An annuity certain is a type of annuity where payments continue for a specified period regardless of the life or death of the policyholder.
An annuity due is a type of annuity where payments are made at the beginning of each period, as opposed to an ordinary annuity where payments are made at the end of each period.
A mathematical figure showing the present value of an income stream that generates one dollar of income each period for a specified number of periods.
An annuity in advance is a series of equal or nearly equal payments made at the beginning of each period. These payments can be for various financial obligations including rent, leases, or annuity payments.
An annuity in arrears, also known as an ordinary annuity, is a series of equal payments made at the end of consecutive periods over a fixed length of time. It contrasts with an annuity due, where payments are made at the beginning of each period.
Annuity income refers to the series of payments made at fixed intervals over a period of time, typically used as a stable source of cash flow during retirement.
A method of calculating the depreciation on a fixed asset designed to produce a constant annual charge that includes both depreciation and the cost of capital.
Annulment in accounting refers to the cancellation by a court of a bankruptcy order, under certain conditions such as wrongful bankruptcy declaration, full repayment of debts, or court-approved voluntary arrangement.
ANOVA, which stands for Analysis of Variance, is a statistical technique used to compare the means of three or more samples to determine if at least one sample means significantly differs from the others. It is widely used in various fields such as business, medicine, and social sciences to test hypotheses on data sets.
Antedating refers to assigning a date to a document that is earlier than the actual date it was created. This practice can have legal and procedural implications and is often compared to post-dating.
A cluster of statutory provisions designed to stop certain arrangements that would otherwise reduce the taxpayer's tax liability. Important areas include dividend stripping, bond washing, manufactured dividends, and transactions in securities.
Anti-trust laws are legislation enacted to ensure fair competition, prevent monopolies, and restrict practices that restrain trade and commerce.
The anticipated holding period refers to the estimated duration for which an investor expects to retain an investment before selling it.
The anticipated holding period is the duration during which an investment is expected to be held before being sold or liquidated. In real estate limited partnerships, sponsors often define this period for properties in the prospectus.
Anticipatory breach involves breaking a contract before the actual time of required performance. It occurs when one party repudiates their contractual obligation beforehand by indicating that they will not or cannot fulfill their contractual duties.
Federal statutes designed to regulate trade, maintain competition, and prevent monopolies.
Antivirus software is designed to detect, prevent, and remove malicious software (malware) by monitoring computer systems for irregular activities and comparing findings to a database of known virus information. To maintain effectiveness against newly created viruses, it's crucial to regularly update virus definitions and periodically upgrade the software.
APACS stands for the Association for Payment Clearing Services, which was an industry body for banks and building societies in the United Kingdom that provided a forum for the collective development of standards and resources to facilitate payment clearing.
An apartment is a self-contained housing unit that occupies only part of a building, typically on a single story. Such buildings may be referred to as an apartment building, apartment complex, flat complex, block of flats, tower block, high-rise, or, occasionally, mansion block (in British English), especially if it consists of many apartments for rent.
An apartment building is a structure with multiple individual apartment units accessed through a common entrance and hallway. It may also contain commercial spaces, such as stores, typically on the ground floor.
APL is an interactive computer programming language that is well suited for handling certain complex mathematical operations. It uses several Greek letters and other special symbols, which requires a specially designed computer terminal.
Apparent authority is a legal doctrine where a principal is held responsible for the actions of an agent when the principal's words or actions reasonably lead a third party to believe that the agent has the authority to act on behalf of the principal.
An appeal bond is a guarantee of payment of the original judgment of a court and the costs of appeal, required when a judgment is appealed.
An appellant is a party who appeals to a higher court against the decision of a lower court. The appellant seeks a reversal or modification of the lower court’s judgment.
An appellate court has the authority to review and revise the decision of a lower court in the same case, providing a system of checks and balances within the judicial process.
In legal terms, an appellee is the party against whom an appeal is filed. This person or entity is usually the one who won at the lower court level but must now defend that ruling in a higher court.
An applet is a small application or utility that performs a specific task, often running within a larger program. Common examples include tools in Microsoft Windows Accessories and Microsoft Office.
An application, or app, is an executable program designed to perform specific tasks other than system maintenance. This term encompasses a wide range of software from word processors to games.
An application, commonly referred to as an 'app,' is software designed to perform specific tasks on devices like tablets and smartphones. Apps are typically single-purpose utilities aimed at enhancing the functionality of these devices.
An essential ledger account in the process of share capital application and allotment, detailing the financial transactions related to the acquisition of shares in a company.
Application controls are controls relating to transactions and standing data for each computer-based accounting system, specific to each application. These controls ensure the completeness and accuracy of accounting records and the validity of entries.
The process through which a company applies to a stock exchange to have its securities traded on that exchange.
An application form is a document issued by a newly floated company, accompanied by its prospectus, that members of the public use to apply for shares in the company.
An essential element in the statement of changes in financial position, providing insights into how funds are utilized within a business.
Application Service Providers (ASPs) are companies that provide software services over a network, typically the Internet, on a subscription basis, replacing the need for standalone software installations.
Application software comprises computer programs designed for specific tasks or applications, including accounting programs and audit software. These applications can also be downloadable on mobile devices like smartphones, commonly known as apps.
An applications programmer is a professional who writes software programs that use the computer as a tool to solve specific applied problems.
Application software refers to programs designed to perform specific tasks for users usually related to productivity, creativity, or communication purposes.
The utilization of economic theories and principles to address practical real-world problems and inform governmental policy-making.
Applied overhead refers to the indirect costs allocated to produced goods or services in a firm’s manufacturing process. These include costs such as utilities, rent, and salaries of the administrative staff.
Applied research is a crucial element in advancing practical applications across various industries by utilizing basic research to address specific, real-world issues.
Apportionment refers to the distribution or allocation of income, expenses, property, or tax liability among different entities, individuals, or states. It is a concept widely used in fields such as accounting, taxation, and real estate.
Cost apportionment is the method of charging a proportion of a cost to a cost centre or cost unit because these cost centres or units share in incurring those costs without directly incurring them. A basis of apportionment is always required.
Appraisal is a method of depreciation that values an asset at the beginning of an accounting period and again at the end. Any diminution in value is charged as an expense to the profit and loss account.
An appraisal is the assessment of alternative courses of action with a view to establishing which action should be taken. Appraisals may be financial, economic, or technical in emphasis.
Appraisal costs are associated with the valuation and inspection processes to ensure the quality of products or the fair market value of assets. They play a crucial role in both financial accounting and quality management.
An organization that was established in 1989 to promote uniform standards for appraisal qualifications and reporting, notably through the publication of the Uniform Standards of Professional Appraisal Practice (USPAP).
An organization principally composed of professional real estate appraisers which offers designations such as MAI, SRA, and SRPA.
An appraisal report documents the findings of an appraisal engagement, summarizing the valuation of a property or asset. Different report formats include restricted, summary, and self-contained reports, compliant with the Uniform Standards of Professional Appraisal Practice (USPAP).
A commentary by one appraiser on the appraisal report prepared by another appraiser, often completed to ensure accuracy and compliance with relevant standards.
Appraisal rights are a statutory remedy available to minority stockholders who object to certain extraordinary actions taken by a corporation, such as a merger. These rights require the corporation to repurchase the stock of dissenting stockholders at a price equivalent to its value immediately before the event.
The process of estimating the value of a property, often required for various financial, legal, and business purposes.
An appraiser is a person qualified to estimate the value of a business, real property, or personal property. The profession requires knowledge, expertise, and, often, certification.
The term 'appreciate' carries dual meanings in various contexts. Firstly, it refers to an increase in value over time. Secondly, it describes understanding or recognizing the significance of something.
In the context of real, personal, or intangible assets, appreciated property refers to assets that have a fair market value greater than their original cost, adjusted tax basis, or book value.
Appreciation refers to an increase in the value of an asset over time, which can result from various factors such as inflation, a rise in market price, or interest earned. This term is essential for understanding the financial dynamics related to assets and currency values.
An apprentice is a person who is learning a skill or trade from more experienced craftsmen while at work.
The term 'appropriate' refers to the act of setting apart or assigning something for a specific purpose or use. It can also refer to the wrongfully use or take the property of another.
In budget management, an appropriated expenditure refers to an amount set aside for a specific acquisition or purpose. It ensures that funds are allocated and used in accordance with designated objectives.
Appropriation in accounting refers to the allocation of net profits of an organization in its accounts. This can include dividends to shareholders, transfers to reserves, and amounts for taxation.
An appropriation account pertains to both governmental budgeting and corporate financial statements. It is instrumental in showing how government departments allocate and manage their funds over a financial year, as well as illustrating how profits are distributed in a partnership or a corporation.
An 'Approved List' refers to a specific selection of investments that a mutual fund or other financial institution is authorized to invest in. It can be statutory, especially when fiduciary responsibilities are involved.
In property law, the term 'appurtenant' refers to the attachment of a restriction, such as an easement or covenant, to a piece of land, which benefits or restricts the owner of such land in his use and enjoyment.
Arbitrage Pricing Theory (APT) is a multifactor model used to determine the fair price of an asset considering multiple macroeconomic factors without the need for a market portfolio. It is an alternative to the Capital Asset Pricing Model (CAPM) and is known for its flexibility and foundation in arbitrage conditions.
Aptitude refers to the intellectual ability of an individual to learn material sufficiently, enabling them to perform business tasks required on the job efficiently. It delves into a person's natural talent and tendency for specific areas, often reflected in distinctive professional fields.
An arbiter is a person appointed by a court to decide a controversy according to the law. Unlike an arbitrator, an arbiter's decision needs the court's confirmation to be final.
Arbitrage involves entering into financial transactions to obtain risk-free profits by leveraging differences in interest rates, exchange rates, or commodity prices between different markets.
An arbitrage bond is a type of municipal bond issued to gain an interest rate advantage by refunding higher-rate bonds in advance of their call date. The proceeds from the lower-rate refunding issue are invested in higher-yielding treasuries until the first call date of the higher-rate issue being refunded.
Arbitrage Pricing Theory (APT) is a model proposed by Stephen Ross in 1976 for calculating returns on securities. It assumes multiple factors affecting security returns, differing from the Capital Asset Pricing Model (CAPM), which relies on a single systematic risk factor.
An arbitrageur is a person or firm engaged in arbitrage, taking advantage of price differences of the same security in different markets. They attempt to profit from these discrepancies without exposing themselves to significant risk.
An arbitrary allocation refers to a cost allocation process that uses an allocation base unlikely to yield accurate costs. Examples include using the number of students to allocate the cost of a lecture, irrespective of the class size.
Arbitration is the process of resolving a dispute between parties through one or more arbitrators rather than in a court of law. It is commonly used in civil matters, particularly in commercial contracts, which often include arbitration clauses.
An impartial person chosen by the parties to solve a dispute between them. An arbitrator is empowered to make a final determination concerning the issue(s) in controversy and is bound only by his own discretion.
Archive storage refers to a designated area or facility used to securely store old or inactive documents, records, and data for long-term preservation and easy retrieval.
The term 'Area' encompasses both a two-dimensional space defined by boundaries, such as a floor area, lot area, and market area, and the scope or extent of expertise in a particular field.
A three-digit telephone number prefix corresponding to a geographical area that facilitates direct long-distance dialing.
Argenti's Failure Model is a framework for predicting corporate failure, assessing company health based on internal factors.
An argument in a computer spreadsheet program refers to the values that must be specified for a given function to execute properly. For instance, in Excel, the PMT function calculates the periodic payment for a loan based on specified arguments like interest rate, number of periods, and principal amount.
The arithmetic mean, commonly known as the average, is calculated by summing individual quantities and dividing by their total number. This measure is frequently used in various fields, although it can be misleading in the presence of outliers.
An 'arm's length' transaction in accounting refers to a deal made by unrelated parties, each acting in their own best interest to ensure fair market value is upheld. Understanding and ensuring such transactions are vital for transparent financial statements.
An arm's-length transaction refers to a deal where the parties involved act independently and in their own self-interest, ensuring fairness and equal standing for all involved.
An arrangement pertains to various structured agreements or settlements in financial, legal, and real estate contexts, where an intermediary plays a significant role.
A collection of data elements identified by a common name, where each element can be efficiently located and retrieved using indices or subscripts.
Arrearage refers to the amount of overdue payments that are owed and unpaid. This can apply to various financial obligations, including loans, mortgages, bond interests, and dividends on cumulative preferred stock.
In accounting, arrears refer to a liability or an obligation that has not been settled by its due date. This can apply to various financial scenarios such as unpaid dividends, interest, salaries, or rent.
The Articles of Association is a legal document that defines a company's regulations, governance, and the rights, duties, and responsibilities of its members (shareholders) and directors.
Articles of Incorporation, also known as a corporate charter, are a set of formal documents filed with a government body to legally document the creation of a corporation in the United States.
The articles of partnership is a voluntarily prepared agreement detailing the terms and functioning of a partnership between business partners. It acts as a blueprint for the internal operations and distributions of profits, losses, and duties within the firm.
Accounts prepared under the double-entry bookkeeping system, where the retained earnings figure on the profit and loss account matches the increase in net worth on the balance sheet, subject to changes like capital injections.
AI refers to the simulation of human intelligence in machines that are programmed to think and learn like humans. These systems can perform tasks that usually require human intelligence, such as decision-making, speech recognition, visual perception, and language translation.
A branch of computer science focused on creating systems capable of performing tasks that typically require human intelligence. These systems can simulate human thinking, solve problems creatively, and efficiently mimic cognitive functions such as learning and reasoning.
An entity that is recognized by the law as a legal person, meaning it possesses legal rights and obligations distinct from the individuals who comprise it. Examples include companies and corporations that can engage in legal actions, own property, etc.
Commercial term denoting agreement that buyer shall accept delivery of goods in the condition in which they are found on inspection prior to purchase, even if they are damaged or defective. Latent defects are generally excepted.
The abbreviation ASB can refer to two distinct financial terms: the Accounting Standards Board, which oversees the development and implementation of accounting standards, and asset-backed security, a financial instrument backed by an underlying asset.
Asbestos is an insulation material commonly used in older buildings, which can become hazardous as it ages. It may cause severe lung illnesses if inhaled, and its safe removal or encapsulation is both costly and necessary.
The Accounting Standards Committee (ASC) is a significant entity responsible for establishing and maintaining accounting standards to ensure consistency, transparency, and reliability in financial reporting.
ASCII is a character encoding standard used for representing text in computers, telecommunication equipment, and other devices that use text. Originated from telegraphic codes, ASCII is used for text data in microcomputers, terminals, printers, and network protocols.
The 'Asked Price' is the price a property owner sets for their property when they intend to sell it. It represents the amount they are seeking from buyers. The term 'Asked Price' is commonly used in real estate transactions and is often seen as the initial price point which may be negotiated.
Asking price refers to the initial price at which an investment or property is offered for sale. It is a key term in real estate, finance, and investments, marking the starting point for negotiations.
A Statement of Basic Accounting Theory (ASOBAT) is an influential publication by the American Accounting Association advocating for user-friendly financial statements and emphasizing qualitative characteristics of accounting information.
