Glossary
Notes:
Note 1: CPA Canada Handbook Part I applies to publicly accountable enterprises, CPA Canada Handbook Part II ASPE applies to private enterprises; CPA Canada Handbook Part III ASNFPO applies to not-for-profit organizations. CPA Canada Handbook Part IV ASPP applies to pension plans. For governments and government organizations, see under Public Sector Accounting (PSA) Handbook for details of what applies. Note 2: Part II and V Definitions may not be identical — check the CPA Canada Handbook – Accounting.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Abnormal earnings
Also referred to as unexpected earnings. Differences between the expected value of earnings and the actual realized.
Absorption costing
Absorption costing is a method of assigning costs to inventory. It includes fixed overhead costs in addition to variable overhead costs added to direct materials and direct labour to calculate unit cost.
Accelerated depreciation
Accelerated depreciation is a method of allocating the cost of an asset in which the annual depreciation amounts are larger in an asset’s early years and decrease over time. An example of accelerated depreciation would be the double-declining balance method.
Access controls
Procedures designed to restrict access to online terminal devices, programs, and data. Access controls consist of ”user authentication” and ”user authorization.”
Account
Place within an accounting system where the increases and decreases in a specific asset, liability, owner’s equity, revenue, or expense are recorded and stored.
Account analysis
An account analysis is the identification of each important item and amount in an account followed by document vouching and inquiry to determine whether amounts should be classified elsewhere.
Account balance
An account balance is the difference between the increases (including the