A purchases journal, also known as a purchase day book, is a specialized accounting record used to track all credit purchases of merchandise for a business.
The purchases ledger, also known as the creditors' ledger, is a detailed accounting record that tracks all the credit purchases a company makes. It manages company liabilities by listing every individual supplier from whom the company buys goods or services on credit.
The purchases ledger control account is a summary account within the general ledger used to record the total amount owed to suppliers and other creditors for goods or services received on credit.
Purchases returns are goods purchased from a supplier that are returned due to being faulty, incorrect, or not meeting specifications.
Purchasing power refers to the quantity and quality of goods and services that a given amount of currency can buy. Changes in purchasing power are influenced by inflation and deflation. This concept is crucial for both businesses and consumers as it impacts economic decisions and financial planning.
The 'purchasing power of the dollar' refers to the amount of goods and services that one dollar can buy in a particular market and time, compared to prior periods. This measurement considers inflation or deflation using an index of consumer prices.
Purchasing Power Parity (PPP) is an economic theory that estimates the currency exchange rates necessary in foreign trade situations so that each currency has the same purchasing power.
Purchasing power risk refers to the risk that inflation will erode the value of the currency in which an investment or deal has been made, effectively reducing the real return on investment over time.
Pure Capitalism is an economic system where the principles of capitalism operate unfettered by any limiting factors such as government control or interference. In this system, the government's role is minimal, performing only those functions that cannot be undertaken by any other entity.
Pure competition is a market condition where numerous producers and consumers exchange a homogeneous product, resulting in the largest output at the lowest price without any single entity influencing the market independently.
Pure Risk refers to situations where there is a risk of loss with no opportunity for gain. These conditions, such as fires, natural disasters, and liability issues, are where the need for insurance coverage is clearly indicated since there is only the risk of loss with no possibility of beneficial gain.
A pure-market economy is an economic system in which the forces of supply and demand determine the production, distribution, and consumption of goods and services, with little to no government intervention.
Push Down Accounting refers to the practice in the USA of incorporating the fair value adjustments on acquisition, including goodwill, made by the acquiring company into the financial statements of the acquired subsidiary.
Push money (PM), also known as promotional money or prize money, refers to additional compensation given by a manufacturer to retail salespeople to incentivize the selling of its products.
The term 'Pushing the Envelope' involves working close to, or at, the extent of personal, physical, or technological limits, often to achieve groundbreaking advancements or surpass existing limitations.
A put option is a financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.
The phrase 'Put to Seller' is used when a put option is exercised. The option writer is obligated to buy the underlying shares at the agreed-upon price.
Preceding-Year Basis (PYB) is an accounting method used for reporting financial activities of one year in comparison with the preceding year. This approach allows businesses to analyze and compare financial performance over consecutive fiscal years.
Pyramiding refers to various financial and business strategies, both legitimate and fraudulent, that involve the use of financial leverage, excess distribution chains, or dealership networks designed for growth rather than product utility.
Resale proceeds refer to the financial gains obtained from selling a previously owned item. This term is particularly significant in contexts such as real estate, vehicles, or other high-value assets, where tracking gains from resale can impact financial planning and tax considerations.
Essential insights into 'See [Business Software Package]', covering its definition, applications within business environments, relevant examples, FAQs, related terms, and resources for further study.
Penalties imposed by tax authorities for failing to meet statutory tax requirements, differing for income tax, corporation tax, and value-added tax (VAT).
A tax preference item is an income or deduction excluded or partially excluded from regular tax calculations but must be added back for alternative minimum tax (AMT) purposes.
The U.S. Patent Office, responsible for providing legal protection to registered inventions, is a critical component of the U.S. innovation infrastructure.
