Accounting Dictionary - Letter D

• Debit: An entry in a company's financial records that represents a decrease in assets or an increase in liabilities or equity.
• Depreciation: The decrease in value of an asset over time, often due to wear and tear or obsolescence.
• Dividend: A payment made by a company to its shareholders, often used to distribute profits.
• Double-entry bookkeeping: A method of accounting that records each transaction twice, once as a debit and once as a credit.
• Due diligence: A thorough investigation or review of a company's financial records and operations, often used in mergers and acquisitions or investment decisions.
• Debt: An amount owed by a company to a lender or creditor, often used to finance operations or investments.
• Default: A failure to pay or perform on a debt or obligation, often used in financial reporting and risk management.
• Deficit: A negative balance in a company's financial records, often used in financial reporting and budgeting.
• Deferral: A delay in recognizing revenue or expenses, often used in financial reporting and accounting.
• Deferred tax: A tax liability or asset that is recognized in a company's financial records but not yet paid or received.
• Deposit: A payment made by a customer or investor, often used in financial reporting and accounts receivable management.
• Direct cost: A cost that is directly related to the production or sale of a product or service.
• Disclosure: The process of providing information about a company's financial performance or operations, often used in financial reporting and transparency.
• Discount: A reduction in the price of a product or service, often used in financial reporting and sales management.
• Diversification: The process of spreading investments or operations across multiple industries or assets, often used in financial reporting and risk management.
• Dividend yield: The ratio of a company's dividend payment to its stock price, often used in financial reporting and investment analysis.
• Dual-entry accounting: A method of accounting that records each transaction twice, once as a debit and once as a credit.
• DSCR (Debt Service Coverage Ratio): A ratio that measures a company's ability to pay its debts, often used in financial reporting and risk management.
• Debenture: A type of debt security that is not secured by collateral, often used in financial reporting and risk management.
• Debtor: A person or organization that owes money to a company, often used in financial reporting and accounts receivable management.
• Decentralization: The process of delegating authority and decision-making to lower levels of management, often used in financial reporting and organizational management.
• Declining balance method: A method of depreciation that assumes an asset loses value at a constant rate over time.
• Deductible: An expense that can be subtracted from taxable income, often used in financial reporting and tax planning.
• Defalcation: The act of embezzling or misappropriating funds, often used in financial reporting and risk management.
• Deferred income: Income that is recognized in a company's financial records but not yet received.
• Deferred revenue: Revenue that is recognized in a company's financial records but not yet earned.
• Deflation: A decrease in the general price level of goods and services, often used in financial reporting and economic analysis.
• Delinquent: A payment or account that is past due, often used in financial reporting and accounts receivable management.
• Demand: A request or requirement for payment or performance, often used in financial reporting and risk management.
• Depletion: The decrease in value of a natural resource or asset over time, often used in financial reporting and accounting.
• Deposit slip: A document that records a deposit made by a customer or investor.
• Depository: A bank or financial institution that holds deposits and provides financial services.
• Derivative: A financial instrument that derives its value from an underlying asset or market, often used in financial reporting and risk management.
• Dilution: A decrease in the value of a company's shares or ownership, often used in financial reporting and investment analysis.
• Direct labor: Labor costs that are directly related to the production or sale of a product or service.
• Direct material: Material costs that are directly related to the production or sale of a product or service.
• Director: A member of a company's board of directors, often responsible for overseeing the company's operations and strategy.
• Disbursement: A payment made by a company, often used in financial reporting and accounts payable management.
• Discontinued operations: A part of a company's operations that is no longer in use or has been sold, often used in financial reporting and accounting.
• Discount rate: The interest rate used to calculate the present value of future cash flows, often used in financial reporting and investment analysis.
• Discretionary expense: An expense that is not essential to a company's operations, often used in financial reporting and budgeting.
• Divestiture: The sale or disposal of a part of a company's operations or assets, often used in financial reporting and strategic management.
• Dividend policy: A company's policy regarding the payment of dividends to shareholders, often used in financial reporting and investment analysis.
• Dividend reinvestment plan (DRIP): A plan that allows shareholders to reinvest their dividend payments in additional shares of the company's stock.
• Documentation: The process of creating and maintaining records and documents, often used in financial reporting and compliance.
• Dormant account: An account that has been inactive for a period of time, often used in financial reporting and accounts receivable management.
• Double declining balance: A method of depreciation that assumes an asset loses value at a constant rate over time.
• Double taxation: A situation where a company's income is taxed twice, often used in financial reporting and tax planning.
• Draw: A withdrawal of funds from a company's account, often used in financial reporting and cash management.
• Drawdown: A reduction in the balance of a company's account, often used in financial reporting and cash management.
• Due date: The date by which a payment or obligation is due, often used in financial reporting and accounts payable management.
• Dunning: The process of sending reminders or notices to customers or debtors regarding overdue payments, often used in financial reporting and accounts receivable management.
• Draft: A document that orders a bank to pay a certain amount of money, often used in financial reporting and cash management.
• Drawee: The person or organization that is ordered to pay a certain amount of money, often used in financial reporting and cash management.
• Drawer: The person or organization that issues a draft or order to pay, often used in financial reporting and cash management.
• Days sales outstanding (DSO): A measure of the average number of days it takes for a company to collect its accounts receivable, often used in financial reporting and accounts receivable management.
• Debt capacity: A company's ability to borrow and repay debt, often used in financial reporting and risk management.
• Debt covenant: A promise or agreement made by a company to its lenders or creditors, often used in financial reporting and risk management.
• Debt financing: The use of debt to finance a company's operations or investments, often used in financial reporting and risk management.
• Debt ratio: A ratio that measures a company's debt relative to its equity or assets, often used in financial reporting and risk management.
• Debt-to-equity ratio: A ratio that measures a company's debt relative to its equity, often used in financial reporting and risk management.
• Deferred charge: An expense that is recognized in a company's financial records but not yet paid.
• Deferred compensation: Compensation that is earned by an employee but not yet paid, often used in financial reporting and human resources management.
• Deferred expense: An expense that is recognized in a company's financial records but not yet paid.
• Deferred gain: A gain that is recognized in a company's financial records but not yet realized.
• Deferred loss: A loss that is recognized in a company's financial records but not yet realized.
• Defined benefit plan: A type of pension plan that provides a guaranteed benefit to employees, often used in financial reporting and human resources management.
• Defined contribution plan: A type of pension plan that provides a contribution to employees' retirement accounts, often used in financial reporting and human resources management.
• Depletion allowance: A tax deduction allowed for the depletion of natural resources, often used in financial reporting and tax planning.
• Depreciation expense: The decrease in value of an asset over time, often used in financial reporting and accounting.
• Depreciation recapture: The amount of depreciation that is recaptured when an asset is sold, often used in financial reporting and tax planning.
• Direct method: A method of accounting that recognizes revenue and expenses when earned or incurred.
• Direct write-off method: A method of accounting that recognizes bad debts or uncollectible accounts when they are written off.
• Disbursing officer: An officer responsible for disbursing funds or making payments on behalf of a company.
• Discounted cash flow (DCF): A method of valuing a company or investment by discounting its future cash flows.
• Discretionary cost: A cost that is not essential to a company's operations, often used in financial reporting and budgeting.
• Disposal: The sale or disposal of an asset or part of a company's operations, often used in financial reporting and strategic management.
• Donated capital: Capital contributed to a company by its owners or shareholders, often used in financial reporting and accounting.
• Double taxation agreement: An agreement between two or more countries to avoid double taxation of income or profits.
• Doubtful account: An account that is uncertain or unlikely to be collected, often used in financial reporting and accounts receivable management.