Self-Interest

Arm's-Length Transaction
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.
Invisible Hand
The 'invisible hand' is a term coined by Adam Smith, describing the self-regulating behavior of the marketplace, where individual pursuits of self-interest unintentionally promote the welfare of society as a whole.

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.