A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
earnings per share (EPS): The amount of net income (earnings) related to each share
of stock; computed by dividing net income by the number of shares of common stock
outstanding during the period.
EDP (electronic data processing): A term referring to the use of computers in
recording, classifying, manipulating, and summarizing data.
effective-interest amortization: A method of systematically writing off a bond
premium or discount that takes into consideration the time value of money and results in
an equal rate of amortization for each period.
effective tax rate: A tax rate that reflects the percentage of the actual tax
liability to the accounting income generated by the company, that is, net tax
liability/financial (book) income before taxes.
effective (yield or market) rate of interest: The actual interest rate earned or
paid on a bond investment.
electronic data processing (EDP): A term referring to the use of computers in
recording, classifying, manipulating, and summarizing data.
entity: An organizational unit (a person, partnership, or corporation) for which
accounting records are kept and about which accounting reports are prepared.
equity financing: Acquiring funds in the form of investments by owners
(proprietor, partner, or stockholder).
equity method or accounting for investments in stocks: Method used to account
for an investments in the stock of another company when significant influence can be
imposed (presumed to exist when 20 to 50 percent of the outstanding voting stock is
owned).
equity securities: Shares of ownership in a corporation that can change
significantly in value and that provide for a return to investors in the form of
dividends.
exchange gain or loss: The gain or loss incurred when the exchange rates are
different on the purchase and payment dates or on the sale and receipt of payment dates.
exchange rate: The value of one currency in terms of another.
exclusions: Gross receipts that are not subject to tax and are not included in
gross income, such as interest on state and local government bonds.
expenses: Costs incurred in the normal course of business to generate revenues.
external auditors: Independent CPAs who are retained by organizations to perform
audits of financial statements.
external audits: Audits conducted by CPAs who are independent of the client
company.
extraordinary items: Nonoperating gains and losses that are
unusual in nature, infrequent in occurrence, and material in amount.
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