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September 08th 2010.

Financial Glossary

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W  ( 19 DEFINITIONS )

Wage bracket withholding table
A wage bracket withholding table is a table showing the amounts to be withheld from employees' wages at various levels of earnings.   top

Walk-through
A walk-through is the act of following one or a few transactions through the accounting system and control system in order to obtain a general understanding of the client's systems.    top

Warrant
A warrant is a transferable option to buy, within a given time period, a certain number of common shares for a set price.    top

Warranty
A warranty is an agreement that obligates the seller or manufacturer to repair or replace a product that fails to perform properly within a specified period.   top

Wash transaction
A wash transaction is selective sales of investments and repurchase of the same or similar investments in order to manufacture an accounting gain or loss. More generally, this is any transaction that produces net results of zero, or a -wash-.    top

Watered stock
Watered stocks are shares issued by a company for non-cash consideration whose value has been over-estimated. Since the value of resources received is less than the recorded value of shares, the true value of the stock and the company is reduced.   top

Weighted average
Weighted average is a method of inventory costing that uses the weighted-average cost for inventory and cost of goods sold. Weighted average is a general term that refers to an average cost weighted by the relative size of acquisitions at various prices.   top

Weighted average common shares outstanding
Weighted average common shares outstanding is the calculation of shares used as the denominator for basic EPS where shares issued/retired for net assets are included in the calculation for only the fraction of the year they were actually outstanding or retired.    top

Weighted average cost of capital (WACC)
The weighted average cost of capital (WACC) is an estimate of a firm's cost of capital. This estimate is usually made to evaluate potential new investments. Ideally the weights used in computing the weighted average cost of capital should reflect the best estimate of the proportions of capital type that will exist in the after financing capital structure. However, the simplifying assumption is made that the firm's capital structure proportions and level of business risk are unchanged by the new investment under consideration.    top

Weighted-average method (in a process costing system)
The weighted-average method is a method of accounting for cost flows in a process costing system in which units in the beginning work-in-progress inventory are treated as if they were started and completed during the current period.   top

White collar crime
White collar crimes are misdeeds done by people who wear ties to work and steal with a pencil or a computer terminal.   top

Wholly-owned subsidiary
Wholly-owned subsidiary is an investee, all of whose shares are owned by the investor.    top

Withdrawal
A withdrawal is a payment from a proprietorship or partnership to its owner or owners.   top

Withdrawals account
The withdrawals account is the account used to record the transfer of assets from a business to its owner. This is also known as the personal account or drawing account.   top

Work-in-progress inventory
Work-in-progress inventory is goods requiring further processing before completion and sale.   top

Work-out arrangements
Work-out arrangements are agreements between lender and borrower to restructure the terms of loan(s), usually after default.   top

Working capital
Working capital is defined as the difference between a firm's current assets and its current liabilities.   top

Working papers
Working papers are analyses and other informal reports prepared by accountants when organizing the useful information presented in formal reports to internal and external decision makers.   top

Worksheet
A worksheet is a 10-column spreadsheet used to draft a company's unadjusted trial balance, adjusting entries, adjusted trial balance, and financial statements. This is an optional step in the accounting process.    top