Dictionary of Procurement Terms

Welcome to the NIGP Online Dictionary of Procurement Terms, the comprehensive reference for public purchasing terms and concepts.

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Search Results: 31-40 of 174 results for “A”

  • Accounting Cycle

    The four-step procedure of an accounting system: examining source documents, recording transactions, posting recorded transactions, and preparing financial statements. (Business, 2002)

  • Accounting Equation

    Assets equal liabilities plus owners’ equity.

  • Accounts Payable

    1. Financial obligations that arise as a result of making credit purchases. 2. An accounting function that is responsible for making payment to contractors according to the contract terms and conditions. 3. Liability accounts that indicate the charges owed on open accounts.

  • Accounts Receivable Turnover

    A financial ratio calculated by dividing net sales by accounts receivable.

  • Accounts Receivables

    1. Payments that are due to a contractor per the contract terms and conditions. 2. An accounting function that is responsible for the collection and deposit of payments received on open customer accounts for goods and services sold.

  • Accredited Purchasing Practitioner (A.P.P.)

    The Accredited Purchasing Practitioner (A.P.P.) designation of The Institute of Supply Management (ISM) is no longer available for testing and is in recertification-only status (ISM, A.P.P., 2015)

  • Accrual Basis Accounting

    An accounting system that encumbers or sets aside funds for a specified future expenditure. Using this system, transactions are recognized at the time they are incurred, as opposed to when cash is received or spent.

    See Also: Cash Basis Accounting

  • Acid Test Ratio

    A financial ratio calculated by subtracting the value of inventory from the current asset amount and dividing by current liabilities. (Schiller, 2000)

  • Acknowledgement

    A written or electronic communication sent by the supplier to the buyer that indicates that the supplier has accepted the order (Purchase Order). It may be a form of acceptance and may create a bilateral contract. It may also be a form of counter offer from the seller to the buyer.

    See Also: Battle of the Forms

  • ACORD (Association of Cooperative Operations Research and Development)

    A global, nonprofit organization founded in 1970 that serves the insurance and related industries. ACORD facilitates fast, accurate data exchange and more efficient workflows through the development of electronic standards, standardized forms, and tools to support their use. (ACORD, 2015)

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