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Bifurcation

The process of isolating and separating a certain component of an instrument in order to account for both separately. An...

Contra Liability Account

A liability account which is expected to carry a debit balance. It decreases other liabilities on the balance sheet by...

Comparative Financial Statement

A financial statement that is prepared for the sole purpose of comparing financial results of a current period with those...

Marginal Cost

A increase in cost of one alternative over the cost of another. In other words, it constitutes the change in...

Incremental Cost

A increase in cost of one alternative over the cost of another. In other words, it constitutes the change in...

Operating Budget

A budget that presents a forecast of an entity's expense items to be incurred and revenue to be generated from...

Retrospective Restatement

The restatement of an entity's financial statements that is prompted by discovery of an accounting error (material error) in prior...

Differential Cost

In relation to differential analysis, it is the difference between the costs of two alternative courses of action/ methods/ choices...

Correcting Entry

A journal entry that is made in order to correct an accounting error. Correcting entries are an adjustment to an...

Catch-Up Adjustment

One of multiple ways of a management's intervention to correct an accounting error (particularly, immaterial error) that, rather than restating...