Improvements
An expenditure that extends the useful life of an asset for longer than one year.
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Income
The difference between revenue and expense. Traditionally used synonymously with revenue even though technically incorrect. Profit
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Income statement
Formally called a statement of income & expense. It is a report that measures the flow of business operations during an accounting period.
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Increment
A small increase in quantity.
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Independent contractor
An individual who contracts with an entity to perform a service independent of the entity's management and control. The contractor is not considered an employee and therefore is responsible for his own taxes.
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Indirect cost
Usually referred to as general and administrative overhead costs or expenses. Any cost that is not a direct cost.
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Indirect expense
Indirect cost.
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Intangible asset
An asset that has no physical substance, such as goodwill. Usually found in the other assets section of the balance sheet.
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Interest
The cost incurred for the use of money.
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Interim statements
Financial statements prepared for a period shorter than one year, i.e., a month or quarter.
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Internal audit
An audit performed on a company by its own employees. Usually is more comprehensive but less objective than an external audit conducted by outside, independent auditors.
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Internal controls
Management techniques and tools for insuring that financial policies and procedures are being adhered to according to pre-established standards.
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Inventory
Goods being held for resale. In manufacturing, can be raw materials, goods in process or finished goods.
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Inventory turnover ratio
Cost of merchandise sold divided by average inventory. Indicator of how many times inventory was totally replaced during the year.
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Invoice
A document prepared by the seller describing the items sold and the amount the buyer owes.
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Issue
To exchange stock for cash or other valuable property.
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