Myanmar DA Part II Module I key terms

An accounting method that records revenue when earned and expenses when incurred, regardless of when cash is received or paid. It aims to match income with the costs of producing it in the same period.

The assumption that a business will continue operating for the foreseeable future without being forced to liquidate or cease trading. It supports preparing financial statements on a historical cost basis rather than breakup values.

A liability of uncertain timing or amount recognized when an entity has a present obligation from a past event, a reliable estimate is possible, and payment is probable. Examples include warranties and legal claims.

The amount by which the carrying amount of an asset exceeds its recoverable amount. Recoverable amount is the higher of fair value less costs to sell and value in use.

Sales revenue minus variable costs. It measures the amount each unit or product line contributes toward covering fixed costs and generating profit. It is central to cost-volume-profit analysis.

A costing method that assigns all manufacturing costs to products, including direct materials, direct labour, and both variable and fixed production overheads. Inventory values therefore include fixed overhead.

A predetermined estimate of the cost of producing one unit or performing one operation, built from expected prices, usage, and efficiency levels. Variances compare standard costs with actual results.

A future cost that differs between alternative courses of action. Sunk costs and costs that are the same under every option are irrelevant to decision-making.

Information used by the auditor to reach conclusions on which the audit opinion is based. It must be sufficient in quantity and appropriate in relevance and reliability, and may be obtained through inspection, observation, inquiry, confirmation, recalculation, or analytical procedures.

The threshold above which omissions or misstatements could influence the economic decisions of users of financial statements. Materiality depends on size and nature and guides audit planning and evaluation of misstatements.

The policies and procedures designed to provide reasonable assurance about achieving objectives related to reliable reporting, effective operations, and compliance with laws. It includes the control environment, risk assessment, control activities, information, communication, and monitoring.

An auditor's conclusion that financial statements are fairly presented except for a specific matter, such as a material misstatement or scope limitation that is not pervasive. The opinion paragraph describes the matter clearly.

Something of value exchanged by each party to a contract, such as money, goods, services, or a promise. It distinguishes enforceable bargains from gratuitous promises in common law.

A person authorized to act on behalf of another, called the principal, and to create legal relations with third parties. The agent owes duties of loyalty, obedience, and disclosure.

The amount on which income tax is calculated after adjusting accounting profit for allowable and disallowable items and applying relevant reliefs, exemptions, and rates under tax law.

A tax deducted at source by a payer from certain payments such as salaries, interest, or royalties, then remitted to the tax authority. It collects tax progressively and reduces evasion.

Interest calculated on the initial principal and on interest already added to it in earlier periods. It produces faster growth than simple interest because the interest base increases each period.

The difference between the present value of expected cash inflows and the present value of expected cash outflows, discounted at a required rate. A positive NPV indicates a value-creating investment.

The level of sales or output at which total revenue equals total costs, giving neither profit nor loss. It can be expressed in units or sales value.

A series of equal cash payments or receipts made at regular intervals for a specified number of periods. Annuities may be ordinary, with payments at period end, or due, with payments at period start.

A measure of dispersion showing the typical distance of observations from their mean. A larger value indicates greater variability. It is the square root of variance and uses the same units as the data.

The probability distribution of a statistic, such as the sample mean, calculated from all possible samples of a given size drawn from a population. It underpins confidence intervals and hypothesis tests.

A number between minus one and plus one that measures the strength and direction of a linear relationship between two variables. Zero indicates no linear relationship; extremes indicate perfect linear association.

A statistical method for estimating the relationship between a dependent variable and one or more independent variables. It supports prediction and assessment of how changes in predictors affect the outcome.

The value of the next best alternative forgone when choosing one option. It includes both explicit and implicit costs and is central to rational economic decision-making under scarcity.

A sustained increase in the general price level of goods and services in an economy over time. It reduces the purchasing power of money and is often measured by consumer price indices.

A measure of how responsive quantity demanded is to a change in a determinant such as price or income. Price elasticity is usually negative and can be elastic, unit elastic, or inelastic.

A systematic record of a country's economic transactions with the rest of the world over a period, comprising the current account, capital account, and financial account. It should balance in principle.

The accuracy, completeness, consistency, and reliability of data throughout its lifecycle. Controls such as validation checks, access restrictions, and audit trails help preserve integrity.

A hardware or software barrier that monitors and filters network traffic according to security rules. It helps prevent unauthorized access while allowing approved communications between networks or devices.

A brief internal communication used within an organization to convey information, instructions, or decisions. It typically states the purpose, provides necessary details, and identifies sender and recipients.

A formal written record of the proceedings, decisions, and actions agreed at a meeting. Minutes are usually prepared by a secretary and confirmed or approved at a later meeting.