Krugerrand
A gold bullion coin minted by the Republic of South Africa containing one troy ounce of gold. The Krugerrand is frequently traded and widely recognized.
Kudos
Kudos refers to the recognition given by an entity for achievements. This acknowledgement can manifest in various forms, including bonuses, medals, or trophies.
Labeling Laws
Federal and state statutes that mandate safe packaging and warning labels on hazardous materials, such as poisons and other dangerous substances; also called packaging laws.
Labor
Labor refers to the exertion of physical or mental effort for work, often performed for remuneration. It encompasses a broad group of individuals engaged in various occupational functions within organizations.
Labor Agreement
A labor agreement, also known as a labor contract or collective bargaining agreement, is an officially negotiated deal between management and labor unions detailing the terms of employment, working conditions, wages, benefits, and other employment-related matters.
Labor Dispute
A labor dispute refers to a controversy between management and labor over various aspects of the workplace, including working conditions, wages, job descriptions, and fringe benefits.
Labor Federation
A labor federation is an umbrella labor organization encompassing multiple affiliated local labor unions and providing extensive support services. The national AFL-CIO is a central trade union federation in the United States with numerous affiliates.
Labor Force
The labor force encompasses individuals over 16 years of age who are either employed or actively seeking employment, as measured by the U.S. Bureau of Labor Statistics.
Labor Force Participation Rate
The Labor Force Participation Rate refers to the portion of the population over the age of 16 that is either employed or actively seeking employment. This metric is a key indicator of the available labor supply and economic activity within a country.
Labor Intensive
Labor intensive refers to industries or companies where labor costs are a more significant component of total costs compared to capital expenditures.
Labor Mobility
Labor mobility refers to the ability of workers to change employment easily. Highly mobile workers are often found in occupations that are in great demand.
Labor Piracy
Labor piracy refers to the act of attracting workers away from a firm through inducements, often involving offering highly attractive employment opportunities to employees who are in great demand.
Labor Pool
A labor pool refers to a source of trained personnel from which prospective workers are recruited.
Labor Theory of Value
An economic theory proposing that the true value of a good is determined by the amount of labor required to produce it, often associated with Marxist economics. It generally disregards any positive contribution of capital to the production process.
Labor Union
A labor union is an association of workers formed to negotiate collectively with employers over wages, working conditions, benefits, and other aspects of employment.
Labor-Intensive
Labor-intensive refers to any activity in which labor costs are more crucial than capital costs. Such activities typically require a significant amount of human effort and time.
Labor-Management Relations Act (Taft-Hartley Act)
The Labor-Management Relations Act, commonly known as the Taft-Hartley Act, is a significant U.S. labor law passed in 1947 that amended the Wagner Act of 1935. It includes provisions that regulate labor unions and employer practices, aiming to balance the power between employers and unions.
Labor-Management Reporting and Disclosure Act (LMRDA) of 1959
The Labor-Management Reporting and Disclosure Act (LMRDA) of 1959, also known as the Landrum-Griffin Act, is a U.S. labor law that regulates labor unions and ensures union democracy, financial integrity, and provides certain protections for union members.
Labour Costs
Labour costs refer to the total expenditure on wages paid to workers who are directly or indirectly involved in the production of a product, service, or cost unit. This includes both direct and indirect labour costs.
Labour Hour Rate
Labour hour rate refers to the cost of one hour of labour, which includes direct and indirect costs tied to the labour force.
Labour Variances
Labour variances are a critical measure in cost accounting, used to analyze the difference between the actual labor costs and the standard labor costs. They help in identifying areas where inefficiencies and cost overruns occur.
Laches
Laches is a legal doctrine that provides a defense to parties when long-neglected rights are sought to be enforced against them. It signifies an undue lapse of time in enforcing a right of action, and negligence in failing to act more promptly.
Laddering
Laddering refers to purchasing bonds that mature at various intervals to achieve greater regularity of income and protection from interest rate fluctuations.
Lading
Lading refers to the cargo that is shipped and transported from one place to another via various modes of transportation such as ships, trucks, trains, or planes. The term also extends to the document known as the Bill of Lading, which acts as a detailed receipt of the shipment, outlines the condition of the cargo, and serves as a contract between the shipper and the carrier.
Laffer Curve
The Laffer Curve is an economic theory that illustrates the relationship between tax rates and tax revenue, suggesting that there is an optimal tax rate which maximizes revenue.
Lagging Indicators
Lagging Indicators are economic metrics that change after the overall economy has experienced a change. These indicators are observed to confirm trends in economic activity.
Lagging Measures
Lagging measures are performance metrics that reflect past outcomes and provide insights into how well business strategies and operations have performed historically.
Laissez-Faire
Laissez-faire is a doctrine that advocates minimal government intervention in business and economic affairs, allowing for free market forces to dictate economic outcomes.
Laissez-Faire Leadership
Laissez-faire leadership is a management style in which leaders delegate the decision-making responsibilities to their subordinates. This approach fosters employee empowerment but can be considered the weakest form of management style in terms of structure.
Lakh
In the Indian subcontinent, the term 'Lakh' (10^5 or 100,000) is commonly used in finance and other contexts to indicate sums of money or quantities. Often used alongside 'Crore' (10^7 or 10,000,000).
Land
Land refers to the earth's surface, encompassing areas that can be owned, developed or transferred through legal means. It is a fundamental component in real estate and economic interests, often including all permanent structures affixed to it.
Land Banking
Land banking refers to the process of purchasing land that is not currently needed for use but is expected to be utilized or gain value in five to ten years. This practice is often employed for real estate investment and urban development purposes.
Land Contract
A land contract, also known as a contract for deed or installment land contract, is a real estate installment selling arrangement where the buyer can use, occupy, and enjoy the land, but the deed is not delivered by the seller until all or a specified part of the sale price is paid.
Land Development
Land development is the process of improving raw land to support construction. This comprehensive process involves several steps including planning, acquisition of government permits, subdivision, construction of access roads, installation of utilities, landscaping, and drainage.
Land Lease
A land lease, also known as a ground lease, is an agreement in which a tenant rents land for a specified period of time and has the option to construct buildings or other improvements on it. Unlike typical property leases, in a ground lease, the tenant usually gains control of the land and any developments for the lease term.
Land Office Business
The term 'land office business' refers to a booming trade or thriving business activity. It is believed to have originated from the busy U.S. government land offices, which were established to distribute land to Western settlers during the expansion era.
Land Sale-Leaseback
A financial transaction where one party sells a piece of land to another party and then leases it back for a long-term period. This arrangement allows the seller to continue using the land while freeing up capital.
Land Trust
A land trust is a legal arrangement in which a trustee or trustor holds the title or ownership of real property on behalf of a beneficiary, providing an efficient way to manage, develop, and preserve property interests.
Land-Use Intensity
Land-use intensity refers to a measure of the extent to which a land parcel is developed in conformity with zoning ordinances. It reflects how comprehensively a property is utilized within the parameters established by local zoning regulations.
Land-Use Planning
Land-use planning is an activity, generally conducted by a local government, that provides public and private land-use recommendations consistent with community policies. It is commonly used to guide decisions on zoning.
Land-Use Regulation
Government ordinances, codes, and permit requirements intended to make the private use of land and natural resources conform to policy standards. Common regulations include building codes, curb-cut permit systems, historic preservation laws, housing codes, subdivision regulations, tree-cutting laws, and zoning.
Land-Use Succession
Land-use succession refers to the dynamic process where the predominant use of a neighborhood or area changes over time due to various social, economic, and environmental factors.
Land, Tenements, and Hereditaments
A phrase used in early English law to encapsulate all types of real estate, encompassing land and other properties inheritable by heirs.
Landfill Tax
In the UK, Landfill Tax is a charge on the commercial disposal of waste by way of landfill. As of the financial year 2016-2017, the standard rate is £84.40 per tonne, with a rate of £2.65 per tonne for 'less-polluting waste' (chiefly naturally occurring materials).
Landlocked
A landlocked condition pertains to a property or a country that has no direct access to public thoroughfares or oceans.
Landlord
A landlord is a property owner who rents out their property to another party, known as the tenant, in exchange for rent. The landlord retains ownership of the property while granting the tenant the right to use it as specified in a lease agreement.
Landmark
A landmark is a recognizable natural or artificial feature used for navigation, historical significance, or cultural heritage. Landmarks may serve functional purposes or purely aesthetic and symbolic roles.
Landmark Decision
A landmark decision is a court case that is studied because it has historical and legal significance. These decisions notably set important precedents that can influence and guide future court rulings. In the legal field, a landmark decision can shape or alter laws, societal norms, and judicial interpretations.
Landscape
Landscape refers to the orientation of paper or screen in which the horizontal dimension is greater than the vertical, often used for wide format displays or printing.
Lanham Act
The Lanham Act, officially known as the Federal Trade-Mark Act of 1946, is a foundational statute in United States trademark law that governs the registration and protection of trademarks, trade names, and other identifying markers used in interstate commerce.
Lapping
Lapping is a fraudulent accounting practice in which an employee conceals a shortage of cash by delaying the recording of cash receipts, often involving the use of subsequent receipts to cover earlier thefts.
Lapse
Lapse occurs in insurance when a policy becomes inactive due to non-payment of the renewal premium, impacting both property and casualty and life insurance sectors.
Laptop (Computer)
A laptop, also known as a notebook computer, is a small, portable personal computer with a clamshell form factor, typically having a thin LCD or LED computer screen mounted on the inside top lid of the clamshell and an alphanumeric keyboard on the inside of the bottom lid. Laptops are designed for mobile use and can run on a battery or an external power supply.
Large-Cap Stock
Large-cap stocks, also known as big-cap stocks, are shares of companies with a large market capitalization, typically $5 billion or more.
Laser Printer
A laser printer is a computer printer that uses a laser beam to generate an image, which is then transferred to paper electrostatically. Laser-printer output is produced very fast, with quality that approaches that of typesetting.
LASH (Lighter Aboard SHip)
A transport system where fully laden barges (lighters) are loaded aboard a larger mothership for sea transport. The mothership is designed with features to easily facilitate loading and unloading at the waterline, utilizing onboard cranes.
Last In, First Out (LIFO)
A method of inventory valuation in which the most recent items acquired are considered the first to be sold. It affects accounting and taxation outcomes, particularly in periods of rising prices.
Last In, First Out (LIFO)
Last In, First Out (LIFO) is a method used in inventory management and accounting that prioritizes the most recently added inventory for distribution or recording first.
Last Sale
The last sale refers to the most recent trade in a particular security, and it is not to be confused with the final transaction in a trading session, which is known as the closing sale.
Last-In-First-Out (LIFO) Cost
A method of valuing units of raw material or finished goods issued from stock by using the latest unit value for pricing the issues until all the quantity of stock received at that price is used up.
Late Charge
A late charge is a fee charged by a lender when the borrower fails to make a timely payment on their loan or credit account.
Latent Defect
A latent defect is a defect that is hidden from knowledge as well as from sight and one that would not be discovered even by the exercise of ordinary and reasonable care. One who sells a house with knowledge of a latent defect must disclose the defect to the buyer or the buyer may later claim misrepresentation.
Latitude
Latitude refers to the ability to exercise judgment within a range of authority without outside interference. Commonly applied in corporate and managerial contexts, it allows individuals such as supervisors to make autonomous decisions based on their judgment.
Launch
The term 'launch' has multiple applications; it can refer to the start or loading of a computer operating system or program, and it can also mean the advertising and release of a new product in the market.
Law
The legal system is a set of rules enforced by governmental institutions to regulate human behavior, provides a structure for society, and ensures justice is upheld.
Law of Diminishing Returns
The Law of Diminishing Returns, also known as the principle of diminishing marginal productivity, is an economic rule stating that if one factor of production is increased while other factors are fixed, a point will be reached at which additions of the factor will yield progressively smaller increases in output.
Law of Increasing Costs
The Law of Increasing Costs states that as the productivity of a factor of production decreases due to increasing production, the cost of successive units produced must increase.
Law of Large Numbers
The Law of Large Numbers (LLN) is a mathematical principle that states that as the number of exposures increases, the results become more predictable and closer to the expected outcomes.
Law of Supply and Demand
An economic principle that states the price of a good is determined by the relationship between its supply and demand in a free market. Adjustments in supply or demand lead to changes in price to reach market equilibrium.
Lawful Money
Lawful money refers to physical currency that a government has declared to be legally acceptable for financial transactions within its jurisdiction. This includes banknotes and coins that are officially recognized as a medium of exchange.
Lay Off
A lay off involves removing, temporarily or permanently, an employee from a payroll due to economic conditions or production cutbacks, rather than poor performance or rule violations.
LCD (Liquid Crystal Display)
A thin, flat, low-power display technology commonly used in notebook computers, PDAs, calculators, watches, cameras, and other devices. LCDs utilize liquid crystals and an electric field to control light and display images.
LCH.Clearnet (London Clearing House)
LCH.Clearnet, now known simply as LCH, is a leading global clearing house that provides clearing and risk management services for various asset classes including equities, bonds, exchange-traded derivatives, commodities, and over-the-counter (OTC) derivatives.
LDC (Less-Developed Country)
A term used to describe countries in a poor and primitive economic condition, characterized by low income, limited industrialization, and often a dependency on agriculture.
Lead Manager
A lead manager is a bank or other financial institution tasked with underwriting a new issue of bonds or heading a syndicated bank facility. This institution is often chosen due to a close relationship with the borrower or a successful track record in competitive bought deal contests.
Lead Time
Lead time refers to the lag time between the placement of an order and its actual receipt. It can be reduced by implementing Just-in-Time Inventory Control (JIT).
Lead-Based Paint
Considered a hazardous material, lead-based paint is potentially poisonous, and its presence in a property must be disclosed by law.
Leader
A 'leader' in various contexts can signify a stock group forefronting market trends or a dominant product in its industry.
Leader Pricing
Leader pricing is a strategic reduction in the price of a high-demand product to attract customers to a retail store or to stimulate a direct-mail purchase, potentially inspiring additional full-price purchases. Also known as loss leader pricing.
Leadership
Leadership refers to the upper level of management that provides vision, guidance, and direction for a company.
Leading and Lagging
Techniques often used at the end of a financial year to enhance a cash position and reduce borrowing by arranging for the settlement of outstanding obligations to be accelerated (leading) or delayed (lagging).
Leading Indicators
Leading Indicators are economic statistics that signal future changes in the economy before they occur, helping to predict economic trends and cycles.
Leading Measures
Leading measures are predictive indicators that precede an outcome or result, typically used to forecast future performance and guide decision-making processes. These metrics enable organizations to take proactive actions to achieve desired results.
Leakage
Leakage refers to the loss of potential business revenue when customers choose to spend their money on goods or services outside of a given company or location.
Learning and Growth Perspective
The Learning and Growth Perspective of the Balanced Scorecard focuses on the intangible assets like human capital, information capital, and organizational capital that drive continuous improvement and growth in an organization’s strategy.
Learning Curve
A technique that takes into account the reduction in time taken to carry out production as the cumulative output rises.
Lease
A lease is a contractual agreement in which a lessor grants the lessee the right to use an asset for a specified period in return for specific rental payments. While the lessor retains ownership rights, the lessee gains usage rights.
Lease Bonus
A lease bonus is an amount paid to a lessor to induce them to execute a mineral lease, entitling the lessee to explore, develop, and produce minerals from the leased area.
Lease Incentive
Lease Incentives are benefits offered by landlords to tenants to persuade them to sign a lease, ranging from reduced rent to significant financial enticements.
Lease with Option to Purchase
A lease with an option to purchase allows the lessee (tenant) the right to buy the property at a predetermined price, under specific conditions. Its treatment may vary depending on whether it closely resembles a financing arrangement.
Leaseback
A financial arrangement where the owner of an asset sells it but retains the right to use it through a lease agreement, effectively raising funds while maintaining the use of the asset.
Leaseback
A leaseback transaction involves a property owner selling the property and then leasing it back from the buyer. This allows the original owner to continue using the property while receiving an influx of capital from the sale.
Leased Fee
The landlord's ownership interest in a property that is under lease. The value of a leased fee interest is based on the anticipated income from rent and the reversionary property value upon lease expiration.
Leasehold
Leasehold refers to the right acquired under a lease to use land and buildings for a specified period in return for the payment of a specific rental. Understanding leasehold agreements is crucial for both residential and commercial tenants, as it determines the terms and conditions under which they can use the leased property.
Leasehold Costs
Costs incurred in purchasing and maintaining a lease, which are capitalized as part of the basis of the property.
Leasehold Improvements
Leasehold Improvements are fixtures attached to real estate that are generally acquired or installed by the tenant. Upon expiration of the lease, the tenant can generally remove them, provided such action does not damage the property or conflict with the lease agreement.
Leasehold Insurance
Leasehold insurance provides coverage for a tenant (lessee) with a favorable lease. If the lease is canceled by the lessor due to an insured peril, the lessee is indemnified for the loss incurred from losing the advantageous lease.
Leasehold Mortgage
A leasehold mortgage is a type of lien placed on the tenant's interest in real estate, which is generally subordinate to other liens on the property.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.