BACs is the payment clearing system in the UK used for direct debits and B2B transactions. Known for its efficiency, BACs supports high-volume, reliable money transfers within the financial infrastructure.
The term 'badges of trade' refers to various factors considered by tax authorities to determine whether a given set of transactions constitutes a trade or business. This classification impacts how income from these activities is taxed.
Cash inflows are the cash receipts of a business, which include transactions such as sales of trading stock, receipts from debtors for credit sales, and disposals of fixed assets.
A cash order is an order accompanied by the required payment at the time of the order. It differs from other types of orders where payment may be made at a later date. This ensures the vendor receives payment immediately upon the placement of the order.
COD is a versatile acronym used in finance and business, referring either to 'Cash on Delivery' or 'Cancellation of Debt.' Cash on Delivery is a transaction method where the buyer pays for goods upon receipt, while Cancellation of Debt involves forgiveness of a borrower's obligation to repay a loan. This article will explore both definitions in detail.
A document confirming the main facts and figures of a deal between two parties, usually a deal that has been agreed verbally or by telephone.
A contingent contract is a legal agreement that becomes enforceable only upon the occurrence or non-occurrence of a specific event. This form of agreement is commonly used in various business transactions, including mergers and acquisitions.
A finder's fee is a commission paid to an intermediary or individual who brings together various parties for a business deal, ensuring the transaction is consummated. This fee can take various forms such as a percentage of the transaction value or a flat rate.
Gratis refers to services or goods given freely without any payment, charge, or legal consideration.
A journal entry is a detailed record of a business transaction in accounting, consisting of debits and credits and supporting a specific accounting period.
A Letter of Intent (LOI) is a document outlining an agreement between two or more parties before the agreement is finalized. It is commonly used in business transactions such as mergers, acquisitions, and partnerships.
Mercantile law, often referred to as commercial law, governs the rules and institutions pertaining to commercial transactions derived from the law merchant.
The ability of a document to change hands, entitling its owner to some benefit, such that legal ownership of the benefit passes by delivery or endorsement of the document.
The Offeror is a party who makes an offer to enter into a contractual agreement with another party (the offeree) in some legal contexts. It is an essential aspect of contract law, advertising, and various business transactions.
This term refers to a partial payment of an obligation or an arrangement of credit terms between a seller and a buyer, where payment is expected at a later date and is not documented by a promissory note.
An open account is a type of credit agreement between a buyer and a seller where the seller provides goods or services to the buyer with the expectation of receiving payment at a later date. It is also referred to as an unpaid credit order or open credit.
An order form is a document used to request merchandise from a wholesaler, manufacturer, or direct-mail retailer. It captures all necessary information for a seamless transaction.
A comprehensive examination of the term 'Per Diem,' which refers to a daily allowance used for travel, entertainment, employee compensation, or miscellaneous business expenses.
Quorum is the minimum number of members of a body who must be present for the group to legally transact business.
Details about the functionalities and importance of receipts and receipt books typically used in business transactions to provide proof of payment and maintain records.
The process of recording revenue in the accounts of an organization in the appropriate accounting period is known as revenue recognition. This principle determines the specific conditions under which income becomes realized as revenue.
The Right of First Refusal (ROFR) is a contractual right that gives its holder the option to enter into a business transaction with the owner of an asset before the owner is entitled to enter into that transaction with a third party.
A sales invoice is a document sent by the seller of goods or services to the buyer, detailing the amounts due, discounts available, payment dates, and such administrative details as account numbers and credit limits. It is a crucial component in business transactions and accounting.
Sales price refers to the amount of money required to be paid or previously paid for property or a product. It is a crucial concept in business transactions, determining the financial outcome of sales activities.
