Accounting Dictionary - Letter C

• Capital: The total amount of money or assets invested in a business, often used to finance operations or investments.
• Cash flow: The movement of money into or out of a business, often used to measure liquidity and financial health.
• Cost: The amount of money or resources spent to acquire or produce something, often used in financial reporting and decision-making.
• Credit: An entry in a company's financial records that represents a decrease in assets or an increase in liabilities or equity.
• Creditor: A person or organization that is owed money by a company, often used in accounts payable management.
• Current asset: An asset that is expected to be converted into cash within one year or within the company's normal operating cycle.
• Current liability: A liability that is expected to be paid within one year or within the company's normal operating cycle.
• Cash: The most liquid asset, often used to measure a company's ability to pay its debts.
• CPA (Certified Public Accountant): A professional certification for accountants, often required for public accounting and auditing.
• Chart of accounts: A list of all the accounts used by a company to record its financial transactions.
• Consolidation: The process of combining the financial statements of multiple companies into a single set of statements.
• Contingent liability: A liability that may or may not occur, often used in financial reporting and risk management.
• Corporation: A type of business organization that is separate from its owners, often used to raise capital and limit liability.
• Cost accounting: A method of accounting that focuses on the costs of producing goods or services.
• Cost of goods sold (COGS): The direct costs of producing and selling a company's products or services.
• Cash basis: A method of accounting that recognizes revenues and expenses when cash is received or paid.
• Cash equivalent: An asset that is easily convertible into cash, often used in financial reporting and liquidity analysis.
• Contra account: An account that is used to offset the balance of another account, often used in financial reporting and accounting.
• Contribution margin: The difference between a company's sales revenue and its variable costs, often used in cost-volume-profit analysis.
• Convertible bond: A type of bond that can be converted into common stock, often used to raise capital and reduce debt.
• Corporate tax: A tax on a company's profits, often used to fund government programs and services.
• Cost allocation: The process of assigning costs to specific products, departments, or projects.
• Cost center: A department or function within a company that is responsible for a specific set of costs.
• Cost-volume-profit analysis: A method of analyzing the relationship between a company's costs, volume, and profit.
• Credit balance: A balance in a company's financial records that represents a decrease in assets or an increase in liabilities or equity.
• Currency translation: The process of converting financial statements from one currency to another.
• Capital expenditure: An investment in a long-term asset, often used to finance growth and expansion.
• Capital gain: A profit made from the sale of an asset, often used in financial reporting and tax planning.
• Capital lease: A type of lease that is treated as a purchase for accounting purposes.
• Capitalization: The process of recording an asset or expense on the balance sheet, often used in financial reporting and accounting.
• Carrying amount: The value of an asset or liability on a company's balance sheet.
• Cash budget: A plan for managing a company's cash inflows and outflows.
• Cash disbursement: A payment made by a company, often used in accounts payable management.
• Cash discount: A reduction in the price of a product or service for paying in cash.
• Cash dividend: A payment made by a company to its shareholders, often used to distribute profits.
• Cash management: The process of managing a company's cash inflows and outflows.
• Certified Internal Auditor (CIA): A professional certification for internal auditors, often required for internal auditing and risk management.
• Certified Management Accountant (CMA): A professional certification for management accountants, often required for management accounting and financial analysis.
• Closing entry: A journal entry made to close a company's temporary accounts and transfer their balances to permanent accounts.
• Collateral: An asset used to secure a loan or other debt, often used in financial reporting and risk management.
• Commercial paper: A type of short-term debt instrument used by companies to raise capital.
• Committed cost: A cost that has been incurred or committed to, often used in financial reporting and budgeting.
• Common stock: A type of stock that represents ownership in a company.
• Comparative financial statement: A financial statement that compares a company's financial performance over time.
• Compensating balance: A balance required by a bank to compensate for the risk of lending to a company.
• Compilation: The process of gathering and presenting financial data, often used in financial reporting and auditing.
• Compliance audit: An audit that focuses on a company's compliance with laws, regulations, and standards.
• Compound interest: Interest earned on both the principal and any accrued interest, often used in financial reporting and investing.
• Consignment: A type of inventory that is owned by one party but held by another party.
• Consolidated financial statement: A financial statement that combines the financial data of multiple companies.
• Contingency: A potential event or situation that may affect a company's financial performance.
• Continuous audit: An audit that is performed on an ongoing basis, often used in financial reporting and risk management.
• Contribution: A payment made by a company to a charity or other organization.
• Controller: A senior-level executive responsible for a company's financial management and reporting.
• Convertible preferred stock: A type of preferred stock that can be converted into common stock.
• Corporate governance: The system of rules, practices, and processes by which a company is directed and controlled.
• Cost driver: A factor that affects the cost of a product or service.
• Cost object: A product, department, or project to which costs are assigned.
• Cost of capital: The cost of raising capital, often used in financial reporting and investing.
• Cost-benefit analysis: A method of evaluating the costs and benefits of a project or investment.
• Covenant: A promise or agreement made by a company, often used in financial reporting and risk management.
• Credit limit: The maximum amount of credit that can be extended to a customer.
• Credit memo: A document that reduces the amount of credit extended to a customer.
• Credit rating: A measure of a company's creditworthiness, often used in financial reporting and risk management.
• Current ratio: A measure of a company's liquidity, often used in financial reporting and risk management.
• Custodian: A person or organization responsible for holding and managing assets on behalf of another party.
• Capital stock: The total amount of stock issued by a company.
• Carrying value: The value of an asset or liability on a company's balance sheet.
• Cash book: A record of a company's cash transactions.
• Cash conversion cycle: The time it takes for a company to sell its inventory, collect its accounts receivable, and pay its accounts payable.
• Cash on delivery (COD): A payment method that requires payment upon delivery of goods or services.
• Cash register: A device used to record and manage cash transactions.
• Casualty loss: A loss resulting from an unexpected event, often used in financial reporting and risk management.
• Charge-off: The process of writing off a bad debt or other uncollectible amount.
• Charitable contribution: A payment made by a company to a charity or other organization.
• Check register: A record of a company's check transactions.
• Claim: A request for payment or reimbursement, often used in financial reporting and risk management.
• Clearing account: An account used to record and manage transactions that are not yet settled.
• Closely held corporation: A corporation that is owned and controlled by a small group of individuals.
• Comfort letter: A letter provided by an auditor to a company's lenders or other stakeholders, often used in financial reporting and risk management.
• Commingling: The act of mixing or combining assets or funds, often used in financial reporting and risk management.
• Commodity: A type of product or service that is widely available and interchangeable.
• Comparative analysis: A method of analyzing and comparing financial data, often used in financial reporting and decision-making.
• Compensating error: An error that offsets another error, often used in financial reporting and accounting.
• Completed contract method: A method of accounting that recognizes revenue and expenses when a contract is completed.
• Comptroller: A senior-level executive responsible for a company's financial management and reporting.
• Confirmation: A process of verifying the accuracy of financial data, often used in financial reporting and auditing.
• Conservatism principle: A principle of accounting that requires companies to recognize expenses and losses as soon as possible.
• Consistency principle: A principle of accounting that requires companies to use consistent accounting methods and procedures.
• Constant dollar accounting: A method of accounting that adjusts financial data for inflation, often used in financial reporting and analysis.
• Consumer Price Index (CPI): A measure of inflation, often used in financial reporting and analysis.
• Contingent asset: An asset that may or may not be realized, often used in financial reporting and risk management.
• Continuing operations: A company's ongoing business activities, often used in financial reporting and analysis.
• Contra revenue: A reduction in revenue, often used in financial reporting and accounting.
• Contract: A legally binding agreement between two or more parties, often used in financial reporting and risk management.
• Control account: An account used to record and manage transactions that are not yet settled.
• Controllable cost: A cost that can be controlled or influenced by a company's management.
• Correction of error: The process of correcting an error in financial reporting or accounting.
• Cost avoidance: The process of avoiding or reducing costs, often used in financial reporting and decision-making.
• Cost recovery: The process of recovering costs, often used in financial reporting and decision-making.
• Cost-plus contract: A type of contract that reimburses a company for its costs plus a markup or profit.
• Covenant not to compete: A promise or agreement not to compete with another company, often used in financial reporting and risk management.
• Credit card: A type of payment card that allows customers to borrow money from a lender.
• Credit note: A document that reduces the amount of credit extended to a customer.
• Credit terms: The terms and conditions of a credit agreement, often used in financial reporting and risk management.
• Cross-footing: A method of verifying the accuracy of financial data, often used in financial reporting and accounting.
• Cumulative preferred stock: A type of preferred stock that accumulates dividends over time.
• Current cost accounting: A method of accounting that values assets and liabilities at their current cost, often used in financial reporting and analysis.
• Cycle billing: A method of billing customers on a regular cycle, often used in financial reporting and accounts receivable management.
• Cycle counting: A method of counting and verifying inventory, often used in financial reporting and inventory management.