Tag: transaction

Journal Entries (JEs)

See Also: Double Entry Bookkeeping Journal Entries For Factoring Receivables Accounting Principles Accounting Concepts Adjusting Entries Role of a Company Back Office Journal Entries Definition A journal entry is a recording of a transaction into a journal like the general journal or another subsidiary journal. Journal entries for accounting require that there be a debit and a

Read More

General Ledger Reconciliation and Analysis

See also: Account Reconciliation Standard Chart of Accounts Problems in Chart of Account Design Cash Flow Statement Income Statement Subsidiary Ledger General Ledger Reconciliation and Analysis Definition Define a general ledger as the financial record of every transaction of a company. Commonly, it is referred to as the “books” of the company. In the general

Read More

Sale and Leaseback

See Also: Lessor vs Lessee Lease Agreements Capital Lease Agreement Operating Lease Working Capital Sale and Leaseback Definition The sale and leaseback definition is a transaction in which a company sells its property to another company and then leases that property. The company that sells the asset becomes the lessee, and the company that purchases

Read More

Point of Sale (POS) Method

See Also: Accounting Principles Percentage of Completion Method Completed Contract Method Cost Recovery Method Installment Method Point of Sale (POS) Method Definition The Point of Sale (POS) Method also known as the Revenue Method or Sales Method is one of the many methods under the Revenue Principle of Accounting. This method records the revenue at

Read More

Materiality Definition

See Also: Accounting Concepts Accounting Principles Audit Committee Auditor Compliance Audit What Should Your Month End Reports Contain? What is Materiality Definition? Materiality is the amount that an omission or misstatement within the financial statements will seriously mislead people who use the financial statements of that company. Accounting Materiality Accounting materiality is often judged by

Read More

Nominal Interest Rate Definition

See Also: What is Compound Interest Effective Rate of Interest Calculation Interest Expense When is Interest Rate Not as Important in Selecting a Loan? Interest Rate Swaps The Nominal Interest Rate Definition A nominal interest rate is the interest rate rate quoted on lending and borrowing transactions. Nominal rates represent the rate of exchange between

Read More

Net Cash

See Also: Current Ratio Analysis Quick Ratio Analysis Financial Ratios Current Liabilities Debt Ratio Analysis Net Cash Definition The net cash formula is cash minus the liabilities. It is often used in business much like the current ratio. It determines a company’s ability to pay off its obligations. You can also use it to determine

Read More

Indemnity Clause

See Also: Blue Sky Laws Tips on How to Manage your Lawyer Steps to Track Money In and Out of a Company Accounting Asset Definition Indemnity Clause Definition The indemnity clause definition is the clause which compensates either party in a contract against loss. It is one of the most common ways for a party

Read More

Libor versus Prime Rate

See Also: LIBOR Prime Lending Rate Interest Expense Interest Rate Swaps Federal Funds Rate Libor versus Prime Rate The London Interbank Offered Rate (Libor) and the US Prime Rate are both benchmark interest rates. Both rates are used as reference rates for various lending and borrowing transactions. (For current and historical rates, see the links

Read More

Letter of Credit

See Also: Line of Credit (Bank Line) Annual Percentage Rate (APR) Company Life Cycle How Important is Personal Credit While Negotiating a Commercial Loan? Letter of Credit Definition What are letters of credit? Define a letter of credit as a document issued by a bank that guarantee payment to a seller on behalf of a

Read More

Freight on Board (FOB)

See Also: Ex Works (EXW) How to manage inventory Just in Time Inventory System Inventory Cost Accounting Principles Freight on Board (FOB) Definition Freight on Board, known internationally as Free on Board, are the terms of a transaction within a contract. The terms are there to determine liability and when revenue recognition can take place

Read More

Delivered Duty Paid (DDP)

See Also: Freight on Board (FOB) Ex Works (EXW) Delivery Order Delivered Duty Unpaid (DDU) Cost of Goods Sold (COGS) Delivered Duty Paid (DDP) Definition Delivered Duty Paid or DDP means that a seller or vendor has assumed all of the liability as well as the costs associated with transportation internationally. Delivered Duty Paid (DDP)

Read More
Scroll to Top
WIKICFO® - Browse hundreds of articles
Skip to content