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DAC
, in accounting, is an acronym for Deferred
Acquisition Costs.
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DAIRY QUEEN ACCOUNTING
is a figure
of speech from the steel industry meaning that some people don't know
if they are doing accounting for Dairy Queen or a steel mill.
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DATA EVENT ANALYSIS
is the examination
of something which happens within the business environment which the
company needs to know about and which must be recorded in the company
memory, that is, the company files. A data event may be externally or
internally generated and may occur through some action being taken or
merely as a result of the passage of time. The occurrence of data events
recorded in some manner. Data event analysis determines what information
must be recorded such that the event can be recalled and acted upon.
It must also determine how that event became known to the company; that
is, what triggered the company awareness of the event?
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DATA FIXATION
, in behavioral accounting,
is a compulsive preoccupation to focus only upon the numbers without
looking beyond for the meaning behind the results themselves.
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DATE DRAFT
is a payment option draft that matures
in a specified number of days after the date issued.
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DATE OF RECORD
is the date which determines
which shareholders receive dividends.
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DAY BOOK
is a written record/ledger
in which transactions have been recorded as they occurred.
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DAYS CASH ON HAND
is calculated: Cash/([operating
expense - depreciation expense]/365).
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DAYS PAYABLE OUTSTANDING (DPO)
is an estimate of the
length of time the company takes to pay its vendors after receiving inventory.
If the firm receives favorable terms from suppliers, it has the net effect
of providing the firm with free financing. If terms are reduced and the
company is forced to pay at the time of receipt of goods, it reduces
financing by the trade and increases the firm's working capital requirements.
It is calculated: Days Payable Outstanding = 365 / Payables Turnover
(Payables Turnover = Purchases / Payables).
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DAYS SALES OUTSTANDING (DS0)
, also
known as Collection Period (period average), is
a financial indicator that shows both the age, in terms of days, of a
company's
accounts receivable
and the average time it takes to turn the receivables into cash. It is
compared to company and industry averages, as well as company selling
terms (e.g., Net 30) for determination of acceptability by the company.
DSO is calculated: DSO = (Total Receivables/Total Credit Sales in the
Period Analyzed) x Number of Days in the
Period Analyzed. Note: Only credit sales are to be
used. Cash sales are
excluded.
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DCAA
is the Defense Contract Audit
Agency.
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DCR
see Debt Coverage Ratio.
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DDA
, among others, can mean: Disability
Discrimination Act (1995, UK), Dividend Disbursing Agent (finance), Demand
Deposit Account, Direct Deposit Advance (Wells Fargo), Direct Deposit
Advice, Deposit Demand Account, or Design Development Activity.
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DEBENTURE
is a corporate IOU that is
not backed by the company's assets (unsecured) and is therefore somewhat
riskier than a bond.
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DEBIT
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DEBIT CARD
is a banking card enhanced
with automated teller machine (ATM) and point-of-sale (POS) features so
that it can be used at merchant locations. A debit card is linked to an
individual's checking account, allowing funds to be withdrawn at the ATM
and point-of-sale without writing a check. Each financial institution
creates an identity for its debit card to customize the product and differentiate
it in the market. Debit cards can also be called deposit access cards.
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DEBIT MEMORANDUM
can be either a) a
form or document given by the bank to a depositor to notify that the depositor's
balance is being decreased due to some event other than the payment of
depositor originated check, e.g. bank service charges; or b) a form of
document used by a seller to notify a buyer that the seller is debiting
(increasing) the amount of the buyer's accounts payable due to errors
or other factors requiring adjustments.
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DEBIT NOTES
are issued to indicate
a short payment.
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DEBIT RECORD (DR)
is an entry in a
double-entry bookkeeping system recording an increase in an asset or
an expense, or a decrease in liability, or owner's equity item. Debit
entries are conventionally made on the left-hand side of T accounts.
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DEBT
is money, goods or services owed by an individual or company to another individual or company. Monetary debt can be represented by a loan note, bond, mortgage or other form stating repayment terms and, if applicable, interest payments to be made. All forms of debt all imply intent to repay an amount owed by a specific date. Bad debts are likely to remain uncollectable and be written off.
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DEBT COVENANT
is one of many terms
used to describe rules governing the loans that a company has outstanding.
Other related phrases would be "loan terms" "credit agreement,"
"loan agreement."
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DEBT COVERAGE RATIO
is the ratio between
the net income of an investment and the amount of debt service of the
investment: expressed as (NOI / DS = DCR), i.e. it is the relationship
of net operating income divided by annual debt service.
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DEBT FINANCING
is raising money through
selling bonds, notes, or mortgages or borrowing directly from financial
institutions. You must repay borrowed money in full, usually in installments,
with interest. A lender incurs risk and charges a corresponding rate of
interest based on that risk. The lender usually assesses a variety of
factors such as the strength of your business plan, management capabilities,
financing, and your past personal credit history, to evaluate your company’s
chances of success.
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DEBT INSTRUMENT
is a written promise
to repay a debt. Examples: notes, bills, bonds, CDs, GICs, commercial
paper, and banker's acceptances.
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DEBT SECURITY
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DEBT SERVICE COVERAGE
is the ratio
of cash flow available to pay for debt to the total amount of debt payments
to be made (interest and principal payments).
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DEBT SERVICE RATIO
is the measurement
of debt payments to gross income.
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DEBT TO TOTAL ASSETS RATIO
measures
the percentage of assets financed by all terms of debt, includes both
current and long term debt.
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DEBTOR
is the party against who one
has a claim.
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DEBTOR DAYS
is a ratio used to work
out how many days on average it takes a company to get paid for what it
sells. It is calculated by dividing the figure for trade debtors shown
in its accounts by its sales, and then multiplying by 365.
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