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BOOK OF FINAL ENTRY
see LEDGER.
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BOOK PROFIT
see BOOK INCOME.
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BOOK VALUE OF EQUITY
is the difference between the book value of assets and the book value of liabilities.
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BOOK(S)
when used as a noun refers
to journals or ledgers (for example: cash book). When used a verb it refers
to the recording of an entry (for example: to book the sale).
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BOOK-TAX DIFFERENCE
is pretax book income minus tax net income.
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BOOK-TO-BILL RATIO
is
the ratio of orders taken (sic booked) to products shipped and
bills sent (sic billed). The ratio is a measure of whether a
company has more, equal to or less than the orders than it can likely
produce and deliver. The book-to-bill ratio is primarily of interest
to investors or traders in the high-tech sector.
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BOOK-TO-MARKET
is the ratio of the
firm's book equity to market equity.
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BOOKBUILD
is a particular way of conducting
a float where the price at which shares are sold is not fixed, but rather
is determined following a process in which interested investors bid for
shares. This is quite a common way of determining the price paid for shares
by institutional investors (Funds Managers).
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BOOKKEEPING
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BOOKS OF ACCOUNT
are the
financial records of a business. Usually refers to the lowest level of
recorded data, before summaries are made.
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BOOKS OF RECORD
are all
mandatory entries into those documents that track the activity, events,
or decisions pertaining to the subject for which the records are maintained,
e.g., board of director minutes, births or deaths, and marriage licenses.
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BOOT
is money received during an exchange
to equalize values, e.g. if a person sells his business for an assumption
of liabilities and for some cash the cash is 'boot.
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BORROWING COSTS
is the financial costs
incurred by an enterprise in connection with the borrowing of funds,
i.e. interest, amortization of discounts or premiums arising on the issue
of debt securities, loan fees, gains and losses on foreign currency differences
related to borrowed funds and regarded as an adjustment to interest costs.
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BOTTOM LINE
, in accounting/finance,
is specifically net income after taxes. In general, it is an expression
as to the end results of something, e.g. the net worth of a corporation
on a balance sheet, sales generated from a marketing campaign, or final
decision on most any subject (Often said: “give me the bottom line”).
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BOUGHT LEDGER
see LEDGER.
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BOUNCED CHECK
is a check written for
an amount exceeding the checking account balance that is subsequently
rejected for payment due to insufficient funds.
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BOY
is Beginning Of Year.
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BPO
, dependent upon usage, could mean
Business Process Outsourcing, Business Process Optimization, Blanket
Purchase Order, Broker Price Opinions, Business Process Object, or Bank
Payment Order.
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BR
could be Backward Reporting or Bad
Register.
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BRANCH ACCOUNTING
is accounting for
geographically separated sections of enterprises. The accounting system
adopted depends upon the degree to which the branch is controlled from
its head office.
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BRAND IMAGE
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BRAND LOYALTY
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BRAND NAME
is a name given to a product
or service.
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BREACH OF CONTRACT
is the failure to
perform provisions of a contract.
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BREAK-EVEN EQUATION
is the equation
that determines BREAK-EVEN POINT. Let p = unit selling price, v = unit
variable cost, FC = total fixed costs, x = sales in units. The equation:
px = vx + FC.
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BREAK-EVEN SALES
see BREAK-EVEN POINT.
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BRIDGE LOAN (BRIDGING LOAN)
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BRITISH-AMERICAN MODEL
is an accounting
model. There are other accounting systems which differ from the U.S.
accounting model. U.S. GAAP and FASB standards are not the only accounting
principles used internationally; for example, many countries reverse
the U.S. debit and credit system. Many countries with high rates of inflation
account for inflation in financial reports much more than the U.S. does.
Also, for any company operating internationally there is the currency
exchange translation problem when consolidating financial statements.
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BROKERAGE
, dependent upon usage, is
the business of a broker; charges a fee to arrange a contract between
two parties, or, the place where a broker conducts his/her business.
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BROUGHT FORWARD
is the recognition
of a value that was determined in the past, e.g. an accumulated balance
brought forward at the start of a new accounting period.
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