Finance
Question Archives

The Comprehensive Income Policy Agreement is an economic policy agreement between two countries that establishes a common set of rules and regulations f…

The notes to the financial statements is a section of a company’s financial statements that provides additional information about the accounting behind …

Net income is a company’s total earnings or profit. This figure is calculated by subtracting all expenses from revenue. Net income can be positive or ne…

Management assertions are accounting statements that management makes about their organization’s finances. This can include assertions about assets, lia…

Negative assurance is a type of accounting assurance that focuses on what could go wrong, rather than on what could go right. Negative assurance is typi…

Money Measurement Concept is the accounting concept that only transactions that can be expressed in terms of money can be recorded in financial statemen…

Materiality refers to the magnitude of an accounting error that, in the view of management, could influence the economic decisions of users taken on the…

Mark-to-market accounting is a method of accounting whereby the value of an asset or liability is recorded on the balance sheet at its current market va…

The Maker-Checker accounting system is a system in which two people are responsible for each transaction. The “maker” is responsible for creating the tr…

An accounting long-term asset is an account that represents the company’s investment in property, plant, and equipment (PP&E) that will be used for prod…

Inventory refers to the goods and materials that a business has on hand. Inventory is considered to be a current asset on the balance sheet, and it is o…

Job costing is an accounting system that tracks the costs associated with a specific job or project. This information can be used to determine the profi…

The accounting term “loss on sale of residential property” refers to the amount of money that a company loses when it sells a piece of property for less…

Liability is defined as a person or thing against which a claim or debt is held. In accounting, liabilities are money owed by an individual, company or …

An invoice is a document that records the sale of goods or services. It typically includes the quantity and price of the items sold, as well as the date…

A ledger is a bookkeeping or accounting journal that is used to record financial transactions. Transactions are recorded in chronological order and typi…

Customer Lifetime Valuation (CLV) is a marketing metric that estimates the total value of a customer relationship, including present and future purchase…

Fraud Deterrence is the proactive management of an organization’s fraud risk in order to minimize the occurrence and impact of fraud. This includes impl…

Fixed Assets management refers to the process of managing physical assets such as buildings, machinery, land, and equipment. The objective of fixed asse…

Executive compensation is the total amount of money and benefits that an executive or senior management employee receives. This includes salary, bonuses…

Earned Value Management (EVM) is a project management technique that provides a systematic way to measure, monitor, and control project performance. It …

At-the-money is a term used to describe an option contract with an exercise price that is equal to the underlying asset’s current market price. In order…

Automated trading is the process of using computers to place trades automatically based on pre-determined criteria. This type of trading has become incr…

An automatic teller machine (ATM) is a machine that provides customers with access to their bank accounts 24 hours a day, 7 days a week. ATMs are conven…

Asset location is the placement of different types of assets within a portfolio. The idea behind asset location is to optimize a portfolio’s performance…

The Bachelor of Accountancy (BAcc) is a four-year undergraduate degree that prepares students for a career in accounting. The BAcc curriculum includes c…

Auditing is the process of investigating the financial statements of an organization to ensure that they are accurate and compliant with generally accep…

The Association of Corporate Treasurers (ACT) is a finance professional body. It represents and supports corporate treasurers and finance professionals …

An asset swap spread is the difference between the yield of a fixed-rate bond and the yield of a floating-rate note with the same underlying cash flows….

Asset allocation is an investment strategy that involves dividing an investment portfolio among different asset categories, such as stocks, bonds and ca…

An asset swap is a type of financial transaction in which two parties exchange different kinds of assets in order to receive more favorable terms. The a…

An asset is anything that can be used to produce value or wealth. It may be a physical object, such as a factory, piece of land, or natural resource; it…

Asset classes are defined as a group of investments that share similar characteristics and behave similarly in the marketplace. The three major asset cl…

Asset pricing is the process of determining the correct price for a financial asset, based on its inherent risk and expected return. The prices of asset…

Capital intensity refers to the amount of capital required to produce a unit of output. It is usually measured as the ratio of capital to labor, and is …

A capital asset is an economic resource that provides benefits or advantages for a period of time greater than one year. The term “capital assets” is ge…

The Institute of Management Accountants (IMA) is the world’s leading organization dedicated to empowering management accounting and finance professional…

The Institute of Chartered Accountants in England and Wales (ICAEW) is a professional body that promotes, regulates and develops the accounting professi…

Gross income is defined as the total amount of money earned in a year before taxes and other deductions are taken out. It’s important to know your gross…

Cost-plus pricing is a marketing strategy in which a company sets the price of its product or service based on the costs incurred plus a desired profit …