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Online Accounting Dictionary
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Income statement presents revenues and expenses and resulting net income or loss for a period of time. An income statement is also called Statement of Operations, Earnings Statement, or Profit and Loss Statement (P/L).
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Indefinite-life intangibles are not amortized because there is no foreseeable limit to the cash flows generated by the intangible asset. Such intangible assets have no legal, contractual, regulatory, economic, or competitive limiting factors. Indefinite-life intangibles, nevertheless, are subject to an impairment test that should be performed at least annually. Examples of indefinite-life intangibles are: goodwill, trademarks, perpetual franchises, etc.
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Indirect labor is the cost of production employees who are involved in the manufacturing process, but do not work on a specific product.
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Indirect materials are materials that are not an integral (physical) part of the finished good, or are a minor part of the finished good to be economically traced to the finished good or have a very small physical association with the finished product.
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Indirect materials do not physically become part of the final product or their association with the final product is too small to be easily traced to the final product.
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Intangible assets are assets that lack physical existence and are not financial instruments. Intangible assets are usually classified as noncurrent (long-term) assets because they produce benefits over several years. They are valuable because they provide rights and privileges to their owners.
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Interest is excess of money over the initial invested amount (principal). Interest is usually set as a percentage to the principal.
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Interest expense is the charge that a business needs to take and record when using somebody's money. Interest expense is an income statement account which decreases equity.
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Interest payable is a liability account that shows future interest payments for using somebody's money. For example, taking a long in a bank usually means that the borrower will pay the principal and interest. Such interest is show in the interest payable account until paid.
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Interest receivable represents future cash receipts of interest by a company. Interest receivable account is shown on the asset side of the balance sheet.
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Interest revenue is the amount of interest earned. Interest revenue (or just interest) may be earned on an investment such as a savings account or certificate of deposit. Interest revenue is an income statement account that increases equity.
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Interest-bearing notes require an interest to be paid in addition to the face value. In other words, such notes require the borrower to pay the face value and interest at the maturity date.
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Internal users are parties inside the reporting entity (company) who are interested in the accounting information.
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Internally created intangibles are often not recorded on the balance sheet: most costs incurred to internally develop an intangible asset have to be expensed (including Research and Development costs), and only certain costs (e.g. legal costs) might be capitalized (e.g. debit Patent for the cost of defending the patent).
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Inventory is a current asset on a company's balance sheet. Inventory includes goods for resale, raw materials, spare parts, etc.
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