All Finance terms definitions in the Accounting category

What is a Balance Sheet?

What is a Balance Sheet? A balance sheet is a financial statement showing a company’s assets, liabilities, and owner’s equity at a specific time. It provides insight into a business’s financial health by showing what it owns and owes and any investments or savings. Assets are value items, such as cash, accounts receivable, inventory, equipment, […]

What is Pro Forma Balance Sheet?

What is Pro Forma Balance Sheet? What is Pro Forma? Pro forma, which translates as “as a matter of form” or “for the sake of form,” is a way of calculating financial outcomes based on particular expectations or assumptions. Pro forma financials are not calculated using conventional accounting methods and often exclude one-time charges. These […]

What is Consensus Point?

Definition of Consensus Point It is one of an agreement among a different number or group of a person. A Consensus Point is a point, either in time, or characterized as far as a set number or volume of records to be added to the ledger – where peers meet to concur the condition of the […]

What is ledger?

Definition of ledger Ledger is the accumulation of a whole group of comparable records in double-entry bookkeeping. Likewise called a book of final entry, a ledger records grouped and condensed money-related data from journals as charges and credits and demonstrates their present adjustments. It is one of the essential functions for managing records in the execution […]

What is Horizontal equity ?

Definition Horizontal equity is a financial hypothesis that states that people with comparable salaries and resources should pay comparable charges. Even value should apply to people considered equivalent, paying little heed to the assessment framework set up. It is believed that a neutral tax system is more evenly impartial. Brief Explanation of Horizontal equity It […]

What is Hope Credit ?

Definition Hope credit is a nonrefundable instruction that imposes credit that can be claimed for studies that still can’t seem to finish two years of post-auxiliary training. It might be taken for educational costs and charges, not food, lodging, or books. The understudy acquiring the costs can be either the spouse, dependent, or taxpayer. This […]

What is Capital ?

Definition of Capital Capital means the financial value of assets or the financial assets, like deposit account held funds, also the tangible production equipment and machinery used in manufacturing environments. Moreover, it comprises facilities like buildings used for storage and production of manufactured goods. It excludes materials and items consumed and used during manufacturing. Brief […]

What is Customer debts ?

Definition of Customer debts Customer debts are due as a result of purchasing products are usable and/or do not appreciate. Having high levels of consumer debt are not typically great for the average personal because it improves the load on one’s sources of earnings to maintain regular payments. If not handled well, consumer debt can direct […]

What is Compounding ?

Definition of Compounding Compounding is the process where the value of a smart financial commitment increases because of the earnings on a smart financial commitment, both capital gains and attention, generate attention over the years. Brief Explanation of Compounding This rapid development occurs because the overall development of a smart financial commitment along with its major generates […]

What is Commercial paper ?

Definition of Commercial paper Commercial paper is an unprotected, short-term debt instrument issued by an enterprise. is normally issued at a rebate from face esteem and reflects winning market interest rates. Developments on it once in a while go any more extended than 270 days. Brief Explanation of Commercial paper It is used normally for […]