Costs incurred in socialization associated directly with a business purpose such as obtaining an order or advantageous trade terms. Such expenses are generally required to be supported by documentary evidence to qualify as deductions against income.
Market value of a firm's total capitalization: equity plus debt less the value of assets not critical to the firm's core business.
Monetary and non-monetary costs (such as the environmental impact) associated with the production, transmission, and consumption of energy.
This term came about after the infamous Enron debacle. It refers to using undesirable accounting methods (like cookie jar accounting) to project a favorable stock price for the company when the stock is at a low on the market.
A contingent liability, contract, purchase order, payroll commitment, tax payable, or legal penalty that is chargeable to an account. It ceases to be an encumbrance when paid-out or when the actual liability amount is determined and recorded as an expense.
A record found in an accounting ledger which represents a planned or obligated expenditure. When the encumbered expenditure open item is placed in the ledger, the amount required to fund the item is set aside and is accounted for as an obligation.
Property owned by one party but subject to the legal claims of another party.
Sums paid by an employee to fund, in part or in full, a deferred benefit such as a pension annuity.
