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PARKINSON'S LAW |
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"Work expands to fill the time available for its completion."
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PAYROLL RECORD |
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Complete information concerning wages and salaries paid.
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ACCOUNTS RECEIVABLE |
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Money owed by customers to the business; amounts owed to a business for goods and services sold by the business but not yet collected. A key factor in analyzing LIQUIDITY of a business is the ability to meet current obligations without additional revenues.
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ACCRUAL METHOD |
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See ACCRUAL BASIS.
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ACCOUNTS RECEIVABLE AGING |
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Classification of customer ACCOUNTS RECEIVABLE according to the date of sale. The aging schedule reveals patterns of delinquency and shows where collection efforts should be concentrated. The longer accounts are left unpaid, the more likely they become uncollectible. Aging evaluations can help prevent losses on future sales, since old customers who fail to pay may begin buying from other sources of supply and will leave bad debts on the aged accounts in your business. See AGING; AGING SCHEDULE.
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ACCRUED EXPENSE |
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A debt that has been incurred or has accumulated over a period of time and must be paid but has not yet been paid.
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ACCOUNT PAYABLE |
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See ACCOUNTS PAYABLE.
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ACCELERATION CLAUSE |
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A provision in a NOTE, BOND or MORTGAGE that states that, in the event of a default by the debtor, the entire balance outstanding shall become due and payable.
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AD VALOREM TAX |
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A tax that is proportionate to the value of the property being taxed, such as sales tax; a tax calculated as a flat percentage of sales price. As opposed to a specific tax per unit based on quantity, such as excise tax per package of cigarettes.
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ACCOUNTING |
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The system for recording, verifying and reporting financial information. Also, the profession performing these functions. See also ACCOUNT.
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PC |
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See PERSONAL COMPUTER.
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ACCOUNTING PERIOD |
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The normal calendar duration for reporting of financial information. The time for closing accounts when accounting data are summarized into financial statements. In most businesses, this is done monthly, quarterly and annually.
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ACCOUNTS RECEIVABLE FINANCING |
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Short-term loans made to obtain cash using ACCOUNTS RECEIVABLE as COLLATERAL. The cash received will be less than the amount of the accounts receivable.
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PAR |
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The nominal or face value of a security such as a stock or bond as stated in equivalent dollars. For COMMON STOCK or PREFERRED STOCK, the par value is stated in the ARTICLES OF INCORPORATION. In a NEW ISSUE of stock, the sale is at par, and the proceeds of the sale are recorded as EQUITY in the books of the corporation.
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PERSONAL ACCOUNT |
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An ACCOUNT that is for the transaction of business with a person, as opposed to a COMMERCIAL ACCOUNT for the transaction of business with another company.
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PAYMENT |
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An amount paid; something that is paid.
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PARENT COMPANY |
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A firm that owns or controls another company, as a subsidiary, through the ownership of voting stock. The company that owns a subsidiary is the parent company.
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ACTUAL |
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That which has occurred, as opposed to that which was previously expected, budgeted, estimated or planned.
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PERSONAL FINANCIAL STATEMENT |
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A BALANCE SHEET and an INCOME STATEMENT for a person identifying assets, liabilities, net worth, income and expenses. Used to substantiate the person's financial solvency, often part of a loan application for a start-up business. See Self-Help Guide C.
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ACCUMULATED DEPRECIATION |
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An accounting term for the amount of DEPRECIATION accrued over a period of time.
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ACCOUNTING PRINCIPLES |
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Basic concepts, assumptions, policies, methods and practices used by a company for maintaining the BOOKS OF ACCOUNT and summarization into FINANCIAL STATEMENTS. The principles should be consistent with GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. In larger companies, accounting policy, practices and principles may each have more precise definitions.
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PAID-IN CAPITAL |
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Same as CAPITAL INVESTMENT, but excluding more precise components as defined in CAPITAL SURPLUS.
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