A to C

Question	Answer
Acceptance	The drawee’s signed assent on bill of exchange, to the order of the drawer. This term is also used to describe a bill of exchange that has been accepted.
Accounting policies	Accounting policies are the specific accounting principles and the methods of applying those principles adopted by an enterprise in the preparation and presentation of financial statements.
Accrual	Recognition of revenues and costs as they are earned or incurred (and not as money is received or paid). It includes recognition of transactions relating to assets and liabilities as they occur irrespective of the actual receipts or payments.
Accrual/Mercantile Basis of Accounting	method of recording transactions by which revenues, costs, assets and liabilities are reflected in accounts in the period in which they accrue. ‘accrual basis of accounting’ includes considerations relating to deferrals, allocations, depreciation and amortisation. This basis is also referred to as mercantile basis of accounting.
Accrued Asset	A developing but not yet enforceable claim against another person which accumulates with the passage of time or the rendering of service or otherwise. It may arise from the rendering of services (including the use of money) which at the date of accounting have been partly performed, and are not yet billable.
Accrued Expense	An expense which has been incurred in an accounting period but for which no enforceable claim has become due in that period against the enterprise. It may arise from the purchase of services (including the use of money) which at the date of accounting have been only partly performed, and are not yet billable.
Accrued Liability	A developing but not yet enforceable claim by another person which accumulates with the passage of time or the receipt of service or otherwise. It may arise from the purchase of services (including the use of money) which at the date of accounting have.
Accrued Revenue	Revenue which has been earned in an accounting period but in respect of which no enforceable claim has become due in that period by the enterprise. It may arise from the rendering of services (including the use of money) which at the date of accounting have been partly performed, and are not yet billable.
Accumulated Depletion	The total to date of the periodic depletion charges on wasting assets.
Accumulated Depreciation	The total to date of the periodic depreciation charges on depreciable assets.
Advance	Payment made on account of, but before completion of, a contract, or before acquisition of goods or receipt of services.
Amortised Value	The amortizable amount less any portion already provided by way of amortization.
Annual Report	balance sheet, profit and loss statement and notes on accounts, the auditor’s report thereon, and the report of Board of Directors. It also includes other information voluntarily provided .
Appropriation Account	An account sometimes included as a separate section of the profit and loss statement showing application of profits towards dividends, reserves, etc.
Assets	Tangible objects or intangible rights owned by an enterprise and carrying probable future benefits.
Authorised Share Capital	The number and par value, of each class of shares that an enterprise may issue in accordance with its instrument of incorporation. This is sometimes referred to as nominal share capital.
Average Cost	The cost of an item at a point of time as determined by applying an average of the cost of all items of the same nature over a period. When weightages are also applied in the computation, it is termed as weighted average cost.
Bad Debts	Debts owed to an enterprise which are considered to be irrecoverable.
Balance Sheet	A statement of the financial position of an enterprise as at a given date, which exhibits its assets, liabilities, capital, reserves and other account balances at their respective book values.
Bill of Exchange	An instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only, to or to the order of a certain person or to the bearer of the instrument.
Bonus Shares	Shares allotted by capitalization of the reserves or surplus of a corporate enterprise.
Book Value	The amount at which an item appears in the books of account or financial statements. It does not refer to any particular basis on which the amount is determined e.g., cost, replacement value, etc.
Borrowing costs	Borrowing costs are interest and other costs incurred by an enterprise in connection with the borrowing of funds.
Bond/Debenture	A formal document constituting acknowledgment of a debt by an enterprise usually given under its common seal and normally containing provisions regarding payment of interest, repayment of principal and security, if any. It is transferable in the appropriate manner.
Call	A demand pursuant to terms of issue to pay a part or whole of the balance remaining payable on shares or debentures after allotment.

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	Created by Vijaya Raikode over 2 years ago