ACCOUNTING TREATEMENT Definition

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ACCOUNTING TREATEMENT is the methods, processes and decisions as to any given accounting decision as to how a transaction is to be or is handled in compliance to GAAP and all applicable statutes.

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HYPOTHECATION, in securities, is the pledging of securities to brokers as collateral for loans made to cover short sales or purchase securities. In banking, it is the pledging of property to secure a loan.

DISCOVERY SAMPLING is sampling to determine whether internal control compliance is greater than or less than the tolerable deviation rate when the expected attribute occurrence rate is zero.

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