EXPLANATORY Definition

Bookmark and Share

EXPLANATORY, in accounting, is a paragraph added to an audit report to explain something, such as the reason for a qualified or adverse opinion.

Learn new Accounting Terms

OPEN ITEM is a contractual or scheduled commitment that is not yet reflected in Financial Accounting but will lead to actual expenditures in the future, e.g. a purchase order that is not shipped in full will list those unshipped items as open items within the shipping invoice.

VALUE STOCK is a stock that trades at a lower price relative to its fundamentals (i.e. earnings, dividends, sales, etc.) thereby being considered undervalued by a value investor. Common characteristics of such stocks include a high dividend yield, low price-to-book ratio and/or low price-to-earnings ratio.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.