Accounting glossary - dictionary_8

Tham khảo tài liệu accounting glossary - dictionary_8, 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_8http://www.ventureline.com/glossary.aspPERVASIVENESS OF ESTIMATES means that the estimates have to becomplete, of high quality and in depth, i.e., they have to adequately cover thewhole accounting entity.PETTY CASH, normally, is an account and location where tangible cash isstored for usage in purchasing or the reimbursing of inexpensive out-of-pocketexpenditures.PHANTOM PROFIT is hypothetical profit, i.e., no cash flow is generated.Appreciation on any asset, e.g. stock, is considered phantom profit unless or untilthe asset is sold, thereby generating cash flow.PHYSICAL INVENTORY is the counting of all merchandise or equipment onhand.PIERCING THE CORPORATE VEIL is a legal concept through which acorporations shareholders, who generally are shielded from liability for thecorporations activities, can be held responsible for certain actions.PIGGYBACK, dependent upon usage, can mean: 1. On the back or shoulder orastraddle on the hip; 2. Two lenders participating in the same loan (piggybackloan); 3. Unauthorized access to a data processing system via an authorizedusers legitimate connection (piggyback entry); 4. Haul by railroad car; 5. SECregistration of existing holdings of shares in a corporation combined with anoffering of new public shares (piggyback registration); 6. Rights that entitle aninvestor to register and sell his or her stock whenever the company conducts apublic offering (piggyback rights).PINK PEARL is a type of a pencil-lead eraser that auditing companies use.PIPE is an acronym for Private Investment in a Public Entity.PITI is an acronym for Principal, Interest, Taxes and Insurance when dealing withproperty mortgages.PLACEMENT is bank depositing Eurodollars with (selling Eurodollars to) anotherbank is said to be making a placement.PLANT ASSET is a non-current physical asset applicable to manufacturingactivities.PLEDGE is a written or oral agreement to contribute cash or other assets.PLEDGED ASSET is an asset that is transferred to a lender as security for debt.The lender of the debt takes possession of the pledged asset, but does not haveownership unless default occurs. 141http://www.ventureline.com/glossary.aspPLS see Profit and Loss Sharing.PLUG is a variable that handles financial slack in the financial plan.PLUG NUMBER see COST OF GOODS SOLD.POINTS are additional fee paid to a lender. Points are generally stated as apercent of the total amount borrowed and are in essence prepaid interest. Pointspaid can be deducted over the life of the loan.POOLING-OF-INTERESTS, in the US, is the method of accounting used in abusiness combination in which the acquiring company has issued voting commonstock in exchange for voting common stock of the acquired company. Thefeatures of the method are that the acquired companys net assets are broughtforward at book value, retained earnings and paid-in capital are brought forward,the net income is recognized for the full financial year regardless of the date ofacquisition, and the expenses of pooling are immediately charged againstearnings. In order to use the method there are a number of criteria to be metconcerning the prior independence of the companies and the nature and timingof the acquisition. See POOLING OF INTEREST METHOD.POOLING OF INTEREST METHOD is an accounting method for reportingacquisitions accomplished through the use of equity. The combined assets of themerged entity are consolidated using book value, as opposed to the PURCHASEMETHOD, which uses market value. The merging entities` financial results arecombined as though the two entities have always been a single entity. SeePOOLING-OF-INTERESTS.POP is an acronym for, among others, Point Of Presence or Post Office Protocol(Internet e-mail protocol).PORTFOLIO is a term for describing all the investments that an entity owns. Adiversified portfolio contains a variety of investments.POSTIVE ACCOUNTING THEORY is where theorists tend to explain why someaccounting practices are more popular than others (e.g., because they increasemanagement compensation). They tend to support their conclusions withinductive theory and empirical evidence as opposed to deductive methods.Generally avoid advocacy of one accounting rule as being better or worse thanits alternatives. Positivists are inspired by anecdotal evidence, but anecdotalevidence is never permitted without more rigorous and controlled scientificinvestigation.POST it the transfer of accounting entries from a journal of original entry into aledger book, in chronological order according to when they were generated. 142http://www.ventureline.com/glossary.aspPOST DATE is placing on a document or a check a date that follows the date ofthe initiation or execution of the document. For example, a post dated checkcannot be cashed until the date written on the check.POSTING, in bookkeeping, is to list on the companys records, such as to list thedetail of sales and purchases on the accounts receivable or payable records.PPE can mean either Property, Plant, and Equipment, or Pay Period Ending.PPI see PRODUCER PRICE INDEX.PR is an acronym for, among others, public relations, payroll and purchaserequest.PRACTICAL CAPACITY is where the cost of production is based on thepractical capacity of production facilities. Therefore, the proportion of overheadsallocated to a unit of production is not to be increased as consequence of idlecapacity of the plant.PREDICTOR RATIOS: Most ratios are descriptive in nature; that is, theydescribe the firm as it is now. As you might expect, Predictor Ratios providesuggestions about likely future conditions for the firm. VentureLine provides twoindustry ...