Term
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Definition
| Under ASPE, the increase in the carrying amount of an asset retirement obligation due to passage of time |
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Term
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Definition
Rights to benefits accumulated by employees that can be carried forward to future periods if not used in the period in which they were earned.
Acid-test ratio A liquidity ratio that relates total curr |
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Term
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Definition
| A liquidity ratio that relates total current lia- bilities to highly liquid assets such as cash, marketable secu- rities, and receivables. Also known as Quick ratio. |
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Term
| Asset Retirement Obligation (ARO) |
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Definition
| An existing legal obliga- tion associated with the retirement of a tangible long-lived asset that results from its acquisition, construction, develop- ment, or normal operations, in the period it is incurred, provided a reasonable estimate can be made of its fair value. Also known as Site restoration obligation. |
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Term
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Definition
The separation of proceeds into two or more
amounts. For instance, it is used in accounting for bundled
sales and convertible bonds (by the issuer). |
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Term
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Definition
| Amount paid by an employer to an employee in addi- tion to regular salary or wage, often dependent on the com- pany’s yearly profit. |
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Term
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Definition
| Debt that is due on demand (that is, callable) by the creditor. |
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Term
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Definition
| Absences from employment, e.g., vacation, illness, and holidays, for which employees will be paid. |
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Term
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Definition
| n An obligation that arises from past or present company practice that signals that the entity acknowledges a potential economic burden. |
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Term
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Definition
| An existing condition or situation involving uncertainty as to possible gain or loss and that will not be resolved until a future event or events occur or fail to occur. |
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Term
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Definition
| An obligation incurred as a result of a loss contingency, dependent upon the occurrence or nonoc- currence of one or more future events to confirm either its existence or the amount payable. |
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Term
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Definition
| Agreements entered into by companies with customers, suppliers, employees, and other parties. They are not liabilities at balance sheet date, but commit the company and how its assets will be used into the future. Also known as Contractual obligations |
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Term
| Current Maturity of Long Term Debt |
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Definition
| Bonds, mortgage notes, and other long-term indebtedness that mature within 12 months from the balance sheet date and are reported as current liabilities. |
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Term
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Definition
| Amounts payable within one year from the date of the balance sheet or within the normal operating cycle where this is longer than a year. |
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Term
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Definition
| The ratio of total current assets to total current liabilities. |
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Term
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Definition
| Deposits received from customers that are returnable. Deposits may guarantee performance of a contract or service. |
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Term
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Definition
| A ratio indicating how long it takes a company to pay its trade payables, thereby determin- ing the average age of payables. |
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Term
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Definition
| An amount that a corporation owes to its shareholders because the board of directors has authorized a dividend payment. |
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Term
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Definition
| A method of accounting for non- accumulating compensated absences whereby a liability is not recorded until the obligating event occurs |
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Term
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Definition
| A contract that is entered into where both parties agree to do something in the future. The con- tract is initially unexecuted until the goods in question or consideration is exchanged at that future point in time. |
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Term
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Definition
| A method of accounting for the liability arising from product guarantees where the outstanding lia- bility is measured at the cost of the economic resources needed to meet the obligation. |
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Term
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Definition
| Contractual obligations to deliver cash or other financial assets to another party, or to exchange finan- cial instruments with another party under conditions that are potentially unfavourable. |
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Term
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Definition
| Legally binding undertakings to stand in the place of the party for whom the guarantee is given to dis- charge their obligation in the event of them failing to do so. |
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Term
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Definition
The GST or HST a company pays on goods
and services it purchases from its suppliers |
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Term
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Definition
| Obligations of an entity arising from past transac- tions or events, the settlement of which may result in the transfer or use of assets, provision of services, or other yield- ing of economic benefits in the future. |
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Term
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Definition
| An agreement a company enters into with its bank to make multiple borrowings up to a negotiated limit, instead of having to negotiate a new loan every time the company needs funds. Also known as Revol |
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Term
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Definition
| A company’s ability to convert assets into cash to pay off its current liabilities in the course of business. |
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Term
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Definition
Promotions by a company promising
future benefits to customers in exchange for specified pur-
chases from the company. |
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Term
| non-accumulating compensated absences |
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Definition
Benefits that employees are entitled to by virtue of their employment and the occurrence of an obligating event. The rights to these benefits do not vest and are accounted for differently than
those that accumulate with service. |
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Term
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Definition
| Written promises to pay a certain sum of money on a specified future date. They may arise from pur- chases, financing, or other transactions. |
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Term
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Definition
| The period of time elapsing between the acquisition of goods and services involved in operations and the final cash realization resulting from sales and subse- quent collections. |
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Term
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Definition
| Deductions made from employee payroll, including employee income taxes, Canada (Quebec) Pension Plan, employment insurance, and miscellaneous items such as other insurance premiums, employee savings, and union dues. |
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Term
| preferred dividends in arrears |
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Definition
Accumulated but undeclared
dividends on cumulative preferred shares. |
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Term
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Definition
Offers, such as silverware, dishes, and small appli-
ances, to customers on a limited or continuing basis for the return of items such as boxtops, certificates, coupons, labels, or wrappers. |
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Term
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Definition
A type of plan where payments are made to
employees in addition to the regular salary or wage. The payments may be a percentage of the employees’ regular rates of pay, or they may depend on productivity increases or the amount of the company’s annual profit. |
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Term
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Definition
| Liabilities of uncertain timing or amount. |
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Term
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Definition
| A liquidity ratio that relates total current liabili- ties to highly liquid assets such as cash, marketable securi- ties, and receivables. Also known as Acid-test ratio |
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Term
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Definition
Deposits received from customers that are returnable. Deposits may guarantee performance of
a contract or service. |
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Term
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Definition
An approach to accounting for warranties
whereby the proceeds received for any goods or services yet to be delivered or performed are unearned at the point of sale. Until the revenue is earned, the obligation is reported at its sales or fair value. The liability is then reduced as the revenue is earned. |
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Term
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Definition
| An agreement a company enters into with its bank to make multiple borrowings up to a negotiated limit, instead of having to negotiate a new loan every time the company needs funds. Also known as Line of cre |
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Term
| short term obligation expected to be financed |
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Definition
Those
debts that are scheduled to mature within a year or operating
cycle, where the company intends to refinance those debts. |
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Term
| site restoration obligation |
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Definition
An existing legal obligation asso-
ciated with the retirement of a tangible long-lived asset that results from its acquisition, construction, development, or normal operations, in the period it is incurred, provided a reasonable estimate can be made of its fair value. Also known as Asset retirement obligation |
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Term
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Definition
| A type of liability that is uncondi- tional whereby the obligor stands prepared to fulfill the terms of the contract when required, such as an insurance contract or warranty |
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Term
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Definition
| lances owed to others for goods, supplies, or services purchased on open account |
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Term
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Definition
| Notes required as part of the sales/pur- chases transaction in lieu of the normal extension of open account credit. |
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Term
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Definition
| Amounts that the entity owes to suppliers for providing goods and services related to normal business operations |
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Term
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Definition
| An unconditional promise or other requirement to provide or forgo economic resources, such as the requirement to pay interest on borrowed money. |
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Term
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Definition
| Revenue received by a company for goods or services that have not yet been provided by the company. |
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Term
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Definition
| Rights that an employee has to some of the benefits that accumulate with service, even if his or her employment is terminated |
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Term
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Definition
| A promise made by a seller to a buyer to make good on a product’s deficiency of quantity, quality, or performance. |
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