Financial Accuracy

If you do not know your accounting terminology, people can easily distinguish you as useless in the business world. Here are some important terms to know.

Accountants’ Report

Formal document that communicates an independent accountant’s: (1) expression of limited assurance on financial statements as a result of performing inquiry and analytic procedures; (2) results of procedures performed (AGREED-UPON PROCEDURES REPORT); (3) non-expression of opinion or any form of assurance on a presentation in the form of financial statements information that is the representation of management.

Accumulated Depreciation

Total depreciation pertaining to an asset or group of assets from the time the assets were placed in services until the date of the Financial Statement or tax return. This total is the contra account to the related asset account.

Bankruptcy

Legal process, governed by federal statute, whereby the DEBTS of an insolvent person are liquidated after being satisfied to the greatest extent possible by the debtor’s ASSETS. During bankruptcy, the debtor’s assets are held and managed by a court appointed trustee.