Per annum, a Latin term meaning 'each year' or 'annually,' is used across various fields to denote the yearly occurrence or rate of an event.
An economic and statistical measure that divides a total amount by the number of individuals to provide an average per person.
A comprehensive examination of the term 'Per Diem,' which refers to a daily allowance used for travel, entertainment, employee compensation, or miscellaneous business expenses.
The term 'per se' refers to something being self-evident or intrinsic, not requiring additional proof or evidence to substantiate its existence.
Per stirpes is a method of estate distribution that ensures the descendants of a deceased heir receive their portion of the estate.
Per-Capita Debt represents the total bonded debt of a municipality, divided by its population. It is a key metric used to assess and compare the debt burden of municipalities over time.
A statistical term used to express a quantity as a portion of the whole, which is assigned a value of 100. Price changes are often reported as percentage increases or declines.
The Percentage Depletion Method permits a taxpayer with an economic interest in a mineral deposit to deduct a specified percentage of the gross income from the deposit instead of focusing solely on cost depletion.
A Percentage Lease is a lease agreement where the rental payment is based on a percentage of the tenant's sales volume made at the leased property, often with a stipulated minimum rent. This type of lease is frequently used by retailers.
In absorption costing, percentage on direct labour cost serves as a crucial method for allocating production overheads to cost units, ensuring accurate accounting and cost management.
A basis used in absorption costing for absorbing the manufacturing overhead into the cost units produced. The formula used is: Overhead Absorption Rate = (Total Overhead / Total Direct Material Cost) * 100.
A basis used in absorption costing for allocating manufacturing overhead to the cost units produced. This method involves applying a percentage of the prime cost to determine the overhead allocation.
Percentage Rent is a component of a rental agreement, specifically under a percentage lease, where rent is partially determined by the income or sales generated by the tenant's business operating within the leased property.
The percentage-of-completion method is an accounting practice used principally for long-term contracts, in which revenue and expenses are recognized proportionally over the term of the project.
An accounting method used to report income from long-term contracts based on the percentage of contract completion during the tax year.
A procedure used to set advertising budgets, based on a predetermined percentage of past sales or a forecast of future sales.
A statistical ranking designation where the pth percentile of a list is the number such that p percent of the elements in the list are less than that number.
A Perfect (Pure) Monopoly is a market structure dominated by a single producer, where no competition of any kind to that producer can arise, allowing them to exert significant control over prices and output.
A market condition wherein no buyer or seller has the power to alter the market price of a good or service. Characteristics of a perfectly competitive market include a large number of buyers and sellers, a homogeneous good or service, equal awareness of prices and volume, absence of discrimination in buying and selling, total mobility of productive resources, and complete freedom of entry. Perfect competition exists only as a theoretical ideal, also called pure competition.
Complete beyond practical or theoretical improvement; practical application or technological development that cannot be improved substantially.
Performance can refer to the fulfillment of an obligation or promise within a contractual context in law, as well as the high-level capability or efficiency of a product in marketing.
Performance appraisal is a personnel evaluation method that seeks to measure employee work effectiveness using objective criteria. Performance appraisal systems strive to achieve higher productivity outcomes by delineating how employees meet job specifications.
A performance bond is a type of contract surety bond that guarantees the performance of contractual obligations by a contractor or service provider. It assures the client that the project or service will be completed as per the agreed-upon standards and terms.
A performance fee is a form of compensation structure for investment management services based on the fund’s positive performance over a specified period. It aligns the interests of the investor and the fund manager.
A type of mutual fund that primarily focuses on achieving high capital growth by investing in high-growth companies that typically pay small or no dividends.
Performance measurement involves developing indicators to assess progress towards predefined goals and reviewing performance against these measures. It can be applied to an entire organization or specific departments, branches, or individuals, utilizing both financial and non-financial measures.
In standard costing, a performance standard refers to the predetermined level of performance to be achieved during a specific period, which is used to calculate standard costs for processes, typically direct labor and materials.
Performance stock, also known as growth stock, refers to equity in companies perceived by investors as having potential for significant value appreciation. These stocks usually either pay small dividends or no dividends at all.
Perils refer to various risks that can cause damage to property, often covered under a homeowner's insurance policy.
An interval of time that can be as long or short as fits the specific situation.
The accounting concept that ensures the financial statements of a company are produced at regular intervals, providing consistency, comparability, and regular communication to stakeholders.
Period costs are expenses that are incurred over a specific period of time and are not directly tied to a specific product or production activity. These costs are typically fixed, such as rent, insurance, and business rates.
Period expenses, also known as period costs, are amounts based on the passage of time and are considered to occur within a specific accounting period, such as rent on a building.
The time span over which financial activities and statements are assessed, often corresponding to an accounting period.
An accounting process used to determine the cost of inventory sold or put into production. Data on beginning inventory, purchases, and ending inventory are used to find the amount and cost of withdrawals from inventory.
Periodic stocktaking, also known as periodic inventory, refers to the counting or evaluating of stock held by an organization at the end of an accounting period. This process involves recording the physical number of goods on hand and is essential for determining accurate inventory levels and ensuring proper financial reporting.
Perishable items are goods that have a limited shelf life and can spoil, decay, or become unsuitable for consumption if not handled, stored, and processed properly.
Perjury is the criminal offense of making false statements under oath, typically in a judicial proceeding. While traditionally limited in scope to judicial settings and material matters, statutes in many jurisdictions now encompass false swearing in various legal instruments or settings.
Perks are perquisites that come in the form of additional benefits beside regular remuneration, primarily expected by senior employees such as company cars, private health insurance, and gym memberships.
A permanent difference refers to a discrepancy between profits or losses calculated for tax purposes and those reported in the financial statements. For example, certain expenses may be included in financial statements but not allowed as deductions for tax purposes.
A permanent diminution in value refers to a fall in the value of an asset that is unlikely to be reversed over time. This reduction must be reflected in the balance sheet and necessitates adjustments through the profit and loss account.
Understanding the concept of a 'Permanent Establishment' (PE) is crucial for determining tax obligations and compliance in international business activities. The term is extensively used in international tax treaties to specify when and how business profits should be taxed.
Permanent financing refers to long-term financing options available in both corporate finance and real estate, ensuring sustained capital over extended periods through debt or equity instruments.
Permanent income is a long-run measurement of average income, wherein temporary fluctuations in income do not significantly affect consumption patterns.
Permanent Interest Bearing Shares (PIBS) are non-redeemable securities issued by building societies that offer a fixed interest rate, usually between 10% and 13.5%, providing high yields in perpetuity. However, they carry significant risks and have a limited second-hand market.
Permanent Interest Bearing Shares (PIBS) are a type of high-yield investment traditionally offered by UK building societies, providing fixed interest payments to investors.
Permissible Capital Payment (PCP) relates to how much cash or other financial considerations a company is allowed to return to shareholders according to legal or regulatory standards, primarily through processes such as share buybacks or reductions in capital.
A payment made out of capital when a company is redeeming or purchasing its own shares after using all available distributable profits and the proceeds of any new issue of shares.
A permit is a document issued by a government regulatory authority that grants the bearer permission to undertake a specific action. Permits are often required for activities that could have legal, environmental, safety, or public health implications.
A Permit Bond is a type of surety bond required by a government agency to ensure that businesses or individuals comply with laws and regulations governing a specific activity requiring a permit.
Permutations refer to the different arrangements or orderings of a set of items, where the order of elements is crucial in their selection.
A perpetual annuity, also known as perpetuity, is a financial instrument involving the receipt or payment of a constant amount annually for an indefinite period. The present value of such an annuity can be calculated using a specific formula.
Perpetual audit refers to a continuous, ongoing examination and verification of a company's financial records and inventory levels. This method ensures real-time accuracy and aids in early detection of discrepancies or fraud.
A type of debt instrument for which the issuer typically has neither the right nor the obligation to repay the principal amount of the debt. Interest is usually paid at a constant rate or at a fixed margin over a benchmark, such as the London Inter Bank Offered Rate (LIBOR).
A perpetual inventory system continuously tracks and records the amount of inventory in stock, allowing companies to maintain accurate and up-to-date inventory records at all times.
A perpetuity is a financial instrument that provides continuous payments indefinitely. It has no end date, meaning it theoretically continues forever. The Rule Against Perpetuities restricts the length of time properties can be held or devised to lineage.
Perquisites, often abbreviated as perks, refer to the privileges granted to employees in addition to basic wages and salaries. These can range from health insurance and pensions to executive benefits like automobiles, resort vacations, and more.
A perquisite, often abbreviated as 'perk,' is a non-wage benefit or privilege granted to employees in addition to their regular salary or wages. Perquisites are typically offered to enhance job satisfaction, performance, and loyalty among employees.
Perquisites of Office, also known as fringe benefits, refer to the advantages or benefits provided by an employer to an employee, which are above their regular wages or salary. When these benefits are used for personal or family purposes, they are taxable.
A persistent misdeclaration penalty is used in the collection of value-added tax (VAT) to address significant inaccuracies in VAT returns, coupled with a trader's prior record of errors.
An individual, trust, estate, partnership, association, company, or corporation having certain legal rights and responsibilities.
Person-to-person calls are long-distance, operator-assisted telephone calls where the caller specifies the name of the person they wish to speak to. The caller is not charged if the specified individual is unavailable.
Personal accounts are used to record transactions with individuals or entities, such as debtors and creditors. These accounts are essential for managing relations and obligations with people and organizations.
An overview of the personal allowance entitlement for individual residents in the UK for calculating their taxable income for income tax purposes.
Exemptions from withholding for the taxpayer, spouse, and dependents, used in calculating the amount of income tax to be withheld from periodic wage payments.
A personal computer (PC) is a versatile computer designed for use by an individual. The term PC historically refers to IBM-compatible computers, in contrast to Apple Macintosh computers.
Personal Consumption Expenditures (PCE), provided by the Bureau of Economic Analysis (BEA), measure the goods and services purchased by households and nonprofit institutions serving households (NPISHs) residing in the United States.
The Personal Consumption Expenditures Price Index (PCEPI) is a U.S. economic indicator that measures the average increase in prices for all domestic personal consumption. This index is based on data from sources such as the Consumer Price Index and Producer Price Index, and it is indexed to a base value of 100 in 2005.
A Personal Data Sheet is a questionnaire often given by organizations to individuals for the purpose of eliciting specific information relative to the individual.
A Personal Digital Assistant (PDA) is a handheld computing device used primarily for managing personal information such as an address book and scheduler. PDAs have largely been supplanted by smartphones, which offer more advanced features.
In determining taxable income, an individual taxpayer is entitled to a deduction for each allowable personal exemption. This exemption reduces the amount of income subject to tax and can be claimed for the taxpayer, their spouse, and each dependent.
The Personal Exemption Phaseout (PEP) reduces or entirely eliminates personal exemptions for high-income taxpayers based on their adjusted gross income (AGI).
Financial planning for individuals, which involves analyzing their current financial position, predicting their short-term and long-term needs, and recommending a financial strategy. This may involve advice on pensions, the provision of independent school fees, mortgages, life assurance, and investments.
Personal financial planning software assists users in examining revenue and expenses, comparing actual to budget, monitoring assets and liabilities, conducting goal analysis, investment portfolio analysis, tax planning, and retirement planning.
The Personal Financial Specialist (PFS) designation is awarded to qualified CPAs (Certified Public Accountants) by the American Institute of Certified Public Accountants (AICPA). It signifies that the individual has met the requirements and demonstrated expertise in personal financial planning.
The Personal Financial Specialist (PFS) is a certification granted by the American Institute of Certified Public Accountants (AICPA) to CPAs who specialize in financial planning. It demonstrates expertise in areas such as estate planning, retirement planning, investments, and insurance.
A detailed document that provides an individual's financial health using often the accrual basis of accounting.
A Personal Holding Company is a corporation that derives a substantial portion of its income from passive sources and is closely held by a small number of individuals to avoid personal taxes on investment and personal service income.
A Personal Identification Number (PIN) is a numeric password used for securing transactions and verifying the identity of the cardholder in various financial systems such as ATMs and point-of-sale terminals.
A Personal Identification Number (PIN) is a numeric password used to authenticate a user to a system, providing an additional layer of security beyond just a username or ID.
Personal income is a component of national income representing the amount of income actually received by households after accounting for various adjustments.
A Personal Information Manager (PIM) is a type of computer software designed to act as an electronic daily planner. It serves as an integrated tool for managing personal information, combining the functionalities of a calendar, appointment book, to-do list, address book, notebook, and sometimes additional features like a database for contacts.
A Personal Information Manager (PIM) is a software application that allows users to organize and manage personal data such as contacts, calendars, tasks, and notes. PIMs are used primarily for managing information that aids in personal productivity.
Personal injury encompasses various types of wrongful conduct causing harm to an individual, including false arrest, invasion of privacy, libel, slander, defamation of character, and bodily injury. Unlike property damage or destruction, personal injury pertains directly to harm inflicted upon a person.
Personal interest expense refers to any interest that is not categorized as home mortgage interest, investment interest, or business interest. The tax deduction for personal interest expense was completely eliminated after 1990.
A personal ledger is an accounting record containing a summary of all transactions related to individuals or specific entities such as debtors and creditors.
Personal liability refers to the legal obligation that exposes an individual's personal assets to potential claims. Corporate stockholders and limited partners generally avoid personal liability, while general partners incur personal liability.
A personal pension scheme is an arrangement where an individual contributes a portion of their salary to a pension provider, like an insurance company or bank, to secure funds for retirement.
Personal property, also known as personalty, refers to movable items that are not attached to real estate and can include goods used in trade or business. Gains on the sale of personal property may be taxed favorably under Section 1231 of the Internal Revenue Code.
A personal property floater provides insurance coverage for all personal property, regardless of the insured's location and extends to household residents, including children away at school.
Personal residence refers to the dwelling unit that an individual claims as their primary home, which establishes their legal residence for voting, tax, and legal purposes.
Personal Selling involves the delivery of a uniquely tailored message to potential customers (prospects) by a seller, usually through face-to-face communication, personal correspondence, or personal telephone conversations. Unlike advertising, a personal sales message can be specifically targeted to individual prospects and can be easily adapted if the desired behavior is not achieved.
Personal Service Corporation Definition A Personal Service Corporation (PSC) is a type of corporation whose main activity involves providing personal services. These services are typically performed by employees who own a significant portion of the corporation’s stock. The Internal Revenue Service (IRS) defines personal services to include activities in fields such as health, law, engineering, architecture, accounting, actuarial science, performing arts, and consulting. Due to their structure, PSCs are subject to certain adverse tax implications, most notably being taxed at the highest corporate tax rate.
Personality refers to the behavior pattern of an individual, established over time. An individual's personality is a blend of lifetime experiences as well as genetic characteristics, resulting in a relatively stable and predictable pattern of behavior.
Personalty, also known as personal property, refers to any movable property that is not affixed to land or real estate. It includes items such as cash, furniture, vehicles, and other tangible objects.
Personnel refers to the people who actually compose an organization's workforce. In other words, it is synonymous with Human Resources (HR) and entails the management and development of employees within an organization.
Personnel Administration, now commonly referred to as Human Resources (HR) Administration or HR Management, involves the study and practice of managing an organization's human resources.
The Personnel Department, now commonly known as the Human Resources (HR) Department, is an organizational unit responsible for the administration of personnel policies and ensuring legal and proactive implementation of these policies.
Personnel Psychology focuses on understanding and improving the functioning of individual employees and teams within organizations. It is often synonymous with Industrial Psychology which also covers the broader organizational aspects.
Persuasion is the act of inducing attitude changes and influencing a target market to action, by appealing to reason or emotion. It is a primary objective of modern advertising aimed at creating effective advertisements using various persuasive elements.
