What is the International Federation of Accountants (IFAC)? The international accounting body that is essentially a coordinating body of professional accounting organizations, and does not have the responsibility for setting international accounting standards; instead, the board objective is the development and enhancement of a coordinated worldwide accounting profession with harmonized standards.
What is the International Accounting Standards Committee (IASC)? The committee, the charge of which is to develop basic accounting standards and to promote the worldwide acceptance and observance of these standards.
What is meant by intraperiod income tax allocation? The allocation of income taxes in such a way that the total income tax expense for the period is related to the proper component that caused the income is called intraperiod income tax allocation.
What is meant by the interperiod income tax allocation? The allocation of income taxes among different accounting periods is called interperiod income tax allocation.
What is meant by the income from continuing operations? Income from continuing operations is the excess of gross margin from sales over operating expenses.
What is the inventory profit? The amount by which the cost of replacing merchandise sold on the sale date exceeds the reported cost is called inventory profit.
What is meant by Internal Control? Internal control is the organizational plan that includes specific methods and procedures developed by management to ensure the accuracy and reliability of the accounting records and to safeguard the firm’s assets.
What are Inventories? – Definition Inventories are those goods that are owned and held for sale in the regular course of business, including goods in transit, if shipped FOB Shipping Point.
What are intangible assets? – Definition Intangible assets are those assets which have no physical substance but have future economic benefits based on rights or benefits accruing to the asset’s owner. Explanation Intangible assets are noncurrent assets that have no physical properties. They generate revenues because they offer a firm value in future revenue production …
What is meant by the term “Interest”? The term interest may be defined as the cost associated with the use of money over a specified period of time.
What is the Income Summary Account? Income Summary Account is a temporary account used to provide structure and to control the accuracy of the closing process.
What is meant by Internal Transactions? Internal Transactions are the events that affect the firm only, and are usually recorded by adjusting entries.
What are the Interim Statements? Interim Statements are the financial statements issued monthly or quarterly.
What is Income Statement? Income statement is a financial statement that shows the amount of income earned by a firm/business over an accounting period.
Definition Imputed Cost—is the cost allocated for resources or use of a service which does not involve a cash outlay. They are hypothetical costs and are not recorded in the books of accounts. There are those costs which do not involve cash outlay. These are not included in the cost accounts. But they are important …
Definition When a seller sells goods to a buyer on credit, he issues a document that is called invoice.
Definition The amount or value received by a business or organization against goods sold or services rendered to customers or buyers is known as income or revenue. OR “Revenue is the amount of goods or product sold and services rendered during a specific accounting period.” Example Sales. Commission earned etc.
Investment tax credit (ITC) can be defined as the direct reduction of income taxes arising from the acquisition of depreciable assets.
inventoriable costs can be defined as all costs of a product that are regarded as an asset for financial reporting under generally accepted accounting principles.
Internal rate of return method can be defined as discounted cash-flow capital budgeting method. It is the rate of interest at which the present value of expected cash inflows from a project equals the present value of expected cash outflows of the project. Also called time-adjusted rate of return.
Internal failure costs are the category of costs in a cost of quality program incurred nonconforming product is a detected before its shipment to customers.
Intermediate product is a product transferred from one segment of an organization to another segment of the same organization.
Inflation can be defined as a decline in the general purchasing power of the monetary units.
Indirect labor costs can be defined as all compensation other than direct labor compensation.
Indirect costs are the costs that cannot be identified specifically or traced to a given cost object in an economically feasible way.
Incremental unit-time learning model can be defined as Learning curve model in which the incremental unit time (the time needed to produce the last unit) is reduced by a constant percentage each time the cumulative quantity of units produced is doubled
Incremental cost common allocation method is a common cost allocation method that requires that one user be viewed as the primary party and the second user be viéwed as the incremental party.
Incremental approach is the approach to choosing among projects that includes only those cash outflows and inflows that differ between the two projects.
Idle time can be defined as represents wages paid for an unproductive time caused by machine breakdowns, material shortages, sloppy production scheduling, and the like.