Accounting Dictionary - Letter H

• Half-year convention: A method of depreciation that assumes an asset is purchased or sold halfway through the year.
• Hard asset: A tangible asset, such as property, plant, and equipment.
• Hedging: A financial strategy that involves reducing risk by taking a position in a security that offsets potential losses.
• Hidden asset: An asset that is not reflected on a company's balance sheet, often due to accounting errors or omissions.
• High-low method: A method of estimating costs that involves identifying the highest and lowest costs and using them to estimate the average cost.
• Historical cost: The original cost of an asset, often used in financial reporting and accounting.
• Hold-harmless agreement: A contract that protects one party from liability in the event of a dispute or lawsuit.
• Holding company: A company that owns and controls other companies, often used in corporate finance and mergers and acquisitions.
• Horizontal analysis: A method of financial analysis that involves comparing a company's financial statements over time.
• Hostile takeover: A takeover of a company that is opposed by the target company's management or board of directors.
• Hour bank: A system that allows employees to accumulate and use paid time off.
• Hurdle rate: The minimum rate of return required for an investment to be considered acceptable.
• Hybrid method: A method of accounting that combines elements of different accounting methods.
• Hyperinflation: A rapid and extreme increase in prices, often used in economic analysis and financial reporting.
• Hypothesis testing: A statistical method used to test hypotheses about a population or sample.
• HACCP (Hazard Analysis Critical Control Point): A method of identifying and controlling hazards in the food industry.
• Haircut: A reduction in the value of an asset or investment.
• Hammer candlestick: A type of candlestick chart pattern that indicates a potential reversal in the market.
• Hammock method: A method of estimating costs that involves using a range of costs to estimate the average cost.
• Harmonic mean: A statistical method used to calculate the average of a set of numbers.
• Head and shoulders pattern: A type of chart pattern that indicates a potential reversal in the market.
• Hedge accounting: A method of accounting that involves recognizing gains and losses on hedging transactions.
• Hedge fund: A type of investment fund that uses hedging strategies to manage risk.
• Hedging instrument: A financial instrument used to reduce risk, such as options or futures contracts.
• Held-to-maturity securities: Securities that are held until maturity, often used in financial reporting and accounting.
• High-water mark: The highest value of an investment or asset, often used in financial reporting and analysis.
• Histogram: A graphical representation of data that shows the distribution of values.
• Home currency: The currency of a company's home country, often used in foreign exchange and international finance.
• Home office: The main office of a company, often used in financial reporting and accounting.
• Homogeneous production: Production that involves producing similar products or services.
• Horizontal merger: A merger between two companies in the same industry.
• Hot issue: A security that is in high demand and has a high price.
• House account: An account that is used to record transactions related to a company's own operations.
• Human asset accounting: A method of accounting that recognizes the value of human resources, such as employees.
• Human resource accounting: A method of accounting that recognizes the value of human resources, such as employees.