Specified period – normally the accounting or financial year, for which accounts are prepared; the accounting period is important for matching expenses and revenue, on the accrual principle.

Corporate policies regarding classification, aggregation and presentation of financial data; shifts in corporate accounting policy between accounting periods are discouraged.

These are co9ncepts and methods in calculation, analysis and presentation of the accounts. These are standard practices adopted by international and national accounting bodies.

Refers to the drill and step by step processing of the financial data from the stage of collection to the preparation of the final accounts.

A rate of return taken as a yardstick for measuring financial viability of capital investment proposals.

These are ratios complied from the accounts of a company to ascertain such important indices as liquidity, profitability, solvency and health of the company from period to period.

The books of accounts and allied records including journals, day book, cash book, ledgers, vouchers, invoices, contracts and other documents which support the veracity and accuracy of the accounts.

Standard practices of calculation analysis and presentation of accounts are prescribed by accredited accounting bodies. The aim is to ensure comparability and transparency of the accounts.

Is a method adopted in record keeping and presentation of the accounts. The two major systems are on cash basis and accrual basis, single entry and double entry systems.

The fundamental principles which regulate the accounting framework and accounting practices.

The amount due to suppliers and creditors on a given date.

Amount due from customers on a given date.

Income or expenditure at the point of occurrence even before it is realized or defrayed in cash.

The basis of accounting in which income and expenditure (profit and loss) is determined by such amounts as soon as they are earned or incurred, regardless whether the same have been realized or defrayed in cash; also called mercantile basis or system as against the cash basis.

The concept is a corollary of the matching principle of accounting; the concept defines income or expenditure at the point of time when it is earned or incurred whether actually received and realized or paid and disbursed, Liabilities such as ‘payables’ or assets such as ‘receivables’ appear, from this concept, in the books of accounts.

The date on which an accrued income or expense takes place.

An accounting system in which costs and revenue are counted by the point of time when they arise and not by their actual payment or receipt.

An expense which has been incurred but not paid on a certain date; an income which has been earned but not realized or received on a certain date.

An interest on a loan or debt, which has accumulated till a certain date, but not actually paid.

The aggregate of all depreciations charged or recovered from an asset since its installation and use.