Accounting Standards

Accounting Standards are defined statements of best practice issued by an authorising regulator body.

Accrued Expense

Accrued expenses are the effects of transactions and other events are recognised when they occur.

Accrued Holiday Pay

Accrued holiday pay is the payment calculated for holidays that have built up but not been taken, based on the amount of time worked.

Acid Test

The acid test is a calculation of current assets divided by current liabilities. An indicator of insolvency if it is less than 1.


An Acquisition is the purchase of one business by another.


An Administration is an insolvency process where the Administrator has the objective of rescuing the company and it this is not achievable, to recover as much as possible for the creditors.


An Administrator is the Licensed Insolvency Practitioner, who has been appointed (by Court) to act for a company going into Administration.

All Monies Clause

An all monies clause is a clause in the terms and conditions, which would allow the supplier to get their product back if it was owed money.


Amortisation is the action of gradually writing off the initial cost of an asset – usually a lease or intellectual property.


Relating to bankruptcy, annulment is the process of applying to court to return the bankrupt to their pre-bankrupt position.