A deferred asset, also known as a deferred debit, represents an expenditure that has been made and recognized but not yet expensed according to the matching principle of accounting.
Deferred benefits and payments refer to financial arrangements where the receipt of money, benefits, or income is delayed into a future time period, often as part of retirement or other long-term financial planning strategies.
Deferred billing refers to the delayed invoicing of a credit order at the request of the seller. This practice allows buyers to receive products or services before the actual bill is due.
A deferred charge is an intangible expenditure that is carried forward as an asset and amortized over the life of the benefit it represents. An example includes fees for arranging a 30-year mortgage on income-producing real estate.
Deferred compensation is a tax-advantaged plan under which an employee postpones a portion of their salary in exchange for the employer's promise to pay this salary in the future, usually to achieve tax benefits and retirement planning.
A Deferred Compensation Plan is a financial arrangement in which a portion of an executive's current earnings is deferred until retirement or a specified future date.
A contract ensuring payment of the agreed consideration at a later date or upon the occurrence of a specified event.
A deferred contribution plan is an arrangement where unused deductions or credit carryovers to a profit-sharing plan can be added to an employer's future contributions on a tax-deductible basis. This occurs when the employer's contribution to the profit-sharing plan is below the annual 15% of employee compensation allowed by the Federal Tax Code.
Deferred Credit represents income received or recorded before it is earned, and it adheres to the accruals concept by being carried forward on the balance sheet until it is matched with the period in which it is earned.
An item of expenditure incurred in an accounting period but, under the accruals concept, not matched with the income it will generate. Instead of being treated as an operating cost for that period, it is treated as an asset with the intention of treating it as an operating cost to be charged against the income it will generate in a future period.
Deferred gain refers to any gain from a transaction that is not subject to tax in the year it is realized but is instead postponed until a future period.
A deferred group annuity is a retirement income product where income payments start at a future date and continue for life, funded through annual contributions that purchase single-premium deferred annuities.
Deferred income, also known as unearned revenue or deferred revenue, refers to payments received by a business for goods or services that have yet to be delivered or completed.
A deferred interest bond is a type of bond that does not pay interest periodically like traditional bonds. Instead, it accrues interest, which is paid in a lump sum at maturity. An example of a deferred interest bond is a zero coupon bond.
Deferred liability refers to financial obligations that a company incurs but will not pay until a future period. It represents money that has been received for goods or services not yet delivered, and thus is classified as a liability until the delivery is made.
Deferred maintenance in appraisal refers to the postponement of important repairs or upkeep measures which results in physical depreciation. Common examples include broken window glass, missing roof shingles, peeling paint, and broken gutters.
A type of ordinary share where dividends are deferred and paid only after other types of ordinary shares have been compensated, often favoring founder members or large profit entitlements.
Deferred payments refer to payments that are extended over a period of time or put off to a future date. This arrangement allows the payer to delay full payment until an agreed-upon future date.
Deferred retirement refers to the act of postponing retirement beyond the normal retirement age, which typically does not result in an increase in monthly retirement income when the employee actually retires.
Deferred taxation refers to the sum set aside for tax in the accounts of an organization that will become payable in a period other than the one under review. It arises due to timing differences between tax rules and accounting conventions.
A deferred wage increase involves delaying the implementation of a wage increase until a later date. In collective bargaining, it serves as a concessionary labor tactic for winning a wage increase from management.
A type of annuity contract where payments to the annuitant are postponed until a specified number of periods have elapsed, or until the annuitant reaches a certain age. Also known as a deferred annuity.
A deficiency in tax occurs when a taxpayer's correct tax liability exceeds the taxes previously paid for that taxable year. It can be identified during an audit of the taxpayer's return and may lead to penalties.
A deficiency judgment is a court order stating that a borrower still owes money on a loan when the security or collateral does not fully satisfy the defaulted debt.
A deficiency letter is a written notice from the Securities and Exchange Commission (SEC) to a prospective issuer of securities, indicating that the preliminary prospectus needs revision or expansion. Addressing deficiency letters promptly is crucial to avoid prolonging the registration period.
A deficit occurs when expenditures surpass revenues, creating a shortfall that must be managed through measures such as borrowing or cost-cutting.
Deficit financing refers to the practice by a government agency of borrowing funds to cover a revenue shortfall. While this method can stimulate the economy in the short term, prolonged deficit financing may drive up interest rates and eventually slow economic growth.
Deficit Net Worth, also known as negative net worth, occurs when a company's liabilities exceed its assets and capital stock, often due to operating losses.
Deficit spending refers to the situation where a government's expenditures exceed its revenues, causing a shortfall that must be financed through borrowing. This tactic is often employed for economic stimulus during periods of low economic activity.
A defined-benefit pension plan promises to pay a specified amount to each person who retires after a set number of years of service. These plans pay no taxes on their investment income.
A defined-benefit (DB) pension scheme is an occupational pension plan where the retirement benefits are predetermined by a specific formula, typically incorporating years of service and salary levels. The pension is funded accordingly, and accounting for pension costs presents specific challenges governed by Section 28 of the Financial Reporting Standard in the UK and IAS 19.
A Defined-Contribution (DC) Pension Scheme is a retirement plan where employer, employee, or both make contributions on a regular basis, and the final benefits depend on the investment's performance.
A type of pension plan where the contributions are fixed, but the benefits vary based on investment returns. Employees and sometimes employers contribute to a tax-deferred account with flexible investment options.
A defined-contribution pension scheme is a type of retirement plan wherein the benefits received depend on the contributions made by the member, the investment performance of those contributions, and the annuity available at retirement. Unlike defined-benefit plans, the pension amount is not predetermined.
Deflation refers to a general decrease in prices across a range of goods and services. It is often associated with reduced levels of output, employment, and trade. Unlike controlled disinflation, deflation can have severe negative impacts on the economy.
A deflationary gap is an economic term that describes a situation where the Gross Domestic Product (GDP) is below its full-employment level, leading to unemployed resources and potentially falling prices (deflation).
A deflator is a statistical factor or device designed to remove the effect of inflation on economic variables, converting them into real, or constant-value, terms. It allows for a more accurate comparison across different time periods by accounting for changes in price levels.
A defunct company is a business entity that has been wound up and has therefore ceased to exist. This could occur due to insolvency, voluntary dissolution by its owners, or other legal reasons.
Degression refers to a tendency to descend or decrease; it implies a progressive decline in an item, such as value, over time. An example includes the deterioration in a company’s market share for its product line.
Dehiring refers to the process of laying off, firing, or rejecting a previous hiring decision. It involves retracting the employment of an individual or group of employees after they have been hired.
Deindustrialization refers to the decline or elimination of industrial activity in a region or economy, often due to technological advancement, economic factors, and globalization. This phenomenon has impacted various industrial sectors, including steel, automotive, and electronics in the United States.
A Delayed Exchange, also known as a Section 1031 Exchange or Tax-Free Exchange, allows investors to defer capital gains taxes on the sale of an investment property by reinvesting the proceeds into a similar property within a specified time frame.
Delayed opening refers to the postponement of the start of trading in a stock until a gross imbalance in buy and sell orders is overcome. This is often necessitated by a significant event such as a takeover offer.
A delegate can refer to both the act of transferring authority to another person or the individual who is authorized to act on behalf of others. Delegation is crucial in various fields such as management, governance, and project management to ensure efficient functioning and responsibility sharing.
DELETE is a command used in various computing environments to remove unwanted characters, objects from a document, or data from a storage medium. Although the reference to the data is removed, the actual data is not immediately erased but marked for overwriting.
Deleveraging is the process by which an entity reduces its level of debt by rapidly selling off assets or paying down loans, often in response to financial stress or in pursuit of a stronger balance sheet.
Delinquency refers to the state of being past due on a financial obligation but not yet in default. It is an important term in finance and can indicate the payment behavior of individuals or businesses.
The delinquency rate is a statistical measure that indicates the percentage of loans with overdue payments within a loan portfolio. It is used to assess the financial health and risk exposure of the portfolio.
The term 'delinquent' refers to a financial obligation that is payable but overdue and yet unpaid. It can apply to various forms of payments, such as credit card bills, mortgage payments, and taxes. Delinquent accounts can lead to penalties and interest charges and might affect the credit score of the individual or entity responsible for the payment.
A delinquent return is a tax return that is not filed within the time prescribed by the Internal Revenue Code (due date). It may be subject to penalties based on the unpaid tax liability.
Delisting refers to the removal of a company's stock from trading on an organized stock exchange, such as the New York Stock Exchange. This can occur if the issuer fails to meet specific listing requirements or voluntarily chooses to delist.
Consultants are often tasked with producing various types of deliverables that provide value to their clients by summarizing findings, offering recommendations, and presenting actionable plans. These deliverables can significantly vary depending on the industry and specific consulting engagement.
Voluntary transfer of title or possession from one party to another; legally recognized handing over to another of one's possessory rights.
The delivery date is an important term used in various financial transactions, specifically in futures contracts and regular way transactions. Understanding this concept is crucial for participants in financial markets.
The interval between the placement of an order for replenishing stock and the receipt of that ordered item. It is a key metric in supply chain and inventory management, influencing operational efficiency.
Deloitte is one of the 'Big Four' international professional services firms providing audit, consulting, financial advisory, risk management, tax, and related services globally.
The Delphi Technique is a forecasting method used to predict a future event or outcome by eliciting expert opinions. Experts provide initial forecasts independently, followed by rounds of consensus to refine the predictions and discard extreme views.
Demand represents the economic expression of the desire and the ability to pay for goods and services. It is distinct from mere need or desire as it encapsulates the willingness to exchange value for varying amounts of goods or services, depending on the price asked.
A graphical depiction of the demand schedule. It illustrates the relationship between the price of a good or service and the quantity demanded, typically resulting in a downward sloping curve due to higher quantity demanded at lower prices.
A demand deposit is an account balance that can be drawn upon without prior notice to the bank, utilizing various methods such as checks, cash withdrawals from ATMs, or electronic transfers.
The cumulative desire to hold cash as opposed to financial assets.
A demand loan is a type of loan that must be repaid upon the lender's request, rather than on a predetermined date.
A demand note is a financial instrument that is payable immediately upon the lender's request or on a specified date of maturity, without the necessity of further demand for payment.
The price that consumers are willing to pay in the market for a given quantity of output. It is derived from the demand schedule or demand curve.
A demand schedule is a table that showcases the relationship between the price of a good or service and the quantity demanded at different price levels. It is a fundamental concept in economics that helps illustrate consumer behavior and market dynamics.
Demand-pull inflation occurs when the aggregate demand in an economy outpaces the aggregate supply, leading to an increase in the general price level.
A business strategy where a large company or group splits up into multiple independent companies, or sells off subsidiaries.
Demised Premises refers to the property or section of property that is subject to a lease agreement. This term is commonly used in real estate and rental contracts, identifying the specifics of the leased property.
Population statistics in regard to socioeconomic factors such as age, income, sex, occupation, education, family size, and the like. Advertisers often define their target market in terms of demographics; thus, demographics are a very important aspect of media planning in matching the media with the market. Each demographic category is broken down according to its characteristics.
Demolition involves the destruction and removal of an existing structure from a site, which is a necessary step to prepare a site for new construction.
Demonetization refers to the withdrawal of a specific form of currency from circulation, rendering it no longer recognized as legal tender. This economic policy is often implemented to combat issues like corruption, counterfeit currency, and inflation.
Demoralize refers to a decrease in morale, which can be caused by factors such as lack of appreciation by superiors, layoffs, and salary givebacks. Addressing demoralization is crucial to maintain worker productivity, accuracy, and reduce employee turnover.
Demurrage is a charge levied on shipping vehicles when they are held by the consignor or consignee for an excessive amount of time beyond agreed laytime.
A Demurrer is a formal objection that the facts as stated in the pleadings, even if true, are not legally sufficient for the case to proceed further. It tests whether the complaint is sufficient to state a cause of action without admitting anything.
The act by which a mutual entity, such as a building society, changes its status to that of a public limited company.
In finance, denomination refers to the face value of currency units, coins, and securities. It is an important concept in the fields of accounting, taxation, and investment.
Density in real estate refers to the intensity of land use, often measured in terms of dwelling units or population per acre. It provides a way to quantify how densely populated or developed a particular area is.
Density zoning refers to laws that restrict land-use intensity by regulating the number of buildings or units that can be placed within a specific area.
Employee insurance covering a part of the incurred cost for dental and vision care. The deductible portion and total coverage of the plans vary according to the insurer and the workplace.
A discrete section of an organization under the responsibility of a department manager; separate costs and, where appropriate, income are allocated or apportioned to the department for the purposes of costing, performance appraisal, and control.
The UK government department responsible for consumer and competition policy, company legislation, employment law, science and research, higher education, and adult learning. Formed in 2009 from the merger of the Department for Business, Enterprise and Regulatory Reform (BERR) and the Department for Innovation, Universities and Skills (DIUS).
The Department of Veterans Affairs, formerly known as the Veterans Administration, is a government agency that provides various services to discharged servicemembers, including healthcare, benefits, and loans.
A large retail establishment offering a wide range of consumer goods in various product categories known as 'departments.'
Departmental accounting involves the process of providing accounting information analyzed by department, allowing each department of an organization to function independently as a cost center, revenue center, or profit center. This enables department managers to assess their department's financial performance effectively.
A departmental budget is a financial plan that allocates resources to a specific department within an organization, accounting for its expected revenues, costs, and expenditures over a defined period.
Departmentalization is the process of forming employees into groups to accomplish specific organizational goals. It can be organized based on the functions performed, products offered, type of customer, or geographic divisions.
A Departure Permit, also known as a Sailing Permit, is a certificate of compliance from the IRS certifying that a departing alien has satisfied U.S. income tax laws.
A Dependency Exemption allows taxpayers to deduct a specified amount for each dependent claimed on their tax return, reducing their overall taxable income. It is designed to assist families by acknowledging the financial responsibility involved in supporting dependents.
A dependent is any person whom a taxpayer can claim a dependency exemption for, defined by the Internal Revenue Code as any individual supported by the taxpayer who is related to the taxpayer in specified ways or who makes their principal abode in the taxpayer's household.
Protection under life and health insurance policies for dependents of a named insured, including a spouse and unmarried children under a specified age.
In the field of statistics, a dependent variable is the subject of an equation whose value depends on independent variables. Typically denoted as 'Y', the dependent variable is influenced or predicted by the independent variables, often denoted as 'X'.
The systematic expensing of the cost of natural resources over their useful life. Depletion is often associated with extracting industries, such as mining, quarrying, and drilling.
A method of calculating the depreciation of a wasting asset based on the rate at which it is being used. For example, a coal mine could be depreciated on the basis of the rate at which coal is extracted from it.
A deposit is a sum of money paid upfront for various purposes, such as reserving a purchase, saving in a bank, or as a security in trading.
A deposit account is a type of bank account held at a financial institution that allows the account holder to accumulate funds and earn interest, while typically requiring advance notice to withdraw money.
A deposit account is a bank account that allows a person to deposit money and earn interest while keeping the funds accessible for withdrawals and transactions.
Deposits in transit are checks or money that have been sent to a bank but have not yet been processed and recorded in the bank account or the monthly statement. These deposits need to be accounted for during bank reconciliation.
Deposit insurance is a safety net provided to protect depositors' funds in the event of a bank failure. This system maintains public confidence in the banking system by ensuring that depositors' money is safe up to a certain limit, even if their bank ceases operations. It is typically offered by a government agency or a privately-operated insurance fund.
Depositary Receipts (DRs) are financial instruments representing a foreign company's publicly traded securities, enabling easier investment opportunities by circumventing several barriers in investing directly in foreign markets.
Deposition is a pretrial discovery method involving a witness's transcribed and sworn statement, under questioning by an attorney, with the opportunity for cross-examination by the opposing side.
