In financial terms, a deficit occurs when expenses exceed revenues, imports exceed exports, or liabilities exceed assets. A deficit is synonymous with a shortfall or loss and is the opposite of a surplus. A deficit can occur when a government, …
A deficiency is the numerical difference between the amount of tax that a taxpayer, or taxpaying entity, reports on a tax return and the amount that the Internal Revenue Service (IRS) determines is actually owed. The term only applies to …
AÂ deferral, in accrual accounting, is any account where the income or expense is not recognised until a future date (accounting period), e.g. annuties,charges,taxes,income etc. The deferred item may be carried, dependent on type of deferral, as either an asset or …
Current liabilities are a company’s short-term financial obligations that are due within one year or within a normal operating cycle. An operating cycle, also referred to as the cash conversion cycle, is the time it takes a company to purchase …
Current assets represent all the assets of a company that are expected to be conveniently sold, consumed, used, or exhausted through standard business operations with one year. Current assets appear on a company’s balance sheet, one of the required financial …
A cumulative dividend is a right associated with certain preffered shares of a company. A fixed amount or a percentage of a share’s par value must be remitted periodically to shareholders who own these shares without regard to the company’s …
A convertible debenture is a type of long-term debt issued by a company that can be converted into shares of equity stock after a specified period. Convertible debentures are usually unsecured bonds or loans, often with no underlying collateral backing …
Definition: Conversion costs are the costs that are incurred by manufacturing companies when converting raw materials into finished goods. It is the direct labor plus any manufacturing overheads needed to convert raw materials into a finished product. In other words, …
Cost of goods sold (COGS) refers to the direct costs of producing the goods sold by a company. This amount includes the cost of the materials and labor directly used to create the good. It excludes indirect expenses, such as …
In Production, research, retail, and accounting, a cost is the value of money that has been used up to produce something or deliver a service, and hence is not available for use anymore. In business, the cost may be one …