accounting terminologies (e&f)

Question	Answer
Entity Concept	The view of the relationship between the accounting entity and its owners which regards the entity as a separate person, distinct and apart from its owners.
Equity Share	A share which is not a preference share. Also sometimes called ordinary share.
Exchange difference	Exchange difference is the difference resulting from reporting the same number of units of a foreign currency in the reporting currency at different exchange rates.
Expenditure	Incurring a liability, disbursement of cash or transfer of property for the purpose of obtaining assets, goods or services.
Expense	A cost relating to the operations of an accounting period or to the revenue earned during the period or the benefits of which do not extend beyond that period.
Expired Cost	That portion of an expenditure from which no further benefit is expected. Also termed as expense.
Extraordinary items	Extraordinary items are income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the enterprise and, therefore, are not expected to recur frequently or regularly.
Fair value	Fair value is the amount for which an asset could be exchanged or a liability settled between knowledgeable, willing parties in an arm’s length transaction.
Fair Market Value	The price that would be agreed to in an open and unrestricted market between knowledgeable and willing parties dealing at arm’s length who are fully informed and are not under any compulsion to transact.
First Charge	A charge having priority over other charges.
First In, First Out (FIFO)	Computation of the cost of items sold or consumed during a period as though they were sold or consumed in order of their acquisition.
Fixed asset	Asset held with the intention of being used for the purpose of producing or providing goods or services and is not held for sale in the normal course of business.
Fixed Cost	That cost of production which by its very nature remains relatively unaffected in a defined period of time by variations in the volume of production.
Fixed Deposit	Deposit for a specified period and at specified rate of interest.
Fixed or Specific Charge	A charge which attaches to a particular asset which is identified when the charge is created, and the identity of the asset does not change during the subsistence of the charge.
Floating Charge	A general charge on some or all assets of an enterprise which are not attached to specific assets and are given as security against a debt.
Financial Instrument	A financial instrument is any contract that gives rise to both a financial asset of one enterprise and a financial liability or equity shares of another enterprise.
Foreign currency	Foreign currency is a currency other than the reporting currency of an enterprise.
Forfeited Share	A share to which title is lost by a member for non-payment of call money or default in fulfilling any engagement between members or expulsion of members where the articles specifically provide therefor.
Free Reserve	A reserve the utilization of which is not restricted in any manner.
Functional Classification	A system of classification of expenses and revenues and the corresponding assets and liabilities to each function or activity, rather than by reference to their nature.
Fund	An account usually of the nature of a reserve or a provision which is represented by specifically earmarked assets.
Fundamental Accounting Assumptions	Basic accounting assumptions which underlie the preparation and presentation of financial statements. They are going concern, consistency and accrual. Usually, they are not specifically stated because their acceptance and use are assumed. Disclosure is necessary if they are not followed.
Gain	A monetary benefit, profit or advantage resulting from a transaction or group of transactions.

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accounting terminologies (e&f)

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	Created by Vijaya Raikode over 3 years ago