Related Words

Accounting Insolvency: Total liabilities exceed total assets. A firm with a negative net worth is insolvent on the books.

Generally Accepted Accounting Principals (GAAP): The sum of taxes, charges, and miscellaneous income taken in at the state and local level while neglecting overlapping revenue which may be erroneously counted twice.

Inflation Accounting: The rate at which the general level of prices for goods and services is rising.

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

Financial Accounting Standards Board (FASB): The Financial Accounting Standards Board (FASB) is an independent, self-regulatory board that establishes and interprets generally accepted accounting principles (GAAP). It operates under th . . . View Full Definition

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

Equity Method Or Accounting For Investments In Stocks: Method used to account for an investments in the stock of another company when significant influence can be imposed (presumed to exist when 20 to 50 percent of the outstanding voting stock is owned).

Financial Accounting: The area of accounting concerned with reporting financial information to interested external parties.

Insolvency Risk: These are directors and senior officers of a corporation-in effect, those who have access to inside information about a company. An insider also is someone who owns more than 10% of the voti . . . View Full Definition

Price Change Accounting: Accounting for the value of assets, stock, raw materials etc. by their current market value instead of the more traditional Historic Cost .