MAS
This refers to the potential benefit or gain that is given up when choosing one option over others.
Opportunity Cost
The juridical necessity to give, to do, or not to do.
Obligation
It refers to all property, rights, and obligations of a person which are not extinguished by his death and also those which have accrued since the opening of the succession.
Estate
It is the systematic allocation of the the depreciable amount of an asset over the useful life
Depreciation
The excess of cost over fair value of net identifiable assets is called
Goodwill
This represents sales minus break-even sales
Margin of Safety
The meeting of the minds between parties regarding the object and cause of a contract.
Consent
A tax wherein both the incidence of or the liability for the payment of the tax as well as the burden of the tax falls on the same person.
Direct tax
Pertains to all information used by the auditor in arriving at the conclusions on which the auditor’s opinion is based
Audit Evidence
A lease where risks and rewards are transferred to lessee is a __________ lease.
The difference between sales and variable costs.
Contribution Margin
The law that governs sale of real property installments.
Maceda Law / Republic Act 6552
Fringe benefits given by the employer which are of relatively small value.
De minimis benefits
If an entity issues bonds at a discount, the effective interest rate is _______ than the nominal coupon rate.
Higher
In hyperinflationary economies, financial statements are restated using the __________ price index.
General
It is a detailed financial plan that includes projections of sales, expenses, and profits for a specific period. It is typically prepared annually and serves as a blueprint for a company’s financial operations.
Master Budget
The stage of money laundering where illicit funds are introduced into the financial system.
Placement
This is the income subject to the final withholding tax and shall not be included in the gross income of the taxpayer. It also refers to the income that is generated without the need for active work.
Passive Income
This type of audit opinion commonly uses the phrase "We do not express a conclusion"
Disclaimer/ Disclaimer of Opinion
An agreement between two parties to exchange a specified amount of a commodity, security, or foreign currency at a specified date in the future at a pre-agreed price
Forward Contract
It is defined as the process of measuring products, services, and processes against those of organizations known to be leaders in one or more aspects of their operations.
Benchmarking
The mode of extinguishing an obligation where the debtor and creditor become one and the same person is called
Confusion
It refers to all remuneration for services performed by an employee for his employer under an employer-employee relationship, unless specifically excluded by the code.
Compensation income
Management by an entity of the biological transformation and harvest of biological assets for sale or for conversion into agricultural produce or into additional biological assets.
Agricultural activity or agriculture
It is a component of a hybrid contract that is attached to a non-derivative host
Embedded derivatives