An accountant's lien is the right to retain possession of a client's goods or property until the client fulfills their financial obligations to the accountant.
Accrued liabilities refer to amounts that a company owes but have not yet been paid. These liabilities are recognized in the company's financial statements even though the related cash outflows have not yet occurred. Accrued liabilities do not necessarily indicate a default or delinquency.
The Accumulated Benefit Obligation (ABO) is a company's pension obligation that accounts for the current value of benefits earned by participants up to a given date, calculated using current salaries and service years, without considering future salary increases. This financial metric is critical in assessing the financial health and obligations of a company's defined benefit pension plan.
Annual Debt Service refers to the required annual principal and interest payments for a loan. In corporate finance, it is the cash required in a year for payments of interest and current maturities of principal on outstanding debt.
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.
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.
An asset-backed security (ABS) is a financial instrument that represents a claim on the cash flows generated by a pool of underlying assets, such as mortgages, car loans, or credit-card receivables.
The act of ceasing trading activities within a business, including winding down operations and finalizing outstanding financial obligations.
A Charges Register or Register of Charges is a formal record of all charges (encumbrances or liens) that a company has granted over its assets, often required by law to be maintained. It includes details of secured loans and other financial obligations which creditors have claims to.
A compensating balance is a sum of money deposited at a bank by a customer, which acts as a condition for the bank to lend money to the customer. It serves as a form of collateral or security for the loan.
A covenant is a legally-binding promise made in a deed that can be enforced as a contract. It often involves agreements or restrictions related to financial obligations or land use.
The term 'cover' has multiple meanings in finance and corporate terms, commonly associated with buying back shorted positions, meeting fixed financial obligations, and the net-asset value supporting a security.
Debt restructuring involves adjustments to the terms of debt, either through legal action or by agreement, to provide more favorable conditions for the debtor to meet financial obligations. It can involve both corporate and sovereign entities.
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.
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 comprehensive overview of the accounting term 'dishonour,' referring to the failure to pay a cheque, accept or pay a bill of exchange, or honour any other financial obligation.
The due date is a fixed time when a payment for debt, tax, interest, or other financial obligation is required.
Total debt owed by a firm, including the capitalized value of lease payments, providing a comprehensive overview of a company's financial obligations.
Quantitative measures that help determine whether a company or group is likely to meet its financial obligations, including interest, dividends, and capital repayments.
In business and finance, honor refers to accepting and paying an obligation when due, as well as recognizing significant accomplishments through rewards or accolades.
A liability that is shared by a group, where each member can be held responsible for the entire obligation if other members fail in their undertaking. Commonly found in partnerships and co-signed agreements.
Joint liability refers to the shared responsibility of two or more individuals or entities to fulfill a debt or legal obligation. This often applies in situations where multiple parties have borrowed money or are subject to a legal claim.
A judgment debtor is an individual or entity against whom a court has rendered a monetary judgment, obliging them to pay a specified amount to another party known as the judgment creditor.
To settle or determine the amount due and extinguish indebtedness. More commonly, liquidate refers to the adjustment or settlement of debts and sometimes paying off obligations.
A liquidated debt is a debt that is undisputed both in terms of its existence and the exact amount owed.
Long-term liabilities are any financial obligations or debt that are not payable on demand or within one year. These can include loans, bonds payable, mortgages, and other financial obligations.
Long-term liabilities are financial obligations of a company that are due more than one year in the future. Examples include bonds payable, long-term loans, and lease obligations.
The specific day when a financial obligation, such as a bond, bill of exchange, or insurance policy, comes due for payment, marking the end of its term.
Owner's equity represents the portion of an organization's value held by its owners, encompassing capital investments and retained earnings, minus liabilities such as dividends and other financial obligations.
The term 'past due' refers to an obligation or invoice that has not been paid or performed by its specified due date but has not yet reached a state of default.
Payables refer to accounts, rates, and mortgages owed by a business or person, often encompassing current liabilities rather than all types of debt.
A payer is an individual or entity that is responsible for the payment of a bill, fees, or other financial obligations. The role of the payer is critical in transactional and service delivery contexts within various economic sectors.
Political Credit Risk, also known as Sovereign Risk, emerges from actions by a foreign government that can influence the management of a foreign business, affect control over its assets, and impact its capacity to meet financial obligations towards its creditors.
The principal amount is the face value of a financial obligation such as a bond or a loan that is required to be repaid at its maturity date, distinct from the interest accrued.
An arrangement wherein a creditor agrees to satisfy certain financial obligations of a borrower, provided the borrower agrees to reimburse the creditor.
Repossession is the act by which a seller reclaims property from a buyer upon failure to fulfill payment obligations as stipulated in a contract.
Satisfaction of Debt refers to the release and discharge of an obligation where the performance is executed to fulfill a debt.
Short-term debt, also known as short-term liabilities, refers to debt obligations that are due for payment within one year from the date of the balance sheet. These are recorded under current liabilities, showcasing the financial obligations a company needs to settle in the near term.
A specific lien is a charge or encumbrance against a specific piece of property that secures the payment of a debt tied directly to that property.
An unsecured creditor is an entity to whom money is owed by an organization but does not have any specific collateral or asset to lay claim on in the event of bankruptcy or non-payment.
A wage assignment is a voluntary transfer of earned wages to a third party for the purpose of paying debts, purchasing savings bonds, paying union dues, or contributing to a pension fund.
