Category: Economics Dictionary

An accrual bond is a type of fixed-income security that does not pay periodic interest or coupon payments. The interest accrues and gets compounded over the life of the bonds…

Accrual accounting is an accounting method where the revenue and expenses are recorded when they are earned or incurred regardless of when the cash transaction occurs. This method is different…

Accrual is a concept in accounting that refers to the recording of revenue and expenses when they are incurred regardless of when the cash transactions occur. This is a fundamental…

In economics, accretion refers to the gradual and incremental growth or increment in the value of an asset due to natural growth or external additions. It is also related to…

Accounting profit refers to the total revenue of a business minus its explicit costs which are associated with running the business. These costs include operating expenses, cost of goods sold,…

An accounting period is a specific and consistent duration of time that is used to record and compile financial transactions into financial statements.  The most common accounting periods include monthly,…

Accounting method refers to the specific rules and procedure which are used by a business to record its financial transactions and prepare its financial statements. There are two primary accounting…

One of the most fundamental principles in accounting is the accounting equation which represents the relationship between the assets, liabilities and equity of a company.  The equation is expressed as…

Accounting refers to the systematic process of recording, analyzing, summarizing and reporting financial transactions of businesses or individuals. It is a method of tracking the income, expenses, assets and liabilities…

The term accelerator in economics is used to convey the accelerator principle. This theory suggests that there is a direct relationship between the changes in output or demand in the…