Page 672 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

Glossary

ability to pay The financial capability to compensate employees.
acceptance bonus See hiring bonus.
accidental death and dismemberment (AD&D) An insurance contract that pays for accidental
death or loss of sight and/or limbs.
account A financial record itemizing transactions with a specific individual or organization.
accountability Responsibility for specific acts and/or outcomes.
accountant An individual responsible for the financial records of a specific individual or organization.
accountant (independent) An accountant (or accounting firm) who is not in the employ of an organi-
zation for which the individual or firm provides certain services, typically auditing financial statements.
accountant’s statement A written statement by an independent accountant that comments on the
accountant’s perception of the validity of a particular financial statement.
accounting The financial record keeping of a specific individual or organization.
accounting period A specified period of time during which the individual or organization’s financial
records are reported (e.g., weekly, monthly, quarterly, or annually).
accounting principles The policies that provide guidance for dealing with accounting issues, namely,
Generally Accepted Accounting Principles (GAAP).
Accounting Principles Board (APB) The nongovernmental organization that was responsible for
the principles and rules for U.S. publicly traded companies from 1959 to 1973, at which date it was
succeeded by the Financial Accounting Standards Board.
Accounting Research Bulletin See AICPA Bulletin.
accounting standards The rules that define accounting principles.
accounts payable Funds owned by the company for products and services received that appear as
current liability on the balance sheet.

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