Dictionary of Accounting: Over 6,000 Terms Clearly Defined (Dictionary)

257 Pages·2007·6.66 MB·English

by  A & C Black Publishers

Dictionary of
Accounting
Fourth edition
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Dictionary of
Accounting
Fourth edition
S.M.H. Collin
A & C Black (cid:2) London
www.acblack.com
First published in Great Britain in 1992
byPeter Collin Publishing
Second edition published 2001
Third edition published 2004
This fourth edition published 2007
A & C Black Publishers Ltd
38 Soho Square, London W1D 3HB
© A & C Black Publishers Ltd 2007
All rights reserved. No part of this publication may be reproduced
in any form or by any means without the permission of the publishers
A CIP record for this book is available from the British Library
eISBN-13: 978-1-4081-0228-2
Text Production and Proofreading
Heather Bateman, Stephen Curtis, Katy McAdam, Howard Sargeant
This book is produced using paper that is made from wood grown in managed,
sustainable forests. It is natural, renewable and recyclable. The logging and
manufacturing processes conform to the environmental regulations of the
country of origin.
Text typeset by A & C Black
Printed in Spain by GraphyCems
Preface
This dictionary provides a basic vocabulary of terms used in accounting,
from personal finance and investments to company accounts, balance
sheets and stock valuations. It is ideal for students of accounting and for
anyone who needs to check the meaning of an accountancy term, from
people working in businesses who may not be professional accountants to
translators or those for whom English is an additional language.
Each headword is explained in clear, straightforward English and
examples are given to show how the word may be used in context. There
are also quotations from newspapers and specialist magazines. Sample
documents and financial statements are also provided.
Thanks are due to Hannah Gray and Sarah Williams for their invaluable
help and advice during the production of this new edition.
Pronunciation
The following symbols have been used to show the pronunciation of the main
words in the dictionary.
Stress has been indicated by a main stress mark ((cid:2)) and a secondary stress mark
((cid:3)). Note that these are only guides, as the stress of the word changes according to
its position in the sentence.
Vowels Consonants
(cid:4) back b buck
ɑ(cid:6) harm d dead
ɒ stop ð other
ai type d(cid:9) jump
aυ how f fare
aiə hire (cid:12) gold
aυə hour h head
ɔ(cid:6) course j yellow
ɔi annoy k cab
e head l leave
eə fair m mix
ei make n nil
eυ go ŋ sing
(cid:15)(cid:6) word p print
i(cid:6) keep r rest
i happy s save
ə about ʃ shop
i fit t take
iə near tʃ change
u annual θ theft
u(cid:6) pool v value
υ book w work
υə tour x loch
(cid:18) shut (cid:9) measure
z zone
Accounting.fm Page 1 Tuesday, February 13, 2007 1:40 PM
A
AAAAAA abbreviation American Accounting aabnorbmal nspoiloagermal spoilage /(cid:3)b(cid:6)nɔ(cid:7)m(ə)l
Association (cid:2)spɔilid(cid:13)/ noun spoilage that cont|ributes to
AAAPAAPA abbreviation Association of Author- an abnormal loss
ised Public Accountants aaboveb parove par /ə(cid:6)b(cid:14)v (cid:2)pɑ(cid:7)/ adjective referring
|
to a share with a market price higher than its
AAARFARF abbreviation Australian Accounting
face value
Research Foundation
aaboveb-theo-linve e-the-line /ə(cid:6)b(cid:14)v ðə (cid:2)lain/ adjec-
AAATAT abbreviation Association of Account- tive, adverb 1. used |to describe entries in a
ing Technicians company’s profit and loss accounts that
aabacubs acus /(cid:2)(cid:3)bəkəs/ noun a counting device appear above the line which separates
consisting of parallel rods strung with beads, entries showing the origin of the funds that
still widely used for business and accounting have contributed to the profit or loss from
in China and Japan those that relate to its distribution. Excep-
aabandbonmeantndonment /ə(cid:2)b(cid:3)ndənmənt/ noun an tional and extraordinary items appear above
act of giving up vo|luntarily something that the line. (cid:3) Exceptional items are noted
you own, such as an option or the right to a above the line in company accounts. (cid:2)
property (cid:2) abandonment of a claim giving below-the-line 2. relating to revenue items
up a claim in a civil action in a government budget
aabatebmentatement /ə(cid:2)beitmənt/ noun a reduc- aabridbged raccioudntsged accounts /ə|(cid:6)brid(cid:13)d ə|(cid:2)kaυnts/
| plural noun financial statements produced
tion in a payment, e.g., if a company’s or
by a company that fall outside the require-
individual’s total assets are insufficient to
ments stipulated in the Companies Act
cover their debts or legacies
aabsorbb sorb /əb(cid:2)zɔ(cid:7)b/ verb 1. to take in a small
AABBBB abbreviation activity-based budgeting item so that i|t forms part of a larger one (cid:2) a
aabbrebviatbed acrcoeuntsviated accounts /ə(cid:6)bri(cid:7)vieitid ə business which has been absorbed by a
(cid:2)kaυnts/ plural noun a shorten| ed version of| competitor a small business which has been
a company’s annual accounts that a small or made part of a larger one 2. to assign an
medium sized company can file with the overhead to a particular cost centre in a com-
Registrar of Companies, instead of a full pany’s production accounts so that its iden-
version tity becomes lost. (cid:2) absorption costing
AABCBC abbreviation activity-based costing aabsorbbed soveroheadrbed overhead /əb(cid:6)zɔ(cid:7)bd
aab inbitio initio /(cid:6)(cid:3)b i(cid:2)niʃiəυ/ phrase a Latin (cid:2)əυvəhed/ noun an overhead attach| ed to
| products or services by means of overhead
phrase meaning ‘from the beginning’
absorption rates
AABMBM abbreviation activity-based manage- aabsorbptiosn orption /əb(cid:2)zɔ(cid:7)pʃən/ noun the proc-
ment |
ess of making a smaller business part of a
aabnorbmal ngainormal gain /(cid:3)b(cid:6)nɔ(cid:7)m(ə)l (cid:2)(cid:11)ein/ larger one, so that the smaller company in
|
noun any reduction in the volume of process effect no longer exists
loss below that set by the normal loss allow- aabsorbptiosn coostingrption costing /əb(cid:2)zɔ(cid:7)pʃən
ance. Abnormal gains are generally costed (cid:6)kɒstiŋ/ noun 1. a form of costi|ng for a
as though they were completed products. product that includes both the direct costs of
aabnorbmal nlossormal loss /(cid:3)b(cid:6)nɔ(cid:7)m(ə)l (cid:2)lɒs/ noun production and the indirect overhead costs
|
any losses which exceed the normal loss as well 2. an accounting practice in which
allowance. Abnormal losses are generally fixed and variable costs of production are
costed as though they were completed prod- absorbed by different cost centres. Provid-
ucts. ing all the products or services can be sold at
Accounting.fm Page 2 Tuesday, February 13, 2007 1:40 PM
absorption rate 2
a price that covers the allocated costs, this aaccepctancce saemplipngtance sampling /ək(cid:2)septəns
method ensures that both fixed and variable (cid:6)sɑ(cid:7)mpliŋ/ noun the process of |testing a
costs are recovered in full. (cid:2) marginal cost- small sample of a batch to see if the whole
ing batch is good enough to be accepted
aaabso rbprtiaosn traeote rapt twiohnic hr aotvee r/həeba|(cid:2)dz ɔc(cid:7)opsʃtəs na r(cid:6)er eaibts/ onrobuend aaaccecpctincgc heouesepptatinncge hhoouussee //əəkk(cid:2)|(cid:2)sseeppttəiŋn s (cid:2)hhaaυυss/,/
into each unit of production noun a firm, usually a merc|hant bank, which
aabstrbactstract /(cid:2)(cid:3)bstr(cid:3)kt/ noun a short form of accepts bills of exchange at a discount, in
a report or document (cid:3) to make an abstract return for immediate payment to the issuer,
of the company accounts in this case the Bank of England
aabusibve tuax shselteirve tax shelter /ə(cid:6)bju(cid:7)siv (cid:2)t(cid:3)ks AAcceptcing cHousees Cpommittteieng Houses Committee /ək
(cid:6)ʃeltə/ noun a tax shelter u|sed illegally in (cid:6)septiŋ (cid:6)haυziz kə(cid:2)miti/ noun the main|
order to avoid or reduce tax payments London merchant ban|ks, which organise the
AAcademcy ofa Accdountieng Hmistoriyans of Accounting Historians lending of money with the Bank of England.
/ə(cid:6)k(cid:3)dəmi əv ə(cid:2)kaυntiŋ hi(cid:6)stɔ(cid:7)riənz/ They receive slightly better discount rates
no|un a US organis|ation, founde|d in 1973, from the Bank.
that promotes the study of the history of aaccepctorceptor /ək(cid:2)septə/ noun a person who
accounting accepts a bill of| exchange by signing it, thus
AACAUSCAUS abbreviation Association of Char- making a commitment to pay it by a speci-
tered Accountants in the United States fied date
AACCACCA abbreviation Association of Char- aaccidcent cinsuiradnceent insurance /(cid:6)(cid:3)ksid(ə)nt in
tered Certified Accountants (cid:2)ʃυərəns/ noun insurance which will pay|
aaccelceratceelerate /ək(cid:2)seləreit/ verb to reduce the insured person when an accident takes
the amount of tim|e before a maturity date place
aaccelceratced ceost lreecoverry asysttemed cost recovery system aaccomcmodactionommodation /ə(cid:6)kɒmə(cid:2)deiʃ(ə)n/
/(cid:3)k(cid:6)selrəreitid (cid:2)kɒst ri(cid:6)k(cid:14)vəri (cid:6)sistəm/ noun money lent for a shor|t time|
| |
noun a system used in the United States for aaccomcmodactiono bilml modation bill /ə(cid:6)kɒmə(cid:2)deiʃ(ə)n
calculating depreciation in a way that (cid:6)bil/ noun a bill of exchang|e wher|e the per-
reduces tax liability
son signing (the ‘drawee’) is helping another
aaccelceratced deeprelcieatiornated depreciation /ək company (the ‘drawer’) to raise a loan
(cid:6)seləreitid dipri(cid:7)ʃi|(cid:2)eiʃ(ə)n/ noun a system| aaccoucntcount /ə(cid:2)kaυnt/ noun 1. a record of
of depreciation which reduces the value of |
financial transactions over a period of time,
assets at a high rate in the early years to
such as money paid, received, borrowed or
encourage companies, as a result of tax
owed (cid:3) Please send me your account or a
advantages, to invest in new equipment
detailed or an itemised account. 2. a struc-
aaccelceratcioneleration /ək|(cid:6)selə|(cid:2)reiʃ(ə)n/ noun the tured record of financial transactions that
speeding up of debt repayment may be maintained as a list or in a more for-
aaccelceratcion eclaulseeration clause /ək(cid:6)selə(cid:2)reiʃ(ə)n mal structured credit and debit basis 3. (in a
(cid:6)klɔ(cid:7)z/ noun US a clause in a| con|tract that shop) an arrangement in which a customer
provides for immediate payment of the total acquires goods and pays for them at a later
balance if there is a breach of contract date, usually the end of the month (cid:3) to have
aaccepctancceeptance /ək(cid:2)septəns/ noun 1. the act an account or a credit account with Harrods
of signing a bill o|f exchange to show that (cid:3) Put it on my account or charge it to my
you agree to pay it (cid:2) to present a bill for account. (cid:3) They are one of our largest
acceptance to present a bill for payment by accounts. 4. a period during which shares
the person who has accepted it 2. a bill are traded for credit, and at the end of which
which has been accepted 3. the act of accept- the shares bought must be paid for (NOTE:
ing an offer of new shares for which you On the London Stock Exchange, there are
have applied twenty-four accounts during the year, each
aaccepctancce creeditptance credit /ək(cid:2)septəns (cid:6)kredit/ running usually for ten working days.) 5. a
noun an arrangement of cr|edit from a bank, customer who does a large amount of busi-
where the bank accepts bills of exchange ness with a firm and has an account with it (cid:3)
drawn on the bank by the debtor: the bank Smith Brothers is one of our largest
then discounts the bills and is responsible accounts. (cid:3) Our sales people call on their
for paying them when they mature. The best accounts twice a month.
debtor owes the bank for the bills but these aaccoucntabcilitoy untability /ə(cid:6)kaυntə(cid:2)biliti/ noun
| |
are covered by letters of credit. the fact of being responsible to someone for
Accounting.fm Page 3 Tuesday, February 13, 2007 1:40 PM
3 accounting concept
something, e.g. the accountability of direc- aaccoucnt ccodeount code /ə(cid:2)kaυnt kəυd/ noun a
tors to the shareholders number assigned to a| particular account in a
aaccoucntabcleountable /ə(cid:2)kaυntəb(ə)l/ adjective numerical accounting system, e.g., a chart of
referring to a pers|on who has to explain accounts
what has taken place or who is responsible aaccoucnt ecndount end /ə(cid:6)kaυnt (cid:2)end/ noun the end
for something (NOTE: You are accountable of an accounting p| eriod
to someone for something.) aaccoucnt ecxecuotiveunt executive /ə(cid:2)kaυnt i(cid:11)
aaccoucnt acnalyosisunt analysis /ə|(cid:2)kaυnt ə|(cid:6)n(cid:3)ləsis/ (cid:6)zekjυtiv/ noun 1. an employe|e who looks|
noun analysis of a company’s accounts with after customers or who is the link between
the aim of discerning how its activities affect
customers and the company 2. an employee
its costs
of an organisation such as a bank, public
aaccoucntanccyountancy /ə(cid:2)kaυntənsi/ noun the relations firm or advertising agency who is
|
work of an accountant (cid:3) They are studying responsible for looking after particular cli-
accountancy or They are accountancy stu- ents and handling their business with the
dents. organisation
(cid:6)aacbcoucnɒtanccdy booidi(cid:7)euszn/ tpalnurcayl nobuno dpireosfe ssi/əo|(cid:2)nkaal υinntsətintus-i aaacconucntc fcoermo suhneett floaridm o /uət|(cid:2) kina υhnotr ifzɔo(cid:7)nmta/l n foourmn a. Ibta ils-
tions and associations for accountants the opposite of ‘report’ or ‘vertical’ form.
paaccorucntəanccy(cid:2) pforofeeussʃionn(ət)ann/ cnyo upnr othfee spsrioofens s/əio|(cid:6)knaalυ nbtoədniessi aaccoucntincgounting /ə|(cid:2)kaυntiŋ/ noun 1. the work
| of recording money paid, received, bor-
that establish entry standards, organise pro-
rowed, or owed (cid:3) accounting methods (cid:3)
fessional examinations, and draw up ethical
accounting procedures (cid:3) an accounting
and technical guidelines for accountants
machine 2. accountancy, the work of an
aaccoucntanctountant /ə|(cid:2)kaυntənt/ noun 1. a per- accountant as a course of study
son who keeps a company’s accounts or
‘…applicants will be professionally quali-
deals with an individual person’s tax affairs
fied and have a degree in Commerce or
(cid:3) The chief accountant of a manufacturing
Accounting’ [Australian Financial
group. (cid:3) The accountant has shown that
Review]
there is a sharp variance in our labour costs.
2. a person who advises a company on its AAccounctingc ando Finaunce nAssoctiaitinon ofg Aust raliaa annd Nedw Zea landFinance Associa-
tafoicn cmaonyuc naetcss c(cid:3)o uIn steanndt. a3l.l am pye risnocno mweh ota exx qaumeirnieess t(cid:6)(cid:6)tkioraenυiln ioətfi ŋəAn əu nns j(cid:6)tfura(cid:7)ai (cid:2)nlzi(cid:3)ai(cid:7) nlaəsnn ədd|(cid:6)/s Nənυoeuswine iZaʃne( əao)rlnga anənvdi sɒ a/əs-||
tion for accounting and finance academics,
AAccounctantcs’ Ionternuationnal Sttuady Gnroupts’ International Study
Group /ə(cid:6)kaυntənts (cid:6)intən(cid:3)ʃ(ə)nəl researchers and professionals working in
(cid:2)st(cid:14)di (cid:6)(cid:11)ru(cid:7)p|/ noun a body of professional Australia and New Zealand. Abbreviation
AFAANZ
accounting bodies from the United States,
Canada, and the United Kingdom that was aaccoucntincg baosesunting bases /ə(cid:6)kaυntiŋ (cid:2)beisi(cid:7)z/
|
established in 1966 to research accounting plural noun the possible ways in which
practices in the three member countries. accounting concepts may be applied to
After publishing 20 reports, it was dis- financial transactions, e.g. the methods used
banded in 1977 with the foundation of the to depreciate assets, how intangible assets or
International Federation of Accountants. work in progress are dealt with
aaccoucntanct’s oliabuilityntant’s liability /ə(cid:6)kaυntənts aaccoucntincg choangeunting change /ə(cid:2)kaυntiŋ
(cid:6)laiə(cid:2)biliti/ noun the legal liab| ility of an tʃeind(cid:13)/ noun any of various cha|nges that
|
accountant who commits fraud or is held to affect a set of accounts, e.g. a change in the
be negligent method of calculating the depreciation of
aaccoucntancts’ oopinuionntants’ opinion /ə(cid:6)kaυntənts ə assets or a change in the size, structure or
(cid:2)pinjən/ noun a report of the a|udit of a com-| nature of the company
pany’s books, carried out by a certified pub- aaccoucntincg coonceput nting concept /ə(cid:2)kaυntiŋ
lic accountant (NOTE: The US term is audit (cid:6)kɒnsept/ noun a general assum|ption on
opinion.) which accounts are prepared. The main con-
aaccoucntancts’ orepourtntants’ report /ə(cid:6)kaυntənts ri cepts are: that the business is a going con-
(cid:2)pɔ(cid:7)t/ noun in the United Kin|gdom, a report| cern, that revenue and costs are noted when
written by accountants that is required by the they are incurred and not when cash is
London Stock Exchange to be included in received or paid, that the present accounts
the prospectus of a company seeking a list- are drawn up following the same principles
ing on the Exchange as the previous accounts, that the revenue or