Algeria IESPC Accounting Contest key terms

Algeria's national chart of accounts, which classifies ledger accounts into numbered classes and sets standard rules for recording, valuing, and presenting transactions in company financial statements.

A year-end statement listing what a business owns (assets), what it owes (liabilities), and the owners' residual interest at a single date, prepared under Algerian accounting conventions.

A statement summarizing revenues and expenses over a period to show operating, financial, and exceptional results, ending in the net profit or loss for the year.

The systematic allocation of a depreciable asset's cost over its useful life, recorded as an expense and accumulated against the asset to reflect consumption of economic benefits.

Liabilities of uncertain timing or amount recognized when a present obligation from a past event will probably require an outflow of resources, such as warranties, litigation, or restructuring costs.

A non-monetary asset without physical substance, such as software, patents, licences, or goodwill, that is identifiable, controlled by the entity, and expected to generate future economic benefits.

A receivable whose collection has become uncertain because the debtor is in financial difficulty, requiring individual assessment and recognition of a depreciation allowance for the estimated irrecoverable portion.

The sum of direct materials, direct labour, and allocated production overhead incurred to manufacture a unit or batch, used to value finished goods and work in progress.

A responsibility or cost centre grouping homogeneous activities so that indirect costs can be accumulated and then allocated to products using appropriate allocation bases such as labour hours or machine hours.

Activity-based costing, which assigns overhead to products through activities and cost drivers rather than broad volume bases, improving accuracy where products consume resources differently.

The portion of total cost that changes in direct proportion to activity volume, used in contribution analysis and break-even calculations because fixed costs are excluded from the unit measure.

The sales level at which total revenue equals total cost and profit is zero, computed as fixed costs divided by the contribution margin ratio; also called the break-even point.

Sales revenue minus variable costs, representing the amount available to cover fixed costs and then generate profit; expressed as a ratio it drives break-even and target-profit analysis.

A technique that charges only the normal share of fixed overhead to production, isolating the cost of idle capacity as a separate variance so unit costs are not distorted by activity fluctuations.

A statutory auditor registered with the national professional body who certifies whether an entity's annual accounts give a true and fair view and reports to shareholders and regulators.

The auditor's formal conclusion on the financial statements, which may be unmodified, qualified, adverse, or a disclaimer, depending on evidence obtained and the materiality of misstatements.

The policies, procedures, and organizational safeguards management uses to protect assets, ensure reliable reporting, and promote compliance with laws and internal directives.

The materiality threshold above which misstatements or omissions are judged capable of influencing users' economic decisions, guiding the extent of audit testing and evaluation of errors.

Audit sampling, the application of procedures to less than the whole population so that each sampled item has a known chance of selection, allowing conclusions about the population.

Algeria's indirect consumption tax levied at each stage of the production and distribution chain, with businesses collecting it on sales and deducting tax paid on inputs before remitting the difference.

The Algerian corporate income tax charged on the taxable profits of companies, calculated after allowable deductions and paid in instalments with a final adjustment return.

Algeria's personal income tax applying to individuals' total annual income from salaries, business profits, property, and investments, with progressive or proportional rates depending on income category.

A provisional tax payment made during the year in advance of the final assessment, later credited against the total tax due so that the balance is settled on filing.

The recurring filing that reports taxable transactions and tax collected for the month, typically covering value added tax and withholding obligations, and triggers payment of the amount due.

Algeria's official public register in which traders and companies must enroll, recording their legal form, capital, managers, and activities, and conferring commercial status.

A limited liability company form in which owners hold shares and their liability is capped at their contributions, governed by rules on capital, management, and transfer of shares.

The constitutional document of a company setting out its name, object, capital, governance, and operating rules, which binds the company, its officers, and its shareholders.

The shareholders' meeting that exercises ultimate corporate authority, approving annual accounts, appointing auditors, and deciding reserved matters such as capital changes and profit distribution.

The excess of stable long-term financing over fixed assets, indicating the margin available to finance working capital needs and a buffer against short-term obligations.

The net amount tied up in operations, calculated as inventories plus receivables minus trade payables, showing the financing required to support the operating cycle.

A measure comparing short-term assets with short-term liabilities to assess whether a business can meet obligations falling due within the year, commonly current and quick ratios.

The effect of debt on shareholder returns, where borrowing amplifies profit when the return on assets exceeds the after-tax cost of debt and magnifies losses when it does not.

The blended required return on a firm's financing, weighting the after-tax cost of debt and the cost of equity by their proportions in the capital structure, used to discount project cash flows.

The sum of a project's expected cash flows discounted at the required rate minus its initial outlay; a positive result suggests the investment creates value.

A documented, unbroken trail linking each recorded transaction to its supporting evidence and to the financial statements, required for systems to remain verifiable by auditors and tax authorities.

The conversion of accounting processes to electronic form, including dematerialized invoices, automated entries, and electronic archiving, changing how evidence is captured and controlled.

An integrated enterprise resource planning system whose accounting module shares a single database with purchasing, sales, and inventory, giving real-time figures but requiring strong access controls.

The duty of accountants and auditors to keep confidential information learned through their work and not disclose it except where law or the client authorizes release.

The state of being free from relationships or interests that could compromise objectivity, including financial ties, close family links, or provision of conflicting services to an audit client.

A systematic record of a country's transactions with the rest of the world, covering trade in goods and services, income, and capital and financial flows over a period.

The price of one currency expressed in another, affecting import costs, export competitiveness, and the domestic currency value of foreign-currency transactions and balances.

A sustained rise in the general price level that erodes purchasing power, distorts historical-cost accounts, and influences interest rates, wage demands, and monetary policy.

The body of rules governing the recording and reporting of public revenue, expenditure, and assets, ensuring parliamentary authorization and regularity in the use of public funds.

The annual law authorizing the government to collect revenue and incur expenditure, voted by parliament and executed within the limits and classifications it sets.

A public official responsible for recording and safeguarding public funds, authorizing payments within delegated limits, and rendering accounts to the national audit institution.

The oversight of public spending through prior authorization, internal inspection, and external audit by the national audit body, aimed at legality, regularity, and value for money.