Appreciation

The increase in the value of an asset in excess of its depreciable cost due to economic and other conditions, as distinguished from increases in value due to improvements or additions made to it.

Appraisal

Evaluation of a specific piece of personal or real property. The value placed on the property evaluated.

Annual report

The yearly report made by a company at the close of the fiscal year, stating the company's receipts and disbursements, assets and liabilities.

Analysis

Breaking an idea or problem down into its parts; a thorough examination of the parts of anything.

Accounts receivable factoring

the buying of accounts receivable at a discount with the aim of making a profit from collecting them.

Accounts receivable

Definition 1:
Money owed to your business for goods or ser¬vices that have been delivered but not yet paid for.

Definition 2:
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.

Accounting rate of return

: the ratio of profit before interest and taxation to the percentage of capital employed at the end of a period. Variations include using profit after interest and taxation, equity capital employed, and average capital for the period.

Backup

a period in which bond yields rise and prices fall, or a sudden reversal in a stock market trend.

Back pay

Pay that is owed to an employee for work carried out before the current payment period and is either overdue or results from a backdated pay increase.

Back office

The administrative staff of a company who do not have face-to-face contact with the company's customers

Back-to-back loan

an arrangement in which two companies in different countries borrow offsetting amounts in each other's currency and each repays it at a specified future date in its domestic currency. Such a loan, often between a company and its foreign subsidiary, eliminates the risk of loss from exchange rate fluctuations.

Audit

Definition: 1
An examination and verification of a company's financial and accounting records and supporting documents by a professional, such as a Certified Public Accountant.

Definition: 2
To audit means to go through the process of examining and verifying a company's financial records and supporting documents.

While a business might go through an audit for any number of reasons, such as wanting to attract investors, get a loan, or sell the business, for many business people the word "audit" is welded to the words "income tax".
An income tax audit is an inspection and verification of a company's records and supporting documents conducted by a CRA (Canada Revenue Agency) auditor.
The CRA doesn't just conduct income tax audits, however; they perform audits of any CRA accounts, including auditing GST returns and claims for rebates.
According to the CRA's Guide For Canadian Small Businesses, an audit usually takes one to two weeks, and involves "an examination of your ledgers, journals, bank accounts, sales invoices, purchase vouchers, and expense accounts." They go on to point out that the audit process may involve touring your business premises, and seeking information and assistance from your employees.
As the CRA performs a certain number of audits each year to monitor compliance, it's wise to be certain that your business records are well-kept, complete, and always "audit-ready".

Audit

An examination of accounting documents and of supporting evidence for the purpose of reaching an informed opinion concerning their propriety.

Assets

Anything of worth that is owned. Accounts receivable are an asset.

Accounting period

A time interval at the end of which an analysis is made of the information contained in the bookkeeping records. Also the period of time covered by the profit and loss statement.

Accountant

One who is skilled at keeping business records. Usually, a highly trained professional rather than one who keeps books. An accoun¬tant can set up the books needed for a business to operate and help the owner understand them

Accounts payable

Defenition 1
Money which you owe to an individual or business for goods or services that have been received but not yet paid for.

Definition 2
In accounting, accounts payable are debts resulting from purchasing assets or receiving services on credit or on an open account. You have accounts payable when you have not yet paid for the assets or services you have received.

Definition 3:
Trade accounts of businesses representing obligations to pay for goods and services received.

Actuary

A professional expert in pension and life insurance matters, particularly trained in mathematical, statistical, and accounting methods and procedures, and in insurance probabilities.

Accounting insolvency

A the condition that a company is in when its liabilities to its creditors exceeds its assets.

Articles of Incorporation

A legal document filed with the state that sets forth the purposes and regulations for a corporation. Each state has different regulations

Accrual basis

: A method of keeping accounts that shows expenses incurred and income earned for a given fiscal period, even though such expenses and income have not been actually paid or received in cash.

Arrears

Amounts past due and unpaid

Amortization

To liquidate on an installment basis; the process of grad¬ually paying off a liability over a period of time

Agent

Definition 1:
A person who is authorized to act for or represent another person in dealing with a third party.

Definition 2:
An individual or firm that effects securities transactions for the accounts of others.

Definition 3:
A person licensed by a state as a life insurance agent.

Definition 4:
A securities salesperson that represents a broker-dealer or issuer when selling or trying to sell sec

Advertising

The practice of bringing to the public's notice the good qualities of something in order to induce the public to buy or invest in it.

Administrative expense

Expenses chargeable to the managerial, general administrative and policy phases of a business in contrast to sales, manufacturing, or cost of goods expense.

Accelerated depreciation

A system used for computing the depreciation of some assets in a way that assumes that they depreciate faster in the early years of their acquisition

Account balance

The difference between the debit and the credit sides of an account

Accounting cost

the cost of maintaining and checking the business records of a person or organization and the preparation of forms and reports for financial purposes.

Account

A record of a business transaction. A contract arrangement, written or unwritten, to purchase and take delivery with payment to be made later as arranged.

Access bond

A type of mortgage that permits borrowers to take out loans against extra capital paid into the account, home-loan interest rates being lower than interest rates on other forms of credit.

Accelerated cost recovery system

A system used in computing the depreciation of some assets acquired before 1986 in a way that reduces taxes.

Abusive tax shelter

A tax shelter that somebody claims illegally to avoid or minimize tax

Absorption costing

An accounting practice in which fixed and variable costs of production are absorbed by different cost centers.

Absorbed costs

The indirect costs associated with manufacturing, for example, insurance or property taxes.

Absorbed Business

A company that has been merged into another company.

Absorbed Account

An account that has lost its separate identity by being combined with related accounts in the preparation of a financial statement.