ASSET MANAGEMENT RATIO shows how effectively the firm manages its assets.
ENCUMBRANCE is a) a right or interest in land owned by someone other than the owner of the land itself; examples include easements, leases, mortgages, and restrictive covenants; or, b) in accounting, an encumbrance is an anticipated expenditure, or funds restricted for anticipated expenditures, such as for outstanding purchase orders.
MATCHING, in accounting, is the matching of invoices to purchase orders and delivery notes prior to payment.
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