Accounting Dictionary

S Corporations offer tax savings & liability protection but come with strict IRS rules. Learn if an S Corp is right for your business in this guide.

Standard & Poor's 500 Index measures 500 top U.S. companies. Learn how it works, why it matters, and how to invest in ETFs and index funds.

SME Sources of Finance encompass a wide range of avenues that small and medium-sized enterprises (SMEs) utilize to sustain their businesses.

Learn how safe havens like gold, bonds, and defensive stocks protect investments during market downturns. Discover effective strategies today.

Safety Stock Guide: Learn how to calculate and optimize safety stock to prevent stockouts, reduce costs, and ensure seamless inventory management.

Learn how the Salaries and Wages Control Account tracks costs, categorizes expenses, and aids accurate financial planning and reporting.

Salary and fringes explained—learn how to evaluate total compensation, compare job offers, and make informed career decisions.

Discover how sale and leaseback transactions work, their benefits, risks, and key steps to structure them for business success.

Sales Allowance Guide: Learn how sales allowances work, how to calculate them, and their impact on revenue and customer loyalty.

Understand the sales backlog ratio, how to calculate it, and why it matters for forecasting and operations—plus real-world insights.

The Sales Budget is a key component of an organization's functional budgets, serving as the starting point for the entire budgeting process.

Learn how sales commissions work, with real examples, common structures, and tips to build effective, performance-driven plans.

A practical guide to all 7 sales cycle stages with expert strategies to boost conversions and client relationships.

Learn what a sales day book is, its key features, and how it helps streamline credit sales transactions for businesses.

Learn how to use sales discounts strategically to boost revenue, retain margin, and attract customers without harming your brand.

Master sales forecasting with expert methods, real-world examples, and tools to drive accurate revenue predictions.

Manage sales function as a cost or profit centre, balancing expenses and revenue to boost profitability with detailed insights and examples.

Learn about sales invoices: structure, payment terms, and best practices to ensure smooth transactions and accurate business accounting.

Learn what a sales journal is, how it records credit sales, and why it's essential for organized, accurate accounting systems.

Sales Margin Calculation explained with formula, real examples, and expert tips to boost profitability and understand your business.

Learn the top sales metrics to track performance, improve strategy, and grow revenue with real examples and expert insights.

Sales Mix Guide: Learn how to calculate it and why it’s crucial for boosting business profitability and strategic decision-making.

Understand Sales Mix Variance Analysis, how it impacts profitability, and how to calculate and apply it for strategic business decisions.

Learn about sales orders, their components, best practices for managing them, and how technology is transforming the process.

Learn how to effectively use a Sales Returns Day Book to track returns, improve accounting accuracy, and streamline inventory management.

Accurately record Sales Returns and Allowances to reflect net revenue, improve customer satisfaction, and maintain financial integrity.

Comprehensive guide to sales revenue: definition, calculation methods, significance, and key factors influencing business performance.

Learn how to manage sales tax accounting for small businesses, including calculating taxes, remitting payments, and avoiding penalties.

Learn everything about sales tax elements: how it works, output/input tax, rates, exemptions, and key tips for businesses to stay compliant.

Learn the essentials of the sales tax system, including its principles, invoice requirements, and how businesses ensure compliance.

Learn to record sales transactions (cash or credit) with examples and discover best practices for managing receivables and cash flow.

Learn how sales trend analysis drives business growth with forecasting, opportunity identification, and data-driven strategy insights.

Sales Turnover Guide: Clear definition, calculation, and strategies to improve sales turnover and assess business performance effectively.

Sales Variance Guide: Understand, Calculate, and Apply Sales Variance with Real Examples and Strategic Insights.

Understand sales volume variance with formula, examples, and business insights. Learn how to analyze and apply it effectively in 2024.

A clear guide to Sales and Purchase Agreements (SPAs), covering key terms, legal uses, and common misconceptions.

This chapter delves into the revenue and cost cycle, focusing on the recording of sales and purchases, particularly in credit transactions. It covers the…

This chapter provides a comprehensive exploration of sales and trade receivables, focusing on pricing, settlement, credit risk, and control. It distinguishes…

This chapter provides a comprehensive examination of sales, purchases, tax, and trade discounts, crucial for accurate financial reporting and decision-making…

This chapter explores the recording of sales, purchases, and tax on transactions, focusing on credit sales and purchases, VAT calculations, and discounts. It…

Salvage Value Guide: Understand salvage value, its role in depreciation, and how it impacts financial and tax planning across industries.

Sampling methods are the bedrock of statistical research, empowering investigators to glean insights from a subset of a larger population.

This chapter explores the essential concepts and techniques of sampling and data collection for business questions. It covers the selection of appropriate…

This chapter explores the critical role of sampling and data-driven audit techniques in modern auditing. It begins by defining audit sampling, explaining its…

This chapter delves into the principles and practices of sampling and measurement in business data analysis. It explains the necessity of sampling for…

Savings and Loan Crisis: How 1980s deregulation led to $160B in taxpayer losses and reshaped U.S. financial regulation.

A deep-dive into scalping: learn how this high-frequency trading strategy works, its risks, tools, and if it's right for you.

Learn how to use scattergraphs to identify correlations, outliers, and trends between two variables in data analysis.

Master Scenario Analysis to prepare your business for uncertainty with strategic planning, real-world examples, and actionable frameworks.

Scenario Planning is a decision-making tool employed by organizations to anticipate and prepare for a range of possible future situations.

Master the Schedule of Accounts Receivable with this guide to optimize cash flow, manage credit risk, and improve collections.

Understand audit scope limitations, how they impact audit quality, and best practices for managing them within professional standards.

Scorched Earth Defense is a high-risk business strategy to block hostile takeovers by making acquisition less attractive.

Learn how scrip dividends work, when to choose shares over cash, and what tax and dilution effects to watch for.

Learn how scrubbing accounts payable improves financial accuracy, compliance, and vendor trust with this strategic step-by-step guide.

Discover how seasonality impacts business, finance, and marketing—and learn to analyze and leverage seasonal trends effectively.

Clear guide to Seasonally Adjusted Annual Rate (SAAR): what it is, how it's used, and how to calculate it with real-world examples.

Understand seasoned issues in stock markets: what they are, how they work, and what they mean for investors and shareholder value.

Second Order Revenue boosts growth by leveraging existing customers through upsells, cross-sells, and referrals. Learn how to calculate and grow it.

Understand secured bonds: asset-backed investments offering lower risk, regular income, and legal protection in case of default.

Discover how secured creditors use collateral to protect loans and gain priority in bankruptcy and default situations.

Secured and unsecured loans are the two components of the borrowing landscape, differing primarily in the presence or absence of collateral.

Understand securities accounting, its classifications, valuation methods, and compliance rules under IFRS and GAAP.

Learn how securities lending works, its benefits, risks, and process, in this expert guide for investors and financial professionals.

Securitization is a financial process designed to convert illiquid assets, such as mortgages or credit card debt, into tradable securities.

Understand how security interest works in lending, its legal basis, and how it benefits both lenders and borrowers.

Learn how the Security Market Line works, how to interpret it, and how it guides investment decisions using CAPM and beta.

Learn what seed capital is, how it works, and how to raise it. A practical guide for early-stage entrepreneurs and startup founders.

A guide to segment reporting, covering key aspects, benefits, challenges, and tips to enhance business transparency and decision-making.

Master internal self-audits with this expert guide—boost compliance, cut risks, and improve operational efficiency.

Learn how self-liquidating loans work, who uses them, their benefits and risks—plus real-world examples and when to apply.

Understand semi-variable costs: expenses with fixed and variable components. Learn how they impact pricing, profitability, and budgeting.

Sensitivity analysis is a financial modeling technique used to assess how changes in key variables or assumptions impact a decision outcome.

Explore service costing methods to track, manage, and optimize costs for better pricing, efficiency, and performance across industries.

This chapter delves into service costing in non-manufacturing settings, focusing on identifying and analysing costs to calculate a cost per service unit. It…

This chapter explores the concepts of service department reapportionment and the implications of over- and under-absorption of overheads. It begins by…

Learn how settlement discounts work, their benefits for cash flow, and their impact on sales and purchase accounting.

A share buy-back, also known as a stock repurchase, occurs when a company buys back its own shares from the marketplace.

Share consolidation is a strategic financial decision undertaken by companies to increase their stock price and enhance their market image.

Learn how companies set their share issue price during an IPO, balancing market conditions, demand, and financial factors to determine the offering price.

Share options are contracts that grant the buyer the right, but not the obligation, to buy or sell an underlying asset at a set price.

A share split occurs when a company decides to divide its shares into multiple shares, which increases the total number of shares available.

Share underwriters are institutions, typically investment banks, that help companies issue new securities, such as shares, to the public.

Comprehensive guide to share-based payments, covering types, accounting, benefits, and disclosures for equity- and cash-settled plans.

Shareholder rights are the entitlements and protections granted to individuals or entities that own shares in a company.

Short - medium, and long-term finance are distinct funding categories utilized by businesses to meet financial needs over varying timeframes.

This chapter provides a comprehensive toolkit for making short-term business decisions, evaluating investments, and planning cash flows. It covers relevant…

Short-term borrowing is the financial practice of acquiring funds for a relatively brief period, typically ranging from a few days to a year.

Short-term investments are financial assets acquired with the intention of holding them for a short period, from a few days to a few months.

This Early Exercise Guide explains when and why to exercise options early, covering key strategies, risks, and profit-maximizing insights.

Simulation in business decision-making is a technique used to model real-world scenarios and predict outcomes based on various assumptions.

Small and Midsize Enterprise (SME) are business falling within a specific size range, based on factors such as revenue or number of employees.

A guide to Social Security benefits, eligibility, and claiming strategies. Learn how to maximize retirement income and avoid common mistakes.

Socially Responsible Investments (SRI) combine profit and ethics, supporting sustainable companies. Discover how SRI aligns with your goals.

This chapter explores the critical role of source documents in bookkeeping and financial accounting. Source documents serve as the original evidence of…

Sources of finance encompass the various methods by which businesses, governments, or individuals obtain funds to meet their financial needs.

Sovereign Wealth Fund (SWF) is a strategic investment vehicle established by sovereign states to manage surplus financial resources.

Specific Order Costing is a costing method tailored for businesses engaged in producing custom-made or non-standard products or services.

This chapter explores the splitting of mixed costs using the high–low method and simple cost models. It provides a detailed examination of how to estimate…

Spread betting is a type of financial speculation that involves placing a bet on the price movement of a particular financial instrument.

This chapter focuses on developing spreadsheet skills essential for management accounting, a critical competency for tasks such as budgeting, variance…

This chapter focuses on developing essential spreadsheet skills for management accounting, particularly in building models for budgeting, forecasting, and…

This chapter explores the use of spreadsheets for costing tasks, focusing on building clear and reliable cost models. It covers the structure of spreadsheet…

Stakeholders' objectives encompass the diverse goals, interests, and expectations of individuals or groups connected to an organization.

Standard costing is a management accounting tool that helps businesses control costs and evaluate performance by setting benchmarks.

This chapter delves into the use of standard costs and variance analysis as critical tools in performance measurement and management accounting. It covers the…

Standard deviation statistical metric serves as a measure to express how far individual data points deviate from the mean (average) value.

Learn about state benefit contributions like unemployment, housing, and food assistance. Discover eligibility and their impact on society.

Learn about statements of account, their importance in business, and best practices for managing them efficiently for improved cash flow.

Learn how to create a Statement of Appropriation of Profit in partnerships, ensuring fair profit distribution among partners.

Learn how the Statement of Changes in Equity reflects a company's financial health, including share capital, retained earnings, and growth.

Learn how to prepare the Statement of Financial Performance with a step-by-step guide on revenues, expenses, and net income.

Discover the statement of financial position: its components, preparation steps, and insights into your company’s financial health.

Comprehensive guide to the statement of profit and loss and other comprehensive income, explaining its components, purpose, and significance.

Learn about stepped-fixed costs, their behavior, relevant range, and impact on budgeting, pricing, and financial decisions in simple terms.

Stock exchanges are centralized marketplaces where securities such as stocks, bonds, commodities, and derivatives are bought and sold.

The stock market is a complex financial system where investors buy and sell shares of publicly traded companies.

A stockbroker is a professional or firm that acts as an intermediary between buyers and sellers of stocks, bonds, and other securities.

Learn how a Stores Control Account optimizes inventory management, reduces costs, prevents waste, and supports efficient business operations.

Learn the basics of straight-line depreciation, how to calculate it, and its impact on financial statements with easy-to-understand examples.

Strategic planning is undertaken by organizations to chart their course, make informed decisions, and allocate resources effectively.

Strip bond, also known as zero-coupon bonds, are debt securities that do not make periodic interest payments.

Structured Investment Vehicles are entities created to earn a spread between their low-cost debt and high-yielding assets they invest in.

Learn how a subsidiary ledger improve accounting accuracy, track transactions, and enhance decision-making with detailed records.

Discover how substance over form ensures accurate financial reporting by focusing on economic reality instead of legal structure.

This chapter explores the intricacies of substantive testing by area, focusing on key balance areas such as receivables, payables, cash, non-current assets…

Sunk cost refers to expenditures, whether in terms of money, time, or resources, that have already been incurred and cannot be recovered.

Effective supplier communication is key for building strong relationships. Learn strategies to improve clarity, trust, and long-term success.

Learn how to check and reconcile supplier statements to ensure accurate payments, avoid errors, and maintain strong supplier relationships.

Learn how to effectively manage suspense accounts, clear discrepancies, and maintain accurate financial records with best practices and examples.

Swaps are derivative contracts through which two parties exchange financial instruments, payments or cash flows for a certain period.

Systematic (market risk) and unsystematic (specific or diversifiable risk) are the two fundamental types of risk that investors encounter.