Related Words

Accounting: The agent must be able to report the status of all funds received from or on behalf of the principal. Most state real estate license laws require a broker to give accurate copies of all docu . . . View Full Definition

Cost Accounting: Another term for expenditure. See also expenses.

Cash-Basis Accounting: A system of accounting in which transactions are recorded and revenues and expenses are recognized only when cash is received or paid.

Double-Entry Accounting: A system of recording transactions in a way that maintains the equality of the accounting equation.

Generally Accepted Accounting Principles (GAAP): Authoritative guidelines that define accounting practice at a particular time.

Management Accounting: The area of accounting concerned with providing internal financial reports to assist management in making decisions.

Cash Accounting: This term describes an accounting method whereby only invoices and bills which have been paid are accounted for. However, for most types of business in the UK, as far as the Inland Revenue a . . . View Full Definition

Statement Of Financial Accounting Standards No. 8: The currency translation standard currently used by U.S. firms. It mandates the use of the current rate method. See: Statement of Financial Accounting Standards No. 8.

Accrual-Basis Accounting: A system of accounting in which revenues and expenses are recorded as they are earned and incurred, not necessarily when cash is received or paid.

Purchase Accounting: Method of accounting for a merger that treats the acquirer as having purchased the assets and assumed the liabilities of the acquiree, which are then written up or down to their respective f . . . View Full Definition