Myanmar DA Part I Module II key terms

Recording income when earned and expenses when incurred, not when cash changes hands. It gives a more accurate picture of profit for a period than cash receipts alone.

A system where every transaction is recorded in at least two accounts, with equal debits and credits. It keeps the accounting equation balanced and supports the trial balance.

A list of all ledger account balances at a date, split into debit and credit columns. If totals agree, arithmetic accuracy is likely, though errors can still exist.

The systematic allocation of an asset's cost over its useful life. It reflects wear, tear, obsolescence or time-based use and spreads expense across periods benefiting from the asset.

An estimated amount set aside for receivables unlikely to be collected. It matches expected bad debt expense with the sales period rather than waiting for actual failure.

A document explaining differences between the bank statement balance and the cash book balance. It lists items such as unpresented cheques, deposits in transit and bank charges.

Spending to acquire or improve a long-term asset, such as machinery or buildings. It is recorded as an asset and depreciated, not charged fully to current profit.

Sales revenue minus cost of goods sold. It shows the profit from trading before operating expenses, interest and tax are deducted.

Interest calculated only on the original principal for the whole period. Formula: principal × rate × time; it ignores interest already earned.

Interest charged or earned on both the original principal and accumulated interest. It grows faster than simple interest because each period's interest joins the base.

The current worth of a future sum of money, calculated by discounting it at a given interest rate. It helps compare cash flows occurring at different times.

The sum of all values divided by the number of values. It is a common measure of central tendency but can be distorted by very high or low outliers.

A measure of how spread out values are around the mean. A low value means data cluster closely; a high value means greater variability.

A number between -1 and +1 showing the strength and direction of a linear relationship between two variables. Zero means no linear relationship.

A statistic that expresses change in a variable or group of variables relative to a base period, usually set at 100. It is widely used for prices and output.

The chance that an event occurs, expressed as a number from 0 to 1 or as a percentage. It underlies risk assessment and statistical inference.

The sales level at which total revenue equals total costs, so profit is zero. It helps managers judge minimum volume needed before earning profit.

A series of equal payments made at regular intervals over a fixed period. Examples include loan repayments and pension payments; present value formulas are often used.

The value of the next best alternative given up when choosing one option. It includes benefits lost, not just money spent, and guides rational decision-making.

A measure of how much quantity demanded responds to a change in price. Demand is elastic if the percentage change in quantity exceeds the price change.

The extra cost of producing one additional unit of output. Firms compare it with marginal revenue when deciding whether to expand production.

A sustained rise in the general price level of goods and services, reducing purchasing power. It is often measured using a consumer price index.

The total market value of final goods and services produced within a country during a period. It is a key measure of economic activity but excludes unpaid work.

The ability of a country or firm to produce a good at a lower opportunity cost than another producer. It explains gains from specialisation and trade.

The price and quantity at which quantity demanded equals quantity supplied. At this point there is no shortage or surplus, and price tends to be stable.

A graph showing the quantity producers are willing to sell at each price, usually sloping upward. Higher prices normally encourage more supply.

A legally enforceable agreement between two or more parties. It requires offer, acceptance, consideration and intention to create legal relations, and parties must have capacity.

The process by which one party proposes terms and the other agrees to them unconditionally. A counter-offer rejects the original offer and starts a new one.

Something of value exchanged between contracting parties, such as money, goods or a promise. It distinguishes a binding contract from a bare promise or gift.

Failure to take reasonable care, causing loss or injury to another person. A claimant must usually prove duty of care, breach, causation and damage.

A relationship in which one person, the agent, acts on behalf of another, the principal, with authority. The principal is generally bound by acts within the agent's authority.

A business relationship between two or more persons who agree to carry on a business together and share profits. Partners usually have joint liability unless a limited liability form is used.

A method of resolving disputes outside court, using an independent arbitrator whose decision is usually binding. It is often chosen for speed, privacy and technical expertise.

Giving full attention to a speaker, interpreting the message and confirming understanding through questions or summary. It reduces misunderstanding and builds trust in workplace communication.

A brief internal message used within an organisation to inform, request or record action. It usually has a heading, purpose, concise body and sometimes attachments.

A list of items to be discussed at a meeting, often with times and speakers. It keeps discussion focused and lets participants prepare.

The official written record of what was discussed and decided at a meeting. Good minutes note actions, responsibilities and deadlines rather than verbatim dialogue.

A structured document presenting facts, analysis and recommendations for a specific purpose or audience. It usually includes sections such as introduction, findings, conclusions and recommendations.

A short overview at the start of a report that states the purpose, main findings and key recommendations. It helps busy readers grasp the message quickly.

Restating someone else's idea in your own words while keeping the meaning. It is used to clarify, integrate evidence and avoid excessive direct quotation.