CA Glossary
236 terms starting with “A”
A12 terms
Absorption Costing
A method of costing where all manufacturing costs, both fixed and variable, are allocated to the cost of the product.
Accounting Policies
The specific principles, bases, conventions, rules and practices adopted by an enterprise in preparing and presenting financial statements.
Activity-Based Costing (ABC)
A costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.
Advance Tax
Income tax paid in advance for the income earned in a particular financial year. It is meant to be paid in installments during the year instead of a lump sum payment at the end.
Amortization
The systematic allocation of the depreciable amount of an intangible asset over its useful life. It reflects the pattern in which the asset's future economic benefits are expected to be consumed by the entity.
Analytical Procedures
Evaluations of financial information through analysis of plausible relationships among both financial and non-financial data.
Articles of Association (AoA)
A document that specifies the regulations for a company's operations and defines the company's purpose and lays out how tasks are to be accomplished within the organization.
Assessment Year
The twelve-month period starting from April 1st during which the income earned in the previous financial year is assessed and taxed.
Audit Evidence
Information used by the auditor in arriving at the conclusions on which the auditor's opinion is based. Includes information contained in accounting records underlying the financial statements and other information.
Audit Risk
The risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated. It is a function of the risks of material misstatement and detection risk.
Audit Trail
A step-by-step record by which accounting data can be traced to its source, demonstrating the history and sequence of events.
Authorized Capital
The maximum amount of share capital that a company is authorized by its constitutional documents to issue to shareholders.