Accounting glossary - dictionary_4

Tham khảo tài liệu accounting glossary - dictionary_4, tài chính - ngân hàng, kế toán - kiểm toán phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả
Nội dung trích xuất từ tài liệu:
Accounting glossary - dictionary_4http://www.ventureline.com/glossary.aspDIRECT EXPENSE is that portion of expense that is directly expended inproviding a product or service for sale and is included in the calculation of COSTOF GOODS SOLD, e.g. labor and inventory.DIRECT LABOR UTILIZATION RATE is total payroll charged directly to jobnumbers in the period divided by the total payroll (direct and indirect) expendedin the period. Since payroll is by far the single largest cost to operate a firm,generally speaking, the higher the direct labor rate, the more efficientlyeconomically managed is the firm.DIRECTORS REPORT is written by the Directors of a company and forms partof the companys financial statements. This report must support and elaborate onthe information contained in the Income Statement, Balance Sheet and Sourceand Application of Funds Statement.DIRECTORS VALUATION is a valuation that is not an independent valuation.DIRECT WRITE-OFF METHOD is a method of recognition of uncollectibleaccounts only when known to be such.DISABILITY INSURANCE, in the United States, is a payroll tax required in somestates that is deducted from employee paychecks to insure income duringperiods where an employee is unable to work due to an injury or illness.DISBURSEMENT is the paying out of money to satisfy a debt or an expense.DISCLOSURE DOCUMENT PROGRAM, in the United States, is a form of legalprotection that safeguards intellectual property while it is in its developmentstages.DISCLOSURE NOTE see DISCLOSURE PRINCIPLE.DISCLOSURE PRINCIPLE states that any and all information that affects the fullunderstanding of a companys financial statements must be include with thefinancial statements. Some items may not affect the ledger accounts directly.These would be included in the form of accompanying notes. Examples of suchitems are outstanding lawsuits, tax disputes, and company takeovers.DISCOUNT is a decrease in value (often due to interest to be earned) ordecrease in price.DISCOUNTED CASH FLOW is a valuation method best used to evaluate abusiness established for the purpose of fulfilling a specific project, in certainstartup and other companies where cash flow is more important than net income,and when a certain time frame is set where an investor wishes to see hisinvestment returned over a specific period of time. In discounted cash flow, the 61http://www.ventureline.com/glossary.asppresent value of liabilities is subtracted from the combined present value of cashflow and tangible assets, which determines the value of the business.DISCOUNTED CASH FLOW METHOD is a budgeting method for projectevaluation and selection.DISCOUNTED EARNINGS determines the value of a business based upon thepresent value of projected future earnings, discounted by the required rate ofreturn (capitalization rate). Usually, the question is how well earnings areprojected.DISCOUNTING is the selling of accounts receivable to a financial entity.DISCONTINUED OPERATIONS is the sale, disposal, or planned sale in the nearfuture of a business segment (product line or class of customer).DISCOUNT RATE is the interest rate that the Federal Reserve of the U.S.Government charges a U.S. bank to borrow funds when a bank is temporarilyshort of funds. Collateral is necessary to borrow, and such borrowing is quitelimited because the Fed views it as a privilege to be used to meet short-termliquidity needs, and not a device to increase earnings.DISCREPANCY, in import / export, is a situation relating to official documentsthat are presented that do not conform to what is required within the Letter ofCredit.DISCRETIONARY means it is not mandatory, it is up to the individual orcompany.DISCRETIONARY ACCRUAL is a non-mandatory expense/asset that isrecorded within the accounting system that has yet to be realized. An example ofthis would be management bonus.DISCRETIONARY COST can be increased or decreased at the discretion of thedecision maker (e.g., advertising and business travel).DISCRETIONARY INCOME means the amount of a companys income availablefor spending after the essentials have been met. See DISPOSABLE INCOME.DISHONORED NOTE is a note on which a debtor has defaulted.DISPOSABLE INCOME is the amount of an individuals income left after taxeswhich is available for spending and / or savings. See DISCRETIONARYINCOME.DISSOLUTION is the legal termination of a business entity. 62http://www.ventureline.com/glossary.aspDISTRIBUTION COST is any cost incurred to fill an order for a product orservice. It includes all money spent on warehousing, delivering and/or shippingproducts and services to customers.DISTRIBUTIONS are payments from fund or corporate cash flow. May includedividends from earnings, capital gains from sale of portfolio holdings and returnof capital. Fund distributions can be made by check or by investing in additionalshares. Funds are required to distribute capital gains (if any) to shareholders atleast once per year. Some corporations offer Dividend Reinvestment Plans(D.R.P.).DIVIDEND is that portion of a corporations earnings which is paid to thestockholders.DIVIDEND CAPITALIZATION: Since most closely held companies do not paydividends, when using dividend capitalization valuators must first determinedividend paying capacity of a business. Dividend paying capacity based onaverage net income and on average cash flow are used. To determine dividendpaying capacity, near term capital needs, expansion plans, debt repayment,operation cushion, contractual requirements, past dividend paying history of abusiness and dividends of a comparable company should be investigated. Afteranalyzing these factors, percent of average net ...