The NASA Johnson Space Center In Houston

In the seventies, NASA developed memory foam. It was not until the 1990s that memory foam mattresses began to be used by consumers throughout the United States. Today, memory foam is more popular than ever for those who wish to get good sleep. NASA technology is responsible for this innovation.

Did you know NASA is likewise responsible for your good night’s sleep? Memory foam pillows are widely used today to induce good sleep, but did you know that memory foam was first used for padding aircraft seats. Memory foam is actually open cell polyurethane-silicon plastic which has great shock absorbing property. Memory foam can bounce back to its original size even after being compressed to 10 percent of its size. You won’t believe this; payday loan.

A NASA memory foam mattress can get you a good night of sleep and give you the support that you need where you need it. You know how when you sleep and you press certain parts of your body into the bed? When you have this mattress, you’ll not feel any discomfort from doing this. The memory foam allows you the support in the scene where you’re pressing in to the mattress. In other parts of your body, you’re allowed to have nothing but comfort. The mattress redistributes your weight so that your spine is straight and that you feel comfortable throughout your body. This enables you to get a good night of sleep.

It took a while before the NASA memory foam mattress caught on to the grand public. This was because no mattress company wanted to play a chance on the NASA memory foam that they had developed. The first company to achieve this was Tempur-Pedic. They came up with a memory foam mattress that was called a Tempur mattress. This proved to be highly popular with consumers and soon other companies began following suit. Everyone wanted to get a NASA memory foam mattress.

Today, you can choose from many varieties when you shop for a NASA memory foam mattress. You can choose from mattresses. Also memory foam mattress toppers. Some of the NASA memory foam mattresses have technology that enables them to be heated or cooled with the hand of a button. This is also available in some mattress toppers. You can have virtually every comfort available to you when you sleep with a NASA memory foam mattress.

Those of you who’re suffering from back problems or don’t feel rested after sleeping may have the wrong mattress. Those who suffer from arthritis or other joint diseases will enjoy the NASA memory foam mattress that allows for both comfort and support.

Memory foam works by distributing air in the cells of the foam where it’s most needed unlike a coil mattress. Many people think that to be good to your back, you need to sleep on a hard bed. Not true. A NASA memory foam mattress offers you comfort as well as the capacity to keep your back straight while you sleep. Get a NASA memory foam mattress today and start experiencing a good night of sleep.

…And Even More Nasa Things

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Who Would Want That Job

Settling with a collection agency may appear to be a viable option if the debt collector offers you a good deal, you believe you can afford it, and you just want the collection agency to stop harassing you over the unpaid debt. Unfortunately, many consumers have settled a debt with a collection agency only to find themselves with a brand new debt a few months later or worse-in court. collection agencies? It doesn’t matter what you feel you know about collection agencies, read personal loan application near Mississauga, to learn so much more about this topic..

If the unpaid debt the debt collectors claim you owe is particularly old, there is a good chance that you are not legally liable for it anymore. This is because a debt collection statute of limitations exists for any state that regulates the number of time a debt collector has to gather the debt from you. Granted, the statute of limitations only refers to the quantity of time a collection agency has to sue you, however, if the collection agency cannot sue you to gather the debt, the worst it can do is call you repeatedly and firing off a cease and desist letter takes care of that problem. Explore this site. PayDay Loans website Mississauga.

Settling a debt, however, resets the statute of limitations as soon as you make the very first payment. Thus, unless you are going to pay off the debt settlement in one lump sum, could put you in a precarious position if you lost your job or miss a payment. Should you be unable to pay, the collection agency will jump at the chance to drag you to the tribunal and garnish your wages.

Digging Deeper into Collection Agencies

Let’s say the original debt you owed was a neat and tidy $500. Once the original creditor charged off the debt, the collection agency added its own fees and interest to carry the debt up to a whopping $800. If the collection agency offers you a debt settlement for $400, you think you are getting a fairly good deal, right? But what happens to the other $400 that you owe? You assume its forgiven debt. However, you assume wrong.

Still another common fallacy that the public cannot seem to get rid of is the misconception that creditors are bounded by laws specifically the Federal Fair Debt Collection Practices. This act is basically just designed to safeguard the rights and the privacy of people in debt because it limits the methods debt collection agencies can use in order to gather your debt. Harassment and other abusive ways of debt collection are forbidden based on this act, for example. However, this act doesn’t forbid the collection agency from contacting you to collect your debts.

You should likewise be aware of another fallacy in debt collection. You should note that the Federal Fair Debt Collection Practices only cover third party collectors or debt collections agencies. This act doesn’t cover the methods that your direct creditor can use to gather the debts you owe him so you cannot expect the same protection if the creditor himself is the only to collect the debts. Another fallacy is that your creditor and the collection agency cannot take you to court if you don’t pay your debts. This is the most important fallacy you have to dispose of as it can get you into serious trouble.

But despite all the setbacks a debtor will deal with when their creditor avails of the facilities of a collection agency, these collection agencies are also victims of fallacies themselves.

Demand that the derogatory collection account be removed from your credit report once the settlement is paid.

Disclaimer: I am not an attorney and this isn’t to be regarded as legal advice. See a licensed attorney in your state for guidance specific to your situation., for relevant comments.

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Checking Your Credit Score

Do you require a no credit check loan, but not sure what i’m supposed to do for the best? If so keep reading and this will give you with the information indicating that will help you make the right choices to find the best no credit check loans. You should know that there are more than one class of no credit check loans to consider.

Getting a cosigner to sign a personal loan is another possibility open to students looking for no credit check student loans. This makes the cosigner liable for the loan repayments if you miss payments and cannot make the provisions of the loan. This is a state of affairs that you should avoid at all costs, as it is detrimental to the credit rating of the cosigner so you got to be sure you’re going to make the all the payments until the loan is repaid. If you are after significantly more statistics posted about this topic, pay a visit to; fastest Payday loans online Texas.

The loan market is very competitive and easy loans are common, the process of loan applications and the number of lenders out there means that most borrowers have many options available to them. Easy loans aren’t always the easy option, if you’re considering to conclude a loan agreement then make sure you understand what your commitments are. You should compare the options available from various lenders with the objective of minimizing the interest rate that you’ll be paying. Plan your finances and be sure you’re capable of making the repayments for the entire term of your loan.

Loans are frequently not complicated. It seems there are a number of people looking for easy loans. The principle is simple a lender loans you money with a repayment structure agreed in advance. The quicker than you pay off the money the less it will cost in interest. For easy loans you should make sure that you budget correctly and be sure that you only take out loans that you can afford. Do not over stretch yourself financially and to avoid paying as high interest rates make sure that you investigate the market thoroughly.

The bottom line is this. No credit check loans are a huge threat to the person lending you their money, since they have absolutely no idea if you’ll be in a position to pay them back. So the only people who’ll lend you money without any kind of credit check are going to charge you a huge interest rate, because you’re a giant risk. But if it comes down to it and you absolutely must get a loan without any kind of credit check, it is not as bad or difficult as you might think. You just have to be careful. If it’s too good to be true, it probably is.

There are a bunch of places that take advantage of people, charging you ridiculous interest rates that can make it almost impossible to ever get out of debt. But if you need a no credit check loan, at least be smart about it. Write out a scheme for yourself as to exactly when and how you’ll repay the loan, and make sure you know how long it’ll take until you have paid off the loan.

No credit check loans come with a large liability to the lender. Because they have not run a credit check on you then they have little idea of knowing if you’re going to be in a position to meet the repayments. This results in the loans available having high interest rates dues to big exposure to borrowers who default. But if your only option is a no credit check loan, then it’s easier than you think. Just do your research and locate the best deal available and make sure you see what you’re signing up to.

Digging Up Secrets About Credit Check

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There are many aspects to starting and running a business. A successful entrepreneur is organized and skilled in planning. Starting a home-based business can present very unique challenges, even the most organized person may get overwhelmed occasionally when confronted with the challenges of starting and running a successful business while balancing work and home life.

Time management, too, is a very helpful skill when running a home based business. The ability to make a plan and stick to it in a timely fashion can make running a small business effectively and successfully much easier.

One major reason people want to ‘be the boss’ and own their own company is so they can determine the hours they work. This is both a pro and con of small business ownership. These we will discuss further in this chapter. Being the boss does mean you get to determine the hours. However, it can be either a double-edged blade.

And Even More…..

The boss decides what hours the business will operate, and decides when he or she’ll work. This means there’s nobody to account to. It also means there’s no one else to make sure things get done. It takes a disciplined, self-motivated individual to be able to stay focused and make the hard decisions that can make a distinction between success and failure.

The only true way to make money is by good old fashioned hard work and persistence. Owning a business takes a lot of effort. Even the most needful of services must be marketed to make money. Having a good idea is just the beginning. You have to tell someone your idea and be prepared to do whatever it takes to make it fly to transform it into an income. That takes a great deal of hard work, long hours, and perseverance in the first years. Sometimes it pays off and sometimes it doesn’t. It is a chance you take.

The question is are you ready to take the chance and invest in your self? It’s your future. What are you going to do with it? If you decide to undertake the chance, do your homework first. Keep everything legal. Invest in yourself. Have a plan and work your plan. Set goals for yourself and your business. Take pride in your work and get it right. Be a people person, and do not ever forget what’s really important in life.

These are two simplistic examples of decisions and challenges you’ll face each and every day. Procrastination can be a small business owner’s worst enemy.

It is probable that the first thing that popped in your mind when you saw the title financial responsibility is, ‘anyone knows that you’ve got to be financially responsible to run any kind of business. ‘ That is true. It wasn’t my intention to state the obvious here. In fact, I didn’t. The type of financial responsibility I am going to discuss here has less to do with how you run your company and more with how you run your personal funds.

Operating a business requires even greater financial discipline than personal finances. It is essential that the new business owner understand how to interpret and interpret a financial statement and balance sheet. The Small Business Administration (SBA) offers counseling and publications that provide extensive education on business financial matters.

Purpose Summary :This provides an explanation of the business, its mission statement and other critical information that describes the essential tasks of the business.

Starting any type of the work is a serious and major undertaking. It often takes a moderate amount of capital to begin and the returns can be slow going at first. Everyone would like to believe that once they start their business the money is going to start rolling in and they’ll be millionaires overnight. That is an awful dream. However, the fact is that it takes a long work to create a business. It takes a little while to build up a customer base, and even once you do, there will still be slow times.

When you are used to a steady paycheck coming in every week it can be kind of a shock when the money takes a little while longer to come in, and when it does, it may come in smaller amounts that you’re used to, at least at first. Even after your business takes off and is doing well there can be slow times for many different reasons. Seasonal buying, competitor’s sales, and economy shifts are all factors that can cause fluctuations in business, and as a consequence in your personal income. The key to success is planning ahead and being prepared. Being financially responsible in the more profitable times can get you through the slower times.

Be conservative about business planning modifications. Only change what is not working. As the expression goes,’ If it aint broke, do not fix it’. When time comes to expand, take it slow and easy. Many businesses have failed by going into needless radical growth.

Entrepreneurship isn’t for the squeamish or shy. As a business owner you’ve got to be your own best sales person. You may be thinking,’ My business is going to be online, so I do not really have to sell anything, I just put it up and it will sell itself. ‘ It would be terrific if it worked out that way, but regrettably it usually doesn’t. While your website and advertising will do many of the work, there are a number of areas where a personal touch is needed.

For example, raising capital to start or expand your business. When you go to a bank or other lender to get funding you’re the ‘face’ of your business and you’ve got to be able to sell yourself, your business and your products. Lenders will not give you money if they believe you are not sure of your ability to make your business successful and profitable.

A confident attitude and faith in your own abilities as a business person will also assist you get through those lean times I talked about earlier in the chapter. Confidence in yourself will allow you to put on that ‘salesperson smile’ and get and keep customers.

Change is the only true constant in business. A successful small business owner must be able to cope with constant change. There are large, ambiguous changes such as economy fluctuations and technological advances which come around occasionally and can alter the way you do business. There are likewise many more changes, some expected, and some not that can happen on a daily basis. For example, one morning you may go into your office, turn on your computer open your email and find a message from your largest supplier stating that they’re closing. This problem (we will discuss problem solving in a few minutes) could change many aspects of your business including the products you have available to your customers. This could be a very frustrating situation. The ability to ‘roll with the punches,’ so to speak, and accept changes you cannot avoid and move on to solving problems is one of the most important qualities needed in the course of a business person. This brings us to the final, and possibly most important, quality a business owner must have.

You are the boss. This means you make the rules. It also means that when something goes wrong, there is nobody else to go to. The buck stops here, so to speak. To use the previous scenario for example, if the supplier you get most your products from is going out of business there’s no one to call for advice. No one else to say to you what you should do. It is up to you to put forward a plan to search for a new supplier and keep your customers happy. For another example, let us say you go into your office to turn your compute r on, but it does not turn on. All of your records are on that computer and you’ve got orders that need to be assembled and shipped out. This is a state of affairs that could easily provoke panic. A successful business owner must be able to maintain a cool head in confronting problems and be able to think creatively to solve them.

These are just some things to think about before taking the plunge into small business ownership. Being the boss has its good points and bad points. It is important to go into any venture with your eyes open to all of the bad points. If you have all or most of the qualifications listed, you should do just fine.

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Leadership is among the most talked about and least understood aspects of human behavior. There must be hundreds of definitions of leadership, yet neither of them is useful for success in life because none of them allows you to ‘create’ leadership within your life.

Transformational Leadership has been the most widely researched form of leadership from the 1980s to 2011. Transformational leadership was first described by James McGregor Burns and then expounded upon by Bernard Bass. Burns wrote of this type of leadership in his important 1978 work Leadership in which he contrasts the features of the transformational leadership with transactional leadership.

Tips and Tricks About Leadership

The first barrier to developing leadership is breaking through the false assumptions we have made to accept without questioning. You may not believe all the assumptions listed below but it is a good bet you believe some of them. Yet, they are all false.

Leadership is innate-you are either born with it or you are not. Absolutely false! Leadership consists of a range of skills that can be identified and learned. It’s true that some individuals have a greater aptitude for leadership but all of us can be leaders and can build our leadership skills.

Leadership is charisma and style; it’s how we do things, not what we do. False. We ‘d all like to be charismatic and stylish. Many leaders are just that. But leadership is substance, not style. Leadership has to do with what we do and the effects we have on others. There have been great leaders who were dull as dust and others who’ve been charismatic. In our own time Bill Gates, president of Microsoft, is dull, ‘nerdy,’ and as uncharismatic as one can get, yet look at what he had led others to do and the effect he’s had on Today’s world.

There’s no structure or system to leadership; it’s situational. False. Not only is leadership-true leadership-structured and systematic, it can be duplicated again and again. Students in the Mastery Leadership program learn how to proceed during the part of their study. Leadership has principles, skills that can be learned, and specific ways to get results. All those things are the pillars of the successful accomplishment of goals, managing the elements of our lives, and the establishment of a life worth living. And if you can systemize it, you can duplicate it.

The top person-the ‘boss’-is the leader. It cannot be any other way. False. In fact it is the exact opposite that’s so often true. In the best businesses, schools, groups, and families, anyone in the panel can exhibit leadership. Leadership should be encouraged at each level of the organization (with some rules of behavior to prevent conflict and confusion).

In addition to performing the tasks necessary to run your business, you must also operate as a leader within your organization. Entrepreneurs must fulfill both managerial and leadership roles. Being able to do so involves recognizing the gap between management and leadership. It’s entirely possible to become a manager without being regarded as a leader. Additionally, when those who hold positions of formal authority within an organization fail to exhibit leadership traits, other people often become viewed as true leaders by employees and clients alike.

Management is your capacity to get things done through the formal authority of your position. If you have the ‘power’ to fire employees, and they choose to do their work because they’re fear of the consequences, they’re responding to your formal authority. Leadership relates to the interpersonal influence you’re able to exhibit that is distinct from your stated authority. It is the traits that you may have that cause other people to willingly follow you. If employees do what they’re had to do because they’re inspired to be better on account of their interactions with you, then they see you as a leader.

If you believe any or all of these myths, you will need to review your beliefs or you will never build true leadership into your life.

Leadership is no more than a core set of skills that can be learned. There are five of them: vision, strategic thought, commitment, discrimination, and inspirational communication. You’ll learn about them and ways to develop them in yourself and others as you progress through the Mastery Leadership program’s Mastery Keys for the Emerging Leader. At the same time, you’ll be able to measure your own leadership, as well as that of those you associate with, and devise a leadership development program for enhancing your skill level.

There’s nothing mysterious about leadership. Once you know its core skills and specific systems it becomes a straightforward personal development task, just like any other system in your life.

Leadership is probably the single most important thing in your life and its capacity to produce the results you want. It’s leadership that figures out what you’re supposed to do to enhance your life and assign it the power, thrust and momentum it needs. And it’s leadership that determines how to perform it. Then it’s leadership that makes sure it gets done. Without leadership, life is aimless, purposeless, random, ineffective, and-no exaggeration-terminally ill. With effective leadership, your life will thrive, you’ll navigate through any storm, and surpass every goal you ever set for yourself.

Leadership is the foundation of the warrior’s ability to set up the life worth living and expand the skills necessary for protecting that life from anything that would threaten it. And so it’s also the cornerstone of the Warrior Concepts Life Mastery Program. Here at WCI, just like every other solid, educational institution, we create leaders-not only in the martial arts, but at home, work, or school, and in the community. We create the light that will cause others to participate in our vision with us and that will brighten the Path for others to follow.

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This is maintaining the financial records of all types of business organisations. Accountants are likewise responsible for generating standard financial reports and documents. They provide assistance in the presentation of bank accounts of the company, formulating a system for payments to customers and salaries of employees.

An accountant should also provide the dealing with a comprehensive tax planning guidance in order to maximize business tax exemptions. It is important to comply with government rules and regulations when setting up your things, and hiring an accountant will be able to make this process a smooth one, allowing you to avoid wasting too much of your time and money with unnecessary complicated requirements and paperwork.

Each business is different in regards to accounting needs. Some businesses choose to outsource most of its accounting duties during tax season while others have accounting programs ranging from simplistic accounting programs to advanced accounting programs. Stricter government regulations during the years have made it compulsory for all businesses to properly file and abide to accounting regulations in place.. It is imperative that a businesses accounting program is up to par in doing so and can sometimes mean the success or failure of your business.

One of the more simple programs ion the market today is Microsoft Money. This program is pre-installed on most PC’s manufactured today and its simplistic interface is the primary reason it’s such a hit for individuals and small firms that choose to use this accounting program. As far as small businesses are concerned Microsoft Money can might be able to meet your accounting needs but be aware that the programme is geared towards personal finance. However Microsoft does offers a version that is catered to the small business called Microsoft Money Small business 2006.

There is also the accounting program Quick Books which is geared towards the small to medium sized business and is far more advanced then Microsoft money. This program is designed by a company called Intuit, that offers free support when you purchase their product which may come in handy as not all accounting programs offer the level of assistance you’ll receive from Intuit. Quick Books allows you to tailor reports and the interface to suit your companies needs and help streamline your business accounting. It will also set up all your files and prepare them for the year end tax season, this accounting program is defiantly the accounting program of choice for many small business.

With the number of accounting programs out there its not very difficult to select the program that will best suit your accounting needs If you are a startup operating out of your basement or you’re a medium sized business with hundreds of employees worldwide there is an accounting program that will help your business comply with government regulations and accounting policies.

An accountant can also offer expert advice on effective management of company cash flow, price control, management of inventory, and relevant financial options.

An accountant should be able to give useful and practical advice on the approval of relevant software applications and business solutions that are suitable for your type and value of business. This means that your company can keep up to date with the requirements and challenges of the company, and be competitive with the more dominant players in the business. The accountant you hire must have the working knowledge and a better understanding of various accounting and financial software applications and business solutions, most suitable to your business.

A good accountant must have strong relationships with major sectors in the company community. All these critical functions of the accountant imply that one must be able to perform such functions to be able to make a positive difference in the general performance of your business organization.

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Sir Richard Branson of the Virgin Group has urged David Cameron, the Prime Minister, to ‘get some sense’ into the decision by the Department for Transport of handling over the West Coast rail franchise to the FirstGroup, as he had vowed to fight it ‘until there is no longer a fight to be had’.

Moving Forward With This

The boss of the Virgin Group has accused the Transport Department of trying to ‘rush the signing through,’ as well as has renewed his offer to run the West Coast Mainline free of of cost until and unless an examination of the process of the bidding can get conducted.

Investigating More About Richard Branson

He had told the 4’s Today Programme that is run on BBC Radio that he and his group are looking for a short stay in such a way that the debate can occur and likewise that the facts can be examined in a careful and a proper manner. He also had to add that the Department for Transport has now got no excuse to delay the signing, and as per his thinking the person who can actually intervene into trying to get some sense into the Department for Transport is the prime minister. He will wish that the things can get delayed by a month or so on, and if due to this a result of such a the handover gets delayed, then they’re going to be happy to run it on a not-for-profit basis.

My children are getting to that age where this is the kind of literature that they are going to be reading very soon.

Sir Richard Branson had also asked for the bid to be examined by the Transport Committee or by an independent body, where he was of the opinion that his company was not saying it is they who should necessarily have it but they only wish to say that they wish that an independent body should examine this bid that had taken place.

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At some point in your life, you’ll probably have to borrow money. This is part of today’s culture where people prefer to buy products and services to credit rather than saving up and paying cash. The positive side of having to borrow money is you build up a credit record which is important in order to major purchases such as buying a house. If you do not have a credit record you may have trouble borrowing money from most lenders.

Current Borrowing Base News:

Getting approval for a personal loan, whether secured or unsecured, can be a hassle if the borrower’s credit history isn’t good. Credit score and credit history play a major role in case the borrower opts for an unsecured loan. This is because an unsecured loan isn’t secured by a collateral. The absence of a collateral makes the process of loan recovery entirely dependent on the capacity of the borrower to pay back the borrowed sum. A good credit history would indicate responsible behavior on the portion of the debtor and to prepare the way for accessing future loans. A bad record would make the loan provider dubious of the borrower’s intention. One cannot blame the banks and credit unions for judging a person by his past record, since the rating that is readily available to lender indicates the situation of his finances.

Continuing On With Borrowing Base

Credit rating, an indicator of creditworthiness, provides information that can contribute to the lender assess the length of time required by a person to repay a debt. A rating between R1/I1 and R6/I6 would say that the borrower takes between one and six months to repay a debt. R7/I7, R8/I8 and R9/I9 would refer to the position of debt consolidation, default, and repossession respectively. Just as a lender can assess a person’s creditworthiness, an individual can view his documented ability to borrow, in the shape of credit scores. A score greater than 650 makes him a good candidate for both secured and unsecured loans. The need for approaching a bad credit lender arises whenever a person’s score is between 360 and 620. In fact, if he is in the lower part of the aforementioned range, he may have no choice but to approach a private lender. Banks would most likely deny his request for personal loans.

Private lenders for bad credit personal loans aren’t difficult to locate given the age of Internet. Payday loan providers and car title loan providers are private money lenders who provide loans to people with bad credit. In fact, before the slump in the real estate market, many private lenders were providing sub-prime loans using the house as a collateral. Thoroughly research every option, before going ahead.

Payday Loan Providers: Payday loan providers provide loans in return for a post-dated check from the borrower, who hopes to reimburse the loan by the next payday. Payday loan providers lend money for a short space of time, generally for 7 to 15 days, and charge an extortionate rate of interest on the loan. The high rate of interest is a reflection of the level of risk that needs to be borne by the lender. In case the borrower is not able to repay the loan, the lender may refer the post-dated check to the shore and extract his share from the borrower’s paycheck.

Car Title Loans: Car title loans are secured by the car’s title which allows for sale and subsequent transfer of property in case the borrower defaults on the loan. The lender may likewise expect the borrower to deliver the keys in and above the car’s title. The loan providers charge a very high level of interest on the amount borrowed, and in the case of default auction off the car and recover the amount of such loan.

There are two basic types of loans obtained on the market. Secured and unsecured. These are explained in greater detail below. Before choosing the type of loan you need, consider the following points.

Answering these questions will allow you to decide on whether you should buy a secured or unsecured loan.

Secured loans (or homeowner) loans are secured against some type of collateral. These loans are normally secured against your house or car as they’re usually a person’s biggest asset. It allows the lender to sell your house or car if you default on your loan repayments by securing your loan against an item. By having the loan secured the lender is taking less risk in lending you money because there is a good chance of them getting their money back. This will result in a lower interest rate been charged on the loan. Secured loans are commonly taken over an extended period of time and for a significant amount. A good illustration of a secured loan is a house mortgage.

Unsecured (or personal) loans aren’t secured against any collateral or assets. The loan providers base their decision on whether or not to lend you any money on the grounds of your credit rating. By scrutinising you credit rating helps the unsecured loan provider to determine the risk of you paying back the money they have lent you. If you have a poor credit rating or county court judgements (ccj’s) against you name, you may still be able to achieve an unsecured loan, however the interest rate you’ll pay will be far higher. This is owing to the increased perceived risk for the unsecured loan provider.

Borrowing money can be stressful and represents a major decision in your life. Always ensure you seek sound professional advice before borrowing any money and before signing any documents. Many loan providers work as independent agents in the name of the banks and major money lenders. They can offer you free advice in the expectation that you may borrow through them. Make sure that any advice you get has no strings attached and ask if there’s any upfront fees for the advice. Use the net to compare loan rates and terms and conditions then you know you’re getting the best deal available before making the final decision on which lender you’ll borrow from.

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Political parties perform important roles in European societies. Parties are institutions in which citizens with similar political views organise, develop political programmes and be actively involved in the political process. They are vital for democracy because parties offer the most clear-cut political choices that are put to the electorate. Parties are also recruitment organisations, through which parliamentarians and members of government are sourced. Even though the latter functions are important, the general effectiveness of parties are closely related to the first characteristic: their societal embeddedness-the main channel between a party and citizens. And in this respect, political parties have been declining dramatically. Click here ANCHOR_TEXT_PHRASE.

The death of political parties isn’t a new phenomenon. Parties in all established European democracies have suffered massive membership losses to the extent that they only retain a very small capacity to engage citizens since at least the 1980s. The societal anchor of political parties is seriously threatened. Vernon Bogdanor wrote in 2006 that ‘the story of the increase and collapse of the mass political party constitutes one of the great unwritten books of our time’. So why do I pick this rather old problem up again in 2009? Not because I want to pass the obituary of the mass political party but as we can now see where the establishment of political parties might lead us. This potential new future became apparent during the US Presidential campaign.

…And Even More Political Party Things

Evidence of restrictions on the work of non-government political parties (disproportionate media access between the government and non-governing parties, harassment of the leaders and/or supporters of non-government political parties, the creation impediments and obstacles affecting only the non-government political parties, electoral fraud, etc).

Through the use of social networking tools, online video messaging and near real time updates on what was going on on the campaign trail-and by making a number of these tools available to his supporters too-he was able to establish a community that was not only prepared to vote for him but willing to organise and campaign on the local level. He was able to establish a political movement he can now build upon.

The construction of this movement was above all possible because new communication techniques offered a way of being actively engaged in the campaign for change. But if you look behind the technical tools you notice that Barack Obama’s campaign was able to recreate old-rather than create new-characteristics that traditional European parties, especially left-of-centre parties, have lost during the years: a good sense of community and belonging.

If you look into the Democratic Party origins you’ll find it traced to the Democratic-Republican Party. In the year 2004 the Democratic Party was known for being the biggest Republican Party because there was 72 million voters that claimed to be in the Democratic branch. The Democratic Party is likewise known to keep the most state governorships. This year in the 2008 election we have Senator Barack Obama running for the Democratic Party and he is from Illinois.

The Republican Party was founded in the year 1854 by the persons that were referred to as the anti-slavery expansion activists and also by the modernizers. The first Republican president is Abraham Lincoln. The current president is George W. Bush and he is known to be the 19th person from the Republican Party. As stated in the preceding paragraph the next elections will be in 2008 and John McCain is running for the Republican Party and he is from Arizona. Currently there are 55 million members who’re registered in the Republican Party.

Let us take the oldest social democratic party around the world as an example: the German SPD. When the party was formed in 1863, its backbone was educational leagues founded to educate workers. The cultural and community aspect was therefore not only a by-product but very much the founding principle of the party. Being a social democrat was not a matter of membership in an organisation, but a way of life. The identity of the party was reinforced by the great variety of social democratic newspapers and publications that contributed to this distinct culture. The cultural underpinnings of political parties were also evident elsewhere, and it appears that it has been especially this attribute, that used to give the closest link to society, that has declined most dramatically in recent decades.

It was argued that, as a result of social and ideological changes in societies during the second half of the twentieth century, mass parties-rather homogenous constructs-developed into catch-all parties that attempted to integrate the diversifying political views and social backgrounds of citizens under the auspices of the same party. Today, many parties look like what political scientists call ‘professional-electoral parties’. Such parties are organisations that have a highly centralized leadership and are focussed on winning votes and offices. They have largely abandoned the cultural heritage of traditional political parties. ‘Professional-electoral party’ is also the closest typology for US political parties. These are practically committees to fight elections without much activity between ballots. They are very candidate centred and lack organisational leadership.

So what is new that could show the way political parties could go from here? What has changed during the Obama campaign? In a nutshell, Barack Obama has managed to recreate the community aspects of old mass parties and incorporate them into a professional-electoral party. In the contemporary context, however, culture doesn’t mean a certain way of living but rather form part of a community based on new political ideas, a charismatic political leader, and a desire for grassroots activism. The creation of this new culture in the Obama campaign has only been possible by the employment of new media. So after it has transformed the national economy and the way we communicate with each other, is the information, communication and technology (ICT) revolution now fundamentally changing the political process too? I think there are strong arguments in favour of the present and Barack Obama’s success is evidence.

What does this mean for European parties? The socio-economic circumstances and ideological believes of citizens have indeed changed dramatically since the basis of early European parties, political activism has however not disappeared. The success of single-issue movements such as Greenpeace, Amnesty International and the Globalisation critics of Attac clearly shows the enduring desire for political activism. Some of these movements have even grown into political parties in their own name, for instance the German Greens or-with quite a different political agenda-the UK Independence Party (UKIP).

So the first ingredient-desire for political activism-is still there. But how can it be used? European parties have tried for decades to open their structures to social movements and to use societal activism for their party purposes. They have all been largely unsuccessful so far because their strategies were unclear and their own structures often too rigid. Waking up to the potential of new technologies and the expertise of the Obama campaign however makes it a necessity to try again-and to try harder. After all, the only alternative appears to be further decline. Initial steps to use new technologies have been made but more needs to be done. Europe in general is clearly behind the US in terms of internet integration in daily life including politics. But this may likewise be an opportunity for the party that comes up first with a successful mix of technologies for the European context.

The second ingredient is political ideas that can capture and move people. The current economic crisis has opened a window of opportunity for a new politics. There is a vacuum of ideas since the promise of prosperity facilitated by unfettered markets collapsed with the international banking sector. This void hasn’t been filled yet. In Barack Obama’s case the simple promise for change was enough to create his movement. This was however only possible in the narrow window of opportunity in the early part of the economic crisis and during the specific context of US politics. If his movement is to become sustainable he needs to bring in new positive ideas. President Obama has understood this and has kept the close relationship to his followers even after assuming office. The way in the course of which he encouraged living room discussions about his economic stimulus package across the US was a remarkable move and combined the desire for activism with political content. The sense of identity and potential for activism created by a’ I received an email from the President’ moment shouldn’t be underestimated.

The last ingredient in the mix is charismatic leadership. Early attempts of online campaigning in Europe have shown that it is very hard to build mass participation in a political online campaign if there isn’t an appealing political figure at the top. Parties as such appears to be rather inappropriate vehicles for such campaigns. Identification becomes much easier if people are involved. So if the European political culture develops in the direction set forth in the United States, it is probable that politics becomes more personalised and centred around political ideas represented by certain politicians.

Political parties have been declining for decades without finding a way to stop their downfall. The ICT revolution is there to stay and has already transformed many aspects of our lives. The Obama campaign in the US has broken new ground and is undoubtedly an important example to watch. But the question is how these developments can be worked into European party politics. A simple ‘copy and paste’ won’t work. But the revival of political culture and activism using new technologies is the more promising opportunity on offer to alter the fate of political parties. It is surely worth trying given the option.

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Working capital can be calculated as the difference between an entity’s current assets and its current liabilities. If the assets is lower than the liabilities, it can be said that the company is experiencing a capital deficit. Net capital is the amount of its current assets minus its current liabilities minus cash available and minus interest bearing debts. This is short range debt.

A current asset in accounting terms is that which a company should be in a position to realize within one fiscal period. A debt which is supposed to be paid within one company fiscal year is a current liability.

Three vital accounts are included in an entity’s current debts and assets. Good management of this sector is vital. The current portion of the liabilities is that which is to pay within one year. This is most important as it clarifies what the short range requirement is to current assets and here is normally dependent on the long range assets. This short range requirement will include bank loans as well as any other short term debt.

When there in an increase in a company’s working capital it indicates that the company has been able to increase its receivables or any other short range assets. It could also imply that it has managed to settle a number of its short range debt which has effectively decreased its short term liabilities.

Financing is another attribute of Working Capital management. Companies tend to finance their way to break a need for short term expenses by taking loans. From the balance sheet it is obvious that financing increases liabilities, so the only way companies have to increase Working capital is though long-term debts that have a smaller impact on current liabilities. This way their short term cash balance increases providing the cushion the company needs for its short-term operating needs. Since obtaining long term debt is contingent on the credit rating of the company it is difficult for smaller or newer companies to use this attribute of working capital management.

Financing for short term operations may not immediately signal an issue with the company, it may well be that the company has realized an opportunity that it has to act on immediately which would increase the perspectives of the company in the long term. Companies that have an aggressive working capital management policy would be using this strategy. But this is always riskier since the company would accumulate a great deal of long-term debt that could eat away at the profits or even become so big that the interest expense can impact the current liabilities.

Working capital management becomes a very important aspect for a company since it is the first line of defence against market downturn cycles and recession. A company with cash is usually in a nice position to make best use of the opportunities the markets provide. Its can spend the money on R&D for coming up with better products. Increase in current assets, especially, increase in account receivables due to growth is sales have to be managed efficiently. Ability to control working capital plays an important role in the survival of the company.

The management of this capital will cover immediate decisions that are based upon cash flow as well as profitability. Cash flow can be measured by the period of time from the outlay of cash required for raw materials to the exact time that payment is received for the goods. As the company’s cash is tied up for this period, it is important to maintain this time period to a minimum. The longer this period of time, the less cash flow there will be provided for other business actions.

The management of this capital is indispensable for the success of any business. Cash management is important as it’s what makes it possible for the entity to meet its day to day expenses. Inventory management is another aspect which is to be closely monitored. This system will follow the flow of inventory. Work in progress should be maintained low as should finished goods. This is to allow for the quick flow of inventory and hence sales will have a steady flow.

The management of debtors is likewise critical. A stringent debtors control system is vital for successful cash flow. This will improve the company’s working capital as there’s going to be a steady flow of cash into the business.

Even More Info About Working Capital

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Current info about stock market isn’t always the easiest thing to locate. Fortunately, this report includes the latest stock market information available.

Keep in account the fact that the risk-reward dynamic is a bit more volatile in the stock exchange than it is in other alternatives. Closure would serve as a good time to compare stock market investments to other alternatives.

Facts, Tips and Tricks!

Early in our country’s history and stock market history, Boston was the original financial center of America. In Boston bonds for projects that included roads, canals, bridges and commodities such as hides and molasses, were sold and bought by dealers in Boston. The first organized stock exchange was established in 1792 according to stock market history. NYSE is arguably the oldest and most famous of all the American stock markets. Welcome to one of the most serious years in stock market history! Hopefully, the 2009 won’t be the worst year of the stock market history.

There have been 27 bull markets each with their own bear market since the introduction of the stock market in 1900. Today we’re experiencing the 6th longest and weakest rally in the Dow Jones in it’s history.

The stock market moves in cycles-both long term and short term. The short term cycles are called cyclical and the longer term ones are called secular. Secular markets can last a long time between 10 and 20 years. Cyclical markets occur within secular markets and last between two and three years total.

Therefore, at any given time the contract may be described through it’s current status of the long and short term markets. Understanding which markets we’re in and how much time we have been in those markets are essential to being successful in the stock market.

For example the secular market between the years 1982 and 2000 was a bull market. The Dow Jones Industrial Average increased significantly from a minimum of 800 to well over 10, 000. There were also a series of cyclical bear markets like in 1987.

Knowing the market and your placement within it can insure you’re on the right hand side of the trend-which leads directly to profit. Most investors today have only experienced a secular bear market where the trend is almost always down.

The last secular bear market was between the years of 1966 and 1982. The Dow Jones was at 1000 in 1966 and at a low in 1982 of about 800. The Dow Jones was basically flat for 16 years. During flat times money is made not by the trend towards long and short markets but in picking the right stocks.

Then, when the cycle turns against them and the risks turn sour, they try to cover it up and begin lying to their customers, to regulators and to each other. Trust erodes. The whole thing collapses. We appear to be entering one of the following historic cycles at this seminal moment in the maturation of the human race.

Now that we have covered those aspects of stock market, let us turn to a few of the other factors that need to be considered.

The main reason is that people are naturally cautious, especially with their own money, and the return on stocks is highly volatile from day to day. This inclination toward caution is perfectly reasonable, reflecting an intuitive understanding of an important financial truth: the average return isn’t the only thing that matters when evaluating an investment. Shiller, a respected expert on market volatility, offers an unconventional interpretation of recent U.S. He warns that poorer performance may be found in the offing and tells us how we– as a nation and individually– can respond.

The inclusion of the names of certain stocks is only for educational purposes rather than as a recommendation to buy, sell, hold, or short the stock. Trademarks mentioned are owned by their respective trademark holders. If such a time comes. Your stock is close to your buy in-sell it. Then when everyone is preaching hellfire and damnation, saying the next depression is here, buy the hell out of it. Even before the market opened, major securities houses were being flooded with sell orders. By the time the market closed for lunch at midday the Nikkei average of 225 stocks was down a record 1, 873.80 Yen to 23, 872.80, A drop of about 7.3 percent.

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When investing, the most important consideration involves the returns associated with the asset. Required, expected, and realized returns all represent different measures of profitability. Learn about the differences between these three types of return.

The present value of any expected future cash flows is a measurement of the value of the cash flows at time zero, the time during which the cash flows are valued. In any present value calculation, the discount rate is the amount of return for the privilege of ‘renting ” the money invested. However, there are three ways to conceive and calculate returns on investment. The required, expected, and realized returns all help an investor make financial decisions.

The required rate of return is the speed that indicates the riskiness of an asset. Essentially, it reflects the riskiness of all future cash flows associated with the investment. To be willing to make the investment, it is the least return required for an investor to consider buying the asset.

Whichever way you look at gold investment, investing in gold coins shall be regarded as a stable investment. You will have a good return if it has been made correctly.

What is often confusing is that the required rate isn’t in any way tied to each individual investor’s situation. It is based on the terms of the market. Remember that assets in a capital market are priced by the highest bidder. In any market, sellers exercising financial self-interest always sell to the highest bidder resulting in asset pricing reflecting the highest bidder’s situation and no on else’s. Purchasers of an asset must pay the highest bidder’s price or increase the price themselves in which case the market price is temporarily on the basis of that investor’s situation.

Last is the Chikou Span. Seen as simple market sentiment, the Chikou is calculated according to the most recent closing price and is plotted 22 periods behind the price action. This feature suggests the market’s sentiment by showing the prevailing trend as it is linked to current price momentum. The interpretation is very simple: as sellers dominate the market, the Chikou span will hover below the price trend while the opposite occurs on the buy side. When a pair remains bid in the market or is bought up, the span will rise and hover above the price action.

The expected rate is merely the rate an investor can hope to realize if the investment is made. The expected rate can likewise be thought of as the rate that would make the Net Present Value of the investment zero. The Net Present Value is zero when the level of return is exactly in accordance with the level of risk associated with the investment. The higher the risk, greater the return must be to offset the increased risk taken on by purchasing the asset. When the Net Present Value is zero, the required and expected returns are equal.

The realized rate is the return actually obtained by buying an asset. It is important to realize that nothing can change a realized return. It is an after-the-fact figure that no amount of behavior can change. A realized return only indicates to the investor information for better future financial decisions.

In efficient capital markets, expected and required returns are equal because all Net Present Values are zero; this means prices are always fair and perfectly represent the risk taken on by buying any asset. Capital markets, however, aren’t perfect. Events occur that investors couldn’t reasonably predict, weather wipes of crops, and assets tied to foreign currency fluctuate without warning in an answer to global economic changes. In addition, information lags creating arbitrage opportunities between markets.

According to an April 2004 report by the Bank for International Settlements, the foreign exchange market has an average daily volume of close to $2, 000 billion, making it the largest market in the world. The FX market isn’t a centralized market unlike most other exchanges such as the New York Stock Exchange or the Chicago Board of Trade. In a centralized market, each transaction is recorded by price dealt and volume traded. There is normally one central place back to which all trades can be traced and there’s often one specialist or market maker. The currency market, however, is a decentralized market. There is not one ‘exchange’ where every trade is recorded. Instead, each market maker records his or her own transactions and keeps it as proprietary information. The primary market makers who make bid and ask spreads in the currency market are the most important banks in the world. They deal with each other constantly either on behalf of themselves or their customers. This is why the market on which banks conduct transactions is known as the interbank market.

It is basically important to understand that realized returns are in no way connected to either required or expected returns. Current technology doesn’t allow investors to go back and make different decisions in the past. Realized returns only allow investors to rethink their own valuation strategies and learn from mistakes.

But, What About…

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Installing the tiles appear to be the hardest part to do when you attempt to remodel a bathroom. The easiest is the part when you are planning on the bathroom cabinet. The size of the cabinet can be readily estimated and so is the space that it is going to cover, but I soon realized, after I finished mounting it, that the extent and the space aren’t the only things to be considered. I should’ve also considered the safety and convenience of my family.

My son does not feel comfortable with our bathroom cabinet because he is having a hard time opening it. He always complains about hurting his fingers that is why he always gets someone to open it for him. We’ve had our bathroom cabinet for about a year now and he never got used to it. Our cabinet looks really good because it matches our floor tiles, but isn’t friendly to use. If you have children in your house, try to get something that is easy to open. There are actually cabinets that are beautiful and during the same time user-friendly.

A Few Other Things

The catch is usually found inside the cabinet at the top, and should sound like a metal rod. Remove the screw that attaches the rod to the body on the cabinet. Carefully set the cabinet on it’s back, then gently swing open up the cabinet door so that it now lays flat on the table.

One thing that you should also consider is that the elements of the bathroom cabinet must also be easily removed or replaced. Before buying one, make sure that changing the parts, like the mirror, will be an easy thing for you to do. This is a most important detail that you likewise have to look into.

Selecting the Proper Knob for your Cabinet The very first thing you must consider when choosing the right knobs for your cabinet is the style and color. You must also ensure that it matches the cabinet where you’ll place it aside from making certain that it matches the general color and theme of your home.

You should also count how many knobs you would need to purchase for your cabinets after choosing the correct design for your knobs. Check how many cabinet handles you need to replace before buying.

The size of your cabinet handles can also influence the appearance of your home dcor. This is one thing you need to be taken into account in finding the perfect knobs for your cabinets. Choose a size that will fit perfectly to the development of your cabinet. Whether it is large or small, just ensure that it will look good on your cabinets.

Lastly, when finding and buying the perfect knobs, you should also consider the extent of the screw of the knobs. Bring the old screw of your old cabinet handles when buying. This will help you avoid buying screws that won’t fit your cabinets.

Installing the Knobs to your Cabinet After picking up a knob for your cabinet, the next thing you should do is to eliminate the old knobs of your cabinet. You may also wish to keep the old knobs somewhere place. You may need it sometime in the future.

You can now place your new cabinet handles after removing the old handles. If you need to drill the holes of your cabinet, make that you have the proper tool in doing this. It will be better if you prepare all the tools needed before attempting to install your new knobs.

Lastly, when you’re installing the new knobs for your cabinet, you must see to it that the screws are attached tightly to your cabinet. Use the necessary tools when doing this. This is to assure that the cabinet knobs won’t fall off when you use them.

Nowadays, there are now many designs and colors of cabinet knobs that you can select from. There are even websites that sell this type of product. You can find many online stores that sell cabinet knobs for a low cost.

Maybe you are probably thinking that it is best if you just tell your children not to conduct the bathroom cabinet. But what if they need something in here and you are not around? They have no alternative but to open it. The idea to prevent them from opening it isn’t good at all. You will just make them feel deprived of something that isn’t so reasonable.

The last thing that you must consider is the location of the bathroom cabinet. It must be put in a level where it’ll be easy for your children to reach. Their safety and convenience should be on the top your list. There are ways to design your bathroom in so that the cabinets will still look stylish even if you impose safety on them.

Let your family enjoy the changes in your home, and make them feel safe as they enter every room. The appearance of a room is nil compared to safety and convenience of your family. So, if you are planning to remodel your bathroom, be sure to remember these simple suggestions.

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Managers rely on cost accounting to provide a sense of the actual expenses of processes, departments, operations or product which is the basis of their budget, enable them to analyze fluctuation and the way finances are used socially for profit. It is used in management accounting, where managers justify the ability to cut expenses for a company in order to raise that company ´s profit. As a tool for internal use, versus a tool for external users like financial accounting, cost accounting doesn’t need to continue to the GAAP standards (Generally Accepted Accounting Principles) because its use is more pragmatic.

While On The Topic Of Cost Accounting

Managers in an organization rely on cost accounting since it provides a picture of the actual activities, departments and operations that are the main foundation of business budget allowing making profit. Cost accounting can also serve to justify the manager’s ability to help reduce the expense s for the firm in order to maximise its profit, hence success.

Cost accounting is taken as a pragmatic process as it is an internal tool that doesn’t follow the Generally Accepted Principles. Additionally, cost accounting creates financial value for the house’s products by measuring the currency that is nominal into units that are evaluated by convention. This is an extremely prominent part of management accounting process because managers are able to identify the possible ways and means of enhancing the firm’s profitability as well as reducing the expenses of production in the future (Jawahar-lal, 2009).

Firms have adopted different methods for determining cost s of their products and services. Normally, the method is contingent on the nature of fabrication and the kinds of outputs in a business or industry. For instance, in a job accounting costs, there is the assessment of the cost of each job or work order. The system is followed by these concerns when job is carried out by clients, for example, in a printing press company the managers need to establish the profits and losses if any for every one of the services provided. Contract costing also focuses on contracts work like construction of roads by civil engineers. In cost accounting, each of the contract service is described as separate cost units for each of the creation and control.

Standard cost accounting: this is concerned with the concepts of recording historical costs by allocating fixed costs over a given period of time to the products produced during that period. The overall costs are, therefore, recorded as the overall costs incurred during production of commodities and services. The method uses the total cost of products for the goods that weren’t soul initially sold and included in the inventory (Hongren, & Foster, 2003).

This method is significant to managers because it allows them to pay no attention to the foxed costs, and concentrate on the each period to the standard price of a charitable or service (Khan, & Jain, 2003). An activity based costing is another cost accounting that focuses on assigning costs to products based on the work they need. Activities refer to those actions performed inside the business, for based-activity method. The accountants dispense the workers 100% time to different activities performed inside a business during accounting. They then prove that the total cost spent on each activity by adding up the totals of each employee’s pay on that activity.

References Hongren, D. & Foster, (2003). Cost accounting: a managerial Emphasis. New York: Prentice Jawahar-lal, L. (2009). Cost Accounting. New Delhi: McGraw-hill Publisher. Khan, & Jain. (2003). Cost Accounting. New Delhi: McGraw-hill Publisher Maher, L., & Rahan, G., (2005). Fundamental of cost Accounting. London: McGraw-Hill.

It creates a financial value outside of the production of a product, measuring currency that is nominal into units that are measured by convention. By taking recorded historic costs a bit further, it allocates a company ´s fixed costs over a specific time period to what items are actually produced during that period of time, creating a total amount of product production. Products that weren’t sold during that period of time produced a ‘full cost’ of those products, recording them in a complex inventory system that uses accounting methods of its own that are consistent with the GAAP standards. Managers are then able to concentrate on each period’s results as it is linked to the ‘standard cost’ of any product.

Any distortions in expenses that were caused by calculating what the overhead of a product is versus what a unit cost is for firms that specialize in just one specific product are very minor in industries that mass produce that product with a low fixed one. Understanding why it varies compared to what was actually planned helps a manager to save a company money by taking actions that are appropriate to remedy that variation in the future. Variance analysis represents a very important part of cost accounting because it breaks down each variances into many different elements of standard and actual one. Some of these components are material expenses variation, volume variation and labor expenses variation.

It is a very important element of the management accounting process. In order for managers in order to identify the best methods to increase a company’s profitability, as well as saving a company money in the future, cost accounting is a necessary system in the management of a company’s budget, providing important data to analyze fluctuation in company production expense.

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While studying accountancy, you may come across several accounting terms that you can only be familiar with. Most glossaries may assist you with it. However, some accounting definitions may be too elaborately worded for most people to better understand and hence end up confusing them rather than helping them. So I will try to make this glossary of accounting terms and definitions as simple and easy to see as I can. I hope that this glossary covers up the greater part of the doubts which accounting students may have.

Accountancy is a career based around many different accounting terms and all accountants have to learn what the different accounting terms are, learn how to use the accounting terms and learn when to use the accounting terms.

Cost Accounting Considerations

Learning all the accounting terms may seem daunting at first, however the majority of them aren’t that difficult to learn and the other accounting terms will come with time, experience, studying and sitting accountancy examinations. With a bit of hard work, dedication and effort you’ll become knowledgeable about accounting terms in no time.

Above the line items are those revenue and expense items that directly affect the computation of periodic net income.

Absorb means that one account or group of accounts combines the amounts from similar or related accounts or groups of accounts. Thus, the combined account is a new entity while the old ones are removed. For instance, if you have 3 creditors, George, Paul, and John, you can combine them into one ‘creditors’ account. Hence, they’re called absorption.

One in-demand degree course that can be pursued through an online program is accounting. Accounting deals mostly with numbers, notably in measuring and communicating vital financial information involved in transactions. There are actually various types of accounting and these include auditing, bookkeeping, cost accounting, management accounting, financial accounting, social accounting, forensic accounting as well as public, internal and external accounting.

An online accounting program covers a wide range of subjects but generally, these are auditing, accounting principles, concepts and conventions, individual, accountancy methods and fields, and corporate taxation as well as accounting tools.

The main goal of an accounting course is to provide students with the right knowledge of these different aspects of accounting as well as in technical accounting and prepare them for their professional certification exams.

Absorption costing absorbs all costs under two head product costs (manufacturing costs) and period costs (non-manufacturing costs).

Absorption pricing is setting a price so who’s the sum of the absorbed cost plus a marked-up percentage of profit.

Accelerated depreciation is a form of depreciation where larger amounts of depreciation are calculated in the first years.

An account is the physical record of the transactions incurred related to an asset, liability, revenue, expense etc.

Accounts analysis can be looked as a method of cost behavior analysis by classifying records under two heads: fixed or variable.

Accounts group is a set of similar accounts. E.g. fixed assets group, long-term liability group etc.

Accounting is the process of recording all the economic events that affect the business/individual over an accounting period. Accounting is done on the basis of various accounting principles, concepts and the Golden Rules.

An accounting cycle is the sequence of steps to be followed while preparing financial statements. The steps in the accounting cycle are budgeting, journal entries, adjusting entries, ledger posting, preparing financial reports and closing of accounts.

A business can be seen as a different entity from the owners, for legal and tax purposes. Thus, only the transactions related to the business are registered and not the ones related to owners.

An accounting event is any event where there’s a change (increase/decrease) in value of the assets, liabilities or owner equity.

Accounting income is the income earned by the business over the accounting year on an accrual basis.

Accounting measurement and revelation is the accounting concept that says that adequate dates should be used and disclosed for the purpose of decision-making.

An accounting period is the framework of time in which the accounts are prepared. An accounting period is normally for a year.

Accounting ratios are mathematical tools which help in the discharge of the comparative financial analysis for two financial variables.

An accounting system is an integrated approach to accounting. It may be manual as well as computerized. An accounting system helps identify economic events, record them and generate reports at the end of the accounting period or even in the period.

An accounting theory develops a framework for the accounting procedure. There are four types of theories of accounting: Classical Inductive, Decision Usefulness, Information economics, and Income.

Accounting time difference is the effect that considering a deferred financial event would have on the financial statements.

Accounting treatment is the set of rules that lays down how to deal with an account and how to deal with a particular transaction.

Accounts payable are those accounts wherein the business is under an obligation to pay for receiving goods or services. They are listed as a liability.

Accounts receivable are those accounts where the business can owe money for providing goods or services. It is an asset.

An accounts receivable reserve is a supply of money kept aside by the business to protect itself against default on the accounts receivables.

Accrual concept is one of the major accounting concepts. Accrual concept states that a economic event should be dealt with in the period under which it is incurred rather than when it is paid for or when cash is received in return.

Accrued inventory is that which has arrived in the store of the business but has not yet been paid for.

Accrued liabilities are those liabilities that have been undertaken by the business and have not been paid off.

Accumulated amortization is the accumulated charges against the intangible assets held by the business.

Accumulated depreciation is the charges incurred during the wear and tear of a fixed asset that is calculated periodically.

Activity based costing is a form of costing that analyzes the cost of a product depending on the cost of the various activities performed for it.

Activity ratio is the capacity of a business to convert their balance sheet assets into cash or sales.

Actual cash value is a method for the purpose of determining the actual loss sustained by the business expressed in monetary terms. It is commonly used in context of depreciation.

Actual cost is the exact amount you pay to purchase a fixed asset in contrast to the market value or production cost.

Additional paid-in capital is the amount paid by the shareholders over excess of the par value of the asset.

Adjusted Book Value may be tangible book value or an economic book value. In a tangible book value, the value of intangible assets are subtracted from the total assets. In the economic book value, the assets are adjusted to their market value in contrast to the cost of purchase.

Adjusting entries are the entries made at the end of the accounting period to update certain items that aren’t recorded as daily transactions. The process of recording adjusting entries are referred to as adjustment.

Administrative costs are those which aren’t directly required for the process of production, but are part of the final price of the product as they’re incurred. E.g sales office rent is an administrative cost as it isn’t required in the process of production.

An Agency is the contractual relations between the principal and his agent where the representative is empowered by the principal to take certain decisions on his behalf.

Allowance is a discount given to customers in the event of provision of unsatisfactory goods or services.

Allowance for bad debts are amounts of money set aside by the business as a cover for possible defaults on payments.

Alternate payee endorsement is when the original payee endorses the draft to another entity. This other entity endorses it again.

Annualizing is a method by which all the amounts pertaining to less than 1 year are calculated to their one-year equivalents.

Appreciation is the increase in the value of the asset due to economic conditions or improvements to the asset.

Appropriation is the allocation of amounts, that are part of the total net profit, under various heads such as general reserve fund etc.

Audit committee is a special committee appointed in an organization to perform the audit oversight responsibility of the board of directors.

Audit report is an official, signed document that provides the details regarding the purpose, scope and the outcome of the audit.

Balloon payment is the final payment on a loan. It is called so because it is considerably higher than the regular payments.

A bank statement is the financial statement showing the details of all the transactions that the business had made through the particular bank account.

Bankruptcy is a situation where a business/individual doesn’t have adequate assets to pay back his liabilities. A person who is bankrupt is called an insolvent.

Barter system is a non-monetary system of exchange where commodities are traded for commodities rather than for money.

Basis means the point of departure for calculating a range of variables such as profit, loss, depreciation, amortization etc. It can also mean the book value of investments.

Below the line items are those that directly affect the balance sheet and not the income statements.

Big 4 refers to the 4 biggest accounting firms: PriceWaterhouseCoopers, KPMG, Delloite and Touche and Ernst and Young.

Bills payable is a promise delivered by the receiver of a benefit to the giver of a benefit, to pay an amount of money in the future.

A bond discount is the difference between the face value of the bond and the issued price. The face value in this case is higher than the issued price.

Bond Premium is the difference between the issued price and the face value of the bond. In this case, the issued price is higher.

Bond sinking fund is a guarantee made by the bond issuing body to pay back the face value of the bond at maturity.

A bonus can be looked upon as the remuneration given to an employee in excess of the stipulated pay.

Books refers to ledgers, the journals, and other subsidiary books such as sales books and purchase books, as administered by the business.

Book building is a type of share issue where the price of the shares aren’t fixed, but is determined by investor bidding.

Book Inventory = Cost of Acquiring the Inventory-All the Liabilities associated with the Inventory.

Book to market ratio is a ratio that calculates the book value of the equity of a company to the market value of the equity.

Branch Accounting is keeping the books of accounts for geographically separated departments or units of the same business.

A budget gives the list of expense heads and the amounts allotted to expense heads. For example, a sales budget lays down the amount to spend on sales, etc.

When there is an excess of expenditure over revenue in a budget, it is referred to as a budgetary deficit.

Budgetary control is a process where the actual amount incurred and the budgeted amount for each expense head is compared.

Budgeting is estimating the expenditure requirements of the department or each expense head based on historical data and trend analysis.

Budget performance report represents the comparison between the actual expenditure and the budgeted expenditure.

A business entity may represent a proprietorship, partnership, LLC, or corporation. Every entity has to take a separate set of rules.

Business valuation is the amount that would be realized if the business was sold to a hypothetical buyer.

Capital account is the account where all the details regarding the transactions related to the paid-up capital are given.

Capital asset is usually employed in the context of fixed assets. Assets that aren’t employed in the day-to-day course of business are called capital assets.

Capital budget is the amount allocated for the purchase of fixed assets during the accounting period.

Capital Expenditure is the money spent for improving and servicing of existing fixed assets or for purchasing new fixed assets.

Capital intensive is a type of industry that relies more on capital to purchase high-end machinery for its production as opposed to labor intensive that relies more on human resources.

It is the rate of interest that is required to turn the series of future receivable payments into their present value equivalent.

Capitalized costs are those that are deducted over several accounting periods on account of depreciation or amortization.

A situation where there’s a negative difference between the purchased price of an asset and selling price of an asset. It is the exact opposite of capital gain.

Capital profit is when the allocation of cash due to tax savings on account of depreciation, sale of a fixed asset or any other sources that aren’t related to retained earnings.

A capital reserve is either of the reserves that a business creates, outside of the yearly profits, for any specific purpose.

Carried down is the year’s closing balance for an account that is carried to the following accounting period.

Cash refers to the liquid money available with the business in the form of euro notes and coins for the purpose of payment.

The opposite of accrual basis is known as cash basis. It is a type of accounting where the transactions are recorded only when there’s an exchange of cash, regardless of when the transactions occurred. Cash basis accounting is different from the GAAP.

Cash book is the record of all the cash transactions-receipts and payments, that are being taken by the business. It may also be extended to include the bank transactions if the business doesn’t wish to maintain a separate bank book.

Cash budget is the allocation towards the cash receipts and payments that the business might incur over an accounting period.

Cash flow is the difference between the cash inflow and the cash outflow in the business. It doesn’t deal with accrued payments and only dealt with the inflow and outflow of cash.

A financial management and analysis technique which serves to compare the amount and the time of the inflow and outflow of cash into the business.

Cash flow statement is a financial statement that provides details of the inflow and outflow of cash for the business. It is divided into three parts: cash flows from financing, cash flows from investing and cash flows from operations.

Cash Inflow is the measurement of the total cash coming into the business as a consequence of various financing, investment and operational activities.

Cash outflow is the measurement of the total cash going outside of the business as a consequence of the various financing, investment and operational activities.

Cash management is a financial management technique that seeks to maximize the existence of cash in the business without altering the levels of fixed assets. It aims to secure faster debtor payments to increase the liquidity position of the business.

A certified financial planner is a financial planner qualified according to the requirements of the Institute of Certified Financial Planners.

Certified Public Accountant is a certification that gives an individual the license to practice public accounting.

A special form of incorporated business entity in the United States and is administered by a certain set of rules and is permitted to avoid payment of corporate taxes.

A check is a form of payment, through the bank and can be made payable to a specific person or an unspecified bearer at large.

A checking account is a form of bank account where the amount can be withdrawn by a check, an ATM card or a debit card.

A claim is a legally backed demand for money from a debtor. These if not paid, results in a law suit.

To close an account is to postpone the balance to the following year at the end of the accounting period.

The closing entry is an accounting entry that is passed to carry forward the balance of an unbalanced account to the following accounting period.

Closing stock is the stock of inventory available with the business at the end of the accounting period.

Collateral/Security/Mortgage are assets that are given as security for obtaining a loan. In case of a default on the loan, the lender has the right to take up the ownership of the collateral.

Collection period defines the amount of time it takes to convert your average sales into cash. In other words, it is the time allowed to sales debtors for payment.

A combined financial statement is a financial report that combines the financial statements of two or more merged business entities.

Commercial paper is another form of short term financing issued by businesses to investors for a 2 to 270 day period.

Common Size analysis is a type of financial analysis where one item/account is considered to be the base value and all the rest are compared to it.

A company is an association of the people who bring in capital and undertake a legal business activity. A company may be limited by guarantee or shares.

A comparative statement is a financial statement that compares the results of two or more previous years with the current results.

Compliance audit is a watchdog procedure to verify that the business is complying with the set of rules and procedures that are set for it. It can be in relation to the accounts audit which ensures that the actual accounting details are disclosed.

A compliance panel is a committee of people in care of a compliance audit. This can be relative to the financial audit committee.

Composite depreciation is to combine similar assets in a same class and apply depreciation to all of them at flat rate.

A composite financial statement is an average of financial statements of either two or more companies or two or more periods.

Compound interest is the interest determined on the principal over which the interest continues to accrue over time.

Compound general entry is an entry of an economic event that simultaneously affects either two or more debits or two or more credits or both.

A compulsory liquidation is the clearance of the assets of the company by a court order when the company is not able to pay off its outstanding debts.

Concessionary loans are sanctioned by the government to the companies to fund a particular activity as required by the issuing authority.

A conglomerate is a group of different companies run in accordance with the same umbrella ownership and run as a single entity.

Conservatism principle of accounting says that the estimates of the company should be conservative and not understated or overstated.

Consistency principle of accounting says that the same accounting policies and procedures should be monitored in every accounting period.

Consolidated capital includes all the assets and money that is employed in day-to-day business operations.

A consolidated financial statement is a broad statement that gives details regarding all the assets, liabilities and operating accounts of the parent company and subsidiary companies under it, if any.

The continuity assumption in accounting states that the accounting for the business should be carried out assuming that the business will have an unlimited life span.

A contributed surplus is the money earned through selling the shares of the company over the par value.

Contributed margin is the excess of proceeds from sales over the variable costs. It gives the total revenue available for servicing the fixed costs.

Controllable expenses are those that can be controlled, restrained or avoided completely by the business.

The word’ Convertible’ is generally used to mention one type of security that can be turned into another type of security.

A corporation is a business that has been included and enjoys separate legal rights from its owners.

Cost Assignment is the assignment of costs of an account to the various accounts that are accountable for incurring the cost.

Cost benefit analysis is the analysis of the costs and benefits associated with any business decision by first estimating the costs and then the expected return.

A cost center of an organization is one that doesn’t directly add value to the product, but are indirect costs. Sales and marketing costs are cost centers, for instance.

Cost of Capital is the rate of return that a business can earn with different investments. It is calculated so that the most effective investment decision can be made by the business.

Cost of Equity is the compensation that the investors demand for their investment and risk, that the business is under an obligation to pay.

Cost of Goods sold is the cost of procuring and processing goods. It includes direct material, labor and factory overheads.

Cost plus is a method of pricing that involves finding out the total cost required to develop a finished good and then adding a reasonable rate of profit.

Cost principle of accounting says that the fixed assets purchase should be registered at the cost at which they were purchased, as opposed to their economic costs.

Cost reduction is an exercise taken to lower the total costs borne by the company by not incurring the avoidable costs.

Cost Rollup is the identification of all the cost items in the total costs incurred in the course of the business.

Cost split is one of the most basic elements of costing and involves systematic breaking down of all the costs that can be associated with production.

Cost profit volume analysis is a review of variable costs per unit, the reaction of the total costs, revenues and profit, owing to the changes in the output level, selling price, and the fixed costs.

Credit Control is a situation where obtaining credit is discouraged by increasing the cost of credit.

Credit line is the highest credit allowed by the business to one customer, a group of customers or all the customers.

When a customer returns the ware to the business, then the business issues a credit note to his name, saying that his account has been credited for the value of the goods returned.

Creditor account is a cumulative record of all the creditors to the business. It is a record of the money payable to them.

Credit sales are sales for which cash isn’t paid immediately. However, the customer promises to pay it on a future date.

Cumulative preferred stock is a type of preferred stock on which if the dividend isn’t paid in one year, then the dividend will accumulate to the future years.

Current Assets are those assets in the possession of the company that are normally sold or converted into cash within a year.

Current cost accounting is a type of accounting that records the updated amounts agree with the current cost in contrast to the historical cost.

Current liabilities are the liability obligations of the business which it is intended to pay off within a year.

A custodian is the business entity that is under the responsibility of maintaining records or is the caretaker for a property.

Days payable outstanding shows the amount of time it takes for the business to pay back its creditors on receipt of inventory from them.

Debentures are instruments employed by the business to raise money. A debenture may be backed by security or unsecured.

A debit is an entry on the left side of a ledger account which eventually increases the amount of assets or expenses or decreases the liabilities, revenue or the net worth.

A debt is money or goods or services which one business owes another business. A business that owes money to another is said to hold a debt over the other.

Debt coverage ratio is the comparison between the net income of an investment and the amount required to service the debt.

Debt financing means to finance the activities of the business by issuing debt instruments like bonds and debentures or getting loans.

Declining balance depreciation method is a method of assessment of depreciation at a fixed rate. Under this method, an asset will continuously be depreciated a fixed rate of percentage and the resulting depreciation will be on the reduced balance.

Deductive accounting theory works on the premise that accounting standards and reporting rules can be built on logical and mathematical deduction.

Default is when a debtor to the business doesn’t pay the amount owed to the business, due to inability or unwillingness on his part. It is used more usually in the context of banking where a default is a situation when a person who has made a loan doesn’t pay it back.

Deferred Development Costs are those which will be recognized after a certain condition/obligation is satisfied.

Deferred expenditure is expenditure which is carried forward and written off over subsequent periods.

Deferred Maintenance is the expense that ought to have been paid for maintenance but has been delayed.

Deferred payment credit is a letter of credit that states that a payment will be done at the end of the period specified in the charter of credit.

Deferred tax assets are those assets that reduce the tax liability of the business for some years over the merits of those assets.

Deferred tax liabilities are the opposite of deferred tax assets and have the effect of increasing the tax payment of the business in the next years.

Deficit spending is the external financing required to finance the expenses that aren’t covered by income.

Delinquency Ratio is the ratio that compares the past-due loans to the loans that have been serviced completely.

A demand deposit is a deposit kept with a bank from which money may be withdrawn at any time without any notice.

Demand draft is an instrument of payment that one person gives to the other and the other person can demand money against it.

Departmental accounting is maintaining the account of the expenses and revenue of the various services of the company that have varying autonomy, but aren’t geographically separated.

Depreciated Historical Costs = Cost of their Acquisition + Enhancement-Reduced Depreciation till that date.

Depreciation is writing off the book value of a fixed asset every year, owing to the reduction in its value caused by wear and tear, obsolescence etc.

Depreciation allocation means that rather than simply writing off depreciation each year, the business could instead make an amortization or a reserve for improving the fixed asset or for buying a new one.

Depreciation reserve is used to set up a systematic account by allocating the depreciated price of a fixed asset over all of its life.

A depreciation schedule is a statement showing the details of the amounts and the time of depreciation over its effective life.

A derivative is a transaction or a contract whose value is taken from the value of the underlying assets.

Devaluation is reducing the value of something. It is most widely used in the context of currency value reduction.

Diluted Earnings per share are calculated not only on equity stock but also on preferred stock and convertible debt.

Direct Labor Rate Variance is the difference between the standard hours to be worked by an employee and the actual hours worked by the employee.

The director’s report is prepared by the director of the company in the annual report as to his analysis and observations on the performance of the company during the past year and the director’s vision for the next year.

Direct write off method is to cancel all the bad debts at the time that they’re adjudged non-collectable.

Disclosure principle in accounting says that any detail regarding the information related to the greater understanding of the financial statement should be disclosed by the management.

A discount is said to be allowed when the seller reduces the price to induce the customer to make a purchase.

Discounted cash flow is to discount the cash flow from an investment at the required rate of interest each year.

Discounted earnings is to lower the value of future inflows into the company by a specific rate of interest.

Discounted payback period is the period of time it will hold to cover your initial cash outflow at the discounted rate of interest.

Discretionary costs are those costs that can be increased or decreased at the selection of business.

Disintermediation is the transfer of funds from the low return investment options to the higher return options.

Dividend is part of the earnings of the business that is given to the shareholders of the company.

Document control is the department in the company that looks after the documentation in the company and take good care of all the documents.

Double Leverage refers to a situation where the holding company raises the debt and dowstreams it to the subsidiary company.

A draft is a note that signifies a contract between a buyer and seller, be said that the buyer will pay the specified sum of money at the end of the specified period.

Duality concept is an accounting concept which states that every accounting entry will have two effects, debit and credit.

EBITDARM is the acronym for Earnings Before Interest, Taxes, Depreciation, Amortization, Rent and Management fees.

Economic entity is the accounting concept that offers a context for economic events for recording the transactions.

Economic order quantity is that level of inventory to be ordered which minimizes the cost of holding and transporting inventory along with having the required stock all the time to ensure that the production activity doesn’t get hindered.

Economies of scale is a theory that the greater quantity you buy, the lesser is the average cost of each individual item.

Effective interest rate is the cost of credit computed on a yearly basis and expressed as a percentage.

Employee compensation is the wages/salaries and all the other benefits given to the employee by the employer.

Entity concept of accounting states that the business and its proprietors are different entities and the personal transactions of the proprietor shouldn’t be given in the books of accounts.

Equity Accounting is the practice of showing the undistributed profits of another company in which one company holds an ownership of below 50%.

Equity holding is holding a share of capital in a company which gives the shareholder the rights to vote, receive dividend etc.

Equity to asset ratio gives the amount of assets that are funded from the shareholders’ equity capital.

Errors of original entry are those where a wrong amount is entered on both debit and credit sides in the journal.

Ethical standards are written documents that contain the basic principles and essential procedures, together with the related guidance in the form of explanations and other material.

Excise tax is the tax that is levied by the federal government or the state government on activities such as manufacture, privilege, sale, non, and occupation-deductible consumption.

An executor is a legal entity, specified in the control of the deceased that is vested with the authority to execute the will.

Factory overheads are those costs incurred within the factory that cannot be directly assigned to direct costs.

Fair market value of a commodity is the value at which the seller is willing to sell the commodity and the buyer is ready to buy it.

Fair value is the value at which a seller is willing to sell and the buyer is willing to buy an asset.

F & A is the commonly used acronym for either Facilities and Administrative costs or Finance and Accounts or Finance and Administration.

A variance is said to be favorable when the actual spending/use of resources by the business is lower than the standard spending/use.

Fees earned is an income statement account which shows the service revenues earned during the period.

Fictitious asset is the debit balance on the asset side of the balance sheet. Intentional creation of fictitious assets may amount to fraud.

Fiduciary is a business or an individual that has the authority to act for another in good faith and trust.

FIFO is the acronym for First In First Out. It assumes that the inventory that is purchased first is used or sold before the inventory that is purchased later.

Finance may be used in order to mean either money, or the subject which dealt with effective management of funds or a department in the company which is under the responsibility of managing funds.

Finance charge is the total amount expressed in dollar terms which you’ll be charged as interest for loan.

Financial Accounting is the process of recording all the transactions of the business for reporting and analysis.

Financial cash flow is the cash flow which is produced by the assets of the company and how those funds are distributed to the shareholders.

Financial budget can be broken up into two types. Capital budget is the prognosis for large expenditures and cash budget is the forecast for cash receipts and disbursements.

Financial management is a subject which dealt with financial management and control, through analysis of financial statements.

Financing cost is the difference between the cost of purchasing the asset and the return that the asset provides.

Fixed deposits are amounts which you keep with the bank for a specified period of time and earn a specific rate of interest which is higher than the rate for savings accounts.

Fixed income is the type of income which you get from an investment. Interest on bank savings is a good example of fixed income.

Fixed overhead costs are those costs that aren’t directly related to the production and remain fixed, regardless of the level of production and sales.

Flat rate implies that the price of a commodity will continue to be the same, independent of the volume sold.

Freight is the cost incurred in transporting assets or goods to or from a warehouse or place of production.

A full charge bookkeeper is one who can do all the accounts work right from journal preparation to making the final financial statements.

Full cost recovery is adjusting the prices of goods /services so that all the fixed and variable costs of the product are met.

An asset is said to be fully depreciated when it has been charged with the maximum total depreciation as is permitted by the tax authorities for that asset.

Gain is the excess of total revenue over total expenses. Gain may likewise be used to describe a rise in value, rate or prices.

Gearing ratio is the ratio that measures the percentage of the total capital employed financed by long term debt.

Generally Accepted Auditing Standards are the standards, rules and guidelines set by the Auditing Standards Board of the American Institute of Certified Public Accountants.

Going Concern Concept of Accounting assumes that the business will be in existence for all the foreseeable future.

Going public is used to show that a certain business is going to issue publicly traded share capital.

The Golden Rules of Accounting govern the processing of the various types of accounts in case of an economic event.

Goodwill is an intangible benefit one business enjoys over its rival as the market is ready to absorb the goods of the old company even at a higher price.

Governance is the notice of exercising authority or simply governing which is carried out by the Board of Directors.

GP Ratio is the acronym for Gross Profit Ratio. The Gross Profit ratio measures the relation of the gross profit and sales.

Hidden assets are any value generating assets in the business that aren’t contained in the balance sheet of the company.

High-Low method is a method of approximating cost method is one which considers only the highest and lowest items of the given data and the activity in the given range.

High Yield Debt is a debt instrument that gives a higher yield/return as it’s a higher risk instrument.

Hire and Purchase agreement is an agreement where the buyer hires an asset/goods at a rate of rent and at the end of the renting period and after paying all the installments, receives ownership of the asset or goods.

A holding company is one that holds more than 50% stake in another company (known as subsidiary company).

Horizontal Financial Analysis is the analysis of the ratios of one company with those of the competitors and with those of the industry.

A hostile takeover is when one company buys out the other company whether the board approves of it or not. It is usually done by buying the majority stake of the company from the publicly traded share, thus becoming the majority stakeholder, bypassing the board of directors.

Hybrid instrument is a bundled instrument containing two or more different types of risk management instruments.

Identifiable assets and liabilities include both tangible and intangible items in the balance sheet.

Immovable is generally employed in the context of assets which are permanent and stationary, like land and buildings.

The rate of interest is said to be implicit when the stated interest rate is different from the market rate.

Imprest basis meant that the cash balance for expenditure in the cash account is replaced at the end of every period.

Incorporated is a type of business entity that has been authorized to operate as a corporation by the adoption of the state government.

Indirect shareholding is when a company A holds a direct shareholding in company B and company B holds a direct shareholding in company C, company A is said to have an indirect shareholding in company C.

Installment sale is selling a commodity and receiving the payments for it over successive periods rather than a lump sum.

Insurance claim is the written notification which the insured gives to the insurer to call for the amount due under the policy.

An Intangible asset is an asset that cannot be physically seen or felt, but its presence benefits the company, e.g goodwill.

Intellectual capital is the resource of specialized knowledge that a company has and is recognised as a asset to the company.

Interest rate is a percentage of the total investment/debt at which the interest amount is given/paid.

Internal rate of return is the rate of return, expressed as a percentage, the net present value for which is zero.

Intrinsic value is the value of something by itself, regardless of its use and whether it is used.

Inventory and purchases budget is the budget set by the company for purchasing and storing inventory.

Inventory transfer is a process that physically tracks the transfer of inventory from one place to another.

Inventory turnover ratio gives the number of times the inventory is purchased and used up for production or sold in a given period.

Investment capital is the capital raised by the issue of shares or long term debt instruments like debentures.

Investment expense is the expenses incurred on the inventory other than those expenses which are incurred for purchasing the inventory, like installation costs, brokerage etc.

Investment tax credit is a tax credit that is given to the businesses to write off a share of the cost of purchasing equipment.

Investment turnover is the ratio used to assess the number of times an asset or investment revolves.

IPO is the acronym for Initial Public Offering. It is the first time that a business goes public with the issue of shares.

Joint Payee endorsement is when a bank draft is made out to two parties. Both parties are required to endorse the rear of the bank draft before it is honored by the bank.

Joint Stock Company is a type of company that enjoys some features of a corporation and some attributes of a corporation.

Kaizen Budgeting is the budgeting approach which takes into account projected future costs rather than current practices.

Land is the asset account under which the details and the costs of land holding for the business are given.

Ledger is the book which is made up of various individual accounts to which the journal entries are posted.

Ledger group is a group of ledgers that consist of a primary ledger and a number of secondary ledgers.

LIFO is the acronym for Last In First Out. It means that the inventory which is purchased last is used or sold first.

Lifting and Operating expenses are generally involved in the oil and energy industry, in the running and maintenance of oil wells.

Line of Credit is an agreement between a financial institution and a business where the financial institution agrees an upper limit on the amount sanctioned without having to take another loan.

Loaded labor rate is the total of the employee remuneration, capital expenses, benefits, and other overheads on labor.

Long term debt is a type of financing that is made by a business and the maturity of which is several years hence.

Management accounting deals with the entire range of collection, recording, examining and managing the financial activities of the company by the management.

Manufacturing account gives the total of the first and overhead costs of manufacturing finished goods.

Manufacturing overheads include all the indirect labor costs, indirect material costs and indirect expenses used for manufacturing.

Marginal benefit is the extra amount of benefit derived by an increase or decrease in a unit of an activity.

Marginal profit is the incremental profit derived by an increase in production by one unit of the goods.

Marketable capacity is the difference between the total capacity absorbed by the market and the predicted capacity.

Marketing expense is the money that the company spends on marketing their goods during the accounting period.

Master Budget is the main budget prepared by the business which includes several budgets that relate to each head in respect of which the budget is prepared.

Matching concept is the concept in accounting that states that the costs and revenues should be matched in the income statement.

Material control is proactively controlling the materials that are employed in the manufacturing activity.

Generally Accepted Accounting Principles, except when their use is difficult or financially unviable.

Materials Requisition planning is the process of planning for materials that are required regularly in the process of production.

Materials is generally used to designate the raw materials that are employed in the process of production.

Merger is the union of two or more businesses where one isn’t represent a charge against the other, but instead, they both maintain their separate identities.

Miscellaneous income is the income which is taken from sources other than the usual sale of goods.

Modified internal rate of return is the rate of return which is changed to match up with the required rate of return.

Monetary assets are the assets that are measured in their present collectible amounts, as opposed to their historical costs.

Money measurement concept is one of the most basic concepts in accounting which says that all the transactions should be assessed in money terms.

Natural accounts are user-defined accounts for the various activities which are linked to the accounting entity that capture data at the transaction level.

Negative Amortization is when the outstanding principal balance of the loan increases rather than decreasing, just as the case with normal amortization.

Negligence is defined as an omission to do what a reasonable man would haven’t forgotten to do.

Negotiable instrument is a document which is a debt or money payable by one person to another.

Net accounts receivable is the total accounts receivable minus a deduction for those accounts which, the company assumes, will not be collected.

Net of taxes usually indicates the effect of applicable taxes. This has been taken into account in determining the overall effect of an item on the financial statements.

Net Present Value (NPV) is the difference between the present value of the full stream of future inflows of cash from an investment and the present value of cash outflow for purchasing the investment.

Net purchases is the amount of purchases after deducting the purchase returns, allowances and discounts.

Net sales is the amount of sales attained after deducting the sales returns, allowances, discounts etc.

Nominal interest rate is the rate of interest that is specified in the contract document for a bond, loan etc.

Non equity share is a type of share which shows the indebtedness of company to the shareholder, but is not part of the equity interest in the entity.

Non performing asset is the asset that doesn’t provide a return or isn’t effectual in generating income.

Non-profit organizations are those organizations running for social benefit and not for making profit.

Objectivity principle of accounting states that transactions will be entered on the basis of objective evidence available.

An off balance sheet asset is one that represents a resource of the entity or something that is expected to have a future economic value.

Operating Allowance is an advance/reimbursement which is made against certain costs/expenses and/or a reduction in amount payable to cover those certain costs/expenses.

Operating budget is a mixture of the various budgets that are set for operations. The various budgets included in operating budget are sales and collection budget, cost of goods sold budget, inventory and purchases budget and operating expenses budget.

Operating cycle is the time difference between purchasing raw materials and realizing the cash from the sales of finished goods.

Operating expenses to sales ratio gives the percentage of the total sales revenue which serves to pay for operating expenses.

Operating profit to sales ratio is the ratio which compares the operating profit to the sales and shows how much percentage of sales constitutes the operating profit.

Operating transfer is where a transfer of funds or resources is made from one account to another to fund the operations of that account.

Opportunity cost is the cost of choosing or not choosing one investment plan or an operation over another.

Order of liquidity is a format for preparing the balance sheet where all items on the asset side of the balance sheet are shown in descending order of liquidity.

Order of permanence is format for preparing the balance sheet where all the fixed assets are arranged in the descending order of their permanence.

Ordinary income is the income earned through the ordinary course of business and not from any capital gains or extraordinary windfall gains.

Organization cost is the expenses incurred to engage in a business entity. These costs are also known as startup costs and include the money spent on legal fees etc.

Outstanding shares is the number of shares that are currently issued by the company and owned by the shareholders.

Overdraft is a facility given by a bank to an account holder which permits the account holder to get a negative balance.

Overhead is the cost which isn’t directly incurred on production, but indirectly incurred for other reasons.

Overhead budget gives all the expected production costs other than direct materials and direct labor.

Overhead rate is obtained by totaling all the expenses for one year, excluding labor and materials, and then divided by the total cost of labor and materials.

Paid up capital is the total amount paid by the shareholders for acquiring the stock of the company.

P & L is the acronym for profit and loss statement. It gives the details regarding the incomes and expenses of the business over the accounting period.

Par value is the face value. It is usually used while referring to bonds or other financial instruments.

Pay cycle is a set of rules which establish the criteria for selection of scheduled payments for payment creation.

Payout ratio is the dividend paid by the company to the shareholders out of earnings expressed as a percentage.

Performance budget is a budget format that individually relates the contribution of resources and the output of services for each unit in an organization.

Period costs are those which cannot be accumulated and need to pay off by charging them against the revenue in that year itself.

Periodicity Concept is the accounting concept which states that each accounting period has an economic activity associated with it, and that such activity can be measured, accounted for, and reported.

Periodic valuation of the assets deals with determining the future value of assets and investment portfolios.

Persistent earnings are continually recurring level of earnings from one accounting period to the other.

Personal account is a type of account that keeps the record of transactions of different people connected with the business, such as debtors and creditors.

Pledged accounts receivable is a brief term loan arrangement where the accounts receivable of the business are kept as security with the lender.

Pledged asset is the asset given to the lender of a loan as security. In case the person who has made the loan defaults on the payment, then the assets will be made by the lender.

A portfolio is the details and summary of all the investments as purchased by a business entity or an individual.

Preference shares are a type of capital stock, the holders of which enjoy the first right on the dividends of the company. This may be at a fixed rate and may even be cumulative.

Preferred creditor is the creditor whose debt is to pay off before paying off the debts of other creditors.

Pre-operating costs are costs which are deferred till the related assets are ready for the revenue service at which time the costs are charged to operations.

Present value is the discounted value of the amount of money receivable in the future as a lump sum or an annuity.

Process costing is the costing which is carried out on the various process of the business to determine the cost of each process.

Productivity Ratio is the ratio of the output generated by the business to the input employed by the business for production.

A promissory note is a financial instrument issued by the debtor stating that the debtor intends to pay the money he owes to the creditor in the specified period and signature by the debtor to that effect.

Proprietary asset is the asset which is regarded as intellectual property and shouldn’t be disclosed.

Proprietary theory assumes no difference between the business and its owners and considers them as one and the same.

Proprietor’s draw is the cash withdrawal made by the proprietor from the business for his personal use.

Public issue is the decision taken by the company to raise more capital by the public issue of share capital.

Purchase account is the ledger account in which all the purchases of the raw materials or inventory are recorded.

Purchases method is an accounting method for an acquisition using market value for the strengthening of the net assets of the two entities on the balance sheet.

Purchase returns is the part of inventory which is referred to the seller due to bad quality, unusable nature of the goods supplied etc.

Rate of return is the gain or loss made by an investment or a business as a whole, expressed as a percentage.

Ratio analysis is to use the various ratios that help compare the performance of the company with other companies, or with its previous results or for checking internal efficiency.

Real accounts are those accounts which cope with the transactions for an asset or a liability account.

Realizable value is the value that is expected on converting the assets owned by the company to cash.

Realization principle of accounting states that the revenue should be recognised when the goods are sold or the service is delivered.

Rebate is the payment paid to the customer to induce him into a sale or to induce early payment for the sale.

Receipt can be either an act of receiving money or a document issued by the receiver of cash acknowledging that the money has been received.

Reconciliation is the process of cross-checking and correcting/adjusting the balance of two statements so that the numbers of both these statements match for the single item.

Recording principle in accounting governs the time of recording a particular entry. It says that the entry should be recorded when the cash is earned or pledged rather than when the actual inflow or outflow of cash takes place.

Recourse note is the right of the payee to demand payment from the maker or endorser of a negotiable instrument.

A recurring entry is the entry that occurs regularly under the same date (of different months) and presents the same amount.

Registered Bonds are those for whom the names and contact details of the bond holders are held by the issuing company.

Reimbursement is to reimburse the amount to a person who had already borne the expense on our behalf.

Related party transaction is a transaction between two parties where one party has a major control or influence over the other.

Relevance concept is the accounting concept that relates to the capacity of accounting information to make an effect on the decision makers.

Reliability concept is the accounting concept which states that the financial reporting by the company should be reliable and trustworthy.

Replacement cost is the total cost at current prices of an asset which may not be an exact duplicate of the subject asset but serves the same purpose or performs the same purpose as the original.

Reported earnings per share is the part of the total profit actually payable to the shareholders divided by the number of shares available.

Representation expenses are those which are incurred for representational purposes such as business parties.

Residual claim is the claim made with regard to the earnings after all the other debt obligations have been satisfied.

Retained earnings are that part of the distributable profit which haven’t been given to the owners, but retained in the business for future use.

Retained earnings statement is the statement that gives the details regarding the earnings retained by the company in the business.

Return on asset is the ratio which compares the net profit after tax to the total assets in the company.

Revaluation is an activity carried out by the company to look at the value of the assets of the company to make sure that they’re not undervalued or overvalued.

Reversing entry is a rectifying entry which is done to correct an original mistake in recording the entry.

Risk adjusted return is subtracting the rate of return of one asset from the rate of return of another asset, both asset having similar risks.

Safety stock is the amount of stock a company defines as the last the inventory level of the company can go.

The sales account is the ledger account which gives the details regarding the sales of the business.

Sales and collection budget is the amount of sales that the company expects to make in the year and the revenues that it expects to collect.

Sales and marketing expenses are the total expenses spent on creating awareness for the company and the products in the market and selling them.

Sales account is the record of the transaction between the buyer and the seller, put forward by the seller.

Sales order is the contract under which the buyer and the seller of the goods agree on the terms of a contract.

Sales return is the goods returned by the customer to the business due to poor quality, unsuitability etc.

Salvage value is the scrap value realized on the sale of a fully depreciated asset or a asset which cannot be used for production.

Selling and administrative expenses budget gives the amount that is assigned for selling and administrative expenses of the business.

Semi fixed costs are those costs where an element of the cost is fixed and the other is variable. They are also known as semi variable costs.

Sensitive assets are those assets, the return or usability of which can be affected by external uncontrollable factors.

Sensitive liabilities are those which have a floating interest rate which can be affected by external uncontrollable factors.

Sensitivity analysis helps the company check the sensitivity of an item with respect to the various external or internal changes.

Separate determination concept in accounting says that each element of every category of assets or liabilities should be valued separately.

Separate valuation concept in accounting says that in order to establish the aggregate amount of an asset or a liability, each individual asset or liability comprising the aggregate must be judged separately.

Setoff is a means of discharging a debt through the establishment of a debt of the same amount against the creditor, by the sale of goods etc.

Share premium is the extra price paid for purchasing the stock, over excess of the par value of the share at the time of issue.

Single entry book keeping is the opposite of double entry bookkeeping and only one effect of a transaction is recorded.

Sinking fund is a fund created by depositing the profits of each year to the goal of ultimately paying off a debt.

Standard cost system is the cost system that is specifically designed to allocate various costs under their several heads.

Startup costs are the various costs incurred in starting the business. Legal fees and registration fees are part of the startup costs.

Stated capital is the amount of cash reported by the business as capital in the financial statements of the company.

Statement of retained earnings gives the details of the way in which the retained earnings of the company are being utilized.

Statement of stockholders equity is an account of the changes in shareholder equity for the accounting period.

Tainted accounts receivable are those which have some legal problems attached to them, related to fraud, misuse etc.

Target costing involves setting a price for the product and then getting the production costs in line with the target price, way that the business can earn profit too.

Tax is the amount charged to the profits of a business by the government for allowing the activity of the business in the country.

Taxable benefits are those non-cash benefits provided by the employer to the employee on which tax is to be paid.

Taxable income is the income earned by an individual or a business entity on which the tax liability is decided.

Tax accounting means taking into account the effect of taxes while planning business strategies.

Tax effect method states that the effect on tax to be paid, must appear in the books of accounts in the year during which the income is recorded, irrespective of when the tax is actually paid.

Technically bankrupt is a situation where the company’s liabilities have exceeded its assets, presently, but the creditors have not yet asked for their money.

Term bonds are bonds which are held for a certain predefined amount of time whose principal amount is payable at maturity.

Time value of money is a concept that states that money in hand today is more precious than money receivable tomorrow.

Trading concern is one that derives its products for sale by purchasing products from other producers for resale to their customer base, thereby generating revenue.

Transportation costs are those which are incurred in transporting the goods from one place to another.

Unabsorbed costs are those which occur when the cost structure doesn’t fully reflect all variable and/or fixed costs.

Unappropriated profits are those which have been removed from the business by the proprietors or not appropriated.

Uncollectible accounts expense is the expense incurred in the attempt to realize payment from a debtor. However, the debtor doesn’t make the payment.

Uncontrollable expense is that expense involved in the usual course of business which cannot be controlled.

Under-billing isn’t receiving the full amount payable or charge for a lower amount than what is receivable.

Unresolved equity is the difference between the total assets and the total liabilities in the balance sheet.

Useful life is the approximate amount of time in respect of which the asset is supposed to be useful before it is fully depreciated.

Valuation allowance is an allowance which envisages changes in the value of the assets of the company.

Variable interest rate is the interest rate which changes based on the changes in an underlying interest rate index.

So this was a comprehensive accounting terms and definitions glossary. I think this accounting glossary will answer all your queries and doubts regarding accounting terminology.

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