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Generally Accepted Accounting Principles (Canada)

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Index of Accounting Terms
A UNIQUE ENGLISH-FRENCH DICTIONARY OF ACCOUNTING AND FINANCIAL MANAGEMENT TERMS
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An interest rate reflecting the cost of a mortgage as a yearly rate. This rate is likely to be higher than the stated note rate or advertised rate on the mortgage, because it takes into account point and other credit cost.

The APR allows home buyers to compare different types of mortgages based on the annual cost for each loan. Reports range from very simple to very elaborate - each year a printed report containing information about a company's financial conditions. An individual who purchases an annuity and will receive payments from that annuity. A series of regular periodic payments comprising principal and interest. An annuity is a contract providing for a series of payments.

In the case of retirement, an annuity is usually purchased from an insurance company who then pays the purchaser a monthly amount while still alive. Annuities may have more complicated features such as indexing, guarantee periods and benefits payable to a spouse or other beneficiary after death.

When an individual purchases an annuity, they usually pay a lump sum from their RRSP, or other source of funds, to an insurer. The insurer then takes this premium and divides by an annuity factor based on mortality, current interest rates and payment features. Appraised Value Real Estate: An estimate of the value of the property offered as security for a mortgage loan. This appraisal is done for mortgage lending purposes and may not reflect the market value of the property.

An "arbitrageur " simultaneously buys and sells a commodity or security in different markets. The term arbitrage is used for a whole string of complicated trading maneuvers, exploiting the differences in spot prices, futures prices and interest rates.

Acting at arm's length contemplates a negotiation between parties with opposing interest, each of whom has only an economic interest in the outcome. Non-arm's length is one with a conflict of interest. A transaction that is conducted as through the parties were unrelated, thus avoiding any conflict of interest.

Are dividend or interest payments, accrued since the last payment, which are still owed but that have not been paid yet. A proposal to sell a specific quantity of securities at a named price. An assay is a test of a metal in which its purity is determined: A local tax levied against a property for a specific purpose, such as a sewer or street lights. Something that is owned - a physical asset, such as a car or a house, or a financial asset, such as cash or a Savings Account, Guaranteed Investment Certificate, Stocks, Bonds, etc.

What you own or can call upon. The allocation of your money among the different investment options. Are bundled pools of assets that are sold as units and these units are a security that is backed by an asset. Mortgage pools were the principal forerunners of the ABS market and this is now a multi-billion-dollar market in the U. More recently, banks in the U.

The general theory is that safety in numbers provides a steady flow of income, usually interest income, while losses from defaults are spread across the pool. Asset class' typically refer to securities that have similar features.

AccountingNet AccountingNet is an online resource for accounting and finance professionals. PricewaterhouseCoopers The PricewaterhouseCoopers site presents a variety of information on accounting and business topics. Accounting Professionals' Resource Center for CPAs The Resource Center lists publications and courses that help accounting, auditing and, tax professionals to use technology in their work.

Knowledge Space This Arthur Andersen site is open to new users for a day trial period. CPANet This online resource for accounting professionals includes numerous links to accounting-related websites. The SOHO Guidebook and the business tools section include templates for managing a small business, including financial, marketing and human resource issues.

Top of Page Accounting Magazines. Business Finance Magazine Business Finance presents information on business management and technology issues for accountants and finance professionals, controllers, comptrollers, CFOs, and treasurers. Top of Page Accounting Issues. Financial Accounting Standards Board The American Financial Accounting Standards Board strives to improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information.

Top of Page Accounting Standards. Financial Accounting Standards Board The American Financial Accounting Standards Board stives to improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information. It is charged with examining matters relating to the receipt and disbursement of public funds, performing audits and evaluations of Government programs and activities.

Governmental Accounting Standards Board The American Governmental Accounting Standards Board strives to improve standards of state and local governmental accounting and financial reporting that will result in useful information for users of financial reports and guide and educate the public, including issuers, auditors, and users of those financial reports. For more information please see this article.

This account represents year to date earnings, not yet recorded into the Retained Earnings account. When we are talking about debits in relation to double-entry accounting - we are talking about one half of a transaction the other side being a credit. Represents income received, but not yet earned. This is typically a liability account. The accounting products follow the convention of Double Entry Accounting.

Every accounting transaction is comprised of debits that equal credits. The owner's interest in the business, which is the total assets minus the total liabilities of a company, seen on the balance sheet and represented in as 3-xxxx accounts in your Chart of Accounts.

Costs incurred in the business used to generate revenue, seen on the Profit and Loss report and represented in your Chart of Accounts as 6-xxxx accounts. An accounting record where all of your accounts are maintained. In the accounting products, when you enter any transaction, the General Ledger accounts are automatically updated. Represents your revenue from sales of inventory or services, less Cost of Goods Sold, before overhead expenses.

Account ledgers where entries are recorded. Every transaction creates a corresponding set of debit and credit entries in a specific journal. The things a company owes in cash or other resources, represented as 2-xxxx in your Chart of Accounts. These are claims against assets.

Profit before Other Income is added and Other Expenses are subtracted. Represents the expenses of a business independent of how much revenue is generated.

Can also be considered Fixed Costs, things like rent, salaries, and utilities. Profit and Loss Statement or Income Statement: The primary financial statement that shows detailed revenues and expenses for a period of time. Represents expenses that are paid in advance of incurring them. This is typically an asset account. Represents the cumulative net income or loss of a business since its inception.

When you Start a New Year in the accounting products, the program automatically transfers your year-end Current Year's Earnings income or loss to this account. This is called the closing entry. Start a New Year: The process in the accounting products that closes the "books" of a fiscal year, transfers your Current Years Earnings to Retained Earnings and prepares the accounts for a new fiscal year.

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Term Loan: A loan you obtain for a specified length of time (term) to finance the purchase of a fixed (or long-term) asset. Working Capital: Current assets less current liabilities. AccessCapital | Preparation Steps | Financial Glossary.

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Bookkeeping and Accounting Glossary. Accounts Payable: In Canada, audits are performed by the Canada Revenue Agency (CRA). Balance Sheet: Depreciation: An accounting method that is used to track the value of an item over time. Depreciation is usually calculated on asset purchases for which the business will receive more than a Location: South Service Road Suite #, Burlington, L7N 3J5, Ontario.

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kitchen-profi.ml's accounting dictionary defines accounting terms in a way that is easy for anybody to understand. The Department of Finance Canada is the federal department primarily responsible for providing the Government of Canada with analysis and advice on the broad economic and financial affairs of Canada. Their website gives detailed information about government's role in business and personal accounting.

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Generally Accepted Accounting Principles (GAAP) of Canada provides the framework of broad guidelines, conventions, rules and procedures of accounting History. In For a number of years prior to , the Research Committee issued bulletins on financial disclosure, accounting principles, terminology, reporting and auditing procedures. In . The three major accounting designations in Canada are: Chartered Accountant (CA) Certified Management Accountant (CMA).