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September 08th 2010.

Financial Glossary

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D  ( 30 DEFINITIONS )

Data elements
Data elements are individual pieces of information such as employee number, address, pay rate, and balance in a computer system.   top

Data processor
A data processor is the component of an accounting system that interprets, manipulates, and summarizes the recorded information so that it can be used in analyses and reports.   top

Data redundancy
Data redundancy indicates the same data are stored in several separate files.   top

Data storage
Data storage is the component of an accounting system that keeps the inputted data in a readily accessible manner so that financial reports can be drawn from it efficiently.   top

Database administrator (DBA)
The database administrator (DBA) is the person responsible for determining who should have access to data elements.    top

Date of dividend declaration
The date of dividend declaration is the date on which a corporation's board of directors formally announces a future dividend.    top

Date of dividend payment
The date of dividend payment is the date on which the dividend is paid to shareholders of record.   top

Date of dividend record
The date of dividend record is the date on which the list of shareholders of record is prepared. Individuals holding shares on this date receive the dividend declared. The date of record usually follows the date of declaration by two to three weeks.   top

Days' sales uncollected
Days' sales uncollected is the number of days of average credit sales volume accumulated in the account's receivable balance, calculated as the product of 365 times the ratio of accounts receivable balance divided by credit (or net) sales.   top

Days' stock on hand
Days' stock on hand is an estimate of how many days it will take to convert the inventory on hand at the end of the period into accounts receivable or cash. This is calculated by dividing the ending inventory by cost of goods sold and multiplying the result by 365.   top

Death benefit (for tax purposes)
A death benefit means the total of all amounts received by a taxpayer in a taxation year on or after the death of an employee in recognition of the employee's service in an office or employment. Furthermore, only the amount in excess of 10,000 is included in the income of the person receiving the payment.   top

Death benefits
Death benefits are a component of a pension plan contract that allows for special benefits to be paid upon the death of a pension plan member.    top

Debenture
A debenture is a long-term corporate debt that is not secured by the pledge of specific assets. A debenture is another name for an unsecured bond.   top

Debit
A debit is an entry that increases asset and expense accounts, or decreases liability, owners' equity and revenue accounts. In a T-account, debits are recorded on the left side.    top

Debit card
A debit card is a card issued by a bank or similar financial institution to allow consumers to pay for purchases by a bank transfer authorized at the point of sale.    top

Debit memo
A debit memo is a notification that the sender has entered a debit in the recipient's account as maintained by the sender. When issued by a bank, a debit memo reports a decrease in the recipient's account.    top

Debt covenant hypothesis
The debt covenant hypothesis states that all other things being equal, the closer a firm is to violation of accounting-based debt covenants, the more likely the firm manager is to select accounting procedures that shift reported earnings from future periods to the current period. The debt covenant hypothesis is one of the positive accounting theories.   top

Debt service ratios
Debt service ratios are ratios that are designed to test a company's ability to generate sufficient cash flow from operations to satisfy debt obligations.   top

Debt-to-equity ratio
The debt-to-equity ratio is a measure of a company's leverage. It compares liabilities to equity.    top

Debt-to-total assets
Debt-to-total assets is a solvency ratio that indicates the proportion of long-term capital that is debt.   top

Debt-to-total capitalization
Debt-to-total capitalization is a solvency ratio that indicates the proportion of long-term capital that is debt.   top

Debtors
Debtors are individuals or organizations that owe amounts to a business.   top

Decentralization
Decentralization is the delegation of decision-making authority throughout an organization by allowing managers at various operating levels to make key decisions relating to their area of responsibility.   top

Decision control
Decision control refers to those aspects of the decision process in which managers have the right to either ratify or monitor a decision.   top

Decision criteria
Decision criteria are standards for decision making and evaluation in specific circumstances.   top

Decision frame
A decision frame is the process of describing or representing a decision problem.    top

Decision management
Decision management refers to those aspects of the decision process in which a manager either initiates or implements a decision.   top

Decision rights
Decision rights in an organization are determined by the employment contract. A decision right is a right to either manage or control a decision process.    top

Decision tree
A decision tree is a graphical technique to aid in decision making under uncertainty that structures potential outcomes and their probabilities.    top

Declining balance amortization
Declining balance amortization is a method of accelerated amortization where amortization is calculated as cost less accumulated amortization multiplied by a given rate until net book value declines to residual value.   top