entity

Examples of entity in the following topics:

• Defining Liabilities

  • A liability is defined as an obligation of an entity arising from past transactions/events and settled through the transfer of assets.
  • In financial accounting, a liability is defined as an obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of economic benefits in the future.
  • A duty or responsibility that obligates the entity to another, leaving it little or no discretion to avoid settlement.
  • A transaction or event that has already occurred and which obligates the entity.

• Reporting for a Combined Entity

  • The controlling entity is called its parent company, parent, or holding company.
  • Consolidated financial statements show the parent and the subsidiary as one single entity.
  • The result is one set of financial statements that reflect the financial results of the consolidated entity.

• Defining Current Liabilities

  • In financial accounting, a liability is defined as an obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of future economic benefits.
  • A duty or responsibility that obligates the entity to another entity, with no option to avoid settlement.
  • A transaction or event that has already occurred and obligates the entity .

• Business Stakeholders: Internal and External

  • In the last decades of the 20th century, the word "stakeholder" has become more commonly used to refer to a person or group that has a legitimate interest in a project or entity.
  • In discussing the decision-making process for institutions—including large business corporations, government agencies, and non-profit organizations -- the concept has been broadened to include everyone with an interest (or "stake") in what the entity does.
  • Internal stakeholders are entities within a business (e.g., employees, managers, the board of directors, investors).
  • External stakeholders are entities not within a business itself but who care about or are affected by its performance (e.g., consumers, regulators, investors, suppliers).

• Classifying Receivables

  • Accounts receivable represents money owed by entities to the firm on the sale of products or services on credit.
  • In most business entities, accounts receivable is typically executed by generating an invoice and either mailing or electronically delivering it to the customer.
  • Accounts receivable is the money owed to that company by entities outside of the company.

• Gain Contingencies

  • Gain contingencies, or possible occurrences of a gain on a claim or obligation involving the entity, are reported when realized (earned).
  • Gain contingencies, or the possible occurrences of a gain on a claim or obligation that involves the entity, are reported when realized (earned).

• Outputs of Accounting

  • Accounting outputs are financial statements that detail the financial activities of a business, person, or other entity.
  • A financial statement, or financial report, is a formal record of the financial activities of a business, person, or other entity.
  • Government entities (tax authorities) need financial statements to ascertain the propriety and accuracy of taxes and other duties declared and paid by a company.

• Working Capital Management Analysis

  • Working capital is a financial metric that represents the operational liquidity of a business, organization, or other entity.
  • Working capital (abbreviated WC) is a financial metric that represents the operational liquidity of a business, organization, or other entity.
  • If current assets are less than current liabilities, an entity has a working capital deficiency, also called a working capital deficit.

• Activities to Manage Receivables

  • Accounts receivable represents money owed by entities to the firm on the sale of products or services on credit.
  • Accounts receivable represents money owed by entities to the firm on the sale of products or services on credit.
  • In most business entities, accounts receivable is typically executed by generating an invoice and either mailing or electronically delivering it to the customer, who, in turn, must pay it within an established time-frame, called credit terms or payment terms.

• Defining Accounting

  • Accountancy is the process of communicating financial information about a business entity to users such as shareholders and managers.
  • Accountancy is the process of communicating financial information about a business entity to users such as stakeholders and managers.
  • The principles of accountancy are applied to business entities in three divisions of practical art: accounting, bookkeeping, and auditing.
  • Today, accounting is called "the language of business" because it is the vehicle for reporting financial information about a business entity to many different groups of people.
  • Accounting that concentrates on reporting to people inside the business entity is called management accounting and is used to provide information to employees, managers, owner-managers, and auditors.