Accounting terminologies in English

Accounting terminologies in EnglishTerms 201 - 300 DefinitionTerm in English1 .Internal controls used to protect assets and ensure reliability of accounting periods.Accounting controls2 .Internal controls used to provide operating efficiency and adherence to prescribed company policies.Administrative controls3 .To evaluate the condition of an accounting-related item and possible reasons for discrepancies.Analyze4 .One prepared for calendar or fiscal year.Annual budget DefinitionTerm in English5 .Group of persons elected by a company's stockholders to run the business according to the corporate charter.Board of directors 6 .Situation in which decision making power is at the top of an organization and there is little delegation of authority.centralization7 .Top management delegates operation control and decisions to mid-level managers.decentralization8 .Choosing an alternative from all other available options.Decision-making DefinitionTerm in English9 ()

.Projected of future financial positions or estimate of future sales, revenue, earnings or costs.Forecast

10 () .The authorization be given by a superior to a subordinate to reach decisions within a defined area, subjects to pre/post review.Delegation of authority11 .Head of a unit who is responsible for the managing and directing its operations.Superior (director(12 .A mid-level manager who works under the supervision of a superior to whom he has to submit frequent reports.Subordinate DefinitionTerm in English13 () .Information offered by mid-level managers to their superiors regarding actual performance to compare it to targeted performance.Feedback14 . Information offered by subordinates to superiors in which subordinates evaluate the management plans and objectives.Feed-forward15

.Plan assuring that resources are obtained and used effectively and efficiently in the accomplishment of the organization's goals.Management control system16 .Desired quantifiable achievement for a period of time. Objectives DefinitionTerm in English17 .Visual diagram of an organization's structure that depicts formal communication system, reporting system and responsibility among managers.Organizational chart

18 ( ) .Procedures to establish an optimal level of control aiming to achieve the best performance while keeping expenses under control and maintain employees welfare.Total quality cost control19 .Chance of loss. Degree of Probability of loss.Risk20 .Process of measuring and analyzing the risk associated with financial and investment decisions.Risk analysis DefinitionTerm in English21 .Formal and comprehensive financial plan through which management may control day-to-day business affairs and activities.Administrative budget

22 .Estimates of the administrative expenses for the budget period.Administrative expenses budget23 A quantitative plan showing how resources are expected to be acquired and used during a specific time period.Budget

24 .A report showing a comparison of the actual and budgeted performance with an emphasis on any variances.Budget performance report DefinitionTerm in English25 .Any difference between budgeted figure and an actual figure.Budget variance

26 .The use of budgets to control operations.Budgetary control 27 .Plan of proposed acquisitions and replacements of long-term assets and their planning.Capital budget

28 .The cash receipts and disbursement expected during the budget period.Cash budget29 .Situation in which the physical amount of cash on hand differs from the book recorded amount of cash.Cash shortage and overage30 () .The method by which a person or a company concerned to follow a desired plan of action.Control DefinitionTerm in English31 .Anticipated level of production for the coming year.Expected annual activity

32 .Methods designed to keep future costs within a predetermined rate. Expense control33 .A budget that provides an overall plan for a forth coming fiscal period, including the profit objective and the coordinated program for meeting.Master budgeting

34 .Schedule for expected units to be produced in order to satisfy budget sales and inventory requirements.Production budget DefinitionTerm in English35 .Operating plan for a period expressed in terms of sales volume and selling prices of each class of product or service.Sales budget

36 .Prediction of future sales.Sales forecasting 37 .Amount of income an organization is trying to achieve during a particular period.Target income

38 .Approach to accounting that stress psychological considerations in decision making.Behavioral accounting39 () .Management's attempt to "fool around" with its accounting in order to overstate net income.Creative accounting DefinitionTerm in English40 .Procedures used to account for branches operations.Branch accounting41 .The division of a business into well defined components directed towards common goals.Business segmentation 42 .A financial statement in which the assets and liabilities or revenue and expenses of a group of related companies have been added together in such a manner as to disclose their financial position or operating results as to though they were a single business unit a consolidated or group financial statement.Combined financial statement

DefinitionTerm in English43 .Method used in parent-subsidiary relationships.Parent company accounting44 .Accounting procedures require the evaluation of financial performance of individual departments.Departmental accounting45 .Accounting for the entire business rather than its segments and divisions.Enterprise accounting46 ( ) . .Any location within an organization (machinery, department, service shop or geographical segment) which is accountable for an activity but not being accountable for profits and serves as a convenient point of reference for direct operating expenses.Cost centre DefinitionTerm in English47 .Transactions between affiliated companies.Intercompany transactions48 .Department, line of production, segment or geographical area that represent a part of the enterprise and is responsible for earning revenue for the company.Profit centre49 .Unit in the organization that has control over costs, revenues or investment funds.Responsibility centre50 .Firm which a controlling interest is owned by a parent company.Subsidiary DefinitionTerm in English51 .Subsidiary showing individual financial statements that are not presented in the consolidated financial statements.Unconsolidated subsidiary52 .A center where actual results compared with its budget in order to reveal any favorable or unfavorable variances.Budget centre 53 .A combination under a single head of all or a portion of the assets and liabilities of two or more business units by merger and acquisition.Merger and acquisition54 .Firm which a controlling interest is owned by a parent company.Subsidiary DefinitionTerm in English55 .A firm engaged in production of a service such as air transportation or medical service. Service firm56 .A business owned and mangers by its single owner.Proprietorship 57 .A company created to promote private interest-business for its members or shareholders.Private company58 . .An institution that offers products or services without aiming for making profits, even if any occurred it reinvested in the company.Non-for-profit organizations DefinitionTerm in English59 .Corporations that do business or operate in more than one country; also, transnational corporation.Multinational corporations60 .A business owned and mangers by its single owner.Proprietorship 61 .Joining together of two or more business entities or persons in order to undertake a specific business venture.Joint venture62 .Corporation owning enough voting stock in another company to control its policies and management.Holding company DefinitionTerm in English63 .Corporation formed under the laws of a foreign country.Foreign Corporation64 .The sales volume at which revenue and total costs are equal with no net income or loss.Break-even point65 .Branch of cost-volume-profit; analysis that determines the break-even point.Break-even analysis 66 .An expenditure that adds to the utility or usefulness of a plant asset for more than one accounting period.Capital expenditure DefinitionTerm in English67 .A lease that is an installment purchase of property.Capital lease68 .Principle in accounting stating that earning can be realized only after an organization's capital has been maintained at a predetermined level.Capital maintenance concept69 .Ability to compare accounting information of different companies because they use the same accounting principle.Comparability 70 . .A situation where objectives of two groups or more, working in the same environment, oppose each other. Thus, pursuing one group's goals can negatively affect the other group's goals, while both parties aims are lawful.Conflict of interests DefinitionTerm in English71 . Program that encourages employees to invest in the employer's stocks.Employees stock option (stock ownership plan)72 . .Charge imposed by a governmental body on personal income, corporate income, estates, gifts, or other sources to obtain revenue for the public good.Tax 73 .Internal control policy in which individuals do not have responsibility for Sequence activities.Segregation of duties75 .Protecting assets from loss because of theft, accidental destruction and errors through a good internal control system.Assets' safeguarding DefinitionTerm in English76 .Information are available in a timely basis before it loses its value in decision making.Relevance 77 () .Downturn in the economy as a result of increasing the spread rate rapidly.Recession

78 Difference between actual profit and budgeted profits.Profit variance79 .Quantification of a company's or segments' efficiency or effectiveness in conducting business operations for the accounting period.Performance measurement DefinitionTerm in English80 .Cumulative of subjective or objective factors to determine representative indicators of performance in reference to some standards over some period of time.Performance evaluation 81 .Revenue forfeited by rejecting an alternative use of time or facilities.Opportunity cost

82 .A type of long-term debt secured by real property that is paid in equal monthly installments.Mortgage83 .Obscure, distorted, or untrue statement or omitting a material facts.Misleading DefinitionTerm in English84 .To develop volume to the point where the cost of one additional unit equals the net receipts that can be obtained for it.Maximize profit 85 .Broad service area covering aspects of organizational management, such as planning, finance, inventory, computers, and personal.Management consulting service

86 () .Agreement by which the lender allows the borrower to use an asset for a specific time period.Loan 87 .A narrative analysis of the need of funds for any project of a cost or profit centers.Justification DefinitionTerm in English88 .Method that recognizes a variety of human resources and report them in the balance sheet.Human resources (HR) accounting89 . Evaluation of potential projects or course of actions to determine if the proposal is worthwhile or not.Feasibility study

90 ( ) .Send goods out (countries or companies) for sale.Exports91 .Receive goods from outside countries.Imports DefinitionTerm in English92 .Extent to which actual performance compares with targeted performance.Effectiveness93 .Banknotes and coins.Currency

94 .Process of organizing companies operations in a way that insures that resources are used in the best way to achieve the companies' objectives.Coordination

95 .Item that depends on some future happening that may or may not occur.Contingent asset DefinitionTerm in English96 .A possible liability that may become actual if certain future events occur.Contingent liability97

.Medium to short term budgeting.Performance budget

98 . .Management accounting system that enables mid-level managers (subordinates) to provide their inputs to the budgetary process. Thus, useful budgetary information will be provided from those who execute them.Participative budgeting

DefinitionTerm in English99 .Concept or policy by which management devotes it's time to investigating only those situations in which actual results differ significantly from planed results.Management by exception100

: - .- .system of performance appraisal having the following characteristic:1- each manager is required to take certain prescribed actions and to complete certain written documents.2- the manager and subordinates discuss the subordinate's job description, agree to short-term performance targets, discuss the progress made to words meeting these targets and periodically evaluate the performance and provide feedback.Management by objective (MBO)