Business Glossary - A


Accounting - The recording, classifying, summarizing and interpreting in a significant manner and in terms of money, transactions and events of a financial character.

Accounts Payable - Trade accounts of businesses representing obligations to pay for goods and services received.

Accounts Receivable - Trade accounts of businesses representing moneys due for goods sold or services rendered evidenced by notes, statements, invoices or other written evidence of a present obligation.

Accrual Accounting - A method of reporting income when earned and expenses when incurred, as opposed to reporting income when received and expenses when paid.

Accrual method - reporting income when it is earned, though one may receive payment in a later year. Expenses are deducted in the tax year they are incurred, whether or not they are paid in the same year.

Accrued Interest - The interest that has accumulated since the last interest payment up to, but not including, the settlement date and that is added to the contract price of a bond transaction. There are two methods for calculating accrued interest: the 30-day-month (360-da

Acquisition - The acquiring of supplies or services by the federal government with appropriated funds through purchase or lease.

Actual Expenses - refers to car and truck expenses. Method used to deduct costs of operating and maintaining a car or truck in your business, for example, depreciation, gas, repairs, etc. Expenses must be divided between business and personal use if used in both.

Affiliates - Business concerns, organizations, or individuals that control each other or that are controlled by a third party. Control may include shared management or ownership; common use of facilities, equipment, and employees; or family interest.

Agent - (1) An individual or firm that effects securities transactions for the accounts of others. (2) A person licensed by a state as a life insurance agent. (3) A securities salesperson who represents a broker-dealer or issuer when selling or trying to sell sec

Amortization - reduction of debt through installed payments.

Amortization - (1) The paying off of debt in regular installments over a period of time. (2) The ratable deduction of certain capitalized expenditures over a specified period of time.

Appreciation - The increase in value of an asset.

Assets - cash, property, and other resources owned by a firm.

Assumptions - The act of assuming/undertaking another’s debts or obligations.

Auction - A public sale of goods to the highest bidder.

Authorized Stock - The number of shares of stock that a corporation is permitted to issue. This number of shares is stipulated in the corporation’s - state-approved charter, and may be changed by a vote of the corporation’s stock-holders.

Automatic Data Processing - *** Data processing largely performed by automatic means. *** The discipline which deals with methods and techniques of automatic data processing. *** Pertaining to data processing equipment such as electrical accounting machines and electronic data proce