An active market is characterized by frequent and high-volume transactions of assets within a particular class, providing readily available and up-to-date pricing information.
Securities that have been actively traded on a particular stock exchange during a particular period. Active stocks are characterized by high trading volumes and frequent price movements, which make them attractive for traders looking for opportunities in market trends.
In Microsoft Windows, the active window is the one that currently has the focus, meaning it is the window in which keyboard or mouse actions will be effective. The title bar of the active window is usually a different color from those of other windows, indicating its active status.
An activist policy is a government economic policy that uses elements of monetary and/or fiscal policy to respond dynamically to current economic conditions with the objective of stabilizing the economy.
Investors who acquire an equity stake in a publicly traded company as a means of attempting to influence the company's practices or policies. Shareholders can be ethically motivated, for example wanting an improvement in the environmental or social impact of a business, or interested mainly in changing its business strategy or management.
In activity-based costing (ABC) systems, an activity refers to any operation performed within an organization that causes costs to be incurred. Examples include processing an order, writing a letter, designing a product, and visiting a customer. This concept is integral to accurately allocating costs based on actual activities.
Activity Analysis is an essential component of Activity-Based Costing (ABC) that involves identifying and describing activities within an organization, alongside their resource requirements.
An activity cost pool in activity-based costing groups indirect costs according to activities to allocate costs effectively.
An activity dictionary is a comprehensive listing of all activities included in an organization's activity-based costing (ABC) system. It provides precise definitions to help managers calculate the costs for each activity, thereby aiding in cost management and control.
An activity measure in activity-based costing (ABC) systems is a metric that gauges the volume or rate of an activity. It serves as a basis for cost allocation within an activity cost pool, correlating changes in the measure with changes in total activity cost.
An activity ratio is a key metric in management accounting that compares the actual production achieved during an accounting period with the production level deemed achievable for that period. It provides insights into the efficiency and productivity of an organization.
Activity-Based Budgeting (ABB) is a budgeting method where budgets are prepared by identifying and analyzing activities that incur costs in an organization and then allocating resources based on the anticipated performance and necessity of those activities.
Activity-Based Budgeting (ABB) is a budgeting method that allocates resources based on activities that incur costs in an organization, primarily used to refine budgeting accuracy and analyze performance.
Activity-Based Costing (ABC) is an accounting method of cost allocation that assigns costs to products and services based on the activities and resources that they consume.
Activity-Based Costing (ABC) is a costing methodology that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.
Activity-Based Management (ABM) involves using insights gained from Activity-Based Costing (ABC) to improve the overall management and efficiency of an organization. It focuses on identifying activities, understanding cost drivers, and analyzing how resources are consumed based on activity levels.
Actual Cash Value (ACV) is an insurance term referring to the amount equivalent to the replacement cost of damaged or lost property, minus depreciation. It is a measure sometimes used as a substitute for market value in insurance claims.
Actual cost refers to the tangible expenditure incurred in carrying out specific activities of an organization, as opposed to budgeted or standard costs. It represents the real outlay of funds, including invoices paid, wages, materials, and other expenses.
Losses directly referable to a breach or tortious act; losses that can readily be proven to have been sustained, and for which the injured party should be compensated as a matter of right.
Actuals refer to commodities that can be purchased and used directly, as well as to expenses or receipts that have actually occurred, instead of budgeted or projected figures.
Actuarial assumptions are critical estimates used to calculate the likely costs of pension schemes and life assurance policies, essential for determining contributions and benefits.
Actuarial gains and losses occur due to discrepancies between previous actuarial assumptions and actual experiences, or adjustments in those assumptions. These variances impact the present value of defined benefit pension schemes and are typically recognized in other comprehensive income.
The actuarial method is a technique employed in accounting, particularly lease and pension accounting, to allocate rentals and determine charges using principles of compound interest.
Actuarial science is a branch of knowledge dealing with the mathematics of insurance, including probabilities. It is used in ensuring that risks are carefully evaluated, that adequate premiums are charged for risks underwritten, and that adequate provision is made for future payments of benefits.
A professional who applies statistics and probability theory to advise on insurance risks, pricing of contracts, and administration of pension funds, regulated by the Institute and Faculty of Actuaries in the UK.
Ad hoc refers to situations, decisions, or committees that are formed for a specific, often temporary, purpose, typically to address a specific issue or problem.
The phrase 'ad infinitum' conveys the concept of something continuing indefinitely, with no limits on the duration of time or amount of money it involves. An example could be a perpetual annuity of payments made by a company to an individual, where the individual receives payments indefinitely.
An ad valorem tax is calculated as a percentage of the assessed value of an item, such as property, goods, or services. Common examples include property taxes and value-added taxes (VAT).
An ad valorem tax is a tax based on the assessed value of an item, such as real estate or personal property. The term 'ad valorem' is Latin for 'according to value.'
Adaptive expectations is a theory that states individuals adjust their expectations of the future based on past events. This approach to predicting future events implies that people base their expectations on what happened in the recent past and modify them incrementally as new information arises.
Add-On Interest refers to a loan interest calculation method where the interest is added to the principal amount at the start of the loan. The total loan repayment amount is then divided into equal installment payments.
An addendum is a document that is attached to an existing contract to modify, clarify, or add terms to the original agreement. Commonly used in various fields, an addendum can provide additional information or conditions without altering the main body of the contract.
Increased depreciation that can be deducted during the first year of a capital expenditure. This allows businesses to more rapidly deduct capital expenditures of most new tangible personal property and certain other new property.
Refers to the practice of further increasing the retail price of merchandise, often executed during holiday periods or times of peak demand to maximize profits.
Additional Paid-In Capital (APIC) represents the excess amount received by a company from investors over the par value of its issued stock.
The additional rate is a higher marginal rate of income tax applied to income that exceeds a specified threshold, typically aimed at higher earners.
Additional voluntary contributions (AVCs) are contributions that employees can make at their discretion to increase the benefits available from their pension fund upon retirement. These contributions can go into an employer's scheme or a scheme of the employee's choice.
An Additional Voluntary Contribution (AVC) allows employees to make extra contributions to their pension schemes over and above the standard contributions from their employer or themselves. This helps in enhancing their pension benefits upon retirement.
Adequacy of Coverage refers to the sufficiency of insurance protection to repay the insured in the event of a loss, ensuring they are adequately compensated and can recover without significant financial detriment.
A legally enforceable agreement containing standardized terms, offered by a business to consumers of goods or services. The consumer must accept the standard provisions and does not have the ability to change those terms.
The term 'adjacent' refers to something that is nearby, but not necessarily touching. It reflects proximity without implying direct contact.
The term 'adjoining' refers to properties or parcels of land that are contiguous, attaching, or sharing a common border. This is a fundamental term in real estate, urban planning, and property law.
Adjudication refers to the legal process of resolving a dispute or deciding a case. The judgment or decision of a court, especially in bankruptcy proceedings, is considered adjudication.
An adjustable-rate mortgage (ARM) is a type of mortgage loan that allows the interest rate to be changed at specific intervals over the maturity of the loan, enabling borrowers to benefit from potentially lower interest rates initially compared to fixed-rate mortgages.
An adjusted basis, or adjusted tax basis, refers to the original cost or other basis of property, reduced by depreciation deductions and increased by capital expenditures. It serves as the base amount from which to measure gains and losses for tax purposes.
Adjusted Consolidated Segment Operating Income (ACSOI) is a non-GAAP financial metric used to assess the financial performance of a company by eliminating certain items that do not reflect its underlying operating performance.
An intermediate step in calculating taxable income, AGI is the amount used for computing deductions based on, or limited by, a percentage of income, such as medical expenses, charitable contributions, and miscellaneous itemized deductions. This amount is determined by subtracting from gross income any business expenses and other deductions, such as KEOGH payments, alimony payments, and IRA contributions.
In the USA, the difference between the gross income of a taxpayer and the adjustments to income, which is an essential figure for multiple tax computations.
Adjusted Present Value (APV) is a technique combining the all-equity net present value of an investment with additional value adjustments relating to specific financing elements like tax concessions.
The adjusted tax basis is the value used for calculating gain or loss upon the sale or disposition of an asset, reflecting adjustments for various tax-related incentives, improvements, or expenses.
An Adjusted Trial Balance is a key accounting tool that lists all general ledger accounts and their balances after accounting adjustments have been made, such as prepayments and accruals, serving as a foundational element for preparing the final financial statements.
An adjuster is an individual employed by a property and casualty insurance company to assess and settle claims brought by insureds. The adjuster evaluates the merits of each claim and makes recommendations to the insurance company.
Adjusting entries are made at the balance-sheet date under an accrual accounting system to ensure that the income and expenditure of a business are included in the correct period. Examples include adjustments for depreciation, prepayments, accruals, and closing stock.
Adjusting entries are critical for ensuring that financial statements reflect accurate and relevant financial information. They are posted to the accounting records at the end of an accounting period to correct any transactions or events that were not properly recorded during the accounting period.
Adjusting events, also known as post-balance-sheet events, occur between the balance-sheet date and the date on which financial statements are approved, providing additional evidence of conditions existing at the balance-sheet date.
An Adjusting Journal Entry (AJE) is an entry made in an accounting journal to allocate income or expenses to the period in which they actually occurred, typically as a part of the end-of-period adjustments to the financial statements.
Adjusting Journal Entries (AJEs) are accounting entries made to a company’s general ledger at the end of an accounting period to ensure that revenues and expenses are recorded in the period in which they occur. These entries are essential for complying with the matching principle and accrual accounting methods.
Dollar value or percentage amounts that, when added to or subtracted from the sales price of a comparable property, provide an indication of the value of a subject property. Adjustments are necessary to compensate for variation in the features of the comparable relative to the subject.
Administer refers to the management actions of planning, directing, budgeting, and implementing necessary to achieve organizational objectives. It involves activities such as managing resources, overseeing projects, and ensuring efficient operations.
An administered price is a price of a good that is specified by a governmental or some other nonmarket agency. Examples include wage price controls and rent controls.
Administration Cost Variance is the difference between the administration overheads budgeted for in an accounting period and those actually incurred. This variance helps in evaluating and controlling administrative costs in an organization.
Administration expenses are the overhead costs incurred for the general operation of a business. These include salaries of administrative staff, utilities, office supplies, and other indirect expenses.
An order made by a court for the administration of the estate of a judgment debtor or a company in financial distress, focused on debt repayment and business survival.
Administration overhead includes general office operations costs such as salaries, stationery, and telecommunication expenses, essential for executing administrative activities within an organization.
Administrative expenses refer to the costs that are not directly tied to specific business operations, such as manufacturing or sales, but are necessary for the overall administration and operation of a company.
Administrative law is the branch of law that deals with the powers and procedures of governmental bodies other than courts and legislatures. It significantly impacts the rights of private persons through mechanisms like investigations, hearings, rulemaking, and adjudication.
The Administrative Management Society (AMS) is a professional management society that promotes the application of management methods in commerce and industry to increase productivity, lower costs, and improve quality. Additionally, it encourages research and emphasizes sound employer/employee relations.
An individual appointed by the holder of a floating charge over a company's assets, with powers to sell the secured assets or manage the company's business.
Administrative skills encompass a wide range of essential organizational and technical skills vital for efficient office management and productivity. These skills include planning, organizing, staffing, scheduling, and proficiency in various computer software.
An administrator is a person appointed by courts or by private arrangement to manage the property and affairs of another person, particularly in cases involving deceased individuals without a will or debt administration.
An Administrator's Deed is a legal document used to convey the property of a deceased person who died without a will, a situation known as intestacy.
Adobe Acrobat is a software application produced by Adobe Systems Inc., used for producing and viewing electronic documents in PDF format, ensuring exact reproduction of printed text including fonts.
Adobe Systems, Inc. is a software company based in San Jose, California, recognized for pioneering the PostScript command language and developing the Portable Document Format (PDF) for electronic document distribution. Adobe leads in high-quality font development, design, and desktop publishing software.
An adult is a person who has attained the age of majority, legally recognized as being responsible for their actions and capable of engaging in contracts and other legal responsibilities.
An advance refers to a payment on account or a loan. It is particularly relevant in a partnership context, referring to amounts paid into the partnership that exceed agreed capital contributions. Under the Partnership Act 1890, such advances collect interest unless otherwise agreed by the partners. On dissolution, advances are repaid after external creditors but before the distribution of remaining capital to the partners.
Advance Corporation Tax (ACT) was a system used in the United Kingdom where corporations made advance payments on their corporation tax liabilities when distributions, such as dividends, were made. ACT was abolished on April 6, 1999.
An advance funded pension plan is a retirement plan in which current allocations are made to finance an employee's pension, ensuring funds are available upon retirement.
A guarantee that ensures any advance payments made by a customer will be reimbursed if the company cannot fulfill its contractual obligations.
Advanced Micro Devices, Inc. (AMD) is a leading manufacturer of semiconductor devices, including microprocessors, graphics processors, and related technologies. It is a principal competitor to Intel.
Advancement refers to a payment made by a parent to a child during the parent's lifetime, intended to go towards what the child would receive as a beneficiary or heir upon the parent's death.
An adversary refers to an opponent or litigant, typically in a legal context, who opposes another party in a controversy or litigation.
An adverse opinion is a judgment expressed by auditors indicating that the financial statements of an entity do not accurately reflect its financial position. This is often due to material discrepancies between the auditor's findings and the company's reports.
A method of acquiring legal title to land through actual, continuous, open occupancy of the property for a prescribed period, under claim of right, opposed to the rights of the true owner.
Adverse selection refers to a scenario in the insurance industry where individuals more prone to filing claims are more likely to seek insurance coverage, leading to potential imbalances for insurance providers.
In standard costing and budgetary control, adverse variance indicates discrepancies where actual performance falls short of budgeted expectations, impacting the budgeted profit negatively.
Paid message communicated through various media by industry, business firms, nonprofit organizations, or individuals to influence purchasing behavior and/or thought patterns of the audience.
An Advice Note is a document issued by a supplier of goods informing the customer that the goods have been dispatched. This document is generally received before the goods themselves.
Words written on a bill of exchange to indicate that the drawee has been informed that the bill is being drawn on him or her.
Advocacy advertising involves companies placing advertisements that present their opinions on public issues, aiming to influence public opinion. Common issues include consumer rights, education, the environment, health, and taxation.
Behavior aimed at producing a desired outcome, often by understanding and satisfying the needs of others. A key component in salesmanship and customer relations.
An affiant is a person who makes and signs a written statement under oath.
An affidavit is a written statement made under oath before an officer of the court, a notary public, or another person legally authorized to certify the statement.
An Affidavit of Domicile is a notarized form stating the legal residence of a deceased person. It is executed by an individual familiar with the facts, such as an executor, survivor, or attorney. This document is often required when a shareholder dies while residing in a state different from the address on the account.
A company linked in some sense to another company, often for mutual business benefit including shared resources or collaborative efforts.
A group of noncompeting retail stores throughout the United States whose association affords an economic advantage in large-scale purchasing.
An affiliated company refers to a business entity wherein one company owns less than a majority of the voting stock of the other, or both entities are subsidiaries of a third company. In banking, it involves organizations that a bank owns or controls through stock holdings, or where the bank's shareholders and officers hold significant control or interlocking directorships.
For purposes of consolidated tax returns, an affiliated group is composed of companies whose common parent or other inclusive corporation owns at least 80% of the voting power and value of the stock of the includable corporations (except preferred stock).
An independent retailer that affiliates with other independent retailers under a common trade name for merchandising and advertising purposes.
An affiliated wholesaler refers to a wholesaler who sponsors or owns a group of affiliated retailers, or a wholesaler who affiliates with other wholesalers under a common trade name for merchandising purposes.
An affinity card is a credit card issued to members of a specific group, such as a club or college, or to supporters of a certain charity. The credit card company donates a portion of each transaction to the affiliated organization.
