Accounting glossary - dictionary_2

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Accounting glossary - dictionary_2http://www.ventureline.com/glossary.asptax. This ratio should be examined in conjunction with turnover ratios to helppinpoint potential problems regarding asset management.BASIC NET INCOME PER SHARE is always reported as net income per shareon an undiluted basis. The calculation of diluted net income per share includesthe effect of common stock equivalents such as outstanding stock options, whilethe calculation of basic net income per share does not.BASIC TENETS OF ACCOUNTING are four in number: 1. Assets = Liabilities +Owners Equity, 2. Debits = Credits, 3. Assets are on the left (debit side), and, 4.Liabilities and Equity are on the right (credit side).BASIS, generally, is that figure or value that is the starting point in computinggain or loss, depreciation, depletion, and amortization of a company. Specifically,it is the financial interest that the Internal Revenue Service attributes to an ownerof an investment property for the purpose of determining annual depreciation andgain or loss on the sale of the asset. If a property was acquired by purchase, theowners basis is the cost of the property plus the value of any capitalexpenditures for improvements to the property, minus any depreciation allowableor actually taken. This new basis is called the ADJUSTED BASIS.BASIS, in investments, is the cost or book value of an investment. The gain orloss on an investment is the sale price less the basis. Basis is often called costbasis.BASIS POINTS is 0.01% in yield. For example, in increasing from 5.00% to5.05%, the yield increases by five basis pointsBATCHING, in accounting, is the gathering and organizing of incoming invoicesprior to processing.BAY, in business / accounting, means Buy Another Yearly.BBA can mean: Bachelor of Business Administration, Balanced Budget Act of1997, Budget Activity Account, Budget By Account, British Bankers Association,Black Business Association, etc.BCF is an acronym for Broadcast Cash Flow.BCL is an acronym for, among others, Bank Comfort Letter or Bachelor ofCanon/Civil Law.BEHAVIOURAL ACCOUNTING is the explanation and prediction of humanbehavior in all possible accounting contexts, e.g., adequacy of disclosure,usefulness of financial statement data, attitudes about corporate reporting 21http://www.ventureline.com/glossary.asppractices, materiality judgements, and decision effects of alternative accountingprocedures.BELOW THE LINE, in accounting, denotes credits or debits affecting balancesheet accounts rather than the income statement. Extraordinary items may alsoappear below the net profit line in the income statement, but accountingstandards-setters have increasingly favored reflecting most such items inperiodic net income.BENCHMARK is a study to compare actual performance to a standard of typicalcompetence; or, a standard for the basis of comparison as being above, below orcomparable to.BENEFICIAL OWNER is the person who enjoys the benefits of ownership eventhough title is in another name (often used in risk arbitrage).BENEFICIARY is a person who benefits from the terms of a trust, pension orprovident fund, or other deferred income plan, or an insurance policy. In banking,it is the person in whose favor a letter of credit is issued or a draft is drawn.BEST PRACTICES are the generally understood operational characteristics ofcorporations which have been successful in terms of high repayment rates,significant outreach, and progress towards surplus generation.BETA, in securitites, is a statistical measurement correlating a stocks pricechange with the movement of the stock market. The beta is an indicator orstatistical measure of the relative volatility of a stock, fund, or other security incomparison with the market as a whole. The beta for the market is 1.00. Stockswith betas above 1.0 are more responsive to the market, but are also more riskyinvestments. Stocks with a beta below 1.0 tend to move in the opposite directionof the market. For example, if the market moves 10%, a stock with a beta of 3.00will move 30%; a stock with a beta of .5 will move 5%.BID PRICE see ASK PRICE.BIG BATH is a business strategy in which a company manipulates its incomestatement to make poor results look even worse. Strategy being that thefollowing year will show significant improvement. Big bath is sometimesemployed by new CEOs to make their first years results more impressive byemploying big bath accounting to prior year results.BIG 4 usually refers to the largest accounting firms: Deloitte & Touche, Ernst andYoung, KPMG, and PricewaterhouseCoopers.BILL is a : to enter in an accounting system : prepare a bill of (charges) b : tosubmit a bill of charges to c : to enter (as freight) in a waybill d : to issue a bill of 22http://www.ventureline.com/glossary.asplading to or for; e.g., billable expenses are those expenses for whichreimbursement invoices are issued.BILL AND HOLD see SHIP IN PLACE.BILL AND HOLD INVENTORY see SHIP IN PLACE.BILLINGS, in accounting, is sales for which invoicing has been issued.BILLINGS IN EXCESS OF COSTS see COST IN EXCESS OF BILLINGS.BILL IN PLACE see SHIP IN PLACE.BILL OF EXCHANGE see DRAFT.BILL OF LADING is the contract between the owner of the goods and the cargocarrier to move the goods to a specified destination. A clean bill of lading isissued by the carrier verifying receipt of the merchandise in apparent goodcondition (without visually apparent damage or defect). Bills of lading cansometimes be made to cover the whole trip, or separate bills of lading can beprepared for each carrier. Ocean shipments generally require two, an Inland Billof Lading covering land transportation to th ...