Stock - The number of shares of stock that a corporation is permitted to issue. This number of shares is stipulated in the corporation’s - state-approved charter, and may be changed by a vote of the corporation’s stock-holders.
Automatic Data Processing - *** Data processing largely performed by automatic means. *** The discipline which deals with methods and techniques of automatic data processing. *** Pertaining to data processing equipment such as electrical accounting machines and electronic data proce