Glossary Of Accounting Term-Alphabet L

GLOSSARY of Accounting Terms

RETURN TO GLOSSARY INDEX

 
Liability

A present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.

 
Liquidity

The availability of cash in the near future after taking [...]

Continue reading about Glossary Of Accounting Term-Alphabet L

GLOSSARY of Accounting Terms

RETURN TO GLOSSARY INDEX

Understandability

Information provided in financial statements has the quality of understandability when is comprehensible to users who have a reasonable knowledge of business and economic activities and accounting and a willingness to study the information [...]

Continue reading about Glossary Of Accounting Term-Alphabet U

GLOSSARY of Accounting Terms
 

    RETURN TO GLOSSARY INDEX 

Sale and leaseback transaction

The sale of an asset and the leasing back of the same asset. The lease payment and the sale price are usually interdependent because they are negotiated as a package.

Solvency

The availability of cash over the longer term to [...]

Continue reading about Glossary Of Accounting Term-Alphabet S

GLOSSARY of Accounting Terms

RETURN TO GLOSSARY INDEX

 
Realisable value

The amount of cash or cash equivalents that could currently be obtained by selling an asset in an orderly disposal.

 
Recognition

The process of incorporating in the balance sheet or income statement an item that meets the definition of [...]

Continue reading about Glossary Of Accounting Term-Alphabet R

GLOSSARY of Accounting Terms
 

    RETURN TO GLOSSARY INDEX 

Parent

An entity that has one or more subsidiaries.

 
Profit

The residual amount that remains after expenses (including capital maintenance adjustments, where appropriate) have been deducted from income. Any amount over and above that required to maintain the capital at the beginning of the [...]

Continue reading about Glossary Of Accounting Term-Alphabet P

GLOSSARY of Accounting Terms
 

    RETURN TO GLOSSARY INDEX 

Operating activities

The principal revenue-producing activities of an entity and other activities that are not investing or financing activities.

Operating cycle

The time between the acquisition of assets for processing and their realisation in cash or cash equivalents.

Ordinary share

An equity instrument that is subordinate to all [...]

Continue reading about Glossary Of Accounting Term-Alphabet O

GLOSSARY of Accounting Terms
 

    RETURN TO GLOSSARY INDEX 

 
Net realisable value

The estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.
Net realisable value refers to the net amount that an entity expects to realise [...]

Continue reading about Glossary Of Accounting Term-Alphabet N

GLOSSARY of Accounting Terms

RETURN TO GLOSSARY INDEX

Matching of costs with revenues

A process in which expenses are recognised in the income statement on the basis of a direct association between the costs incurred and the earning of specific items of income. This process involves the [...]

Continue reading about Glossary Of Accounting Term-Alphabet M

GLOSSARY of Accounting Terms
 

RETURN TO GLOSSARY INDEX 

Matching of costs with revenues

A process in which expenses are recognised in the income statement on the basis of a direct association between the costs incurred and the earning of specific items of income. This process involves the simultaneous or [...]

Continue reading about Glossary Of Accounting Term-Alphabet M

GLOSSARY of Accounting Terms

RETURN TO GLOSSARY INDEX

 
Liability

A present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.

 
Liquidity

The availability of cash in the near future after taking [...]

Continue reading about Glossary Of Accounting Term-Alphabet L