CPA Exam Glossary

CPA Exam Glossary

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Below you’ll find the links to individual definitions from our CPA exam glossary.


ABC Analysis

ABC Inventory System

ABC Method

Abnormal Spoilage

Above the Line Deduction


Absorbed Overhead

Absorption Costing

Absorption Pricing

Abusive Tax Shelter

Accelerated Depreciation

Access Control


Account Analysis

Account Balance

Account Form

Account Reconciliation

Account Statement

Account Title


Accountant in Charge

Accountant’s Responsibility

Accountant’s Liability


Accounting Adjustments

Accounting Best Practices

Accounting Breakeven Point

Accounting Change

Accounting Concepts

Accounting Conservatism

Accounting Control

Accounting Cost

Accounting Cushion

Accounting Cycle

Accounting Department

Accounting Department Responsibilities

Accounting Entity

Accounting Entry

Accounting Equation

Accounting Error

Accounting Estimate

Accounting Event

Accounting for a Non-Interest Bearing Note

Accounting for Accounts Payable

Accounting for Bonds

Accounting for Contingencies

Accounting for Convertible Securities

Accounting for Debt Issuance Costs

Accounting for Deferred Taxes

Accounting for Income Taxes

Accounting for Insurance Proceeds

Accounting for Intangible Assets

Accounting for Inventory

Accounting for Investments

Accounting for Joint Ventures

Accounting for Pensions

Accounting for Pledges

Accounting for Product Financing Arrangements

Accounting for Repair and Maintenance Costs

Accounting for Sales Discounts

Accounting for Sales Taxes

Accounting for Startup Costs

Accounting for Stock Warrants

Accounting for Unearned Rent

Accounting for Variances

Accounting Frameworks

Accounting Income

Accounting Information System

Accounting Inventory Methods

Accounting Journal Entries

Accounting Methods

Accounting Payment Terms

Accounting Period

Accounting Policies

Accounting Postulate

Accounting Practice

Accounting Principles

Accounting Principles Board

Accounting Procedure

Accounting Profit

Accounting Rate of Return

Accounting Ratios

Accounting Records

Accounting Reports

Accounting Research Bulletins

Accounting Schedule

Accounting Standard

Accounting System

Accounting System Design

Accounting Transaction

Accounting Valuation

Accounting Worksheet


Accounts Closed at Year End

Accounts Payable

Accounts Payable Aging Report

Accounts Payable Analysis

Accounts Payable Controls

Accounts Payable Days Formula

Accounts Payable Ledger

Accounts Payable Ratios

Accounts Payable Turnover Ratio

Accounts Receivable

Accounts Receivable Accounting

Accounts Receivable Aging

Accounts Receivable Analysis

Accounts Receivable Auditing

Accounts Receivable Collection Period

Accounts Receivable Confirmation

Accounts Receivable Controls

Accounts Receivable Days

Accounts Receivable Discounted

Accounts Receivable Financing

Accounts Receivable Ledger

Accounts Receivable Pledging

Accounts Receivable Securitization

Accounts Receivable Turnover Ratio

Accounts Written Off


Accretion Expense

Accretion of Discount

Accretive Acquisition


Accrual Accounting

Accrual Basis

Accrual Basis of Accounting

Accrual Principle

Accrual Rate

Accrual Type Adjusting Entry

Accruals Concept


Accrued Cost

Accrued Expenses

Accrued Expenses Payable

Accrued Income

Accrued Interest

Accrued Liability

Accrued Payroll

Accrued Receivable

Accrued Rent Expense

Accrued Rent Income

Accrued Rent Liability

Accrued Rent Receivable

Accrued Revenue

Accrued Salaries

Accrued Vacation

Accrued Vacation Pay

Accrued Wages

Accumulated Amortization

Accumulated Benefit Obligation

Accumulated Deficit

Accumulated Depletion

Accumulated Depreciation

Accumulated Depreciation – Equipment

Accumulated Depreciation Definition

Accumulated Dividend

Accumulated Income

Accumulated Other Comprehensive Income

Accumulated Postretirement Benefit Obligation

Accumulated Retained Earnings



ACH Debit

Acid Ratio

Acid Test Ratio




Acquisition Accounting

Acquisition Budgeting

Acquisition Cost

Acquisition Date

Acquisition Integration

Acquisition Method of Accounting

Acquisition Payment Methods

Acquisition Premium

Acquisition Process

Acquisition Purchase Agreement

Acquisition Strategy

Acquisition Term Sheet

Acquisition Valuation Methods

Active Market


Activity Analysis

Activity Attributes

Activity Base

Activity Based Budgeting

Activity Based Costing

Activity Based Management

Activity Capacity

Activity Cost Assignment

Activity Cost Driver

Activity Cost Pool

Activity Dictionary

Activity Driver

Activity Driver Analysis

Activity Ratios

Actual Cost

Actual Costing

Actual Expense Method

Actual Overhead

Actuarial Basis of Accounting

Actuarial Cost Method

Actuarial Gains and Losses

Actuarial Present Value


Additional Paid-In Capital

Adequacy of Coverage

Adequate Disclosure

Adjunct Account

Adjustable Rate Preferred Stock

Adjusted Balance Method

Adjusted Basis

Adjusted EBITDA

Adjusted Net Income

Adjusted Present Value

Adjusted Trial Balance

Adjusted Working Capital

Adjusting Entries

Administered Price

Administrative Accounting

Administrative Expenses

Administrative Overhead


Advance from Customer

Advanced Timekeeping Systems

Advantages and Disadvantages of Just-In-Time Inventory

Advantages of a Good Business Plan

Advantages of Cost Accounting

Advantages of Payback Period

Adverse Opinion

Advertising Expense


Affiliated Company

Affiliated Entity

After-Tax Real Rate of Return

Agency Costs

Agency Fund

Agency Shop


Aggregate Stop Loss Insurance

Aggressive Accounting

Aging Method

Aging of Accounts

Aging Schedule

Agreed-Upon Procedures

Agricultural Cooperative

Agricultural Producer


AICPA Code of Professional Conduct


Allocation Base

Allocation Rate

Allowable Costs


Allowance for Bad Debts

Allowance for Credit Losses

Allowance for Doubtful Accounts

Allowance for Sampling Risk

Allowance Method

Alphanumeric Department/Subsidiary Codes

Altered Check

Alternative Procedures

Altman Z Score


Amortization Expense

Amortization of Discount on Bonds Payable

Amortization of Premium on Bonds Payable


Amortized Cost

Amortized Value

Amount Realized


Analytical Procedures

Analytical Review

Angel Investor

Annual Depreciation

Annual Report

Annual Return


Annualized Rate


Annuity Due

Annuity in Advance

Annuity in Arrears

Annuity Method of Depreciation



Antitrust Regulations

APB Opinions

Applicable Financial Reporting Framework

Application Controls

Application Service Provider

Applied Cost

Applied Overhead



Appraisal Costs

Appraisal Method of Depreciation

Appraisal Report


Appropriated Retained Earnings


Appropriation Account

Are Dividends Considered an Expense

Are Payroll Withholding Taxes an Expense or Liability

Are Supplies a Current Asset

Arm’s Length Transaction


Articles of Partnership

Assemble to Order


Assessable Capital Stock


Asset Accounts

Asset Classification

Asset Conversion Cycle

Asset Coverage Ratio

Asset Financing

Asset Group

Asset Impairment Procedures

Asset Purchase

Asset Recognition Criteria

Asset Retirement Cost

Asset Retirement Obligation

Asset Stripping

Asset to Equity Ratio

Asset Turnover Ratio

Asset Valuation



Assignment Method

Assignment of Accounts Receivable


Assurance Services

Asymmetric Information

At Par


Attest Client

Attest Engagement Team

Attest Function

Attestation Engagement

Attorney’s Letter

Attribute Sampling

Attribution Period


Audit Adjustment

Audit Approach

Audit Committee

Audit Cycle

Audit Data Analytics

Audit Documentation

Audit Engagement

Audit Evidence

Audit Failure

Audit Objectives

Audit Partner

Audit Plan

Audit Procedures

Audit Process

Audit Program

Audit Report

Audit Risk

Audit Risk Model

Audit Sampling

Audit Specialist

Audit Strategy

Audit Test

Audit Tick Marks

Audit Trail

Audit Working Papers


Audited Financial Statements


Auditor Skills Matrix

Auditor’s Opinion



Authorized Capital Stock

Authorized Shares

Automated Payables Matching

Availability Float

Available for Sale Investment

Available for Sale Securities

Average Accounts Payable

Average Accounts Receivable

Average Collection Period

Average Cost

Average Cost Method

Average Inventory Calculation

Average Net Receivables

Average Operating Assets

Average Rate of Return

Average Shareholders’ Equity

Average Shares Outstanding

Average Total Assets

Average Total Cost

Avoidable Cost


Bad Check

Bad Debt

Bad Debt Expense

Bad Debt Forecast

Bad Debt Provision

Bad Debt Recovery

Bad Debt Reserve


Balance per Bank

Balance per Books

Balance Sheet

Balance Sheet Account

Balance Sheet Date

Balance Sheet Formats

Balance Sheet Formulas

Balance Sheet Ratios

Balance Sheet Template

Balanced Budget

Bank Account Types

Bank Balance

Bank Charge

Bank Debits

Bank Draft

Bank Errors

Bank Lockbox

Bank Overlay Structure

Bank Reconciliation

Bank Reconciliation Procedure

Bank Reconciliation Process

Bank Reconciliation Purpose

Bank Reconciliation Statement

Bank Service Charge Expense

Bank Statement

Bank Transfer Schedule

Banker’s Acceptance


Bargain Purchase

Bargain Purchase Option

Bargain Renewal Option

Bargaining Unit

Barriers to Entry

Barriers to Exit

Base Currency

Base Pay Rate

Base Stock

Base Stock Method

Basic Accounting Concepts

Basic Accounting Formula

Basic Accounting Principles

Basic Earnings per Share

Basics of Accounting

Basis of Accounting

Basis Point

Basket Purchase

Batch Cost

Batch Size

Batch-Level Activities

Batch-Level Cost

Bearer Bond

Beginning Inventory

Below the Line

Benchmark Hedge Ratio


Beneficial Conversion Feature

Beneficial Owner

Benefits of Accrual Accounting

Benefits of Issuing Common Stock

Benefits of Total Quality Management

Benford’s Law

Beta Coefficient

Bill of Lading

Bill of Materials

Bill of Sale

Billing Controls

Billing Cycle

Billing Statement

Bills Payable

Biometric Time Clocks

Black Box Accounting

Black Market

Blanket Insurance

Blanket Purchase Order

Blind Entry

Blue Chip Stock

Blue Sky Laws

Board Designated Restriction

Board of Directors


Bond Amortization Schedule

Bond Call Price

Bond Certificate

Bond Covenant

Bond Discount

Bond Indenture

Bond Interest Expense

Bond Issue Costs

Bond Premium

Bond Refunding

Bond Retirement

Bond Sinking Fund

Bond Yields

Bonds Payable

Bonus Accrual

Bonus Budgeting

Book Balance

Book Depreciation

Book Inventory

Book Value

Book Value Method

Book Value of a Company

Book Value of Debt

Book Value of Equity

Book Value per Share


Books of Original Entry


Borrowing Base

Bottom Line

Bounced Check

Break Even Analysis

Break Even Formula

Break Even Point

Break Even Pricing

Break Even Sales


Buddy Punching


Budget Committee

Budget Manual

Budget Planning Calendar

Budget Report

Budget Variance

Budgetary Accountability

Budgetary Control

Budgetary Planning

Budgeted Balance Sheet

Budgeted Capacity

Budgeted Financial Statements

Budgeted Income Statement

Budgeting Advantages

Budgeting Disadvantages

Budgeting Fund

Budgeting Models, Types of

Budgeting Objectives

Budgeting Problems

Budgeting Procedure

Buffer Stock

Burden Rate

Burn Rate

Business Combination

Business Cycle

Business Insurance

Business Interruption Insurance

Business Process Reengineering

Business Risk

Business Valuation

Business Valuation Formula

Business Valuation Methods



Byproduct Costing



C Corporation

Cafeteria Plan

Calendar Year

Call Feature

Call Option

Call Premium

Call Price

Call Provision

Callable Bond

Callable Obligation

Callable Preferred Stock

Callable Stock

Canceled Check


Capacity Costs

Capacity Utilization Rate


Capital Account

Capital Account Deficit

Capital Addition

Capital Asset

Capital Budgeting

Capital Budgeting Techniques

Capital Decay

Capital Employed

Capital Expenditure

Capital Expenditure Budget

Capital Gains Yield

Capital Goods

Capital Improvement

Capital in Excess of Par

Capital Intensive

Capital Investment

Capital Lease Accounting

Capital Lease Criteria

Capital Maintenance

Capital Markets

Capital Project

Capital Rationing

Capital Receipts

Capital Stock

Capital Structure

Capital Structure Analysis

Capital Surplus

Capital Turnover

Capitalization Limit

Capitalization of Earnings

Capitalization of Software Development Costs

Capitalization Policy

Capitalization Ratios

Capitalization Table

Capitalization, What is


Capitalized Cost

Capitalized Interest


Carrying Amount

Carrying Value

Carrying Value of a Bond

Carryover Method


Cash Account

Cash Accounting

Cash and Cash Equivalents

Cash Basis Balance Sheet

Cash Basis Income Statement

Cash Basis of Accounting

Cash Basis vs. Accrual Basis

Cash Collection Cycle

Cash Concentration

Cash Conversion Cycle

Cash Coverage Ratio

Cash Disbursement

Cash Discount

Cash Earnings

Cash Equivalent

Cash Flow

Cash Flow After Taxes

Cash Flow Forecasting

Cash Flow From Assets

Cash Flow Hedge

Cash Flow per Share

Cash Flow Ratios

Cash Flow Statement Direct Method

Cash Flow Statement Indirect Method

Cash Flow Statement: Direct vs Indirect Method

Cash Flow to Capital Expenditures Ratio

Cash Flow to Debt Ratio

Cash Flow to Sales Ratio

Cash Flows from Financing Activities

Cash Flows from Investing Activities

Cash Flows from Operating Activities

Cash Generating Unit

Cash Method of Accounting

Cash Receipt

Cash Receipt Controls

Cash Receipts Journal

Cash Receipts Procedures

Cash Reconciliation

Cash Reinvestment Ratio

Cash Return on Assets

Cash Sales

Cash Surrender Value

Cash Sweeping

Cash to Cash Cycle

Cash Transaction

Cash Turnover Ratio

Cash Voucher

Cashier’s Check

Cashless Stock Option

Causes of Depreciation

Certificate of Deposit

Certified Check

Certified Financial Statement

Certified Management Accountant

Certified Public Accountant


Change in Accounting Estimate

Change in Accounting Policy

Change in Accounting Principle

Change in Net Assets

Change in Reporting Entity

Change in Working Capital

Change of Tax Year

Channel Stuffing

Chapter 11 Bankruptcy

Chapter 7 Bankruptcy

Characteristics of Corporations

Characteristics of Useful Accounting Information

Charitable Lead Trust

Charitable Remainder Trust

Chart of Accounts

Chart of Accounts Numbering


Check Guarantee

Check Kiting

Check Payment

Check Printing Charges

Check Register

Check Stub

Checking Account

Chief Financial Officer

Chief Risk Officer


Circulating Capital

Civil Penalty

Classes of Transactions

Classified Balance Sheet

Classified Income Statement

Classified Stock

Clean Opinion

Clean Surplus Concept

Clearing Account

Closely Held Corporation

Closing Balance

Closing Entries

Closing Memorandum

Closing Procedure

Closing Stock

CMA vs CPA Certficiation

Coefficient of Correlation

Coefficient of Determination


Coincident Indicator

Coincident Indicators of Economic Activity



Collateral Trust Bond


Collection Agency

Collection Call Preparation

Collection Controls

Collection Period

Collection Procedure

Collection Ratio

Collective Bargaining


Combined Financial Statement

Comfort Letter

Commercial Paper

Commercial Production

Commercial Substance



Commission Expense Accounting

Commitment Fee

Committed Cost

Common Cost

Common Size Balance Sheet

Common Size Financial Statement

Common Size Income Statement

Common Stock

Common Stock Account

Common Stock Dividend Distributable

Common Stock Equivalent

Common Stock Ratio


Comparative Balance Sheet

Comparative Financial Statements

Comparative Income Statement

Compensated Absence Accounting

Compensating Balance

Compensating Error


Compensatory Stock Option

Competitive Advantage

Compilation Engagement

Completed Contract Method

Complex Capital Structure

Compliance Audit

Compliance Cost

Compliance Test

Components of an Internal Control System

Components of Cost Volume Profit Analysis

Composite Depreciation

Compound Interest

Compound Journal Entry

Compounding Period

Comprehensive Income

Comprehensive Tax Allocation

Concentration Account

Concentration Banking

Concurrent Audit Techniques

Condensed Balance Sheet

Condensed Financial Statements

Condensed Income Statement

Conditional Promise to Give

Conditional Sale

Confidential Client Information


Conglomerate Merger

Consequential Loss

Conservatism Principle


Consigned Goods



Consignment Accounting


Consistency Principle

Consolidated Balance Sheet

Consolidated Financial Statements

Consolidated Group

Consolidation Accounting


Constraint Analysis

Constraint Buffer

Constraint Location

Construction Accounting

Construction Loan

Construction Work in Progress

Constructive Dividend

Constructive Receipt

Consumed Cost

Consumer Price Index

Contingency Planning

Contingency Reserve

Contingent Asset

Contingent Consideration

Contingent Fee

Contingent Issuance

Contingent Liability

Contingent Loss

Contingent Rent

Continuing Education

Continuing Operations

Continuing Professional Education

Continuous Budgeting

Continuous Controls Monitoring

Contra Accounts

Contra Asset

Contra Asset Account

Contra Equity Account

Contra Expense

Contra Inventory Account

Contra Liability Accounts

Contra Revenue

Contract Auditing

Contract Costing


Contractual Interest Rate

Contributed Capital


Contribution Approach

Contribution Margin

Contribution Margin Analysis

Contribution Margin Income Statement

Contribution Margin Ratio

Contribution per Unit

Contributory Plan

Control Account

Control Activities

Control Assessments

Control Cycle

Control Environment

Control Environment: Design of IT Controls

Control Environment: Entity-Level Controls

Control Environment: Implementation of IT Controls

Control Environment: Obtain an Understanding

Control Framework

Control Limits

Control Premium

Control Risk

Controllable Costs

Controllable Variance

Controlled Company

Controller Position

Controller vs. Comptroller

Controller’s Cushion

Controlling Interest

Conversion Costs

Conversion Ratio

Convertible Bond

Convertible Debt

Convertible Preferred Stock

Convertible Security

Cooking the Books

Cookie Jar Accounting

Cooperative Advertising


Core Competencies

Corporate Division

Corporate Downsizing

Corporate Governance

Corporate Governance Sarbanes-Oxley

Corporate Joint Venture

Corporate Overhead

Corporate Raider


Corporation Advantages and Disadvantages

Correcting Entry

COSO Framework: Components

COSO Framework: Limitations

COSO Framework: Objectives

COSO Framework: Principles

COSO Framework: Purpose

COSO Framework: Underlying Structure


Cost Accountant Job Description

Cost Accountant Position

Cost Accounting

Cost Accounting Basics

Cost Accounting Formulas

Cost Accumulation

Cost Allocation

Cost Allocation Methods

Cost Assignment

Cost Based Pricing

Cost Behavior

Cost Benefit Analysis

Cost Benefit Principle

Cost Center

Cost Classification

Cost Concepts in Decision Making

Cost Constraint

Cost Containment

Cost Control

Cost Depletion

Cost Driver

Cost Effective

Cost Element

Cost Function

Cost Hierarchy

Cost Incurred

Cost Management

Cost Method of Accounting

Cost Object

Cost of Capital

Cost of Capital Formula

Cost of Conformance

Cost of Credit Formula

Cost of Debt

Cost of Equity Formula

Cost of Goods Available for Sale

Cost of Goods Manufactured

Cost of Goods Manufactured Schedule

Cost of Goods Purchased

Cost of Goods Sold

Cost of Goods Sold Journal Entry

Cost of Goods Sold Statement

Cost of Labor

Cost of Merchandise Sold

Cost of Nonconformance

Cost of Preferred Stock

Cost of Quality

Cost of Retained Earnings

Cost of Revenue

Cost of Sales

Cost Overrun

Cost per Unit

Cost Plus Contract

Cost Plus Pricing

Cost Pool

Cost Principle

Cost Ratio

Cost Recovery Method

Cost Reduction Analysis

Cost Reduction Program

Cost Sheet

Cost Structure

Cost to Cost Method

Cost to Store Inventory

Cost Variability

Cost Variance

Cost Variance Analysis

Cost Variance Formula

Cost Volume Formula

Cost Volume Profit Analysis

Costing System





Coupon Bond

Coupon Rate


Coverage Period

Coverage Ratio

Coverage Ratios

Covered Member



Creative Accounting


Credit Account

Credit Analysis

Credit Application

Credit Application Terms

Credit Balance

Credit Department Controls

Credit Enhancement

Credit Facility

Credit Granting Procedure

Credit Insurance

Credit Limit

Credit Manager Job Description

Credit Memo

Credit Period

Credit Policy

Credit Policy Sample

Credit Rating

Credit Rating Agency

Credit Reference

Credit Report

Credit Risk

Credit Sales

Credit Sweep

Credit Terms


Creditors’ Committee

Creditors’ Equity


Critical Path Method

Critical Success Factors

Cross Border Cash Pool

Cross Price Elasticity of Demand



Cumulative Preferred Stock


Currency Futures

Currency Hedging Procedure

Currency Pair

Currency Peg

Currency Risk

Currency Swap

Current Asset

Current Cost

Current Liability

Current Portion of Long-Term Debt

Current Ratio

Current Ratio Analysis

Current Value Accounting

Current Year’s Net Income

Current Yield

Customer Advance Payments

Customer Deposit

Customer Master File

Customs Duty

Cutoff Date

Cutoff Point

Cycle Billing

Cycle Counting


Data Analysis Software

Data Presentation

Data Processing Cycle



Days Cash on Hand

Days Inventory Outstanding

Days Payable Outstanding

Days Working Capital

Days’ Sales in Inventory

Days’ Sales Outstanding

Days’ Sales Uncollected

De Minimis Fringe Benefits


Debenture Bond

Debenture Capital


Debit and Credit Rules

Debit Balance

Debit Card

Debit Memo

Debits and Credits


Debt Accounting

Debt Collection Strategies

Debt Extinguishment

Debt Financing

Debt Issue

Debt Ratio

Debt Ratios

Debt Restructuring

Debt Retirement

Debt Security

Debt Service Coverage Ratio

Debt Service Fund

Debt to Assets Ratio

Debt to Equity Ratio



Declaration Date

Declared Dividend

Declining Balance Method

Deductible Temporary Difference

Deep Discount Bond



Default Risk


Defects per Unit

Defensive Intangible Asset

Defensive Interval Ratio


Deferral Type Adjusting Entry

Deferred Annuity

Deferred Asset

Deferred Charge

Deferred Compensation Accounting

Deferred Compensation Plans

Deferred Cost

Deferred Credit

Deferred Debit

Deferred Expense

Deferred Gross Profit

Deferred Income

Deferred Income Tax Liability

Deferred Income Taxes

Deferred Interest Bond

Deferred Liability

Deferred Rent Accounting

Deferred Revenue

Deferred Tax Asset

Deferred Tax Asset Valuation Allowance

Deferred Tax Liability


Deficiency Claim

Deficiency in Internal Control

Deficiency Letter


Defined Benefit Plan

Defined Contribution Plan



Degree of Financial Leverage

Degree of Operating Leverage

Degree of Relative Liquidity

Degree of Total Leverage



Delivery Cycle Time

Delivery Expenses

Delphi Method


Demand Deposit

Demand Loan


Departmental Overhead Rate

Departmental Rate

Dependent Demand

Dependent Variable


Depletion Expense

Depletion Method

Deposit in Transit

Deposit Receipt

Deposit Slip


Depreciable Asset

Depreciable Cost

Depreciated Cost


Depreciation Accounting Entry

Depreciation Basis

Depreciation, Depletion, and Amortization

Depreciation Expense

Depreciation Methods

Depreciation of Leasehold Improvements

Depreciation Overview

Depreciation Recapture

Depreciation Tax Shield



Derivative Accounting

Derivative Instruments

Detachable Warrant

Detachable Warrant Accounting

Detailed Audit

Detection Risk

Detective Control

Determinants of Working Capital

Development Stage Enterprise

Difference Between Accountants and Bookkeepers

Difference Between Accounting and Bookkeeping

Difference Between Accounts Receivable and Payable

Difference Between Accruals and Deferrals

Difference Between Actual Overhead and Applied Overhead

Difference Between Adjusting Entries and Closing Entries

Difference Between Adjusting Entries and Correcting Entries

Difference Between Amortization and Depreciation

Difference Between Assets and Fixed Assets

Difference Between Assets and Liabilities

Difference Between an Audit, Review, and Compilation

Difference Between Authorized Shares and Outstanding Shares

Difference Between Bad Debt and Doubtful Debt

Difference Between a Balance Sheet and an Income Statement

Difference Between Bank Balance and Book Balance

Difference Between Book Value and Market Value

Difference Between a Budget and a Forecast

Difference Between Business Risk and Financial Risk

Difference Between Capital Expenditure and Revenue Expenditure

Difference Between Cash Flow and Free Cash Flow

Difference Between Cash Flow and Funds Flow

Difference Between a CEO and a CFO

Difference Between a Consignor and a Consignee

Difference Between a Contractor and an Employee

Difference Between Contribution and Gross Margin

Difference Between Cost Accounting and Financial Accounting

Difference Between Cost and Expense

Difference Between Cost and Price

Difference Between a Cost Center and a Profit Center

Difference Between the Current Ratio and the Quick Ratio

Difference Between a Debtor and a Creditor

Difference Between Depreciation Expense and Accumulated Depreciation

Difference Between Depreciation on the Income Statement and Balance Sheet

Difference Between Direct and Indirect Cash Flow Methods

Difference Between Direct Costs and Indirect Costs

Difference Between Direct Labor and Indirect Labor

Difference Between Earnings and Profit

Difference Between EBIT and EBITDA

Difference Between Equity Financing and Debt Financing

Difference Between an Expense and an Expenditure

Difference Between Expenses and Losses

Difference Between Expenses and Payments

Difference Between Expensing and Capitalizing

Difference Between a Finance Lease and an Operating Lease

Difference Between Financial and Managerial Accounting

Difference Between Fixed Cost and Variable Cost

Difference Between Forward P/E and Trailing P/E

Difference Between GAAP and IFRS

Difference Between a General Ledger and a General Journal

Difference Between a General Ledger and a Trial Balance

Difference Between Gross Income and Net Income

Difference Between Gross Cost and Net Cost

Difference Between Gross Margin and Net Margin

Difference Between Gross Sales and Net Sales

Difference Between Implicit Costs and Explicit Costs

Difference Between Income and Profit

Difference Between Interest Expense and Interest Payable

Difference Between Internal and External Audits

Difference Between an Invoice and a Statement

Difference Between a Journal and a Ledger

Difference Between a Liability and a Debt

Difference Between Margin and Markup

Difference Between Marginal Costing and Absorption Costing

Difference Between Net Income and Net Cash Flow

Difference Between Nominal Accounts and Real Accounts

Difference Between Normal Costing and Standard Costing

Difference Between NPV and IRR

Difference Between Paid-in Capital and Retained Earnings

Difference Between Par Value and No Par Value Stock

Difference Between Periodic and Perpetual Inventory Systems

Difference Between Preferred Stock and Common Stock

Difference Between Present Value and Net Present Value

Difference Between Prime Costs and Conversion Costs

Difference Between Product Costs and Period Costs

Difference Between Profit and Cash Flow

Difference Between Public Accounting and Private Accounting

Difference Between Recourse Debt and Non-recourse Debt

Difference Between Reserves and Allowances

Difference Between Reserves and Provisions

Difference Between Revenues and Earnings

Difference Between Revenues and Receipts

Difference Between Salary and Wages

Difference Between Semimonthly and Biweekly Payroll

Difference Between a Shareholder and a Stakeholder

Difference Between Simple Interest and Compound Interest

Difference Between SOC Type 1 and Type 2 Reports

Difference Between a Stockholder and a Shareholder

Difference Between Stocks and Bonds

Difference Between Trade Date Accounting and Settlement Date Accounting

Difference Between a Trial Balance and a Balance Sheet

Difference Between Turnover and Profit

Difference Between an Unadjusted Trial Balance and an Adjusted Trial Balance

Difference Between Unearned Revenue and Unrecorded Revenue

Difference Between Vertical Analysis and Horizontal Analysis

Difference Between Work in Process and Work in Progress

Different Types of Accountants

Differential Cost

Differential Revenue

Differentiation Strategy

Diluted Earnings per Share


Dilutive Securities

Direct Allocation Method

Direct Cost

Direct Cost Examples

Direct Costing

Direct Credit

Direct Deposit

Direct Expense

Direct Financial Interest

Direct Financing Lease

Direct Labor

Direct Labor Budget

Direct Labor Cost

Direct Margin

Direct Material

Direct Material Budget

Direct Material Cost

Direct Material Mix Variance

Direct Material Price Variance

Direct Material Usage Variance

Direct Material Variance

Direct Materials

Direct Materials Inventory

Direct Selling Costs

Direct Write-off Method

Direct Write-off Method vs Allowance Method


Directors’ Report

Disaster Recovery Plan


Disclaimer of Opinion


Disclosure Committee

Discontinued Operations


Discount Allowed and Discount Received

Discount Bond

Discount Interest

Discount Lost

Discount Method

Discount on Bonds Payable

Discount on Notes Payable

Discount on Notes Receivable

Discount Rate

Discounted Cash Flow

Discounted Cash Flow Method

Discounted Payback Period

Discovery Sampling

Discretionary Cost

Discretionary Fixed Cost

Disposal Account

Disposal Group

Distress Price

Distribution Channel

Distribution Cost

Distribution to Owners


Diversifiable Risk



Divided Interest


Dividend Coverage Ratio

Dividend Payout Ratio

Dividend per Share

Dividend Reinvestment Plan

Dividend Yield Ratio


Dividends Declared

Dividends in Arrears

Dividends Payable

Division Order

Divisional Structure

Does a Dividend Reduce Profit?

Does an Expense Appear on the Balance Sheet?

Dollar Value LIFO

Domestic Corporation

Donated Capital

Donated Stock

Donor-Imposed Condition

Donor-Imposed Restriction

Doomsday Ratio

Double Declining Balance Depreciation

Double Entry Accounting

Double Entry System

Double Extension Method

Double Taxation

Down Payment

Downside Risk


Downward Demand Spiral

Drag-Along Rights

Drawing Account

Dual Aspect Concept

Dual Pricing

Dual-Purpose Test

Due Care

Due Date on Invoices

Due Diligence

Due Diligence Checklist

Due Professional Care

Dummy Activity

Dunning Letter

Duplicate Payment

DuPont Analysis

Durability Bias

Dynamic Pricing


Early Extinguishment of Debt

Early Payment Discounts

Earned Capital

Earned Income

Earned Surplus


Earnings Available for Common Stockholders

Earnings Before Interest and Taxes

Earnings Before Taxes

Earnings Call

Earnings Conference Calls

Earnings Growth

Earnings Guidance

Earnings Management

Earnings per Share

Earnings per Share Ratio


EBITDA Coverage Ratio

EBITDA Valuation

Economic Impact on Entities

Economic Indicators

Economic Life

Economic Nexus

Economic Profit

Economic Substance

Economic Value Added

Economies of Scale

Effective Interest Method

Effective Interest Rate

Effective Interest Rate, Calculate

Effective Rate of Return

Effective Tax Rate



Efficiency Formula

Efficiency Ratios

Efficiency Variance

Efficient Market Hypothesis

Elastic Demand


Electronic Check

Elements of Financial Statements

Eligibility Audits

Embedded Audit Module

Embedded Derivative


Emerging Issues Task Force


Employee Stock Ownership Plan

Employer FICA Match

Employer Payroll Taxes


Ending Balance

Ending Finished Goods Inventory Budget

Ending Inventory

Ending Work in Process Formula



Endowment Fund

Engagement Documentation

Engagement Letter

Engagement Plan

Engagement Quality

Engagement Risk

Engineering Change Order

Enterprise Fund

Enterprise Resource Planning

Enterprise Risk Management

Enterprise Value Calculation


Environmental Impact on Entities

Equipment Rental Expense

Equitable Title



Equity Accounts

Equity Capital

Equity Financing

Equity Interest

Equity Kicker

Equity Method

Equity Multiplier

Equity Position

Equity Ratio

Equity Research

Equity Restructuring

Equity Security

Equity Spread

Equity Turnover

Equivalent Taxable Yield

Equivalent Units of Production

ERP (Enterprise Resource Planning)




Estate Planning

Estate Tax

Estimated Cost

Estimated Liability

Estimated Tax

Ethical Absolutism


Evaluated Receipt Settlement

Evaluation of Internal Controls

Evergreen Loan


Expansion in the Business Cycle


Federal Funds Rate

Financial Reporting Framework Impact on Entities



GAO Audit

Government Policy Impact on Entities


Independence in the AICPA Code of Professional Conduct

Industry Factors Impact on Entities

Internal Controls

Internal Controls: Approvals

Internal Controls: Authorizations

Internal Controls: Conclusions

Internal Controls: Limitations

Internal Controls: Logical Controls

Internal Controls: Physical Controls

Internal Controls: Reconciliations

Internal Controls: Segregation of Duties

Internal Controls: Significant Business Processes

Internal Controls: Verifications


Lagging Indicators of Economic Activty

Leading Indicators of Economic Activity



Marginal Cost

Marginal Revenue

Material Weakness

Material Weakness in Internal Control

Materiality: Calculation

Materiality: Calculation Levels

Materiality: Overview

Materiality: Performance Materiality

Materiality: Tolerable Misstatement

Materiality: Tolerable Misstatement vs Performance Materiality

Member in Public Practice


Objectivity in the AICPA Code of Professional Conduct


Peak in the Business Cycle

Planned Scope and Timing of an Engagement

Planning Activities

Preconditions of an Audit

Producer Price Index

Profit Maximization


Recession in the Business Cycle

Regulatory Impact on Entities

Risk of Material Misstatement: Fraudulent Financial Reporting

Risk of Material Misstatement: Misappropriation of Assets


Scope in an Audit

Service Organizations: Significance

Service Organizations: SOC 1 vs SOC 2

Service Organizations: Use of SOC 1 Type 2 Report

Sufficient Appropriate Audit Evidence


Supply Chain Impact on Entities


Technology Impact on Entities

Those Charged with Governance

Trough in the Business Cycle


Understanding an Entity: Accounting Policies

Understanding an Entity: Cloud Computing

Understanding an Entity: ERP System

Understanding an Entity: Financing Plans

Understanding an Entity: Governance Structure

Understanding an Entity: Hosting Arrangements

Understanding an Entity: Investment Plans

Understanding an Entity: IT Applications

Understanding an Entity: Objectives and Strategies

Understanding an Entity: Operational Factors

Understanding an Entity: Ownership Structure

Understanding an Entity: Significant Business Processes

Understanding an Entity: Significant Data Flows

Understanding an Entity: Walkthrough of Processes


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