T - Acounting Glossary
Accounting definitions.
Source: Wikipedia.org
Throughput
Throughput in theory of constraints is the rate
at which a system produces money, in contrast
to output, which may be sold or stored in a warehouse.
The signal provided by throughput is received
(or not) at the point of sale -- exactly the right
time. Output that becomes part of the inventory
in a warehouse may mislead investors or others
about the organization's condition by inflating
the apparent value of its assets. The theory of
constraints and throughput accounting explicitly
avoid that trap.
Throughput accounting
Throughput accounting is an alternative to cost
accounting based on Standard or Activity Based
Costing (ABC) proposed by Eliyahu M. Goldratt.
Throughput accounting claims to improve management
decisions by using measurements that more closely
reflect the effect of decisions on three critical
monetary variables (Throughput, Inventory, and
Operating Expense -- defined below).
Trade credit
Trade credit exists when one provides goods or
services to a customer with an agreement to bill
them later, or receive a shipment or service from
a supplier under an agreement to pay them later.
It can be viewed as an essential element of capitalization
in an operating business because it can reduce
the required capital investment to operate the
business if it is managed properly.
Treasury stock
In finance, a treasury stock (a.k.a. reacquired
stock) is stock which is bought back by the issuing
company. It reduces the amount of outstanding
stocks on the open market. On the balance sheet,
treasury stock is listed under Shareholder Equity.
Trading Stock
Merchandise held by the business for sale to customers.
Trial balance
A statement of general ledger accounts that enables
an accountant to confirm whether amounts debited
equal amounts credited.
