Glossary of Accounting Terms

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Index of Accounting Terms - C

C⤒ Top
Capital Budgeting icon representing evaluation of major investments
Capital Budgeting Related Terms: Investment Appraisal, Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period, Discounted Cash Flow (DCF), Long-term Investments, Project Evaluation, Financial Decision Making, capital investment analysis, risk assessment in capital projects What is Capital Budgeting? The process a business uses to evaluate potential major projects or investments. It involves analyzing a project's lifelong cash inflows and outflows to determine whether the expected return meets a sufficient target benchmark, ensuring wise allocation of capital for long-term profitability.
Capital Expenditure (CapEx) icon representing funds used for major assets
Capital Expenditure (CapEx) Related Terms: Fixed Assets, Property Plant and Equipment (PP&E), Investment in Assets, CapEx vs OpEx, Depreciation, Asset Acquisition, Long-term Business Investments, calculating capital expenditure, financial planning for asset purchase What is Capital Expenditure (CapEx)? Funds used by a company to acquire, upgrade, and maintain physical assets such as property, buildings, technology, or equipment. CapEx is typically for long-term assets that are expected to generate benefits for the company for more than one year.
Icon representing cash-based accounting
Cash Accounting Related Terms: Cash Basis What is Cash Accounting? An accounting method that recognizes revenues and expenses only when the corresponding cash is received or paid out.
Icon representing the movement of money in and out of a business
Cash Flow Related Terms: Cash Inflow, Cash Outflow What is Cash Flow? The net amount of cash and cash-equivalents being transferred into and out of a company.
Icon representing the analysis of cash movements
Cash Flow Analysis Related Terms: Cash Flow Forecasting, Liquidity Analysis What is Cash Flow Analysis? The examination of a company's cash inflows and outflows to understand its liquidity and financial health.
Icon representing the cyclical movement of cash
Cash Flow Cycle Related Terms: Operating Cycle, Cash Conversion Cycle What is the Cash Flow Cycle? The regular pattern of cash inflows and outflows within a business over a period of time.
Cash Flow Management icon representing monitoring of cash movements
Cash Flow Management Related Terms: Liquidity Management, Cash Inflows, Cash Outflows, Cash Flow Statement, Working Capital, Cash Forecasting, Operating Cash Flow, Strategies to improve cash flow, small business cash flow solutions, free cash flow (FCF) What is Cash Flow Management? The process of monitoring, analyzing, and optimizing the net amount of cash receipts minus cash payments. Effective cash flow management ensures a business has enough cash to meet its short-term obligations, invest in growth, and navigate financial challenges.
Icon representing the movement of cash in and out of a business
Cash Flow Statement Related Terms: Statement of Cash Flows, Cash Flow Report, Sources and Uses of Cash What is a Cash Flow Statement? A financial statement that summarizes the amount of cash and cash equivalents flowing into and out of a company over a period.
Icon representing money coming into a business
Cash Inflow Related Terms: Receipts, Revenue Collection, Incoming Funds What is Cash Inflow? Cash inflow refers to the movement of money into a business from various sources such as sales, investments, and financing.
Icon representing money leaving a business
Cash Outflow Related Terms: Payments, Disbursements, Expenses Paid What is Cash Outflow? Cash outflow refers to the movement of money out of a business to cover expenses, pay debts, and make investments.
Cash Ratio icon representing a measure of immediate liquidity
Cash Ratio Related Terms: Liquidity Ratios, Solvency Ratios, Cash and Cash Equivalents, Current Liabilities, Financial Health, Quick Ratio, Current Ratio, interpreting cash ratio results, cash ratio formula, financial stability analysis What is Cash Ratio? A liquidity ratio that measures a company's ability to pay off its current liabilities (short-term debt) with only its cash and cash equivalents. It is the most conservative liquidity ratio as it excludes inventory and accounts receivable from current assets.
Icon representing bringing financial records up to date
Catch Up Bookkeeping Related Terms: Back Bookkeeping, Book Cleanup, Retroactive Bookkeeping What is Catch Up Bookkeeping? Catch up bookkeeping is the process of bringing a business's financial records up to date, often when they have fallen behind.
Icon representing an organized list of financial accounts
Chart of Accounts Related Terms: COA, Account List, Ledger Structure What is a Chart of Accounts? A chart of accounts (COA) is an organized list of all the accounts used within an organization's general ledger to classify and report financial transactions.
Icon representing cloud computing services.
Cloud Computing Related Terms: SaaS, IaaS, PaaS, Online Services, Web-Based Computing What is Cloud Computing? The delivery of various computing services over the Internet, enabling access to software, storage, and processing power without direct active management by the user.
Icon representing business strategy and advice
Consulting Related Terms: Business Advice, Strategic Planning, Advisory Services What is Business Consulting? Explore our Business Consulting Services to help scale your business.
Contribution Margin Icon representing profitability analysis
Contribution Margin Related Terms: Variable Costs, Fixed Costs, Break-Even Point, Profitability, CVP Analysis What is Contribution Margin? Learn how this key financial metric (Sales Revenue - Variable Costs) helps businesses cover fixed costs and generate profit, aiding in pricing decisions and profitability analysis.
Icon representing the analysis of business costs
Cost Accounting Related Terms: Managerial Accounting, Cost Management What is Cost Accounting? A branch of accounting focused on the classification, recording, and analysis of costs associated with the production of goods and services.
Icon representing how costs change with activity.
Cost Behavior Related Terms: Fixed Costs, Variable Costs, Mixed Costs, Cost Structure What is Cost Behavior? Describes how costs change as the level of business activity changes; costs are typically classified as fixed, variable, or mixed.
Cost Control icon representing strategies for managing expenses
Cost Control Related Terms: Expense Reduction, Budget Management, Variance Analysis, Cost Management, Operational Efficiency, Overhead Costs, Cost Saving Strategies, financial control systems, project cost management, effective cost control techniques for small business What is Cost Control? The process of identifying and reducing business expenses to increase profits, starting with the budgeting process. It involves implementing policies and procedures to monitor, manage, and minimize costs without compromising the quality of goods or services.
Icon representing the direct costs of producing goods sold
Cost of Goods Sold (COGS) Related Terms: Cost of Sales, Direct Costs What is Cost of Goods Sold? Cost of Goods Sold (COGS) includes the direct costs attributable to the production of the goods sold by a company.
Icon representing wages or employee costs
Cost of Labor Related Terms: Wages, Salaries, Employee Expenses, Labor Costs What is Cost of Labor? Cost of labor represents the total expenses a business incurs for employing its workforce, including wages, salaries, and benefits.
Icon representing assets recorded at purchase price
Cost Principle Related Terms: Historical Cost Principle What is the Cost Principle? An accounting principle stating that assets should be recorded at their historical cost (the amount paid when they were acquired).
Icon representing the mix of fixed and variable business costs.
Cost Structure Related Terms: Fixed Costs, Variable Costs, Operating Leverage What is Cost Structure? The composition of a company's expenses, specifically the proportion of fixed costs versus variable costs, which affects its profitability and operational risk.
Icon representing the relationship between cost, volume, and profit.
Cost-Volume-Profit (CVP) Analysis Related Terms: CVP Analysis, Break-Even Analysis, Profit Planning What is Cost-Volume-Profit (CVP) Analysis? A managerial tool examining the relationships between costs, sales volume, and profit to aid in decision-making and break-even calculations.
Icon representing business expenses
Costs Related Terms: Expenses, Business Expenses, Operational Costs What are Costs? Costs are the expenses incurred by a business in the process of generating revenue, including both direct and indirect expenditures.
Current Ratio icon representing a company's short-term liquidity
Current Ratio Related Terms: Liquidity Ratios, Working Capital Ratio, Current Assets, Current Liabilities, Short-term Financial Health, Quick Ratio, Solvency, financial ratio analysis, what is a good current ratio, interpreting current ratio values What is Current Ratio? A liquidity ratio that measures a company's ability to pay its short-term obligations (those due within one year). It is calculated by dividing current assets by current liabilities. A higher current ratio generally indicates a stronger ability to meet short-term debts.
Icon representing customer relationship management.
Customer Relationship Management (CRM) Related Terms: CRM Software, Customer Data Management, Sales Automation What is CRM? Practices, strategies, and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle.

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