- .COM
.COM is a top-level domain (TLD) in the Domain Name System (DNS) of the Internet. It stands for 'commercial' and was originally intended for domains registered by commercial organizations.
- Agreement of Sale
An 'Agreement of Sale' is a legal contract between a buyer and a seller in which the seller agrees to sell, and the buyer agrees to buy, specific goods under predetermined terms and conditions. This agreement outlines the price, delivery terms, payment methods, and other essential provisions necessary for the transfer of goods ownership.
- Allowable Capital Loss
An allowable capital loss refers to the excess of the cost of an asset over the proceeds received on its disposal. Both individuals and companies may set capital losses against capital gains to establish tax liability.
- Bear Market
A bear market is a financial term used to describe a market where the prices of securities are falling or are expected to fall. This state of the market is often characterized by a decline of at least 20% from recent highs.
- Business Cessation
The act of ceasing trading activities within a business, including winding down operations and finalizing outstanding financial obligations.
- Business Cycle
The business cycle refers to the fluctuations in economic activity that an economy experiences over a period of time. It consists of expansion, peak, recession, trough, and recovery phases.
- C Corporation
A C Corporation is a type of corporation that is taxed separately from its owners under Subchapter C of the Internal Revenue Code. This structure allows the corporation to retain earnings and provides liability protection for its shareholders.
- C-Type Reorganization
A C-type reorganization, also known as a stock-for-assets reorganization, is a type of corporate restructuring defined under the Internal Revenue Code (IRC) section 368(a)(1)(C). This specific type of merger involves the acquisition by one corporation of substantially all of the properties of another corporation solely in exchange for all or a part of its voting stock.
- C.C.C. - Cwmni Cyfyngedig Cyhoeddus
C.C.C. stands for 'Cwmni Cyfyngedig Cyhoeddus,' which is the Welsh equivalent of a Public Limited Company (plc) in English. It refers to a type of company in Wales that is permitted to offer its shares to the public.
- C2 Principles
A code of best practice, established by Thomas Dunfee and David Hess of the University of Pennsylvania, that outlines how a company and its employees should deal with any attempt to make or solicit improper payments. This code emphasizes ethical behavior in business practices to prevent bribery and corruption.
- CAATs (Computer-Assisted Audit Techniques)
Computer-Assisted Audit Techniques (CAATs) are techniques that utilize computer systems to execute auditing processes, which streamline the traditional audit workflow, enhance accuracy, and improve overall audit efficiency.
- Cable Transfer
A modern method of transferring funds or other assets internationally in an expeditious manner. Typically involving electronic communication channels rather than physical wires.
- Cablegram
A cablegram is a telegram sent overseas by means of a submerged wire.
- CAC 40
The CAC 40 (Cotation Assistée en Continu) is a capitalization-weighted price index of the 40 most actively traded shares on the Paris Bourse (now Euronext Paris).
- Cache
A cache is a storage location that holds frequently accessed data to speed up future retrievals. It is commonly used in computing to improve performance by reducing the time to access data.
- Cachet
Cachet refers to a mark of quality or distinction, individuality, or authenticity typically associated with superior status or elite standing. A product or brand with cachet often enjoys a higher value and esteem among consumers and peers.
- Cadastre
A cadastre is a comprehensive register of the real property in a jurisdiction, which includes detailed information about property boundaries, land ownership, and the value of the land and its improvements. It is commonly used to determine the amount of tax assessed on each parcel of land.
- Cadbury Report
The Cadbury Report, issued in 1992, laid the foundation for the principles of corporate governance in the UK, emphasizing the importance of non-executive directors, formal appointing processes, and accountability.
- Cafeteria Benefit Plan
An arrangement that allows employees to choose their own employee benefit structure, tailoring it according to their personal needs and preferences.
- Cafeteria Plan
A cafeteria plan allows employees to choose from a variety of fringe benefits, including cash, without including the chosen benefit in their gross income for tax purposes.
- CAFR (Comprehensive Annual Financial Report)
A Comprehensive Annual Financial Report (CAFR) is a detailed presentation of a state, municipality, or other governmental entity's financial condition. It can serve various stakeholders, including citizens, governing bodies, investors, and creditors.
- Calendar Year
A calendar year refers to a continuous period beginning on January 1 and ending on December 31, widely used for financial and accounting purposes. In contrast, a fiscal year can vary depending on the organization's specific reporting requirements.
- Call
A call is a financial term used in various contexts, including banking, bonds, and options, signifying the right or action to demand repayment, redeem or buy securities under specific conditions.
- Call Center
A call center is a facility equipped to handle a large volume of telephone calls, mainly for taking orders, serving customers, or for selling products through telemarketing. Call centers can be primarily inbound or outbound, depending on their function.
- Call Feature (or Call Provision)
A call feature or call provision is part of the agreement a bond issuer makes with a buyer, detailing the schedule and price of redemptions before maturity. Most corporate and municipal bonds have ten-year call features, while government securities usually do not.
- Call Forwarding
Call forwarding is a telecommunication service provided by phone companies, allowing incoming calls to be automatically redirected to another designated phone number.
- Call Option
A call option is a financial contract that gives the holder the right, but not the obligation, to buy a specified amount of an underlying asset at a predetermined price within a fixed timeframe.
- Call Premium
In financial terms, a call premium is either the amount paid by the buyer of a call option above the stock's or index’s current market price, or the additional amount over par that an issuer of bonds or preferred stock pays to redeem the security early.
- Call Price
The call price is the price at which a bond or a preferred stock with a call feature can be redeemed by the issuer prior to its maturity date. It is also known as the redemption price.
- Call Report
A call report is a detailed documentation maintained by an advertising agency, capturing the specifics of conferences between agency representatives and current or prospective advertiser clients. It is alternatively known as a conference report or contact report. This document includes information such as the date of the meeting, participants, and discussion points.
- Call Waiting
Call Waiting is a telecommunications service offered by local telephone companies that allows users to receive a tone indicating another incoming call while they are currently on the line, enabling them to answer the new call and place the first caller on hold.
- Callable
A callable security can be redeemed by the issuer before its scheduled maturity date, usually triggering a necessity for extra payment to the holder, identified as a call premium.
- Callable Bonds
Fixed-rate bonds wherein the issuer holds the right, but not the obligation, to redeem the bond at par value or at a premium during its lifetime. Callable bonds often include a grace period where the issuer cannot call the bond, with conversion possible later if specific conditions are met.
- Called-up Share Capital
Called-up share capital refers to the part of issued share capital that has been requested to be paid by the shareholders. This term is relevant when dealing with partly paid shares.
- Camera-Ready Copy (CRC)
Camera-Ready Copy (CRC) refers to artwork or a printout that is ready to be photographed and transformed into a printing plate for offset reproduction. This stage signifies the final step before actual printing, ensuring all elements are properly positioned and formatted.
- Canadian Institute of Chartered Accountants (CICA)
The Canadian Institute of Chartered Accountants (CICA) is the professional body of practising accountants in Canada, originally founded in 1902 as the Dominion Association of Chartered Accountants. It plays a crucial role in setting accounting standards and providing professional development for its members.
- Cancel
In financial and legal contexts, 'cancel' refers to the act of voiding a negotiable instrument by annulling or settling it, prematurely terminating a bond or other contract, or voiding an order to buy or sell securities.
- Cancellation Clause
A cancellation clause is a contract provision that grants the right to terminate obligations upon the occurrence of specified conditions or events. For example, a cancellation clause in a lease might permit the landlord to break the lease upon the sale of a building.
- Canned Approach
A company-prepared selling presentation where sales representatives memorize and repeat it verbatim when making a sales presentation. This technique is often used for inexperienced sales personnel but can appear too artificial for complex selling transactions.
- Canned Program
A canned program is a prewritten computer program available for purchase, often designed to perform a range of common tasks for users with minimal customization.
- Cap
A ceiling on a charge; for example, an interest-rate cap would set a maximum interest rate to be charged on a loan, regardless of prevailing general interest-rate levels.
- Cap and Trade
Cap and Trade is an environmental policy approach aimed at reducing pollutants by setting a limit on emissions and allowing companies to trade emissions permits.
- Cap Rate (Capitalization Rate)
The Cap Rate, or Capitalization Rate, is a fundamental metric used in real estate to determine the rate of return on an investment property based on the income it is expected to generate.
- CAPA
The Confederation of Asian and Pacific Accountants (CAPA) is an organization that represents professional accountancy bodies in the Asia-Pacific region, facilitating cooperation and advancing accounting standards.
- Capacity
Understanding an organization’s maximum achievable output given the available resources such as labor and machinery, under specific conditions.
- Capacity Planning
Capacity planning is a long-term strategic process that determines the production capacity needed by an organization to meet changing demands for its products.
- Capacity Usage Variance
Capacity Usage Variance (CUV) measures the difference between the actual hours worked and the budgeted hours, specifically in relation to fixed overheads. It is an essential metric in manufacturing and production, providing insights into operational efficiency and resource utilization.
- Caparo Case
The landmark case of *Caparo Industries plc v Dickman and others* (1990) significantly influenced the realm of audit law by ruling that auditors owe a duty of care to existing shareholders as a collective entity rather than to individual shareholders.
- Capital
In finance and accounting, 'capital' refers to various forms of assets, interests, or financial contributions that play a critical role in the functioning of an entity or the production process, enhancing productivity and enabling operations.
- Capital Account
A comprehensive financial account in various types of business, recording different aspects of share capital, investments, and capital expenditures.
- Capital Adequacy Ratio (CAR)
A critical metric used to evaluate a bank's ability to meet its liabilities, ensuring it maintains a sufficient buffer to absorb potential losses and protect the interests of depositors and creditors.
- Capital Allocation
Capital allocation refers to the deployment of funds across various units or projects within an organization based on calculated potential returns and risks, often employing techniques like value-at-risk (VaR) and contributing to metrics such as shareholder value and Economic Value Added (EVA).
- Capital Allowances
Capital allowances refer to allowances against UK income tax or corporation tax available to businesses, sole traders, partnerships, or limited companies that have capital expenditures on plant and machinery used in the business.
- Capital Asset
A capital asset is property of any type held by an individual or business, excluding inventory and certain other types of property. Capital assets can include buildings, land, equipment, vehicles, stocks, and bonds.
- Capital Asset Pricing Model (CAPM)
The Capital Asset Pricing Model (CAPM) is a sophisticated model that establishes a relationship between expected risk and expected return. It operates on the principle that investors require higher returns as compensation for higher risks.
- Capital Asset Pricing Model (CAPM)
The CAPM is a formula used to determine the expected return on an investment by accounting for both the risk-free rate of return and the risk premium.
- Capital Asset Pricing Model (CAPM)
The Capital Asset Pricing Model (CAPM) is a cornerstone of modern financial theory, providing a framework used to determine the expected return on an investment for a given level of risk.
- Capital Assets
Capital assets are forms of property with a relatively long life, often used in trade or business, that receive specific tax treatments when sold, resulting in either capital gain or capital loss.
- Capital at Risk
A measure of possible worst-case losses in excess of the average used in banking to calculate both capital adequacy requirements and certain performance measures, such as risk-adjusted return on capital (RAROC). It is usually based on the value-at-risk (VaR) methodology.
- Capital Budget
The Capital Budget, also known as the capital expenditure budget or capital investment budget, is part of the master budget that outlines the anticipated capital expenditures an organization plans to make within a given budget period.
- Capital Budgeting
Capital budgeting, also known as capital investment appraisal or investment appraisal, is the process by which an organization evaluates different investment projects to determine which is likely to provide the highest financial return.
- Capital Calls
Capital calls are requests for additional money required of investors to fund a deficit. A corporate stockholder has no legal obligation to meet a capital call.
- Capital Consumption Allowance
Capital Consumption Allowance (CCA) represents the allowance for depreciation included in the Gross Domestic Product (GDP). It accounts for around 11% of GDP and is subtracted to calculate the Net National Product (NNP).
- Capital Contributed in Excess of Par Value
Capital contributed in excess of par value represents the amount paid for stock above its stated par value, as reflected in the owner's equity section of a balance sheet.
- Capital Contribution
Capital contribution refers to the cash or property acquired by a corporation from a shareholder without the receipt of additional stock. This amount is added to the basis of the shareholder's existing stock, and the corporation's basis is carried over from the shareholder.
- Capital Costs
Capital costs refer to the expenses incurred to acquire, upgrade, and maintain physical assets such as properties, industrial buildings, or equipment. Often, these costs are major, one-time expenses that have long-term benefits.
- Capital Cover
Capital cover is a crucial financial metric indicating the capital value of a portfolio relative to the capital sum required to finance it. It serves as a risk assessment tool, with lower capital cover indicating higher investment risk.
- Capital Deepening
Capital deepening refers to the process of increasing the amount of capital per worker in an economy. This typically means that each worker has more tools, equipment, or technology to use in their work, leading to higher productivity and economic growth.
- Capital Distribution
Capital distribution refers to the distribution of company’s funds to its shareholders. This usually happens in the form of dividend payments, share buybacks, or return of capital. It signifies how a company returns value to its shareholders.
- Capital Employed
Capital Employed is the total amount of capital that a company uses to generate profits and includes shareholder's equity and long-term debt, or the sum of fixed and net current assets. This metric is pivotal in ratio analysis for assessing the efficiency and profitability of a company's capital investments.
- Capital Expenditure
Capital expenditure, often referred to as capital costs or capital investment, pertains to substantial expenses incurred by an organization for purchasing or enhancing fixed assets. These costs are capitalized on the balance sheet and depreciated over the asset's useful life.
- Capital Expenditure (CapEx)
Capital Expenditure (CapEx) refers to the funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment. It is often used to undertake new projects or investments by the firm.
- Capital Expenditure (CAPEX)
Capital Expenditure (CAPEX) refers to funds used by a business to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment. These expenditures are capitalized and either depreciated or depleted over their useful life, as opposed to repairs, which are deducted from the current year's income.
- Capital Expenditure Budget
A Capital Expenditure Budget plans for significant investments in long-term assets, covering the costs of major projects or purchases essential for sustaining or growing an organization's operations.
- Capital Expense
A Capital Expense is any expenditure made by a business to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment. These expenses are typically substantial and offer a long-term benefit.
- Capital Flight
Capital flight refers to the large-scale exit of financial assets and capital from a country due to economic or political instability, or in search of higher returns elsewhere.
- Capital Formation
Capital formation refers to the creation or expansion of capital through savings, which are then invested in buildings, machinery, equipment, and other assets that produce goods and services, thereby contributing to economic growth.
- Capital Fund
A capital fund is a financing source specifically allocated for long-term initiatives, large projects, or investments, often used by non-profit organizations, governments, or businesses to support development and growth initiatives.
- Capital Gain
A capital gain represents the profit realized from the sale of an asset where the selling price exceeds the original purchasing price. This gain is often subject to capital gains tax, depending on the jurisdiction and applicable legal provisions.
- Capital Gain Distribution
Capital gain distributions refer to payments made by mutual funds or corporations to their investors, representing the gains earned from the sale of securities or liquidated assets. This distribution retains its character as capital gains when passed on to investors.
- Capital Gain Dividend
A capital gain dividend is any distribution that is designated as such by a regulated investment company in a written notice mailed to its shareholders not later than 60 days after the close of its taxable year. It is treated as a capital gain by the shareholders.
- Capital Gains Tax (CGT)
Capital Gains Tax (CGT) is a tax on the profit realized from the sale of certain types of assets, occurring at different rates depending on asset type and overall taxable income. This tax plays a significant role in tax planning for investors and businesses.
- Capital Gains Tax (CGT)
Capital Gains Tax (CGT) is a tax levied on the profit from the sale of assets or investments. The tax applies to the difference between the sale price and the original purchase price or basis of the asset.
- Capital Gearing
Capital gearing refers to the proportion of debt to equity in the capital structure of a company. It is a crucial indicator of financial stability and risk.
- Capital Goods
Capital goods are items used in the production of other goods, including industrial buildings, machinery, and equipment, as well as highways, office buildings, and government installations. These goods significantly determine a country's productive capacity.
- Capital Improvement
Capital improvement refers to the significant enhancement or betterment of a building or equipment, which extends its useful life or increases its productivity. The costs associated with capital improvements are added to the asset's basis and depreciated over time.
- Capital Instruments
Understand the various means used by companies to raise finance including shares, debentures, loans, options, and warrants, and the important distinctions and regulations that govern them.
- Capital Intensive
A capital intensive business involves significant investment in fixed assets such as plant and machinery. These companies are regarded as high-risk investments, particularly in times of economic downturns, due to the high proportion of fixed costs.
- Capital Investment
Capital investment involves the outlay of funds to acquire or upgrade physical assets such as property, buildings, or equipment, which are expected to improve the capacity or efficiency of a business.
- Capital Investment Appraisal
Capital investment appraisal is a process used by companies to evaluate and compare potential large-scale investment opportunities to determine their viability and profitability.
- Capital Investment Budget
A Capital Investment Budget outlines the funds allocated for significant investments in a company's long-term assets, such as property, plants, and equipment. These investments are typically intended to enhance a company's operational capacity, efficiency, and overall profitability.
- Capital Lease
A Capital Lease, in the USA, is a lease that does not legally constitute a purchase but is recorded as an asset on the lessee's books under certain conditions.
- Capital Maintenance Concept
Understanding the financial and physical capital maintenance concepts helps ensure that a company's capital is preserved, facilitating accurate performance measurement over time.
- Capital Maintenance in Units of Constant Purchasing Power
Capital maintenance in units of constant purchasing power (CUPP) is an approach that maintains the financial capital's purchasing power by adjusting for changes in the general price level or inflation.
- Capital Market
A market in which long-term capital is raised by industry and commerce, the government, and local authorities. Private investors, insurance companies, pension funds, and banks primarily fund this market.
- Capital Outflow
Capital outflow refers to the exodus of capital from a country, driven by a combination of political and economic factors. Domestic and foreign owners of assets may sell their holdings and relocate their money to countries with more political stability and economic growth potential. Large capital outflows may prompt countries to impose currency controls or other measures to restrict the movement of money.
- Capital Outlay
Capital outlay, also known as capital expenditure (CapEx), refers to funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment. It is a crucial aspect of an organization's investment strategy and financial management.
- Capital Output Ratio
The relationship between the value of capital and the output it produces in a given period, usually a year; the lower the ratio, the more efficiently capital is being used to produce goods and services.
- Capital Paid in Excess of Par Value
Capital paid in excess of par value refers to the amount of money shareholders have invested in a company that exceeds the par value of the issued shares. This extra amount is often reflected on the equity section of the balance sheet and signifies additional capital that the company can use for growth and operations.
- Capital Purchase Program (CPP)
The Capital Purchase Program (CPP) was an initiative under the Troubled Asset Relief Program (TARP) to stabilize the financial system by reinforcing the solvency of major banks through purchasing preferred stock and equity warrants.
- Capital Rationing in Business Finance
Capital rationing occurs when managers have insufficient funds to invest in all projects with a positive net present value (NPV). It requires prioritization of projects to maximize NPV. It is classified into soft and hard capital rationing depending on whether constraints are self-imposed or external, respectively.
- Capital Redemption Reserve
A capital redemption reserve is a statutory reserve created when a company repurchases its own shares, leading to a reduction in share capital. This non-distributable reserve ensures the maintenance of the company's capital base and protects creditors' interests.
- Capital Reduction
Capital reduction, also known as the reduction of capital, is a restructuring process whereby a company reduces its shareholder equity through activities such as repurchasing shares or decreasing share capital to distribute assets to shareholders or to eliminate losses.
- Capital Requirement
Capital requirement refers to the amount of capital a business needs to sustain its operations, including both long-term and working capital necessary for maintaining day-to-day functionality and growth.
- Capital Reserve
A capital reserve is an accounting term that refers to a reserve fund that is set aside for long-term projects or other significant ventures. It is part of a company's equity that is not appropriate for distribution as dividends to shareholders.
- Capital Resource
Capital resources are assets such as factories, buildings, and equipment used in the production of goods. These are crucial for the growth and development of industries.
- Capital Risk
The risk, in a lending operation, that the capital amount of the investment may be less than its par value even at maturity.
- Capital Stock
Capital stock represents the equity shares held in a corporation. In the USA, the two fundamental types of capital stock are common stock and preferred stock.
- Capital Structure
Capital structure refers to the balance between a company's assets and liabilities, the nature of its assets, and the composition of its borrowings. It is also commonly used in the context of a company's debt-equity ratio and the mix of debt classes in structured finance instruments.
- Capital Surplus
In the USA, capital surplus refers to the difference between the par value of a share and its issue price. It is the equivalent of a share premium in the UK.
- Capital Transactions
Capital transactions refer to significant financial activities involving things like share capital and reserves, long-term debt capital, or fixed assets of a company, as opposed to revenue transactions which are common, operational activities.
- Capital Turnover (Asset Turnover)
Capital Turnover, also known as Asset Turnover, measures the efficiency of a company in using its assets to generate sales revenue. A higher ratio indicates better utilization of assets in generating sales.
- Capital Widening
Capital widening in macroeconomics refers to the process of increasing an economy's capital stock to enhance production levels.
- Capitalism
An economic system where private ownership, profit moti ve, and market competition play central roles, facilitating individual and corporate economic gain.
- Capitalization
An essential concept in accounting and finance that pertains to providing capital for a company, managing its capital structure, converting reserves into capital, and accounting for capital expenditures.
- Capitalization Issue
A capitalization issue, also known as a scrip issue, involves a company issuing new shares to existing shareholders, usually to bolster additional funds or to distribute reserves.
- Capitalization of Borrowing Costs
Understand the accounting process of including borrowing costs in the cost of a qualifying asset and how this affects financial statements.
- Capitalization Rate
Capitalization rate, often abbreviated as cap rate, is a rate of interest or discount rate used to convert a series of future payments into a single present value. In real estate, the rate includes annual capital recovery in addition to interest.
- Capitalize, Capitalization
Understanding the multifaceted term 'capitalize' and the concept of capitalization, especially within various business and financial contexts. This includes asset valuation, financing capital expenditures, accounting procedures, and making economically advantageous decisions.
- Capitalized Value
Capitalized value represents the value at which an asset is recorded in the balance sheet of a company or organization. It is also the capital equivalent of an asset that yields a regular income, calculated at the prevailing rate of interest.
- Capitulation
Capitulation is the terminal stage of a market collapse, characterized by investors giving up hope and taking losses, causing prices to bottom out. This typically stirs bullish sentiment as it creates opportunities for value investing and marks a technical sign that downside risk is being replaced by upside potential. Market bottoms are confirmable only in hindsight, which introduces an element of speculation.
- Capped Floating-Rate Note (Capped FRN)
A Capped Floating-Rate Note (Capped FRN) is a type of bond that features an interest rate that fluctuates with market levels but has an upper limit or 'cap' to protect issuers against excessive interest rate rises.
- Caps
Limitations, especially those placed on the extent of interest rate or payment adjustments associated with adjustable-rate mortgages (ARMs).
- Captive Finance Company
Understanding Captive Finance Companies, their benefits, structure, and role in providing financial services aligned with the parent company's product sales efforts.
- Captive Insurance Company
A captive insurance company is a subsidiary company formed to insure the risks of its parent company or a group of companies. This structure allows the parent company to manage and tailor its own risk management strategy, potentially leading to cost savings and more comprehensive coverage.
- Capture Rate
Capture rate refers to the portion of total sales in a market that are achieved by a specific entity or project. This concept is commonly used in real estate, retail, and other industries to determine market performance and analyze competitive advantage.
- Cargo
Cargo refers to freight or merchandise transported on a transportation vehicle, such as a ship, airplane, truck, or train, excluding passengers. It covers a broad range of goods, from raw materials to finished products, playing a crucial role in global trade and logistics.
- Cargo Insurance
Cargo insurance is a specialized insurance policy designed to provide financial protection for goods while they are being transported, typically by sea but also by other modes of transport. It covers a single shipment or all shipments under a continual agreement, protecting against most risks associated with the journey.
- Carload Rate
Carload Rate refers to a discounted transportation charge applicable when a shipment meets a certain volume or quantity of freight that is sufficient to fill a freight car. This rate is especially relevant for large-volume shipments.
- Carousel Fraud
Carousel fraud is a type of criminal scheme commonly involving cross-border transactions within the European Union (EU), where fraudsters exploit the VAT system to steal large amounts of money.
- Carpal Tunnel Syndrome
Carpal Tunnel Syndrome (CTS) is a repetitive-use injury of the carpal tunnel, a nerve pathway in the wrist, frequently seen in individuals who spend extended periods keyboarding and using a mouse. It can cause numbness, tingling, and pain in the hand. Preventive measures such as stretching and taking regular breaks can help mitigate the risk of CTS.
- Carriage Inwards
Carriage Inwards, also known as Freight Inwards, refers to the delivery costs incurred by a business when purchasing goods. If these costs are associated with fixed assets, they can be capitalized and included in the cost of the asset on the balance sheet.
- Carriage Outwards
Carriage outwards refers to the delivery costs incurred when a business sends goods to customers. These costs are accounted for as an expense in the profit and loss account.
- Carried Down (**c/d**)
In book-keeping, 'carried down' (**c/d**) refers to an amount that is to be transferred as the opening balance in the next accounting period.
- Carried Down (C/D)
Carried Down (C/D) is an accounting term used to indicate that the total balance from the previous page of a ledger is carried down to the top of the new page.
- Carried Forward (c/f)
Carried forward (c/f) is an accounting practice of bringing the balance of an account from one accounting period over to the next.
- Carried Forward (c/f)
An accounting term used to describe the total of a column of figures that is to be the first item in the corresponding column on the next page.
- Carrier
An entity engaged in the business of providing transportation services for passengers or cargo. Carriers can operate across various modes of transportation including air, sea, road, and rail.
- Carrier's Lien
A Carrier's Lien is a legal right bestowed upon providers of transportation services (carriers) to retain possession of the cargo they transport as security for the payment of services rendered.
- Carrot and Stick Strategy
The Carrot and Stick strategy is often used in negotiations, involving a combination of rewards and threats to induce desired behavior from the other party. It is a metaphor for the use of a carrot (reward) and a stick (punishment) to influence behavior.
- Carry Trade
Carry trade is a financial strategy that involves borrowing funds in a low-interest-rate market and investing them in a higher return market. This practice capitalizes on the interest rate differential between two markets to generate profit.
- Carryback
Carryback is a tax provision allowing deductions or credits of one taxable year that cannot be used to reduce tax liability in that year to be applied against tax liability in an earlier year or years.
- Carryforward
Carryforward refers to a provision in tax law allowing individuals or corporations to apply an unused deduction, credit, or loss from one tax year to future tax years, effectively reducing future taxable income or taxes owed.
- Carrying Charge
A carrying charge is a fee associated with holding an investment or conducting business that includes costs such as interest, storage, and insurance across various sectors like commodities, real estate, retailing, and securities.
- Carrying Costs
Carrying costs, also known as holding costs or cost of carry, refer to the expenses associated with maintaining an inventory or financial position. These include opportunity costs, protective measures, wastage, and funding costs.
- Carryover
Carryover refers to the process by which deductions and credits of one taxable year that cannot be used to reduce tax liability in that year are applied against tax liability in subsequent years.
- Carryover Basis
The carryover basis concept is pivotal in a tax-deferred exchange, wherein the adjusted tax basis of the property surrendered is used to determine the tax basis of the property acquired.
- Cartage
Cartage refers to the charge or service for moving goods by truck, wagon, or other vehicle. It plays a crucial role in logistics and supply chain management.
- Carte Blanche
Carte Blanche refers to the full freedom and authority to act at one's own discretion. It is often used in business contexts to describe a situation where an individual is given the broad authority to make decisions and take actions as they see fit, without requiring additional approval.
- Cartel
A cartel is a group of independent suppliers who band together to control prices and limit competition by restricting trade to their mutual benefit. This cooperation typically aims to maximize collective profits by regulating supply and prices.
- Carve Out
The term 'carve out' refers to the separation of a specific interest, such as the current income stream of a property, from the property itself. For instance, an owner might sell a portion of future mineral production from a property for a set number of years, creating a carved-out interest in that mineral property.
- Carve-Out (Equity Carve-Out)
A form of corporate restructuring in which a parent firm sells shares in a subsidiary through an initial public offering (IPO).
- Cascading Menu
A cascading menu is a secondary menu that appears next to the original menu when an option with its own menu is selected, often leading to further menus.
- CASE (Committee on Accounting for Smaller Entities)
CASE is an acronym for the Committee on Accounting for Smaller Entities. This organization focuses on the creation and adaptation of accounting standards and practices to better suit the needs of smaller entities, ensuring that they are adequately represented and that their financial reporting is manageable and effective.
- Case Sensitivity
Case sensitivity refers to the distinguishing between upper- and lowercase letters in data processing contexts. This concept affects various fields such as programming, file management, and user authentication, determining how differences in letter case impact functionality.
- Case-Shiller/S&P Home Price Index
A widely recognized measure of U.S. residential real estate prices, particularly focusing on changes in the price of single-family homes in specific cities.
- Case-Study Method
The Case-Study Method involves studying information from hypothetical or actual business situations to formulate recommended policies based on given facts. This approach is widely used in business education, notably through Harvard case studies, to gather, organize, evaluate, and generalize relevant data. Analyzing how companies handle real-world occurrences helps determine the effectiveness of management policies and offers improvements when necessary.
- Cash
Legal tender in the form of banknotes and coins that are readily acceptable for the settlement of debts.
- Cash Accounting
Cash accounting is an accounting method where transactions are recorded only when cash is received or paid. This system differs significantly from accrual accounting, which records transactions when they are earned or incurred. Cash accounting provides a simplified approach to managing VAT liabilities for eligible businesses.
- Cash Acknowledgment
A cash acknowledgment is a notice sent to a cash buyer acknowledging receipt of their order. This notice may include an offer inviting the buyer to increase the purchase order and serves to reinforce positive feelings about the purchase and encourage future orders.
- Cash at Bank
Cash at Bank refers to the total amount of money held in bank accounts by an individual or company. This can be in the form of current accounts or deposit accounts and is reflected in the balance sheet under current assets.
- Cash Balance Pension Plan
A type of hybrid pension plan in which each participant's benefit is stated as a hypothetical account balance, increased with pay credits for additional service and interest credits to reflect the passage of time.
- Cash Basis (Cash Method)
Cash Basis or Cash Method is an accounting method primarily used by individual taxpayers, wherein income and deductions are recognized when money is received or paid.
- Cash Basis of Accounting
An accounting method where transactions are recorded only when cash is received or paid. This method does not account for debtors, prepayments, creditors, accruals, stocks, and fixed assets.
- Cash Budget
A detailed analysis of expected cash inflows and outflows over a specific period, crucial for managing liquidity and ensuring a business can meet its obligations.
- Cash Buyer
A cash buyer is a customer who pays for goods or services by submitting cash, a check, or a money order with the order they make. Unlike credit transactions, the payment is made upfront.
- Cash Card
A cash card is a plastic card that enables customers of retail banks to obtain cash from automated teller machines (ATMs) using a personal identification number (PIN). Many cash cards also function as cheque cards and debit cards.
- Cash Cow
A 'Cash Cow' is a term used in the Boston Matrix to describe a business unit or product that generates a steady, reliable cash flow with lower investment, often used to fund other ventures or pay down debt.
- Cash Crop
A crop that is grown primarily for sale to return a profit rather than for consumption by the farmer. Common examples include coffee, cocoa, and sugar in tropical regions, and grains and vegetables in temperate zones.
- Cash Cycle
In the manufacturing industry, the cash cycle represents the interval between the outlay of cash to procure raw materials and the receipt of payment for the manufactured goods produced from them.
- Cash Disbursement
Cash disbursement refers to the amount of money paid out by a business or individual during a specific period for expenses, purchases, or other financial obligations.
- Cash Discount
A cash discount is a reduction in the invoice amount offered to customers to encourage early payment. By offering this discount, businesses can enhance cash flow and reduce the risk of non-payment.
- Cash Dispenser
A cash dispenser, also known as an Automated Teller Machine (ATM), is a specialized machine that allows bank customers to perform basic financial transactions without needing a branch representative.
- Cash Dividend
A cash dividend is a distribution of a portion of a company’s earnings to its shareholders in the form of cash rather than additional shares. These dividends are paid net of income tax, and shareholders typically receive credit for the tax deducted.
- Cash Earnings
Cash earnings refer to the income that a business generates from its operations after accounting for cash revenues and cash expenses, specifically excluding noncash expenses such as depreciation.
- Cash Equivalence
Cash Equivalence refers to the market value of an item if it were to be sold for cash. In real estate, this often represents the true value of a property, which can differ from the stated selling price due to various financial arrangements.
- Cash Equivalent
Cash equivalents are highly liquid investments that are readily convertible into a known amount of cash and are subject to an insignificant risk of changes in value.
- Cash Equivalents
Short-term, highly liquid investments that are capable of being converted into known amounts of cash without notice, typically maturing within three months when acquired.
- Cash Float
Cash float refers to the notes and coins held by a business to ensure they can provide change to customers during transactions. This concept is essential for efficient cash management and smooth operational flow in day-to-day transactions.
- Cash Flow
Cash flow refers to the movement of cash into and out of a business, reflecting the inflows and outflows of capital within a specified period. It is a critical indicator of a company's financial health and sustainability.
- Cash Flow at Risk (CFaR)
Cash Flow at Risk (CFaR) is a financial metric used to quantify the risk to a firm's cash flows over a specific time period under normal market conditions. It leverages the concept of Value-at-Risk (VaR) to estimate the potential deviation in cash flows, helping firms to manage liquidity risk and financial planning.
- Cash Flow to Capital Expenditure Ratio
The Cash Flow to Capital Expenditure (CapEx) Ratio analyzes a company's ability to maintain its plant and equipment using cash generated from its operations, excluding dividends, rather than relying on external borrowing.
- Cash Flow to Total Debt Ratio
A ratio for assessing the solvency of a company, calculated by dividing the cash flow from operations by the total liabilities. It indicates a company's ability to satisfy its debts.
- Cash Inflows
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.
- Cash Management
Cash management involves the planning, monitoring, and execution of a firm's policy regarding liquidity to ensure adequate availability of cash for operational needs, investment opportunities, and unforeseen expenses.
- Cash Market
A market in which transactions are promptly completed, resulting in immediate transfer of ownership and payment upon delivery of a commodity.
- Cash on Delivery (COD)
A transaction requiring that goods be paid for in full by cash or certified check at the point of delivery. Also known as Collect on Delivery with the same abbreviation.
- Cash or Deferred Arrangement (CODA)
A Cash or Deferred Arrangement (CODA), commonly known as a 401(k) plan, is a retirement savings plan sponsored by an employer that allows employees to save and invest a portion of their paycheck before taxes are taken out.
- Cash Or Deferred Arrangement (CODA)
A Cash Or Deferred Arrangement (CODA) is a type of retirement plan arrangement that allows employees to defer a portion of their income to a retirement plan, such as a 401(k), on a pre-tax basis.
- Cash Order
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.
- Cash Outflows
Cash outflows are the financial transactions where a business expends cash, which is essential for managing liquidity and business operations.
- Cash Payments Journal
A Cash Payments Journal is a specialized accounting book or log used to record all cash disbursements made by a business in a sequential manner.
- Cash Position
The amount of cash or equivalent instruments held at any point in time. A commodity or securities trader or an investment company needs to monitor its cash position carefully to maintain adequate liquidity.
- Cash Receipts Journal
A Cash Receipts Journal is a specialized accounting ledger used to record all cash inflows received by a business, such as payments from customers, cash sales, and other receipts. Each entry is chronologically organized to ensure accurate tracking and reconciliation.
- Cash Receipts Journal
The Cash Receipts Journal is a specialized accounting ledger used to record all cash inflows received by an organization. This ledger often records cash deposits into the organization's bank account and may be combined with other journals for comprehensive cash flow tracking.
- Cash Register
A machine used for recording cash and credit receipts from sales. It typically includes a paper tape to provide a receipt to customers and print each transaction. Sales are reconciled daily with actual cash and credit receipts, with entries logged into the appropriate journal.
- Cash Reserve
Cash reserve refers to the cash kept by a person or business that is beyond their immediate needs. It acts as a safety net to cover unexpected expenses and provides liquidity during financial emergencies.
- Cash Sale
A cash sale refers to a transaction where the payment for the purchased goods or services is made immediately in cash, rather than via credit terms. Proper accounting entries for cash sales should be recorded in the cash book.
- Cash Surrender Value
Cash surrender value refers to the amount a policyowner is entitled to receive from an insurance company upon surrendering a life insurance policy with cash value. This sum is the cash value stated in the policy minus any surrender charges and outstanding loans with interest.
- Cash Throw-Off
Cash Throw-Off, often used interchangeably with Cash Flow, refers to the net amount of cash generated and available for use after accounting for cash outflows.
- Cash to Current Liabilities Ratio
This key financial metric measures a company's liquidity by assessing its ability to meet short-term obligations using its cash and marketable securities.
- Cash Value
Cash value refers to the amount of money a policyholder is entitled to receive upon the cancellation of a life insurance policy or the amount available for loans and withdrawals before the policy matures or is cashed out.
- Cash Value Life Insurance
Cash Value Life Insurance provides a permanent life insurance option that includes a savings element, allowing policyholders to accumulate a cash reserve over time within their insurance policies.
- Cash-Flow Accounting
Cash-flow accounting is an accounting method that focuses on the inflows and outflows of cash within a business, providing a clear picture of the company's liquidity.
- Cash-Flow Budget
A cash-flow budget is a tool that summarizes expected cash inflows and outflows of an organization over a budget period, usually prepared monthly. It serves as a planning aid to determine cash availability for investment or to identify cash deficits requiring additional finance.
- Cash-Generating Unit (Income-Generating Unit)
A cash-generating unit (CGU) is a subset of assets, liabilities, and associated goodwill within a reporting entity that contributes to generating cash inflows in a largely independent manner from other parts of the organization.
- Cash-on-Cash Return
Cash-on-Cash Return is a method of yield computation used for investments. It calculates the return on investment by dividing the annual dollar income by the total dollar invested. For example, a $10,000 investment that pays $1,000 annually has a 10% cash-on-cash return.
- Cash-Payments Journal
A day book utilized for recording payments of cash from an organization's bank account, often integrated with a cash-receipts journal to form a complete cash book.
- Cashback
Cashback refers to the option given to customers to receive cash back while making a purchase with a debit or credit card at a point-of-sale terminal.
- Cashbook
A cashbook is an accounting book used to record all cash receipts and cash disbursements, and its balance ties closely to the cash account in the general ledger, which is reflected on the balance sheet.
- Cashier
A cashier is a person in a business who accepts payment in money and credit sales, provides change as needed, and records the transaction, generally assisted by a cash register.
- Cashier's Check
A cashier's check is a secure payment instrument issued by a bank, which provides a guarantee that the payee will receive the check amount upon demand. It is drawn from the bank's own funds and is widely accepted in financial transactions.
- Cashless Society
A cashless society is an economic state whereby financial transactions are not conducted with money in the form of physical banknotes or coins, but via the transfer of digital information (usually an electronic representation of money) between parties.
- Cassette
A cassette is an easy-to-hold reel of magnetic tape enclosed in a plastic case, used for storing audio or video recordings.
- Casual Laborer
A part-time worker whose livelihood is achieved from irregular, often temporary work. Such work is often seasonal and is performed in several successive locations.
- Casualty Insurance
Casualty insurance provides coverage primarily for the liability of an individual or organization resulting from negligent acts and omissions, thereby causing bodily injury and/or property damage to a third party.
- Casualty Loss
Casualty loss refers to the loss of property due to events such as fire, storm, shipwreck, or theft. Such losses are allowable as deductions from taxable income, net of any insurance reimbursements. To qualify, the loss must result from a sudden, unexpected, or unusual event. Personal casualty losses can be deducted only if they exceed a $100 floor and 10% of adjusted gross income.
- Catastrophe Hazard
Catastrophe Hazard refers to circumstances where there is a significant deviation of the actual aggregate losses from the expected aggregate losses, such as a major natural disaster where whole units or blocks of businesses are threatened. These hazards are often uninsurable by commercial insurance companies due to the extremity of the risk involved or the prohibitive actuarial premiums.
- Catastrophe Policy
A major medical expense policy designed to pay all or nearly all expenses above a certain deductible amount, up to the limit of the policy.
- Catch-Up Contributions
Supplemental tax-deferred contributions to IRAs and other qualified plans allowed for individuals 50 years or older.
- Category Killers
Specialty hard goods retailers that dominate a particular market segment, known as category killers.
- Cathode Ray Tube (CRT)
A Cathode Ray Tube (CRT) is an electron device that projects electrons onto a viewing screen, controlled by magnetic fields, to create images. Historically, CRTs have been employed in devices such as television screens and computer terminals.
- Cathode Ray Tube (CRT)
A Cathode Ray Tube (CRT) is a device that was widely used in traditional television sets and computer monitors. It produces images through the use of electron beams striking a phosphorescent surface.
- Cats and Dogs
Speculative stocks with short histories of sales, earnings, and dividend payments. Frequently noted during bull markets, analysts often observe that even the "cats and dogs" are experiencing upward movements.
- Cause of Action
A cause of action refers to a set of facts sufficient to justify a right to sue, providing the foundation for a valid lawsuit. This is distinct from a right of action, which is the legal entitlement to initiate a lawsuit.
- Cause-and-Effect Allocation
Cause-and-effect allocation is a cost allocation method where the allocation base is a significant determinant of the cost. This method ensures accurate assignment of indirect costs to cost objects.
- Cause-Related Marketing
Cause-related marketing (CRM) is a strategic alliance between a business and a nonprofit organization to market an image, product, or service for mutual benefit and to address pressing social issues.
- CAVEAT
A warning, often written to a potential buyer, advising them to be cautious; it is commonly used to minimize liability for potentially deceptive trade practices by a seller or broker.
- Caveat Emptor
Caveat Emptor, a Latin term meaning 'Let the Buyer Beware,' is a doctrine of law indicating that the buyer assumes the risk in a transaction. Although traditionally buyers were solely responsible for due diligence, modern legal frameworks have incorporated requirements for sellers to disclose known defects.
- CD-ROM
CD-ROM stands for Compact Disc Read-Only Memory, a type of optical disc that stores data for computers in digital form, similar to audio CDs. They are commonly used for distribution of software, multimedia applications, and data storage.
- CDO (Collateralized Debt Obligation)
A Collateralized Debt Obligation (CDO) is a type of structured financial product that pools together cash flow-generating assets and repackages this asset pool into discrete tranches that can be sold to investors.
- Ceiling (Accounting)
In the context of accounting within the USA, the ceiling is an amount equivalent to the net realizable value of an asset. When using the lower of cost or market method for inventory valuation, the market value cannot exceed this upper limit.
- Cell (Spreadsheet)
A cell is the intersection of a row and a column in a table, particularly within a spreadsheet. It serves as the basic unit for storing data in programs such as Microsoft Excel, Google Sheets, and other spreadsheet applications.
- Cellular Layout
A cellular layout is an organization of a production facility where items with similar processing requirements are grouped together.
- Cellular Telephone (Cell Phone)
A cellular telephone, or cell phone, is a wireless telephone that communicates through a network of antenna towers, commonly known as cells. Users are automatically transferred from cell to cell as they move, ensuring continuous communication.
- Censure
Censure is an act by a governmental agency or professional organization indicating condemnation or significant disapproval of an action by an individual or firm. Censure typically results from a material wrongdoing in the performance of professional duties.
- Census of Business
An annual survey conducted by the U.S. Department of Commerce where businesses report on product manufacturing and various activities from the past year.
- Central Bank
A central bank provides financial and banking services for the government of a country and its commercial banking system, while also implementing the government's monetary policy.
- Central Business District (CBD)
The Central Business District (CBD) refers to the downtown section of a city, generally consisting of retail, office, hotel, entertainment, and governmental land uses with some high-density housing. It is often considered the heart of economic and commercial activities.
- Central Buying
Central buying, a widely used chain store practice, involves consolidating all purchasing through a central or main office. This strategy ensures that shipments of merchandise are usually directed to the various branches of the store.
- Central Planning
Central planning involves the strategic development and coordination of organizational activities by a designated central agency. This approach limits communication and spontaneity but facilitates streamlined coordination within the organization.
- Central Processing Unit (CPU)
A comprehensive guide to understanding the Central Processing Unit (CPU), its functions, components, and its importance in computer systems.
- Central Processing Unit (CPU)
The central processing unit (CPU) is the primary component of a computer that performs most of the processing inside the computer. It executes instructions from programs by performing basic arithmetic, logic, control, and input/output (I/O) operations.
- Central Tendency
A measure that indicates the typical value of a distribution. It is used in statistics to summarize a set of data by identifying the central point within that set.
- Centralization
Centralization refers to the process or situation where decision-making authority is concentrated within the upper echelons of an organization, as opposed to being distributed among lower-level managers.
- Centralized Management
Centralized management occurs when day-to-day business operations are handled by appointed officers rather than the shareholders, a characteristic that indicates that an organization may be taxed as a corporation.
- Certainty Equivalent Method in Capital Budgeting
The Certainty Equivalent Method is a risk analysis technique in capital budgeting, where particularly risky returns are expressed in terms of the risk-free rate of return that would be their equivalent.
- Certificate
A certificate is a formal document that captures and authenticates a specific fact, such as a birth, marriate, or ownership stake. It serves as an official record and proof of particular information, playing a crucial role in legal and financial contexts.
- Certificate of Accrual on Treasury Securities (CATS)
A Certificate of Accrual on Treasury Securities, or CATS, is a type of U.S. Treasury security that primarily appealed to income investors for its deep discount and attractive eventual yield.
- Certificate of Accrual on Treasury Securities (CATS)
U.S. Treasury issues sold at a deep discount from face value. A zero-coupon security that pays no interest during its lifetime but returns the full face value at maturity. Ideal for retirement or education planning and cannot be called.
- Certificate of Deposit (CD)
A Certificate of Deposit (CD) is a time deposit offered by banks, credit unions, and other financial institutions with a predetermined interest rate and maturity date.
- Certificate of Deposit (CD)
A Certificate of Deposit (CD) is a debt instrument issued by a bank that usually pays interest. Institutional CDs are issued in denominations of $100,000 or more, while individual CDs start as low as $100. Maturities range from a few weeks to several years. Interest rates are set by competitive forces in the marketplace.
- Certificate of Deposit (CD)
A Certificate of Deposit (CD) is a negotiable certificate issued by a bank in return for a term deposit, offering competitive interest rates and intended for attracting larger investors.
- Certificate of Eligibility (COE)
A Certificate of Eligibility (COE) issued by the Veterans Administration confirms an individual's eligibility for a VA mortgage loan based on honorable military service.
- Certificate of Incorporation
The certificate that brings a company into existence; it is issued to the shareholders by the Registrar of Companies when the company's constitutional documents have been received and approved. Until the certificate is issued, the company has no legal existence.
- Certificate of Insurance
A certificate giving abbreviated details of the cover provided by an insurance policy. In motor insurance or employers' liability policies, the required information must be shown on the certificate of insurance, and policy cover does not come into force until the certificate has been delivered to the policyholder.
- Certificate of Occupancy
A Certificate of Occupancy (CO) is an official document issued by a local government agency or building department signifying that a building conforms to local building code regulations and is safe for occupancy. Generally, initial occupancy of a building or the transfer of title requires a valid Certificate of Occupancy.
- Certificate of Origin
A Certificate of Origin is a crucial document required in international trade, stating the country from which a parcel of goods originated and often determining the applicable import duty.
- Certificate of Reasonable Value (CRV)
A Certificate of Reasonable Value (CRV) is a document issued by the Veterans Administration (VA) based on an approved appraisal, which establishes a ceiling on the maximum VA mortgage loan principal.
- Certificate of Title
A Certificate of Title is a legal document that officially indicates ownership of a particular asset, such as a motor vehicle or real property. It serves as proof of ownership and outlines any liens or legal encumbrances associated with the asset.
- Certificate of Use
A Certificate of Use is a warranty card accompanying new merchandise, which the owner completes certifying his ownership. This document serves as proof that the merchandise meets specified standards and guarantees.
- Certificate of Value
A statement made in a document certifying that the transaction concerned is not part of a larger transaction series that exceeds a certain monetary value, primarily used to determine stamp duty requirements.
- Certificate to Commence Business
A Certificate to Commence Business is a document issued by the Registrar of Companies to a public company upon incorporation, certifying that the nominal value of the company's share capital is at least equal to the authorized minimum. This certificate allows the company to start conducting business and exercising its borrowing powers.
- Certification
Certification is the act of confirming formally as true, accurate, or genuine. It often signifies that an individual or organization has met predetermined standards or qualifications.
- Certification Mark
A certification mark is a distinctive sign, symbol, or word used to officially endorse a product or service that meets certain established standards set by an authoritative entity. The deliverables with this mark assure consumers of quality, origin, material, or method of manufacture.
- Certified Accountant
A Certified Accountant is a qualified financial professional who has met the education, experience, and examination requirements necessary to earn a certification in accounting.
- Certified Accounting Technician (CAT)
A Certified Accounting Technician (CAT) is a professional designation offered to individuals who have completed specific coursework and examinations in accounting and finance, demonstrating their practical skills and knowledge in these areas.
- Certified Accounting Technician (CAT)
A second-tier accounting qualification offered by the Association of Chartered Certified Accountants (ACCA), providing an alternative to the CCAB qualification offered by the Association of Accounting Technicians (AAT).
- Certified Administrative Manager (CAM)
The Certified Administrative Manager (CAM) is a professional certification awarded by the Institute of Certified Professional Managers. It is bestowed upon individuals who have successfully completed a series of five examinations and a case study, and who possess at least three years of management experience.
- Certified Check
A depositor's check certified by a bank, promising that the account holder has sufficient funds for the amount, ensuring that the recipient will receive the payment.
- Certified Financial Planner (CFP)
A professional certification conferred by the International Board of Standards and Practices for Certified Financial Planners. It requires passing national examinations in various financial planning disciplines and substantial professional experience.
- Certified Financial Statement
A Certified Financial Statement is a set of financial documents including the balance sheet, income statement, and possibly other related financial reports, that a Certified Public Accountant (CPA) has audited and attested to. These statements confirm that the financial records present fairly, in all material respects, the financial position and performance of a company in accordance with applicable accounting principles.
- Certified Fraud Examiner (CFE)
The Certified Fraud Examiner (CFE) designation is a globally recognized credential awarded to professionals specializing in fraud prevention, detection, and deterrence, conferred by the Association of Certified Fraud Examiners (ACFE).
- Certified General Appraiser
A Certified General Appraiser is a professional authorized to appraise any type of property under the appraiser certification laws adopted by most states in the early 1990s.
- Certified Historic Structure
A certified historic structure is a building or structure that has been officially recognized as historically significant and meeting certain standards set forth by heritage preservation bodies.
- Certified Mail
A U.S. Postal Service option that provides proof of mailing and delivery, offering a return receipt or restricted delivery for an additional fee. Insurance is not available. See also Registered Mail.
- Certified Management Accountant (CMA)
The Certified Management Accountant (CMA) is a professional certification awarded by the Institute of Management Accountants (IMA) to individuals who have demonstrated expertise in management accounting through education, examination, and experience.
- Certified Public Accountant (CPA)
A Certified Public Accountant (CPA) is a professional designation awarded to accountants who meet specific education, experience, and examination requirements within the jurisdiction of a U.S. state. CPAs hold responsibilities in accounting, auditing, taxation, and financial consulting for both corporations and individuals.
- Certified Public Accountant (CPA)
A Certified Public Accountant (CPA) is a designation given to accounting professionals who have passed the Uniform CPA Examination and met additional state-specific educational and experience requirements. CPAs are licensed to provide audit opinions on financial statements and offer various other accounting services.
- Certified Residential Appraiser
A Certified Residential Appraiser is qualified to appraise residences and up to four units of housing under appraiser certification law. The certification requires less education, experience, and a less comprehensive exam than a Certified General Appraiser.
- Chain Feeding
Chain Feeding refers to successive threading or continuous insertion processes in mechanical operations or computing environments to ensure rapid and efficient handling of materials or data.
- Chain of Command
A system outlining the hierarchy of authority and decision-making in organizations, where instructions flow downward and accountability flows upward.
- Chain of Title
The Chain of Title is a chronological history of all conveyances and encumbrances affecting a land title.
- Chain Store
A chain store is an individual retail store that is a part of a group of similar retail stores managed and owned by the same entity, providing consistent products, services, and branding across multiple locations.
- Chairman
The most senior officer in a company, presiding at the annual general meeting and usually at board meetings, with varying degrees of involvement in day-to-day operations.
- Chairman of the Board
A Chairman of the Board is the highest-ranking officer in a corporation and presides over the meetings of the board of directors. This role may or may not possess the most executive authority within the firm. In some cases, the Chairman also carries the title of Chief Executive Officer (CEO), who is the principal executive of the corporation.
- Chairman's Report
A chairman's report, sometimes referred to as a chairperson's report or chairwoman's report, is a comprehensive overview of a company's activities and prospects, presented by the chair of the company in the annual report and accounts.
- Champerty
Champerty refers to an arrangement in common law where a third party, such as an attorney, underwrites the costs of a lawsuit in exchange for a portion of the expected damages. Once illegal, champerty is now prohibited in modified form in only a few jurisdictions.
- Chancery
Chancery refers to the jurisdiction exercised by a court of equity, focusing on fairness and justice rather than strictly adhering to statutory laws.
- Change Agent
A change agent is an individual or entity that facilitates and supports change within an organization, steering it away from traditional methods towards more innovative and effective approaches.
- Change in Accounting Method
A 'Change in Accounting Method' refers to an alteration in the overall method of accounting or a change in a material item used in an overall accounting plan. This could involve changes such as switching from cash basis accounting to accrual basis accounting, or altering inventory valuation methods.
- Change in Demand vs. Change in Quantity Demanded
Change in demand and change in quantity demanded are key concepts in economics. The former involves shifts due to changes in factors like income or consumer preferences, whereas the latter is caused by price changes and results in movement along the demand curve.
- Change in Supply Distinguished from Change in Quantity Supplied
Understand the critical differences between a change in supply, which relates to factors affecting production, and a change in quantity supplied, which is a response to changes in market price.
- Channel Captain
The Channel Captain is the dominant company in a vertical marketing system that controls the Channel of Distribution, having significant influence over what products or services are developed and distributed throughout the channel.
- Channel of Distribution
A channel of distribution refers to the means or pathway used to transfer merchandise from the manufacturer to the end user. The intermediaries involved in this process are known as middlemen, and they can either take title to the merchandise or not.
- Channel of Sales
In periodical publishing, a channel of sales refers to the method or route through which subscription orders are acquired. This can include direct mail, advertising, agency methods, or newsstand sales.
- Channel Stuffing (Trade Loading)
Channel stuffing is a practice where a company inflates sales figures by sending more products through distribution channels than retailers can sell, potentially deceiving financial markets if done intentionally.
- CHAPS
CHAPS (Clearing House Automated Payment System) is a real-time gross settlement payment system operating in the UK, allowing for the quick and secure transfer of high-value or time-critical payments directly between bank accounts.
- Chapter 11 Bankruptcy
Chapter 11 Bankruptcy, under the Bankruptcy Reform Act of 1978, allows for the reorganization of partnerships, corporations, municipalities, and sole proprietors facing financial difficulties to remain operational while they restructure their debts.
- Chapter 11 of the 1978 Bankruptcy Act
Chapter 11, often referred to as reorganization, allows a debtor, typically a corporation or partnership, to remain in business while restructuring its debts under a court-approved plan.
- Chapter 13 Bankruptcy
Chapter 13 of the Bankruptcy Reform Act of 1978 refers to debt restructuring, allowing individuals to repay creditors over time, typically through a repayment plan.
- Chapter 13 of the 1978 Bankruptcy Act
Chapter 13 of the 1978 Bankruptcy Act, also known as a wage earner's bankruptcy plan, allows individuals with a regular income to create a court-monitored repayment plan to pay back debts over a 3- to 5-year period while keeping their property.
- Chapter 7 Bankruptcy
Chapter 7 of the Bankruptcy Reform Act of 1978 refers to liquidation proceedings in the USA, designed to provide honest debtors an opportunity to start afresh by discharging certain debts.
- Chapter 7 of the 1978 Bankruptcy Act
Chapter 7 of the 1978 Bankruptcy Act focuses on liquidation, which involves the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors.
- Charge and Discharge Accounting
Charge and discharge accounting is a historical method used during the Middle Ages, especially within the manorial system. This method involves individuals keeping a record of sums or estates they receive and balancing it with sums paid out, effectively accounting for both inflows and outflows.
- Charge Buyer
A charge buyer is an individual or entity that makes a purchase on credit, with the understanding that the amount owed will be billed and must be paid at a later date. This concept is closely related to credit buyers and credit orders.
- Charge Card
A charge card allows the holder to purchase goods or services with the condition that the full balance is paid off at regular intervals. Unlike credit cards, charge cards usually do not have a spending limit and do not incur interest charges but come with an annual fee.
- Charge in Accounting
A charge is a legal interest in property or shares used to secure the payment of money owed, giving the chargee priority over unsecured creditors.
- Charge Off
A charge-off is a debt that a creditor declares as unlikely to be collected after the debtor has become significantly delinquent. This status often affects the debtor's credit score negatively.
- Chargeable Account Period
The chargeable account period, often refered to as the accounting period, is the specific time duration under consideration for which financial transactions are recorded and financial statements are prepared.
- Chargeable Assets
Chargeable assets encompass all forms of property subject to tax on capital gains, excluding specifically exempt items such as private motor cars, National Savings Certificates, and others.
- Chargeable Event
A chargeable event refers to any transaction or occurrence that results in a liability for income tax, capital gains tax, or corporation tax.
- Chargeable Gain
In the UK, a chargeable gain refers to that part of a capital gain arising from the disposal of an asset that is subject to taxation. Understanding chargeable gains is crucial for both individuals and businesses to manage tax liabilities effectively.
- Chargeable Person
In the context of capital gains tax, a chargeable person is any individual or entity that is resident, or ordinarily resident, in the UK during the year in which a chargeable gain was made due to the disposal of an asset.
- Chargeable Transfer
A chargeable transfer is a lifetime gift not covered by any of the exemptions, making it liable to inheritance tax. This can include potentially exempt transfers or payments into a discretionary trust.
- Charges Forward
An instruction indicating that all freight charges on a shipment of goods will be paid by the consignee upon receipt.
- Charges Register
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.
- Charitable Contribution Deduction
An itemized deduction allowed for donations made to qualifying charities. Several limitations apply to this deduction, especially for noncash property donations.
- Charitable Contributions
Charitable contributions are donations made to qualified organizations that can be claimed as a deduction on your tax return. These contributions can provide both societal benefits and potential tax savings for individuals and businesses.
- Charitable Incorporated Organization (CIO)
A Charitable Incorporated Organization (CIO) is a legal form available to charitable organizations in England and Wales (and in Scotland since 2011) that provides similar rights and benefits as limited companies, but without the need to register as a company or follow Companies Act regulations.
- Charitable Remainder Trust (CRT)
A Charitable Remainder Trust is an irrevocable trust that pays income to one or more individuals until the grantor's death or for a specified number of years, after which the remaining assets pass to a designated charity.
- Charitable Trust
A charitable trust is a type of trust that is established to provide financial support to one or more charitable organizations, aimed at fulfilling philanthropic goals and benefiting the public.
- Charity Accounts
Charity accounts are the financial records of a charitable organization, highlighting both receipts like donations and expenditures like grants. They must comply with specific regulations depending on legal structure and size, including directives set by the Charities Act 2011 and Statements of Recommended Practice (SORPs) issued by the Charity Commission.
- Charity Commission
The Charity Commission is the government department responsible for overseeing charities, providing advice, and investigating their operations. Accountable to the Home Secretary and governed by the Charities Act 2011, it issues Statements of Recommended Practice (SORPs) for charity accounting.
- Charter
A charter is a formal document granted by a governing body that establishes a corporate entity, often detailing its rights and privileges. It can also refer to hiring a vehicle for exclusive use.
- Chartered Accountant (CA)
In the UK, a Chartered Accountant (CA) is a qualified member of the Institute of Chartered Accountants in England and Wales (ICAEW), the Institute of Chartered Accountants of Scotland (ICAS), or the Institute of Chartered Accountants in Ireland (ICAI). Chartered Accountants provide a range of services including auditing, taxation, financial advice, and management roles in various industries.
- Chartered Accountants Ireland
Chartered Accountants Ireland (CAI) is the largest and oldest professional accounting body in Ireland, focusing on the advancement of accounting knowledge, standards, and professional ethics.
- Chartered Association of Certified Accountants
See Association of Chartered Certified Accountants
- Chartered Certified Accountant (CCA)
A Chartered Certified Accountant (CCA) is a highly qualified financial professional, recognized by the Association of Chartered Certified Accountants (ACCA), equipped to audit company accounts, with a robust training background in various sectors.
- Chartered Company
A Chartered Company is a type of company that is incorporated through a Royal Charter, distinguishing it from companies incorporated under general company law or private acts of parliament.
- Chartered Financial Analyst (CFA)
The Chartered Financial Analyst (CFA) designation is a professional credential offered by the CFA Institute. Widely regarded as the gold standard in the field of investment management, the CFA program covers a broad range of topics including equity analysis, fixed-income analysis, portfolio management, and ethical and professional standards.
- Chartered Financial Analyst (CFA)
The Chartered Financial Analyst (CFA) designation is a globally recognized credential granted by the CFA Institute to investment and finance professionals who have demonstrated competence and integrity in their field.
- Chartered Financial Consultant (ChFC)
Chartered Financial Consultant (ChFC) is a professional designation awarded by The American College in Bryn Mawr, Pennsylvania, recognizing individuals for their expertise and proficiency in financial planning.
- Chartered Global Management Accountant (CGMA)
The Chartered Global Management Accountant (CGMA) designation is a globally recognized accounting credential that signifies expertise in management accounting and finance. It is awarded by both the American Institute of CPAs (AICPA) and the Chartered Institute of Management Accountants (CIMA).
- Chartered Global Management Accountant (CGMA)
The Chartered Global Management Accountant (CGMA) is a distinguished professional designation for management accountants aimed at recognizing advanced skills and competencies in management accounting. It is available to members of the Chartered Institute of Management Accountants (CIMA) and the American Institute of Certified Public Accountants (AICPA) who meet specific experience requirements and pass a notable exam. The CGMA credential is governed by a joint venture between CIMA and AICPA.
- Chartered Institute of Internal Auditors
The Chartered Institute of Internal Auditors (CIIA) is a professional body dedicated to the development, promotion, and regulation of internal auditors around the world.
- Chartered Institute of Management Accountants (CIMA)
The Chartered Institute of Management Accountants (CIMA) is a professional association founded in 1919, primarily serving professionals working in industry and commerce. CIMA is renowned for its focus on management accounting.
- Chartered Institute of Public Finance and Accountancy (CIPFA)
The Chartered Institute of Public Finance and Accountancy (CIPFA) is a professional association founded in 1885, primarily serving public-sector accounting professionals. CIPFA provides training, qualifications, and a community for those involved in public finance and accountancy.
- Chartered Institute of Purchasing and Supply (CIPS)
A professional organization based in the UK, dedicated to those working in procurement, supply-chain management, and related areas. It offers training, qualifications, and various professional support services.
- Chartered Institute of Purchasing and Supply (CIPS)
The Chartered Institute of Purchasing and Supply (CIPS) is a global professional body dedicated to promoting excellence in procurement and supply management.
- Chartered Institute of Taxation (CIOT)
The Chartered Institute of Taxation (CIOT) is a premier professional institute dedicated to the education and certification of experts in the taxation field. Members are designated as Certified Tax Advisors (CTA) or as Associate or Fellow of the Taxation Institute Inc. (ATII or FTII).
- Chartered Institute Of Taxation (CIOT)
The Chartered Institute of Taxation (CIOT) is a professional body in the UK that grants chartered status to candidates meeting specific standards in tax competency and practice.
- Chartered Life Underwriter (CLU)
Professional designation conferred by The American College, signifying expertise in insurance planning, investments, taxation, and related areas.
- Chartered Property and Casualty Underwriter (CPCU)
The Chartered Property and Casualty Underwriter (CPCU) is a professional designation that signifies expertise in various areas including insurance, risk management, economics, finance, management, accounting, and law. To earn this prestigious designation, candidates must complete 10 national examinations and have at least three years of work experience in the insurance industry or a related field.
- Chartist
A Chartist is an investment analyst who uses charts of prices and volumes to forecast the movements in financial markets. This analysis relies on the assumption that historical price movements will repeat themselves in predictable patterns.
- Chat
A form of interactive online communication that permits typed conversations to occur in real time. Messages are instantaneously relayed from one participant in a chat discussion to all other members in the chat room.
- Chat Room
An electronic forum where users can communicate with each other in real time. Chat rooms are found on the Internet.
- Chattel
Chattel refers to tangible, movable personal property, as opposed to real property, which is immovable. Examples of chattel include goods, vehicles, and furniture.
- Chattel Exemption
An exemption from capital gains tax that applies to gains from the disposal of chattels, which are items of movable personal property, provided their value is less than £6,000. It does not apply to wasting assets.
- Chattel Mortgage
A chattel mortgage is a loan agreement where personal property is used as collateral to secure the payment of a debt or fulfillment of an obligation.
- Chattel Paper
Chattel paper is a legal document that shows both a debt and a security interest in or a lease of specific goods. It is essential in transactions involving personal property.
- Check
A check is a written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer.
- Check Box
A check box is a small square in a dialog box that can be clicked with the mouse to turn an option on (checked) or off (unchecked). Check boxes are used for options that are not mutually exclusive.
- Check Digit
A check digit is a form of redundancy check used for error detection, designed to help ensure the accuracy of a number by appending a digit that can be recomputed and then compared to verify the correctness of the original number.
- Check Kiting
Check kiting is an illegal scheme that occurs when individuals establish a false line of credit by exploiting the delay in the check clearing process between different banks.
- Check Protector
A check protector is a machine that prints checks in a manner that makes it difficult to alter. It elevates the written amount to create many small bumps on otherwise smooth paper, thereby enhancing check security and reducing the risk of fraud.
- Check Register
A check register is a log, book, or journal where each check issued is posted sequentially.
- Check Signer
A check signer is a machine that mechanically signs checks, typically creating a facsimile signature. This automated process ensures efficiency in handling large volumes of check transactions.
- Check Stub
A check stub is a portion of a check that is retained for record-keeping purposes and includes details related to the payment.
- Check Truncation
Check truncation refers to the process of converting a physical check into a digital image for electronic processing and clearing. This method enhances the speed and efficiency of check handling, reduces costs, and mitigates the risks associated with physical check transportation.
- Checking Accounts
Bank deposit accounts that offer the privilege of writing checks against the balance of funds in the account. These accounts are the primary type of demand deposits that are part of the M1 money supply.
- Cheque
A cheque is a preprinted form on which instructions are given to an account provider such as a bank or building society to pay a stated sum to a named recipient. It's a common method for paying debts of various kinds.
- Cheque Account
A cheque account is a bank or building society account on which cheques can be drawn. In the United States, this type of account is known as a checking account. It is designed to provide easy access to funds for everyday transactions.
- Cheque Card
A plastic card issued by a retail bank to its customers to guarantee cheques drawn on the customer's current account up to a specified limit. Cheque cards have largely been replaced by multifunctional cards which also function as cash and debit cards.
- Cheque Truncation
Cheque truncation is the process of converting a paper cheque into a digital image for electronic transmission to the drawee bank rather than physically presenting it. This often includes creating a substitute cheque or image replacement document that serves as a legal equivalent.
- Cheque-in Facility
A cheque-in facility refers to a machine that can print the amount of a cheque in machine-readable form. These types of machines are primarily used by banks to streamline the cheque processing operations although there is an increasing push for companies to also adopt these machines to reduce banking fees.
- Cherry Picking
An accounting practice or business policy designed to highlight the most profitable aspects of financial transactions or customer relationships while minimizing or excluding less profitable or loss-making elements.
- Chi-Square Test
A statistical method to test whether two (or more) categorical variables are independent or if they share a common proportion of observations. Frequently used in hypothesis testing and categorical data analysis.
- Chicago Board of Trade (CBOT)
The world's oldest futures and options exchange, the Chicago Board of Trade (CBOT) was formed in 1848 as a centralized marketplace for the grain trade. Over the years, its product line has expanded to include numerous contracts on agricultural commodities and financial instruments.
- Chicago Board Options Exchange (CBOE)
The Chicago Board Options Exchange (CBOE) is the largest U.S. options exchange and a pioneer in options trading, providing a platform for trading standardized options contracts based on various securities and financial products.
- Chicago Mercantile Exchange (CME)
The Chicago Mercantile Exchange (CME) is one of the largest and most diverse financial exchanges in the world, allowing for the trading of futures and options across a wide array of asset classes, including agriculture, energy, metals, and financial instruments.
- Chicago Mercantile Exchange (CME)
The CME Group represents the largest futures and options market in the U.S., facilitating trade in both financial and commodity contracts with a rich history dating back to 1919.
- Chicago School of Economics
The Chicago School of Economics is a school of thought that emphasizes the benefits and efficiency of free markets over centrally planned economies.
- Chief Executive Officer (CEO)
A Chief Executive Officer (CEO) is the highest-ranking executive in a company or organization, responsible for making major corporate decisions, managing overall operations and resources, and acting as the main point of communication between the board of directors and corporate operations.
- Chief Executive Officer (CEO)
The Chief Executive Officer (CEO) is the highest-ranking executive in an organization and has ultimate responsibility for the management of the company. They report directly to the Board of Directors and are accountable to the company's owners.
- Chief Financial Officer (CFO)
The Chief Financial Officer (CFO) is a senior executive responsible for managing the financial actions, planning, and reporting of an organization. This role includes overseeing financial planning, financial risk management, record-keeping, and financial reporting.
- Chief Financial Officer (CFO)
A Chief Financial Officer (CFO) is a corporate officer responsible for managing the financial actions of a company, including financial planning, management of financial risks, record-keeping, and financial reporting.
- Chief Operating Officer (COO)
A Chief Operating Officer (COO) is an executive role responsible for overseeing the day-to-day operational functions of an organization. This role is crucial for ensuring efficient operations and achieving strategic goals.
- Chief Operating Officer (COO)
A Chief Operating Officer (COO) is a senior executive tasked with overseeing the day-to-day administrative and operational functions of a company. The COO directly reports to the Chief Executive Officer (CEO) and is often considered the second in command within the organization.
- Child and Dependent Care Credit
A nonrefundable tax credit allowed for a percentage of the expenses incurred for household services or care of a child or other dependent, where a taxpayer maintains a household that includes one or more dependents who are under 13 years of age or mentally or physically incapacitated. The percentage of credit varies inversely with the taxpayer's adjusted gross income (AGI) between $15,000 and $43,000.
- Child Support
Child support is a payment specifically designated for the purpose of child support under a divorce or separation agreement. Such payments are neither deductible by the payer nor taxable to the payee.
- Child Trust Fund (Baby Bond)
A Child Trust Fund (CTF), also known as a 'baby bond,' was a UK government-backed savings scheme introduced to provide a financial start for children born on or after 1 September 2002. The funds are designed to mature when the child turns 18.
- Chinese Wall
A notional information barrier established within an organization to prevent the exchange of sensitive or proprietary information between departments, especially to avoid conflicts of interest and ensure compliance with regulations.
- Chip (Integrated Circuit)
A chip, also commonly referred to as an integrated circuit (IC), is a set of electronic circuits on one small flat piece of semiconductor material, typically silicon. These chips form the core of modern electronic devices and systems, from simple gadgets to complex computing systems.
- CHIPS (Clearing House Interbank Payments System)
The Clearing House Interbank Payments System (CHIPS) is a U.S. private-sector, real-time interbank payments system for the transfer of large value transactions.
- Chose in Action
A legal term referring to a personal right to possess property or claim debts, which can only be realized by taking legal action.
- Churning
Churning refers to the practice of excessive trading in a stock investment account primarily to generate excessive brokerage commissions, regardless of the client’s investment objectives.
- Chutzpah
Unmitigated gall or brazen behavior, which, in some contexts, is regarded as a positive quality of heroic audacity or guts.
- CICA (Canadian Institute of Chartered Accountants)
The Canadian Institute of Chartered Accountants (CICA) is a professional body representing chartered accountants in Canada, providing guidance, setting regulatory standards, and promoting the integrity and competence of the profession.
- CIF (Cost, Insurance, and Freight)
A CIF contract of sale includes the cost of the goods, insurance, and freight to the destination in the contract price. The seller’s obligation is fulfilled once the merchandise is delivered to the shipper, and relevant documents including the bill of lading, invoice, insurance policy, and payment receipt for freight are forwarded to the buyer.
- CIMA (Chartered Institute of Management Accountants)
The Chartered Institute of Management Accountants (CIMA) is a leading professional body in the field of management accountancy. It provides support, education, and certification for accounting professionals globally, emphasizing the integration of accounting skills with strategic business management.
- CIO
CIO stands for Charitable Incorporated Organization. It is a type of incorporated organization designed for non-profit and charitable enterprises in the United Kingdom, allowing them to take legal actions and own property while providing liability protection for trustees and members.
- CIPFA (Chartered Institute of Public Finance and Accountancy)
CIPFA is the professional body for people in public finance, offering qualifications, training, and a range of support for those involved in public sector accounting and financial management.
- Cipher
A cipher is a method of transforming text to keep its content secret. It is crucial for protecting information in business, especially when sensitive or confidential data is involved.
- Circuit
A circuit is a geographical area within which a court has jurisdiction to hear and decide cases. Circuit courts often travel between locations within the territory to administer justice.
- Circuit Breakers
Circuit Breakers are measures instituted by major stock and commodities exchanges to temporarily halt trading when the market experiences a significant decline. These measures aim to prevent a market free-fall, allowing for a rebalance of buy and sell orders and giving the public time to assimilate current news.
- Circular E
An IRS publication that provides instructions for employers concerning employment tax withholding amounts and procedures.
- Circularization of Debtors
A technique used by auditors to confirm the amounts outstanding from debtors to ensure that the debts exist and are correctly valued in a company's financial statements.
- Circulating Assets
Circulating assets, also known as current assets, are the assets that a company expects to convert into cash, sell, or consume within one year or its operating cycle, whichever is longer.
- Circulation Expenses
Costs associated with establishing, maintaining, or increasing the readership of a periodical such as a magazine or newspaper.
- Cisco Systems, Inc.
Cisco Systems, Inc., headquartered in San Jose, California, is a leading provider of high-speed networking hardware and telecommunications technology.
- Citizen
A citizen is a legally recognized subject or national of a state or commonwealth, either native or naturalized. In the context of the United States, a U.S. citizen is an individual who has met specific requirements laid out by the Immigration and Nationality Act (INA).
- City Code on Takeovers and Mergers
The City Code on Takeovers and Mergers, initiated in 1968, provides guidelines and regulations to ensure fair practices in company takeovers and mergers, safeguarding shareholder interests and maintaining market integrity.
- CIVETS
An acronym representing Colombia, Indonesia, Vietnam, Egypt, Turkey, and South Africa, identified in the late 2000s as emerging markets with significant growth and investment potential due to their dynamic economies, young populations, and political stability.
- Civil Law
Civil law is a legal system originating in Europe, codified in comprehensive written statutes, embodying Roman law principles, and applied to noncriminal matters to regulate private relationships among individuals and organizations.
- Civil Liability
Civil liability refers to negligent acts and/or omissions, other than breach of contract, independent of moral obligations for which a remedy can be provided in a court of law.
- Civil Penalty
A civil penalty is a fine or money damages imposed by a government authority as punishment for certain activities, serving as a criminal sanction. It differs from civil remedies, which aim to redress wrongs between private parties.
- Civil Rights
Rights protected by the U.S. Constitution, enforceable by court action, encompassing rights such as property ownership, court utilization, marriage, contract, and other legal benefits, including those outlined in federal statutes.
- Civil Wrong
A civil wrong, also known as a tort, is an act or omission that violates a legal duty, giving the victim the right to bring a civil action for remedy.
- Civilian Labor Force
The civilian labor force encompasses all individuals aged 16 or over in the United States who are not in military service or institutionalized and are either employed or unemployed but actively seeking and available for work.
- Claim
A claim is a request by an insured party for compensation or indemnification from an insurance company for loss incurred due to an insured peril.
- Claim for Refund
A Claim for Refund is a request made by taxpayers to the IRS seeking a refund for taxes paid in prior years, often due to errors or the availability of carryback losses or credits.
- Claim Report
A Claim Report is a document furnished by the adjuster to the insurance company (insurer) that details the amount of payment the insurer is legally obligated to provide to or on behalf of the insured under the terms of the policy.
- Class
The term 'class' has versatile meanings across different fields such as education, finance, and law. It commonly refers to a group sharing common characteristics, whether in a school, investment category, or legal context.
- Class A/Class B Shares
Class A and Class B shares refer to different types of stock issued by the same company, typically differentiated by voting rights, dividend preference, or participation in the company's profits.
- Class Action
A class action is a legal proceeding in which a person sues on behalf of a group of people who collectively share a common claim.
- Class Life Asset Depreciation
Class Life Asset Depreciation refers to the tax guidelines that determine the period over which different types of assets can be depreciated. The IRS uses these guidelines to assign a specific 'class life' to asset categories, dictating how many years over which the depreciation can be calculated.
- Class Struggle
Class struggle refers to the antagonism between social classes resulting from different economic and social interests. First identified by Karl Marx, it highlights the conflict between the owners of capital (bourgeoisie) and the nonowning employees (proletariat).
- Classical Economics
Classical Economics is a major thread in historical economic thought originating from the work of Adam Smith in the eighteenth century. It emphasizes the role of unregulated markets in achieving desirable social outcomes, despite participants pursuing their self-interests.
- Classification
Classification in a business context refers to the organization of jobs, activities, and products into categories or grades based on predefined criteria. This helps in standardizing evaluation, simplifying management, and enhancing operational efficiency.
- Classified Stock
Classified stock refers to a company's common stock that is divided into two or more classes, typically with varying voting rights and privileges. This approach is often used to maintain control within a specific group, such as management or the founders, while raising equity capital from the broader market.
- Clause
In an insurance policy, sentences and paragraphs describing various coverages, exclusions, duties of the insured, locations covered, and conditions that suspend or terminate coverage.
- Clawback
A clawback is a provision in a law or contract that limits or reverses a payment or distribution for specified reasons.
- Clayton Antitrust Act
The Clayton Antitrust Act is a landmark piece of legislation aimed at promoting fair competition and eliminating unethical business practices in the public marketplace.
- Clean
In various fields such as Accounting, Finance, International Trade, and Securities, the term 'Clean' refers to different contexts of unstained or debt-free conditions, reflecting a desirable state or favorable judgment.
- Clean Hands
The principle of Clean Hands in both business conduct and legal contexts refers to maintaining integrity and ethical behavior, ensuring one has not engaged in improper conduct.
- Clean Opinion (Unqualified Opinion)
A clean opinion, also known as an unqualified opinion, is an auditor's verdict that a company's financial statements are accurate and comply with Generally Accepted Accounting Principles (GAAP).
- Cleanup Fund
The informal phrase 'Cleanup Fund' describes the 'needs approach' used to determine the amount of life insurance necessary for a family. The Cleanup Fund is intended to cover last-minute expenses as well as those expenses that surface after the death of an insured, such as burial costs, probate charges, and medical bills.
- Clear
In various financial contexts, the term 'clear' refers to the process of validating and finalizing transactions, whether in banking, finance, or securities markets. This ensures accurate and timely settlements.
- Clear Title
A clear title signifies that a property is free from any encumbrance, obstruction, burden, or limitation that questions its legal validity or ownership.
- Clearance
Clearance is an indication from a taxing authority that a certain provision does not apply to a particular transaction. This procedure is only available when specified by statute and can significantly impact tax liabilities and treatment of specific transactions.
- Clearance Sale
A clearance sale is a special retail sale often conducted to completely eliminate a particular type or brand of product from inventory, frequently offered at significantly reduced prices.
- Cleared Balance
Cleared balance refers to the funds in a bank account that have been processed and are available for withdrawal or use. It excludes any deposits that have not yet been confirmed or cleared by the bank.
- Cleared For Fate
Refers to the date when the payer's bank confirms that the funds for a transfer are available and the instructions in a cheque have been processed.
- Cleared for Value
Cleared for Value refers to the exact time when a credit to a customer's bank account is recognized for calculating interest and determining the undrawn balance of an agreed overdraft facility.
- Clearing Cycle
The clearing cycle is the process by which a payment made by cheque or other methods through the banking system is transferred from the payer's to the payee's account. Different stages of clearance determine when the funds are available for use.
- Clearing House
A clearing house is a centralized and computerized system for settling indebtedness between members, enabling efficient offsetting of claims for direct debits and credits.
- Clearing House Interbank Payments System (CHIPS)
CHIPS is a U.S. bank clearinghouse for large-value dollar transactions, owned by financial institutions and operated by the Clearing House Payments Company. It facilitates the efficient settlement of large financial transactions between banks.
- Clearing Market
A Clearing Market is a situation in which supply and demand reach equilibrium quickly, resulting in no excess supply or demand at the market price. Typically, this involves short-lived goods where suppliers are motivated to sell their inventories promptly without price constraints.
- Clearinghouse
A clearinghouse is an essential financial institution that functions to facilitate the exchange, balancing, and settlement of payments or securities transactions, reducing the complexity and risk associated with such transactions.
- Clearstream
Clearstream is a pan-European clearing and settlement facility for eurobonds and other financial securities, based in Luxembourg. It plays a crucial role in the European financial market infrastructure.
- Clerical Error
A clerical error is a mistake made during the process of copying, typing, or transmitting a document, as opposed to judgment errors or technical errors.
- Clerk
A clerk is an administrative employee responsible for performing various routine tasks, such as maintaining records, managing inventory, and general office duties. Clerical tasks vary widely depending on the specific role of the clerk.
- Click
Click refers to the action of pressing one of the buttons on a computer mouse. Different functionalities are triggered depending on whether the left (primary), right (secondary), or center button is clicked, and even whether single or double-clicking is used.
- Clicks-and-Mortar (Bricks-and-Clicks)
A business model that integrates both online (e-commerce) and offline (physical premises) modes of operation to enhance customer experience and expand market reach.
- Client
A client is a person, company, or organization that uses the professional services of another. In the advertising context, a client is the manufacturer, owner, or provider of a product or service who desires to advertise that product or service utilizing the help of a qualified specialist; also called an 'account.' The client is the customer for whom the advertising agency works.
- Client Focus
Client focus is a company policy, philosophy, or mission aimed at being responsive to client needs, fostering client relationships, and committing to client service and innovation.
- Client-Server Model
A configuration in which one computer, designated as a server, sends information to a number of other 'client' computers.
- Climate Change Levy (CCL)
A UK tax charged on the supply of electricity, gas, coal, and coke, as they are supplies that are regarded as leading to global warming. The levy is imposed by the Finance Act 2000 on any supply made on or after 1 April 2001.
- Clip Art
Clip art consists of computer graphics files that can be inserted into a document or other file. The term originates from physical books of art from which designers literally clipped art to paste into their layouts. Clip art is commonly included in many software programs, especially desktop publishing and drawing applications like Microsoft Publisher and CorelDRAW, and can also be purchased in separate packages.
- Clipboard
The clipboard is a temporary storage area in a computer's memory used for storing text, images, and other data that are cut or copied from a document. Both Macintosh and Windows operating systems support this feature.
- Clipping Coupons
The term 'clipping coupons' originally referred to collecting interest payments from coupon bonds, but it has since evolved to describe saving money by using discount coupons from newspapers or magazines.
- Clock Card
A comprehensive breakdown of the term 'clock card,' its uses, examples, related terms, and guidance for further study.
- Clone
A clone is an exact or nearly exact duplicate of an original entity. In biology, clones refer to genetically identical copies of an organism. In business and technology contexts, cloning refers to duplicating digital devices or media.
- Close Company
A company resident in the UK that is under the control of five or fewer participators or any number of participators who are also directors.
- Close Corporation
A Close Corporation, also known as a Closely Held Corporation, is a type of corporation in which stock is publicly limited to a small group of investors, often involving tighter control and fewer regulations compared to large public corporations.
- Close Corporation Plan
A Close Corporation Plan consists of a pre-arrangement that ensures surviving stockholders can purchase the shares of a deceased stockholder based on a pre-determined formula, thereby maintaining control of the corporation within the existing shareholder group.
- Close Family
Close family refers to the family members of an individual or members of the individual's household who are expected to influence or be influenced by that person in their dealings, potentially leading to related party transactions.
- Close Investment Holding Company
A Close Investment Holding Company is a type of close company that is primarily engaged in holding investments rather than trading or property letting, which subjects it to full-rate corporation tax without the benefit of lower rates and reliefs.
- Closed Account
A closed account refers to either a bank or charge account that has been terminated or an accounting ledger that has been closed off at the end of a financial period.
- Closed Economy
A self-sufficient economic system where all production and consumption activities occur within the confines of the system, with no external trade (importing or exporting).
- Closed Fund
A closed fund is a type of mutual fund that has stopped issuing shares because it has become too large. This typically occurs when the fund manager believes that accepting additional investments could hinder the fund's performance.
- Closed Period
A closed period refers to a span of time, often 10 years following the issuance of a bond, during which the bond cannot be called by the issuer.
- Closed Shop
A closed shop is an organization where workers are required to be members of a union before they can be hired. Due to legislation, closed shops are largely illegal.
- Closed Stock
Closed stock refers to merchandise sold only in complete sets, where individual items from the set cannot be purchased separately, and there is no guarantee that replacements will be available in the future.
- Closed Union
A closed union, often referred to as a closed shop, is a type of employment arrangement where employers agree to hire only members of a specific labor union.
- Closed-End Funds
Closed-End Funds are investment funds with a fixed amount of capital managed by an investment company, as opposed to open-ended funds like unit trusts that continually issue and redeem shares.
- Closed-End Mortgage
A closed-end mortgage is a type of mortgage bond issue with an indenture that prohibits repayment before maturity and the repledging of the same collateral without the permission of the bondholders, also known as a closed mortgage.
- Closed-End Mutual Fund
Closed-End Mutual Funds are investment companies that operate with a limited number of shares outstanding. Unlike open-end mutual funds, which create new shares to meet investor demand, closed-end funds have a fixed number at inception.
- Closely Held Corporation
A closely held corporation in the USA is a public corporation that has a limited number of stockholders, with relatively few of its shares actively traded.
- Closeout
Clearance or closeout sales typically involve selling off inventory at reduced prices, often to free up retail space or discontinue specific product lines.
- Closet Indexing
Closet indexing involves structuring a mutual fund or other managed portfolio to nearly replicate an index while avoiding full disclosure and charging active management fees.
- Closing
Closing refers to multiple contexts related to financial and business operations, computing, and everyday actions. These contexts could include the financial market activities, accounting procedures, concluding agreements, and computing functions.
- Closing
Closing encompasses the completion of a transaction involving real estate or the final steps in accounting at the end of a fiscal period.
- Closing Agreement
A closing agreement is a written agreement between a taxpayer and the Internal Revenue Service (IRS) that conclusively settles a tax liability for a specific taxable year ending prior to the agreement date, or settles one or more issues affecting a tax liability.
- Closing Balance
The debit or credit balance on a ledger at the end of an accounting period, which will appear on the balance sheet at that date and be carried forward to the next accounting period.
- Closing Cost
Various fees and expenses payable by the seller and buyer at the time of a real estate closing; also termed transaction cost. Some closing costs include brokerage commissions, lender discount points and other fees, title insurance premiums, deed recording fees, loan prepayment penalties, inspection and appraisal fees, and attorney's fees.
- Closing Date in Real Estate
The closing date is the specified date on which the seller delivers the deed and the buyer completes payment for the property, finalizing the transfer of ownership.
- Closing Entries
Final entries made at the end of an accounting period to close off the income and expense ledgers to the profit and loss account.
- Closing Inventory
The value and quantities of stock in trade at the end of an accounting period, used in determining the cost of goods sold during that period.
- Closing Price
The closing price, also known as the closing quote, refers to the price at which the last transaction of a trading session on an organized securities exchange occurs. This price is critical for valuation purposes in various financial contexts, such as charitable contributions and estates.
- Closing Statement
A closing statement is a crucial document in real estate transactions, providing an accounting of funds from the sale to both the seller and the buyer separately. Most states require brokers to furnish accurate closing statements to all parties involved.
- Closing Stock
Closing stock refers to the inventory remaining within an organization at the end of an accounting period, including raw materials, work in progress, or finished goods. It plays a crucial role in determining the profitability and financial status of a company.
- Closing-Rate Method (Net-Investment Method)
The Closing-Rate Method, also known as the Net-Investment Method, involves restating balance sheet figures into another currency using the closing rate of exchange for all assets and liabilities as of the balance-sheet date.
- Cloud Computing
Cloud computing offers a modern approach to computing where end users connect to a network of remote servers to run applications, store data, and leverage computing power, enhancing accessibility and reducing the need for local infrastructure.
- Cloud on Title
A cloud on title refers to any matter appearing in the record of a title to real estate that appears to reflect the existence of an outstanding claim or encumbrance which, if valid, would defeat or impair the title. This could, however, be proven invalid by evidence outside the title record.
- Club Deal
A club deal is a specific type of financial arrangement whereby a small group of investors or financial institutions jointly fund a particular investment, typically in a syndicate arrangement. These deals are common in private equity, venture capital, and large-scale lending.
- Cluster Analysis
Cluster Analysis is a method of statistical analysis that involves grouping individuals or objects by common characteristics of interest to the researcher. This technique is extensively used in various fields like marketing, finance, and sociology to identify patterns or behaviors among different groups for targeted actions.
- Cluster Housing
A subdivision technique in which detached dwelling units are grouped relatively close together, leaving open spaces as common areas.
- Cluster Sampling
Cluster sampling is a method of selecting a sample by dividing the population into clusters (groups) and then taking a random sample from each cluster. This technique is commonly used in auditing.
- CME Group
CME Group Inc. is a prominent global markets company, composed of four principal exchanges— the Chicago Board of Trade (CBOT), the Chicago Mercantile Exchange (CME), the New York Mercantile Exchange (NYMEX), and the Commodity Exchange (COMEX)—enabling investors and traders to hedge and tap into risk management assets and strategies.
- Co-Borrower
A co-borrower is an additional person who is responsible for repaying a loan and is listed on the loan agreement alongside the primary borrower. Both borrowers are equally liable for the debt.
- Co-Managers
Banks that rank after lead managers in marketing a new issue, usually a Eurobond. They are typically chosen for their ability to place a substantial portion of the issue with their customers.
- Co-Mortgagor
A co-mortgagor is an individual who signs a mortgage contract with another party and is jointly obligated to repay the loan. This person typically helps in meeting the loan requirements and gains a share of ownership in the property.
- Co-ownership
A legal arrangement by which property is owned by more than one person. Co-ownership can take several forms, including tenancy in common, joint tenancy, community property, partnership, and limited liability company (LLC).
- Co-Tenancy
The possession of and holding of rights in a unit of property by two or more persons simultaneously. The term does not describe the estate, but the relationship between persons who share the property.
- Coach Fare
The cost of passenger transportation based on an ordinary class of service that is less luxurious and less expensive than first-class service.
- Coase Theorem
The Coase Theorem posits that markets can resolve externalities without government intervention if parties can negotiate costlessly.
- COBOL (Common Business-Oriented Language)
COBOL is a high-level programming language developed in the early 1960s, designed primarily for business data processing tasks such as payroll and accounts payable.
- COBRA (Consolidated Omnibus Budget Reconciliation Act)
COBRA is a federal law that allows employees and their families to continue their group health benefits even after losing their job or experiencing other qualifying events.
- Cobweb Theorem
An explanation of market adjustments to changes in supply and demand, in which prices oscillate toward an equilibrium price, often forming a pattern resembling a spider web on a graph.
- COD (Cash on Delivery and Cancellation of Debt)
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.
- Code
The term 'Code' in various contexts may refer to the Internal Revenue Code governing federal taxation, source code within computer programs, or compilations of laws like the Motor Vehicle Code.
- Code of Ethics
A Code of Ethics is a crucial framework for guiding professional conduct and maintaining integrity within a profession. It outlines the standards of behavior and practices that are expected, providing a foundation for ethical decision-making.
- Code of Ethics for Professional Accountants
The Code of Ethics for Professional Accountants established by the International Ethics Standards Board for Accountants (IESBA) provides a global framework for the ethical conduct of accounting professionals.
- Code of Professional Responsibility
The Code of Professional Responsibility is a set of rules based on ethical considerations that govern the conduct of lawyers. It was passed by the American Bar Association and adopted by most states, and is enforced by state disciplinary boards.
- Codicil
A codicil is a supplement to a will intended to add to, subtract from, or alter the provisions of the original will.
- Coding
Coding is the process of writing an algorithm or other problem-solving procedures in a computer programming language. It forms the backbone of software development, bridging the gap between theoretical algorithms and practical applications.
- Coding of Accounts
The assignment of an identification number to each account in the financial statements, enabling organized and efficient tracking and management of financial information.
- Coefficient of Determination
Test statistic that quantifies the amount of variability in a dependent variable explained by the regression model's independent variable(s).
- Coffee Break
A brief time period allowed during the working day to permit employees to unwind from the pressures of work so they are refreshed to carry out their duties effectively.
- Cognitive Behavior
Cognitive behavior refers to the ability to judge, reason effectively, and perceive one's surroundings, influencing decision-making and thought processes.
- Cognitive Dissonance
Cognitive dissonance is a psychological theory that explains the mental discomfort experienced by a person who holds two or more contradictory beliefs, values, or attitudes, especially when their behaviors contradict these beliefs.
- Cohesiveness
Cohesiveness refers to the measure of the extent to which members of an organizational workgroup are bonded together and demonstrate loyalty and commitment to each other and the group's goals.
- Coincident Indicators
Coincident indicators are economic indicators that coincide with the current pace of economic activity. They provide insight into the current state of the economy by measuring various key areas of economic performance.
- Coinsurance
Coinsurance is a provision in insurance policies that mandates the insured to cover a certain percentage of the risk or loss, sharing the burden alongside the insurer. This encourages the insured to maintain adequate coverage corresponding to the property’s value.
- Cold Boot (Cold Start)
A cold boot, also known as a cold start, refers to the process of starting a computer or any electronic device from a completely powered-off state. This involves turning on the machine's hardware and initiating the boot sequence that loads the operating system.
- Cold Calling
Cold calling is a sales strategy where a sales representative reaches out to potential customers who have not previously expressed interest in the product or service being sold. This method includes making unsolicited calls or visits to potential customers.
- Cold Canvassing
Cold canvassing is the process of contacting potential buyers in a specific area to solicit sales of one's products.
- Cold Type
Cold type refers to type set by computer, xerographic, or photographic means, replacing the traditional hot-type setting used in printing.
- Collapsible Corporation
A corporation that dissolves before realizing a substantial portion of the taxable income to be derived from its properties. The Internal Revenue Service (IRS) treats the gain on the sale or liquidation of a collapsible corporation as ordinary income to the stockholder.
- Collar
A financial arrangement in which both the maximum (cap) and minimum (floor) rate of interest payable on a loan are fixed in advance, offering protection against interest rate fluctuations.
- Collate
Collate refers to the process of arranging individual elements in a prescribed order. In the context of printing, collating involves organizing pages of a multi-page document into sequential sets.
- Collateral
Collateral refers to a valuable asset that a borrower offers to a lender as a way to secure a loan. This asset provides security to the lender in the event the borrower defaults on the loan.
- Collateral Assignment
Collateral assignment is the designation of a policy's death benefit or its cash surrender value to a creditor as security for a loan. If the loan is not repaid, the creditor receives the policy proceeds up to the balance of the outstanding loan, and the beneficiary receives the remainder.
- Collateralize
Collateralize refers to the action of pledging assets to secure a debt in the USA. If the borrower defaults on the terms and conditions of the agreement, the pledged assets will be forfeited.
- Collateralized Bond Obligation (CBO)
A Collateralized Bond Obligation (CBO) is a type of structured security backed by a diversified pool of high-yield bond issuances. CBOs are a subset of Collateralized Debt Obligations (CDOs), designed to earn investors returns based on the performance of the underlying bond collateral.
- Collateralized Bond Obligation (CBO)
A Collateralized Bond Obligation (CBO) is an investment-grade bond backed by a pool of variously rated bonds, including junk bonds. CBOs represent different degrees of credit quality rather than different maturities.
- Collateralized Debt Obligation (CDO)
A CDO is a structured finance instrument consisting of a bond or note backed by a pool of fixed-income assets, with varying levels of credit risk allocated to different tranches.
- Collateralized Loan Obligation (CLO)
A Collateralized Loan Obligation (CLO) is a complex financial tool that repackages pools of loans, often corporate loans, into different classes of securities to be sold to investors. CLOs provide high returns for investors with an appetite for risk while offering a source of financing for companies.
- Collateralized Mortgage Obligation (CMO)
A Collateralized Mortgage Obligation (CMO) is a type of mortgage-backed security that splits mortgage pools into different maturity classes, called tranches, to optimize the distribution of interest rate and prepayment risk among investors.
- Collateralized Mortgage Obligation (CMO)
A collateralized mortgage obligation (CMO) is a type of mortgage-backed security that combines multiple mortgage loans and separates them into tranches based on maturity and risk.
- Colleague
A colleague is a fellow member of a profession, association, occupation, or organization, essential for mutual consultations, discussions, and often friendship.
- Collect on Delivery (COD)
COD or 'Collect on Delivery' is a financial transaction where payment for goods is collected at the time of delivery rather than at the time of purchase. This term is often used interchangeably with 'Cash on Delivery'.
- Collectible
A rare object collected by investors, ranging from stamps, coins, oriental rugs, antiques, baseball cards, to photographs. Collectibles are often valued higher during inflationary periods, but they are not valid investments for IRAs and self-directed Keogh plans.
- Collectibles
Items such as art, stamps, and antiques acquired for their aesthetic merits and potential source of capital gains and inflation protection.
- Collecting Bank (Remitting Bank)
The term 'Collecting Bank,' also known as the remitting bank, refers to the bank to which a person who requires payment of a cheque (or similar financial document) has presented it for payment.
- Collection
The term 'collection' has various meanings within the financial and banking sectors, including the presentation of negotiable instruments, debt collection, financial conversion of accounts receivable to cash, and a set of collectibles.
- Collection Account
A collection account is a specific type of bank account opened with the purpose of reducing bank float for remittances from specific customers or groups of customers, often those located abroad or who remit payments in a foreign currency.
- Collection Period
The time, expressed in days, weeks, or months, that it takes to obtain payment of a debt by a customer.
- Collection Ratio
The Collection Ratio measures the efficiency of a company's ability to collect its accounts receivable. It indicates the average number of days it takes to convert receivables into cash.
- Collective Bargaining
Collective bargaining is the process of negotiation between employers and a group of employees aimed at establishing agreements to regulate working conditions. The employees are usually represented by a trade union or another bargaining organization.
- Collective Goods
Collective goods, also known as public goods, are resources that can be consumed simultaneously by a large number of consumers without diminishing their availability to others. Typical examples include streets and roads, police and fire protection, and national defense. Unlike market goods, collective goods cannot be efficiently priced or quantified based on market dynamics, hence they are generally provided by the government.
- Collector of Taxes
A civil servant tasked with the collection of taxes that have been assessed by Inspectors of Taxes and under the pay-as-you-earn (PAYE) system.
- College Savings Plan
A College Savings Plan, often referred to as a Qualified Tuition Program (529 Plan), is a tax-advantaged investment plan designed to encourage saving for future education expenses.
- Collusion
Collusion involves seeking to prejudice a third party or achieve an improper purpose, often by secret agreement, that is typically punishable as conspiracy.
- Collusive Oligopoly
A collusive oligopoly is an industry comprising a few producers (oligopoly), in which producers agree among themselves as to pricing of output and allocation of output markets.
- Columnar Accounts
Columnar accounts refer to accounts that are organized in multiple columns to present financial information more clearly and systematically. This structure is often used to present a trial balance, facilitating automatic adjustments into financial statements.
- Columnar Journal
A columnar journal is a specialized accounting book or ledger with pre-printed columns designed to systematically facilitate the recording and categorization of numerical data. Often used in bookkeeping, these journals streamline the process of capturing financial transactions for further processing.
- Combinations
Combinations refer to the different subgroups that can be formed by sampling a larger group or population without considering the order of elements. Combinations are essential in probability, statistics, and various branches of mathematics.
- Combined Code on Corporate Governance
The Combined Code on Corporate Governance, also known as the Corporate Governance Code, sets out standards of good practice for governance practices in UK companies, focusing on board leadership, effectiveness, remuneration, accountability, and stakeholder relations.
- Combined Financial Statement
In the USA, a combined financial statement involves the aggregation of the financial statements of a related group of entities to present financial information as if the group was a single entity. Intercompany transactions are eliminated from combined financial statements.
- Combined Statistical Area (CSA)
A Combined Statistical Area (CSA) is defined by the U.S. Census Bureau as a combination of several adjacent Metropolitan Statistical Areas (MSAs) or Micropolitan Statistical Areas (μSAs), or a mix of the two, which are linked by economic ties.
- COMEX
COMEX, or the Commodity Exchange Inc., is a futures and options market for trading metals such as gold, silver, copper, and aluminum. It functions as a division of the New York Mercantile Exchange (NYMEX), part of the CME Group. COMEX is renowned for its standardized contract specifications, serving as a key platform for commodities trading and price determination.
- Comfort Letter
A Comfort Letter, often known as a Letter of Comfort, is a document provided by an accounting firm, lawyer, or financial institution to assure the recipient about the financial stability or intention of a company or individual.
- Command
A comprehensive guide to understanding 'command' in both hierarchical and technological contexts.
- Command Economy
A command economy is an economic system where supply, demand, and the prices of goods and services are regulated by a central authority, often the government. This centralized control typically aims to manage a society's economy to ensure equal distribution of resources, rather than relying on market forces.
- Commencement of Coverage
The commencement of coverage is the date at which insurance protection begins, indicating the starting point for the validity of an insurance policy.
- Commerce Clearing House (CCH)
Commerce Clearing House (CCH) is a leading provider of information services, software, and workflow tools for tax, accounting, and legal professionals.
- Commerce Clearing House (CCH)
Commerce Clearing House (CCH) is a prominent publisher of tax services and a range of other business-related publications, providing essential resources for professionals in various sectors.
- Commercial
A commercial is an advertising message that is broadcast on television or radio. Unlike print advertisements, which are focused on space, broadcast commercials leverage time and must creatively integrate elements such as words, sound, and music for radio; and additionally sight and motion for television.
- Commercial Bank
An in-depth definition and overview of Commercial Banks, their functions, examples, frequently asked questions, related terms, resources for further reading, and a fundamental quiz.
- Commercial Blanket Bond
A Commercial Blanket Bond is an insurance product that covers an employer for losses caused by the dishonest acts of its employees on a blanket basis, offering a maximum limit of coverage for any one loss, regardless of the number of employees involved.
- Commercial Broker
A commercial broker is a real estate professional who specializes in listing and selling commercial properties including shopping centers, office buildings, industrial properties, and apartment projects.
- Commercial Collection Agency
A commercial collection agency specializes in debt collection services for businesses, helping them recover past-due accounts from other businesses or clients.
- Commercial Credit Insurance
Commercial credit insurance provides coverage for an insured firm if its business debtors fail to pay their obligations.
- Commercial Forgery Policy
A Commercial Forgery Policy provides coverage for an insured who unknowingly accepts forged checks. This insurance policy helps businesses mitigate the financial loss from fraudulent activities involving forged instruments.
- Commercial Forms
Insurance policies covering various business risks, often tailored to protect businesses from a range of eventualities including property damage, liability, and employee-related risks.
- Commercial Law
Commercial law, also known as business law or mercantile law, is the body of law that governs the rights and obligations of persons in their commercial dealings with one another, including trade, sales, business operations, and the regulatory framework influencing these activities.
- Commercial Loan
A commercial loan is a short-term (typically 90-day) renewable loan designed to finance the seasonal working capital needs of a business, such as the purchase of inventory or the production and distribution of goods.
- Commercial Paper (CP)
A relatively low-risk short-term form of borrowing, typically maturing in 60 days or less in the U.S, often used by large creditworthy institutions as a substitute for Treasury bills, certificates of deposit, and similar instruments.
- Commercial Property
Commercial property refers to real estate intended for use by retail, wholesale, office, hotel, or service users, or for manufacturing or other industrial purposes. Examples include shopping centers, office buildings, hotels and motels, resorts, and restaurants.
- Commercial Property Policy
A commercial property policy provides coverage for various business risks such as goods in transit, fire, burglary, and theft. These policies are crucial for protecting the assets of a business against potential losses and damages.
- Commercial Unit
A unit considered by trade or usage to be a whole that cannot be divided without materially impairing its value, character, or use. Relevant in contractual dealings when partial rejection of goods may constitute acceptance of the entire unit.
- Commercially Domiciled
Located at the principal place from which a corporation's trade or business is managed or directed.
- Commingling of Funds
The practice of mixing personal funds with client or customer funds by a fiduciary or trustee, which is generally prohibited by law unless an exact accounting is maintained.
- Commissary
A commissary is a retail store that sells food and supplies, often located at a military outpost or other facilities. These establishments are frequently subsidized, enabling them to offer products at reduced prices to qualified customers, such as military personnel.
- Commission
A commission is a fee paid to an intermediary for facilitating a transaction, typically calculated as a percentage of the sale value. It can be paid by the seller, buyer, or shared between them, and finds applications across various markets such as real estate, commodities, and advertising.
- Commission Broker
A commission broker is a type of broker, usually a floor broker, who executes trades of stocks, bonds, or commodities for a commission.
- Commissions Paid Account
An account used to record commissions paid by an organization to agents and others. This account is essential for tracking costs attributed to sales commissions within a company's financial statements.
- Commissions Received Account
An account used to record commissions received by an organization in a double-entry accounting system.
- Commitment
Commitment refers to a promise or pledge made by one entity to perform or refrain from performing a specific act, often involving legal obligations and enforceable terms.
- Commitment Fee
A commitment fee is a fee charged by a bank to keep open a line of credit or to continue to make available unused loan facilities. The fee is typically an annual charge made by the lender on the daily undrawn balance of the facility and is often expressed in basis points.
- Commitment Letter
An official notification to a borrower from a lender indicating that the borrower's loan application has been approved and stating the terms of the prospective loan.
- Commitments for Capital Expenditure
Expenditure on fixed assets to which a company is committed for the future. Such commitments are usually disclosed in the directors' report and notes to the accounts.
- Committed Costs
Committed costs are typically fixed costs that management has a long-term responsibility to pay, such as rent on a long-term lease and depreciation on an asset with an extended life.
- Committed Facility
A committed facility is an agreement between a bank and a customer that ensures the bank will provide funds up to a specified maximum at a pre-agreed interest rate, typically for a specified period.
- Committee
A committee is a group of people appointed for a specific function or task, usually with the goal of making decisions or recommendations. Committees exist in various contexts, such as corporate, governmental, academic, and nonprofit organizations.
- Committee on Accounting for Smaller Entities (CASE)
A specialist committee established by the Accounting Standards Board to advise on the application of accounting standards to smaller entities.
- Committee on Uniform Securities Identification Procedures (CUSIP)
The Committee on Uniform Securities Identification Procedures (CUSIP) assigns identifying numbers and codes for all securities. These CUSIP numbers and symbols are used when recording all buy and sell orders.
- Commodities Futures
Commodities futures are contracts in which sellers promise to deliver a specified commodity by a future date at an agreed-upon price. These contracts are standardized and traded on commodity exchanges.
- Commodities Futures Trading Commission (CFTC)
An independent agency of the U.S. federal government that regulates the U.S. derivatives markets, which include futures, swaps, and certain kinds of options.
- Commodity
Commodities are raw materials or primary agricultural products that can be bought and sold, ranging from grains and metals to livestock and other goods.
- Commodity Cartel
An organization, usually comprising producing countries, that attempts to control the price and quantity supplied of a particular commodity, typically a raw material.
- Commodity Code
Commodity codes are numerical identifiers used to categorize goods for inventory, sales, and accounting purposes in an organization. They streamline material and finished goods control systems and ensure effective tracking and management of resources.
- Commodity Contract
A commodity contract is a binding agreement involving the receipt or delivery of a commodity at a future date, often used in trading and risk management.
- Commodity Money
Commodity money is a type of currency that is valued for the material it is made from, such as gold coins, where the value of the money is typically the value of the commodity itself, rather than the denomination stamped on it.
- Common Area
A common area is a portion of a property that is used and enjoyed by all owners or tenants within that property. Typical examples include clubhouses and pools in condominium developments, hallways and stairs in apartment buildings, elevators in office buildings, and the central mall area in shopping centers.
- Common Carrier
A common carrier is an entity or individual that provides transportation services for people or goods and is classified as a public utility.
- Common Costs
Common costs refer to the expenses shared by multiple products, processes, or departments before any differentiation occurs. These can often be fixed costs and are important in allocations to determine accurate product costing.
- Common Elements in a Condominium
Common elements in a condominium refer to those portions of the property not owned individually by unit owners but held in an indivisible interest by all unit owners. These typically include the grounds, parking areas, recreational facilities, and the external structure of the building.
- Common Law
Common Law is a system of jurisprudence that originated in England and was later applied in the United States. It is based on judicial precedent rather than on legislative enactment and is therefore derived from principles rather than rules.
- Common Size
Common size analysis is a standard tool used to compare the financial statements of different companies by converting account groupings to a percentage of the whole, often sales revenues.
- Common Stock
In the USA, the equivalent of the ordinary shares in a public company or privately held firm that give the holders voting and dividend rights. Common stock holders are paid after bondholders and the holders of preferred stock in the event of corporate bankruptcy.
- Common Stock Equivalent
Preferred stocks or bonds convertible into common stock, or warrants to purchase common stock at a specified price or discount from market price. Common stock equivalents represent potential dilution of existing common shareholder equity.
- Common Stock Fund
A common stock fund is a type of mutual fund that exclusively invests in common stocks of publicly traded companies. These funds aim to provide capital growth through equities.
- Common Stock Ratio
The Common Stock Ratio is a financial metric that represents the percentage of a company's total capitalization that is comprised of common stock. This ratio is significant as it reflects the degree of financial leverage and stability of the company from both creditor and investor perspectives.
- Common-Size Financial Statements
Common-size financial statements are a method of analyzing and comparing financial statements by expressing individual elements as percentages of the total. This allows for easier comparison across companies and industries.
- Commorientes
The term 'Commorientes' refers to individuals who die at the same time, or in circumstances where it is uncertain who died first. In legal terms, this is significant for the purposes of property devolution and inheritance.
- Communications Network
A well-defined pattern of communications that emerges when a small number of people link themselves together to exchange information, whether to solve a problem or to spread rumors.
- Communism
Communism, in theory, refers to the anti-capitalist proposals of Karl Marx and his followers advocating for communal ownership of the means of production. In practice, it describes economic systems where production facilities are state-owned and production decisions are made by official policies rather than market actions.
- Community Antenna Television (CATV)
Community Antenna Television (CATV) is a system that uses coaxial cables to transmit television signals to subscribers, often catering to communities in areas with poor reception from traditional broadcast antennas.
- Community Antenna Television (CATV)
Community Antenna Television (CATV) encompasses the distribution of television signals to residents using satellite dishes or high master antennas. Subscribers gain access to various national network broadcasts, specialized stations, and premium channels.
- Community Association
A community association is an organization of property owners that oversees common interests and responsibilities within a community, such as managing common elements in a condominium or enforcing deed covenants in a subdivision.
- Community Interest Company (CIC)
A Community Interest Company (CIC) is a special type of limited company that exists primarily to benefit the community or with a social purpose, rather than to maximize profit for shareholders.
- Community Interest Company (CIC)
A Community Interest Company (CIC) is a type of limited company registered in the UK under the Companies (Audit, Investigations, and Community Enterprise) Act 2004. These companies focus on social objectives and ensure their assets are used for the community's benefit.
- Community Property
Community property refers to property acquired during marriage and is recognized in nine states in the U.S. whereby the law presumes the property to be the product of joint efforts.
- Community Reinvestment Act
The Community Reinvestment Act (CRA) is a federal law encouraging financial institutions to meet the credit needs of the communities they serve, with a focus on low- and moderate-income residents and inner-city neighborhoods.
- Commutation Right
The privilege of a beneficiary to convert unpaid income payments under a settlement option of an annuity or life insurance policy into a lump-sum payment.
- Commuter
An individual who frequently travels between two places, typically their place of residence and their workplace.
- Commuter Tax
A commuter tax is a form of income tax levied on individuals working in a jurisdiction different from where they reside.
- Compact Disc (CD)
A Compact Disc (CD) is an optical storage device capable of holding up to 650 MB of digital data. It uses a 4.75-inch reflective disk, and utilizes laser technology for data reading. CDs come in various forms such as CD-ROM, CD-R, and CD-RW.
- Companies Acts
Legislation governing the activities of companies in the UK, with a comprehensive overhaul implemented in the Companies Act 2006.
- Companies House
Companies House is the official registrar of companies in the UK, handling the incorporation, administration, and dissolution of companies. It maintains records on corporate details including accounts, annual returns, prospectuses, memoranda, articles of association, directors, secretaries, registered office, certain company charges, and notices of liquidation.
- Company
A company is a corporate enterprise that has a legal identity separate from that of its members; it operates as a single unit in which all members participate. Companies can have limited or unlimited liability and may be registered or unregistered.
- Company Auditor
A company auditor examines the financial statements of a company to ensure accuracy and compliance with the Companies Act. Since 1989, appointment as a company auditor is restricted to registered auditors only.
- Company Benefits
Company benefits are various types of non-wage compensation provided to employees in addition to their normal wages or salaries. These can include health insurance, retirement plans, and paid time off, among other perks aimed at improving employee satisfaction and retention.
- Company Car
A company car is a vehicle owned by a business but made available for employees to use for business and, in some cases, personal purposes.
- Company Doctor
A company doctor is a seasoned businessperson or accountant with extensive commercial experience, specializing in analyzing and rectifying issues within struggling companies. They offer both advisory and executive solutions to turn around the business.
- Company Formation in the UK
Detailed process and requirements for forming a company in the UK, including the necessary documents to be submitted to the Registrar of Companies.
- Company Limited by Guarantee
A company structure where the liability of members is limited to a predetermined amount they agree to pay in the event of liquidation. This type of company does not issue shares to its members and differs significantly from other company structures like limited companies.
- Company Limited by Shares
An incorporated organization in which the liability of members is limited by the constitutional documents to the amounts paid, or due to be paid, for shares. In the UK, this is the most popular form of company.
- Company Officers
Company officers are high-ranking employees or executives who manage the day-to-day operations of a business and are responsible for the company's overall strategic direction.
- Company Reporting Directive
An EU directive (2006) designed to enhance public confidence in financial reporting within the EU by increasing the transparency of financial statements and reports.
- Company Seal
A company seal is an official embossed emblem used to authenticate share certificates, important documents, and contracts. It often includes the company's name engraved in legible characters.
- Company Secretary
An officer of a company with duties that encompass administrative tasks, legal compliance, and increasingly broader managerial roles.
- Company Union
A labor union that is generally perceived to be overly sympathetic to the management of the company where it is situated, potentially compromising the representation of its members' true interests.
- Company Voluntary Arrangement (CVA)
A Company Voluntary Arrangement (CVA) is a legally-binding arrangement between a company and its creditors to restructure debt. This process helps businesses avoid bankruptcy by agreeing to pay back a portion of what they owe over a fixed period.
- Company Voluntary Arrangement (CVA)
A Company Voluntary Arrangement (CVA) is a legally binding agreement between a company and its creditors to restructure debt and avoid liquidation.
- Comparability
The accounting principle that financial information for a company should be comparable with financial information for other similar companies, ensuring that stakeholders can make well-informed decisions.
- Comparable Worth
Comparable worth, also known as 'equal pay for equal work,' is an employment theory advocating for compensation based on the value of the job to the organization, irrespective of who performs it. This principle is particularly relevant for addressing compensation inequities among female employees in the United States.
- Comparables (COMPS)
In real estate, comparables, or COMPS, refer to properties similar to the one being sold or appraised. These properties are used to estimate the value of the subject property based on their similarities in key attributes like location, size, condition, and amenities.
- Comparables (COMPS)
Comparables, often abbreviated as COMPS, are an essential element in real estate appraisal and valuation processes. They refer to the comparability of properties with similar characteristics, used primarily to determine the market value of a subject property.
- Comparative Advantage
The concept of comparative advantage explains the efficiency of individuals or groups in particular economic activities compared to others, encouraging specialization and trade for maximum benefit.
- Comparative Amount
The comparative amount refers to the financial figure reported in a previous period, which is used for comparison with the current period to assess performance and detect trends over time.
- Comparative Credit Analysis
Comparative Credit Analysis is a method of company evaluation in which a firm is compared with other similar firms that have a desired credit rating to decide on appropriate accounting ratio targets for the company being analyzed.
- Comparative Figures
Comparative figures are provided in financial statements for previous years of an organization, allowing for comparison and sometimes requiring adjustment if accounting policies have changed.
- Comparative Financial Statements
Financial statements covering different dates but prepared consistently and therefore lending themselves to comparative analysis, as accounting convention requires.
- Comparative Negligence
In some states, Comparative Negligence is a principle of tort law providing that in the event of an accident, each party's negligence is based on that party's contribution to the accident.
- Comparative or Competitive Market Analysis (CMA)
A Comparative Market Analysis (CMA) is an estimate of the value of real property using indicators from sales of comparable properties. It utilizes factors such as price per square foot but is not considered an official appraisal and does not adhere to professional appraisal standards.
- Comparison Shopping
Comparison Shopping is the process whereby a consumer gathers as much information as possible about particular products and services for comparison before purchasing them. It involves visiting stores, comparing advertisements, and conducting related research.
- Compatible
In the context of technology and computing, the term 'compatible' refers to the ability of two devices or systems to work together without special adaptation. This typically means that hardware or software from different manufacturers can operate in conjunction with one another seamlessly.
- Compensated Absences
Compensated absences refer to certain periods during which employees are paid even though they do not attend work. This concept is crucial for proper financial reporting and management in organizations.
- Compensating Balance
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.
- Compensating Errors
A compensating error is an accounting error that is balanced out by another error, making the errors cancel each other out so that the trial balance does not reveal the mistake.
- Compensation
Compensation refers to the direct and indirect monetary and nonmonetary rewards provided to employees in recognition of the value of their job, their personal contributions, and their performance. These rewards must align with the organization's ability to pay and comply with relevant legal guidelines.
- Compensation for Loss of Office
A compensation for loss of office is a lump-sum ex gratia payment made to an employee or director when their service contract is terminated. This payment can be wholly or partly tax-free provided the employee is not entitled to the compensation under the service contract.
- Compensatory Damages
Payment to someone who has suffered harm, such as for loss of income, expenses incurred, property destroyed, or personal injury. These payments, except for personal injury damages, are generally taxable.
- Compensatory Stock Options
Compensatory stock options are financial instruments provided to employees as partial compensation for their services, commonly used by firms to align employee interests with those of shareholders.
- Compensatory Time
Compensatory time, often referred to as comp time, is time off that an employee is allowed to take in lieu of overtime pay.
- Competent Party
A person legally capable of entering a contract. They must be of legal age and not mentally incompetent or under the influence of intoxication.
- Competition
Competition refers to the rivalry in the marketplace wherein goods and services are bought from those who provide 'the most for the money.' It rewards efficient producers and suppliers, driving the economy toward the efficient use of resources.
- Competition and Markets Authority (CMA)
The Competition and Markets Authority is a UK government body responsible for protecting consumer interests, and ensuring businesses compete fairly, while promoting thriving economic markets.
- Competition and Markets Authority (CMA)
The Competition and Markets Authority (CMA) is a regulatory body in the UK responsible for ensuring that competition law is enforced to maintain market fairness, protect consumers, and enhance business innovation.
- Competitive Advantage
A competitive advantage is the measure of an organization's product, service, or unique capability that allows it to outperform its peers within the market. It signifies the unique position and value proposition that a company holds over its competitors.
- Competitive Bid
A competitive bid is a sealed offer, including price and terms, submitted by a contractor to a purchaser, who selects the bid with the best combination of price and terms. This system is widely used by municipalities, railroads, and public utilities.
- Competitive Bought Deal
A competitive bought deal is an underwriting agreement wherein the borrower seeks simultaneous competitive quotations from multiple banks for the purchase of an entire new issue of bonds or similar securities at a fixed price.
- Competitive Equilibrium
Competitive equilibrium refers to a market state where supply equals demand, resulting in an equilibrium price where no buyer or seller has an incentive to change their behavior.
- Competitive Strategy
A competitive strategy is a plan formulated by an organization to gain a competitive edge over its rivals. In the context of advertising, it may include tactics designed to discredit rival brands, undercut prices, or highlight unique product qualities and consumer benefits not found in competitors' offerings.
- Competitor
A competitor is a manufacturer or seller of a product or service that is sold in the same market as that of another manufacturer or seller. Competitors offer products or services that satisfy similar consumer needs within the same market.
- Competitor Analysis
The gathering of data about a competitor's products and prices to identify actual or future sources of competitive advantage. Understanding a competitor's strengths and weaknesses helps an organization develop its own strategy.
- Compilation
The presentation of financial statement information by the entity without the accountant's audit or assurance as to conformity with Generally Accepted Accounting Principles (GAAP).
- Compiler
A compiler is a computer program that transforms code written in high-level programming languages like FORTRAN or PASCAL into machine language.
- Complaint
A complaint is the initial pleading by the plaintiff in a civil action that sets out the facts and the basis of the claim. It serves to give notice to the adversary of the nature and basis of the plaintiff's assertions. In criminal law, a complaint is the preliminary charge made by one person against another, though formal proceedings cannot commence without an indictment or information.
- Complementary Goods
Complementary goods are products that are often consumed together, where the demand for one increases when the price of the other decreases, and vice versa.
- Complete Audit
A complete audit is an extensive examination of a company's system of internal controls and the details of its books of account, including subsidiary records and supporting documents.
- Complete Liquidation
Complete Liquidation refers to a series of distributions that redeem all the stock of a corporation under a specific plan.
- Completed-Contract Method
The completed-contract method is an accounting approach where net profit on a long-term contract is reported only when the contract is fully completed. Pre-completion expenses are also deferred until the project is finished.
- Completeness
The principle that the financial information provided by a company should not omit anything material, ensuring the financial statements are comprehensive and useful for decision-making.
- Completion Bond
A legal instrument used to guarantee the completion of a real-estate development according to specifications. It is more encompassing than a performance bond, which ensures that one party will perform under a contract on the condition that the other party performs.
- Completion Risk
Completion risk refers to the inherent risk within project financing schemes that the project might not be completed on time, within budget, or to the required specifications. This type of risk is a critical concern for investors and stakeholders in large-scale projects.
- Complex Capital Structure
A financial structure with stock outstanding that has potential for dilution, requiring a dual presentation of earnings per share by showing primary earnings per common share and fully diluted earnings per common share.
- Complex Trust
A complex trust is a type of trust that can either distribute or retain income according to its governing instrument or state law, or has a charitable beneficiary. It is entitled to only a $100 exemption.
- Compliance
Compliance in accounting and corporate governance refers to the adherence to laws, regulations, and internal controls that govern an entity's operations, ensuring legal and regulatory obligations are met.
- Compliance Audit
A compliance audit is an extensive evaluation of an organization's adherence to regulatory guidelines. This includes a scrutiny of internal control procedures to ensure proper operation according to established protocols.
- Compliance Tests
Tests used during an audit to determine the effectiveness of a company's control procedures. The extent of compliance testing will depend upon the extent to which specific controls are relied upon. Results of compliance testing will indicate the necessary level of substantive testing (tests of transactions, balances, etc.). If controls are found to be working well, substantive testing may be reduced to some extent.
- Component Depreciation
An effort to depreciate a property based on the lives of individual assets within it, allowing for more accurate allocation of expense over time compared to composite depreciation.
- Component Part
A component part is a unit of a system that performs part of the transformation or processing activity. For example, a fuel injector is a component part of an automobile's fuel system.
- Composite Depreciation
Composite depreciation is a method where a single depreciation rate is applied to an entire asset, despite its components having varying useful lives.
- Composition
A composition in accounting refers to an agreement between a debtor and creditors, where the debt is partially forgiven in exchange for a proportion of what is due. This can be formalized through a deed of arrangement or an individual voluntary arrangement.
- Composition of Creditors
An alternative to bankruptcy, in which creditors agree to accept partial payment in full settlement of their claims. Most often seen in failures of small, unincorporated businesses, whose creditors reason that they will benefit more in profits on future sales to a going concern than they would on liquidation.
- Compound Amount of One
The compound amount of one refers to the value that $1 would grow to if it is left on deposit with interest allowed to compound over a period of time.
- Compound Discount
Compound discount is the difference between the value of an amount in the future and its present discounted value. For example, if £100 in five years' time is worth £88 now, the compound discount will be £12.
- Compound Growth Rate
The single periodic rate of growth for several periods, typically years, which accounts for cumulative growth in a manner similar to compound interest.
- Compound Instrument
A compound instrument is a financial instrument that contains both an equity element and a debt element. These are complex financial instruments which require careful handling in financial reporting.
- Compound Interest
Compound interest refers to the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. It is a crucial concept in finance and investing, offering greater returns compared to simple interest.
- Compound Journal Entry
A compound journal entry is an accounting entry that affects more than one account, allowing for multiple debits and/or credits in a single transaction. It is commonly used for complex transactions in double-entry bookkeeping.
- Comprehensive Annual Financial Report (CAFR)
The Comprehensive Annual Financial Report (CAFR) is the official annual report of a government entity, encompassing a wide array of financial statements and disclosures.
- Comprehensive Annual Financial Report (CAFR)
The Comprehensive Annual Financial Report (CAFR) is the official annual report of a government entity in the United States. It provides detailed financial statements and analysis of a government's financial health.
- Comprehensive Auditing
Comprehensive auditing is a thorough review process that encompasses evaluation of an organization's operations, compliance, and financial performance to ensure accuracy, efficiency, and adherence to laws and regulations.
- Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)
The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) is a federal law designed to clean up sites contaminated with hazardous substances and to impose liability for cleanup on responsible parties.
- Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)
Federal law, known as Superfund, enacted in 1980 and reauthorized by the Superfund Amendments and Reauthorization Act (SARA) in 1986. The law imposes strict joint and several liability for cleaning up environmentally contaminated land.
- Comprehensive General Liability Insurance (CGL)
Comprehensive General Liability (CGL) insurance provides coverage against all liability exposures of a business unless specifically excluded. This includes coverage for products, completed operations, premises and operations, elevators, and independent contractors.
- Comprehensive Health Insurance
Comprehensive health insurance provides extensive coverage for hospital and physician charges, incorporating elements of both basic medical expense and major medical policies, subject to deductibles and coinsurance.
- Comprehensive Income
Comprehensive income is the total of an entity's operating profits and holding gains recorded during a particular accounting period, encompassing both realized and unrealized gains.
- Comprehensive Income Statement
A Comprehensive Income Statement is a financial document that reports a company's total earnings, including those not realized in the income statement, such as unrealized gains and losses, allowing for a more inclusive picture of financial performance.
- Comprehensive Insurance
Comprehensive insurance coverage in automobile insurance provides protection from physical damage (other than collision) and theft of the insured vehicle, covering events like fire damage, vandalism, and natural disasters.
- Comprehensive Liability Insurance
Comprehensive Liability Insurance provides businesses with coverage for negligence-based civil liability in various situations, including bodily injury, property damage, and medical expenses arising from the operation of premises, completed operations, and products.
- Comprehensive Personal Liability Insurance
Comprehensive Personal Liability Insurance offers protection against personal liability claims arising from personal acts and omissions by the insured and residents of the insured's household. This coverage includes a range of activities, from sports and pet-related incidents to unique occurrences like someone tripping in the insured's cemetery plot.
- Comprehensive Plan
A comprehensive plan is a set of guidelines developed and adopted by a local government to govern public policy toward future land development within the jurisdiction.
- Compromise
A negotiation strategy wherein parties agree to make mutual concessions to reach a consensus or settlement. In management and labor relations, compromise entails both parties yielding some demands to obtain mutually acceptable terms.
- Comptroller
A comptroller is a high-level executive who oversees the accounting and financial reporting functions within an organization, often in a governmental or nonprofit entity. The cabinet-level position is usually responsible for ensuring adherence to financial regulations and the accuracy of reported financial data.
- Comptroller of the Currency
A federal official appointed by the President and confirmed by the Senate, responsible for chartering, examining, supervising, and liquidating all national banks.
- Compulsory Arbitration
Compulsory arbitration involves the forceful submission of a labor dispute to a neutral third party, such as a government body or the American Arbitration Association, for resolution. This method, also known as binding arbitration, has been resisted by labor unions and employers who prefer collective bargaining and economic pressure to resolve disputes.
- Compulsory Checkoff
A compulsory checkoff is a mandatory deduction from an employee's wages by the employer, commonly related to union dues or other agreed-upon charges.
- Compulsory Insurance
Compulsory insurance refers to insurance coverage mandated by law. It requires individuals or businesses to possess a minimum amount of insurance to cover specific risks and liabilities, ensuring financial protection and compliance with regulatory standards.
- Compulsory Liquidation
Compulsory liquidation, also known as compulsory winding-up, is the process of liquidating a company by a court order. This detailed guide covers its definition, examples, frequently asked questions, related terms, and further reading suggestions.
- Compulsory Retirement
Compulsory retirement, also known as mandatory retirement, refers to being forced to resign from one's employment at an age specified by union contract or company policy. This practice has evolved significantly with changing laws and regulations.
- Computer
A computer is a machine capable of executing instructions to perform operations on data. Its distinguishing feature is its ability to store its own instructions, allowing it to perform numerous operations without needing new instructions each time. Modern computers are composed of high-speed electronic components capable of executing millions of operations per second.
- Computer Conferencing
Computer conferencing allows participants at different locations to exchange information and discuss problem solutions using computers or terminals, providing flexibility to engage in discussions anytime.
- Computer Integrated Manufacturing (CIM)
Computer Integrated Manufacturing (CIM) is an integrated computerized system combining all elements of Computer-Assisted Design (CAD) and Computer-Aided Manufacturing (CAM) to ensure efficient product development and manufacturing through real-time coordination.
- Computer Network
A computer network is a set of computers connected together for the purpose of sharing resources. Networks are commonly categorized based on their scale, including Local Area Network (LAN), Wide Area Network (WAN), and others.
- Computer Screen
A computer screen is a display device that allows users to interact with their computer system by viewing visual output.
- Computer Security
The practice of defending computers, servers, mobile devices, electronic systems, networks, and data from malicious attacks, unauthorized access, damage, or theft.
- Computer-Aided Design (CAD)
Computer-Aided Design (CAD) is the use of computer technology for design and design documentation. CAD software replaces manual drafting with an automated process.
- Computer-Aided Instruction (CAI)
Computer-Aided Instruction (CAI) refers to a form of teaching where a computer system replaces or supplements a live instructor, allowing learners to proceed at their own individual pace.
- Computer-Assisted Audit Techniques (CAATs)
Techniques developed by auditors for performing compliance tests and substantive tests on computer systems for firms in which the data being audited is processed by computers and held on computer files.
- Computer-Assisted Design (CAD)
A computer-assisted method of developing three-dimensional designs, crucial for the engineering and architectural professions, allowing designs to be tested under simulated real-time conditions without building physical models.
- Computer-Assisted Mass Appraisal (CAMA)
Computer-Assisted Mass Appraisal (CAMA) refers to proprietary software used to make fast valuations of one or more real properties. This software ranges from simple tools that apply a fixed percentage increase to property values, to highly sophisticated systems that utilize complex statistical techniques to compare and consider other properties.
- Computer-Assisted Transcription (CAT)
Automatic transcription of machine shorthand notes into a computer from words recorded in electronic form.
- Computerized Loan Origination (CLO)
Computerized Loan Origination (CLO) refers to the process of initiating a mortgage loan using specialized computer software that connects the originator with one or more mortgage lenders. This system allows real estate brokers to offer a wider range of services.
- Con Artist
A con artist, also known as a con man, is a practitioner of fraud or theft by deception who first wins the confidence of a victim. Con artists usually play on the victim's desire to get something for nothing.
- Concealment
Concealment refers to the intentional withholding or secreting of information. In the context of insurance, if the insured withholds information on a material fact about which the insurance company has no knowledge, the company has grounds to void the contract.
- Concentration Banking
Concentration banking is a financial management strategy aimed at accelerating cash collections from customers by utilizing a network of regional banks, from which funds are transferred to a central main concentration account.
- Concentration Ratio
A concentration ratio measures the proportion of total industry sales controlled by the largest firms within the industry, typically the top four or eight firms.
- Concept Test
A concept test is a type of research study whose main goal is to evaluate an idea or concept developed to determine its potential success. It aims to assess the effectiveness of an advertising campaign in reaching its intended objectives.
- Conceptual Framework
A statement of theoretical principles that provides guidance for financial accounting and reporting. It serves as a foundation for setting accounting standards and provides a coherent system of interrelated objectives and fundamentals.
- Conceptual Framework for Financial Reporting
A document setting out the basic accounting concepts informing International Accounting Standards and International Financial Reporting Standards, serving as a guide in the preparation and presentation of financial statements.
- Conceptual Skills
Conceptual skills refer to the ability to understand the interrelationship of ideas or elements in relation to the totality. These skills are crucial for strategic thinking, problem-solving, and decision-making in various fields such as management, business, and education.
- Concern
In management and business contexts, 'concern' refers to matters requiring attention, issues in labor relations, or business organizations.
- Concession
The term 'concession' can refer to various business arrangements, such as small shops in lobbies, government-granted rights, rent reductions, or compensation in corporate underwriting.
- Concession Agreement
A Concession Agreement is a contract between a host government's government and a foreign firm that outlines the terms under which the firm will invest in the host country, covering aspects like taxes, profit remittance, and ownership transfer.
- Conciliation
Conciliation is a process used in labor disputes where a neutral third party attempts to bring together management and labor to discuss and resolve their differences. The goal is to reconcile the disputing parties through facilitated discussion and negotiation.
- Conciliator
A person who attempts to bring management and labor together to resolve disputes and foster mutually beneficial outcomes.
- Condemnation
Condemnation is the legal process by which a government or private entity with governmental powers takes private property for public use, with compensation to the owner. This is commonly associated with eminent domain.
- Condemnation
The process by which private property is taken for public use with compensation to the owner, under eminent domain, and declarations of structures being unfit for use.
- Condemnation Award
A Condemnation Award refers to the monetary compensation or value of other property received by an entity or individual for property that has been condemned by a government authority for public use, or from the sale of property under threat of condemnation.
- Condition
In various fields such as law, real estate, and general business, the term 'condition' has multiple meanings. It can refer to a prerequisite or requirement, a potential future event that influences legal obligations or real estate interests, and the physical quality or wear of something.
- Condition Precedent
A condition precedent is an express or implied provision of a contract that requires the occurrence of a specific event or the performance of a certain act before the contract becomes binding on the parties.
- Condition Subsequent
A condition subsequent is a provision in a contract that describes an event or act, upon the happening of which certain obligations under the contract terminate.
- Conditional Contract
A contract whose performance is contingent upon the occurrence of a specified future event.
- Conditional Sale
A conditional sale is a sales agreement where the sale is dependent on the fulfillment of a particular condition, typically the full payment of the purchase price. The buyer gains possession and the right to use the goods, but the transfer of title is postponed until the condition is met.
- Conditional-Use Permit
A conditional-use permit (CUP) allows property owners to use their land in a way that is not typically permitted within a particular zoning district, under certain conditions laid out by local zoning authorities.
- Conditions, Covenants, and Restrictions (CCRs)
Conditions, Covenants, and Restrictions (CCRs) refer to the rules and regulations set forth in condominium or subdivision deeds or bylaws that dictate how properties can be used. These regulations ensure aesthetic and functional uniformity, preventing changes that could negatively impact the community.
- Condominium (Condo)
A form of real estate ownership where individual residents hold a deed and title to their houses or apartments and share maintenance costs for common areas managed by a dedicated company.
- Condominium Conversion
The process of changing the ownership structure of a building from a single owner to multiple owners, each owning individual units, typically through a legal and regulatory framework.
- Condominium Declaration
A Condominium Declaration, also known simply as a "Declaration," is a legal document that formally establishes the existence of a condominium. It describes the property in detail, outlines the rules and restrictions governing the condominium units, and defines the rights and responsibilities of the unit owners and the condominium association.
- Condominium Owners' Association
An organization of all unit owners in a condominium responsible for overseeing common elements and enforcing the condominium's bylaws.
- Conduit Approach
The conduit approach allows income or deductions to flow through to another entity, such as a partnership or trust, enabling tax liabilities to be managed at the beneficiary or partner level.
- Confederation of Asian and Pacific Accountants (CAPA)
An accountancy organization in the Asia-Pacific region, CAPA aims to develop and coordinate the accountancy profession across 31 member organizations in 24 countries, ensuring high-quality services in the public interest.
- Confederation of British Industry (CBI)
The Confederation of British Industry (CBI) is a UK-based organization with a mission to represent and advocate for business interests at the national and international level. It engages in policy development and lobbying to influence regulations and promote economic growth.
- Confederation of British Industry (CBI)
CBI is an organization that lobbies for British business interests, primarily focusing on influencing UK government policies, the European Union, and other international bodies to foster a favorable business environment.
- Conference Call
A conference call is a telephone call that allows multiple lines to be connected simultaneously, enabling three or more participants to communicate in real-time. It is also known as a three-way call or multi-party call.
- Confidence Game
A confidence game is a scheme by which a swindler, commonly referred to as a con artist, wins the confidence of their victim and then cheats them out of their money by exploiting the trust placed in them.
- Confidence Interval
A confidence interval is a range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter. The interval has an associated confidence level that quantifies the level of confidence that the parameter lies within the interval.
- Confidence Level (Confidence Coefficient)
The confidence level, often denoted as the confidence coefficient, is the probability that a range of numbers calculated from a sample of a population includes the value of the population parameter being estimated.
- Confidential
Private or secret information treated with trust, providing a feeling of security that the information will not be disclosed to unauthorized parties.
- Configuration
Configuration refers to the process of setting up a computer system or application to be used in a particular way. It involves selecting and arranging options or settings in order to achieve desired functionality, performance, and usability.
- Confirmation
A technique used by an auditor to obtain third-party evidence in support of information supplied by a client. For example, confirmation may be sought from a bank of balances held by a client.
- Confirmation Note
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.
- Confirmation Positive
A written or oral request by the auditor of a party having financial dealings with the client about the accuracy of an item. A response is required whether the particular item is correct or incorrect.
- Confirmed Irrevocable Letter of Credit
A confirmed irrevocable letter of credit adds an additional layer of security for the beneficiary by employing a second bank's confirmation, ensuring payment even if the initial issuing bank fails.
- Confirming House
A confirming house is an organization that acts as an intermediary between local exporters and overseas buyers. It pays for goods in the exporters' currency, negotiates prices, arranges shipment and insurance, and provides vital information for the overseas buyers.
- Confiscation Risk
Confiscation risk refers to the potential threat that assets held in a foreign country could be seized, expropriated, or nationalized by the host country's government. This risk also includes the possibility of interference with a non-resident owner's control over these assets.
- Conflict of Interest
A conflict of interest arises when an individual, such as a public official, faces a clash between their personal interests and their professional responsibilities. This situation can compromise their impartiality and decision-making capabilities.
- Conformed Copy
A conformed copy is a reproduction or exact copy of an original document where essential legal features like signatures and seals are typed or indicated in writing.
- Conforming Loan
A residential mortgage loan eligible for purchase by FNMA (Fannie Mae) or FHLMC (Freddie Mac). These loans typically offer lower interest rates and more favorable terms compared to nonconforming mortgage loans.
- Conglomerate
A conglomerate is a large corporation formed by the merger or acquisition of smaller companies, each operating in distinct, often unrelated, industries. This structure is typically chosen to diversify risk and achieve financial stability across various market sectors.
- Congress of Industrial Organizations (CIO)
The Congress of Industrial Organizations (CIO) was a federation of unions that organized workers in industrial unions in the United States and Canada from 1935 to 1955.
- Connected Person
A connected person refers to individuals or entities that are related to a director under the Companies Act, with implications for disclosure requirements.
- Consent Letter
A consent letter is a formal document included in a prospectus where an expert, such as a reporting accountant, consents to the issuance of the prospectus and acknowledges the inclusion of their report or any reference made to them.
- Consent Order/Decree
A consent order or decree is an agreement by a defendant to cease activities deemed illegal by the government. This agreement, subject to court approval, bypasses definitive judicial determination but is binding.
- Consequential Damages
Consequential damages, in the context of property law, refer to the loss in value of a property caused by the taking of a nearby property or development on another property.
- Conservatism and Conservative Principles
Conservatism in accounting focuses on understating assets and revenues and overstating liabilities and expenses to provide a prudent and less risky portrayal of a company's financial position. In business, it refers to a cautious and careful attitude, typically avoiding excessive risk. In politics, conservatism promotes limited government spending and lower taxes.
- Conservator
A conservator is a court-appointed custodian of assets belonging to someone determined by the courts to be unable to manage his or her own property.
- Consideration
Consideration is a fundamental element in a contract representing the exchange of promises or monetary value essential to legal agreements.
- Consignee
A consignee refers to an individual or organization authorized to receive goods sent from a consignor. The consignee acts as the recipient of goods, typically in a shipping context, and may also serve as an agent to sell the goods on behalf of the consignor.
- Consignment
Consignment involves the shipment of goods by a principal (consignor) to an agent (consignee) for sale. The consignee sells the goods on behalf of the consignor, often earning a commission upon sale. The process typically involves creating a detailed consignment account.
- Consignment Note
A consignment note is a key document used in shipping to provide details about a consignment of goods in transit. It is signed by the consignee upon delivery, serving as proof of receipt. The document includes information about the consignor and consignee, details about the goods, and typically their gross weight, as well as outlining who is responsible for insuring the goods during transit.
- Consignment Stock
Consignment Stock refers to products owned by one party but held and managed by another party with the right to sell or return the goods. This ownership arrangement requires careful accounting practices to reflect commercial realities accurately in financial statements.
- Consignor
A consignor is any person or organization that sends goods to a consignee or a principal who sells goods on consignment through an agent, usually in a foreign country.
- Consistency
Consistency refers to the use of the same accounting procedures by an accounting entity from period to period. Consistently applying similar measurement concepts and procedures for related items within the company's financial statements across different periods simplifies comparisons and projections.
- Consistency Concept
Originally one of the four fundamental accounting concepts, the consistency concept mandates uniform treatment of like items within and across accounting periods, ensuring consistent application of accounting policies.
- Console
A console is a device, such as a control panel, that allows users to communicate directly with a computer. It provides an interface for human interaction with a computing system.
- Consolidated Accounts
Consolidated accounts are financial statements that present the assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries as if the entire group were a single entity.
- Consolidated Balance Sheet
A Consolidated Balance Sheet, or Consolidated Statement of Financial Position, summarizes the financial status of a parent company and its subsidiaries as a single economic entity.
- Consolidated Cash-Flow Statement
A consolidated cash-flow statement provides a comprehensive overview of cash inflows and outflows from a group of entities, combining individual cash-flow statements subject to various consolidation adjustments for accurate financial reporting.
- Consolidated Financial Statement
A consolidated financial statement brings together all assets, liabilities, and other operating accounts of a parent company and its subsidiaries, providing an integrated view of the entire corporate group’s financial status.
- Consolidated Financial Statements
Consolidated financial statements combine the financial records of a group of companies, providing a comprehensive view of the entire group's financial situation.
- Consolidated Goodwill: An Overview
Understanding the difference between the fair value of the consideration given by an acquiring company when acquiring a business and the aggregate of the fair values of the separable net assets acquired, commonly referred to as consolidated goodwill.
- Consolidated Income and Expenditure Account
A consolidated income and expenditure account amalgamates the financial information from individual income and expenditure accounts of a group of organizations into a single, comprehensive financial document, adjusted for any necessary consolidation adjustments.
- Consolidated Omnibus Budget Reconciliation Act (COBRA)
Federal legislation that requires group health plans sponsored by employers with 20 or more employees to offer continuation of health insurance coverage to employees and their dependents after they leave their jobs. Employees must pay the entire premium plus up to 2% administrative costs.
- Consolidated Profit
The combined profit of a group of organizations presented in the consolidated profit and loss account. Any intra-group items should be eliminated by consolidation.
- Consolidated Profit and Loss Account
A consolidated profit and loss account (also known as a consolidated income statement) combines the individual profit and loss accounts of group entities, presenting a comprehensive view of the group's financial performance.
- Consolidated Statement of Cash Flows
The Consolidated Statement of Cash Flows - A Key Financial Document Showing Combined Cash Flow Activities in Entities for Investors
- Consolidated Statement of Financial Position
The consolidated statement of financial position, often referred to as the consolidated balance sheet, provides a snapshot of a parent and its subsidiaries’ financial situation at a specific point in time.
- Consolidated Tax Return
A consolidated tax return combines the financial reports of companies that form an affiliated group, as defined by tax laws. This applies to firms that are at least 80% owned by a parent or another inclusive corporation.
- Consolidated Taxable Items
Items that are eliminated from separate taxable income, computed on a consolidated basis, and combined with the aggregated separate taxable income (for example, net operating loss, net capital gain or loss, total charitable contributions).
- Consolidation
The process of combining and adjusting financial information from the individual financial statements of a parent undertaking and its subsidiaries to prepare consolidated financial statements, which present financial information for the group as a single economic entity.
- Consolidation Adjustments
Adjustments made in the process of consolidating the accounts of a group of organizations, ensuring the elimination of intra-group transactions' profits or losses from consolidated financial statements.
- Consolidation Loan
A consolidation loan combines and refinances multiple other loans or debt into a single loan, typically aimed at reducing the monthly payments an individual needs to make. It is usually an installment loan.
- Consolidator
An entity that combines less-than-carload shipments into full carloads to take advantage of lower shipping rates for full carloads.
- Consortium
A consortium is a collective arrangement wherein two or more businesses unite temporarily to undertake a large and complex project, leveraging pooled skills and resources to achieve a common goal.
- Consortium Relief
Consortium relief is a modified form of group relief that applies to consortia, which allows for the surrendering of losses between consortium members and the consortium company. This serves to optimize tax efficiency in complex corporate structures.
- Constant
A constant in computer science and mathematics refers to a value that does not change during the execution of a program or evaluation of an expression. They stand in contrast to variables, which can store different values during program execution.
- Constant Dollar
Constant dollar is an accounting term used to reflect the value of money after adjusting for inflation, providing a consistent measurement standard across different time periods.
- Constant Dollars
Constant dollars refer to dollars of a base year, used as a gauge in adjusting the dollars of other years to ascertain actual purchasing power.
- Constant Purchasing Power Accounting
Constant Purchasing Power Accounting (CPPA) involves adjusting financial statements to account for changes in the purchasing power of money over time due to inflation or deflation. This method adjusts for the distortions caused by inflation, ensuring that financial information remains accurate and comparable.
- Constant Returns to Scale
Constant Returns to Scale refers to a situation in economic production where the amount of output changes at the same rate as the quantity of inputs used. For example, a doubling of raw materials and labor would result in a doubling of the final product.
- Constant-Payment Loan
A constant-payment loan is structured such that equal payments are made periodically to completely pay off the debt by the loan's maturity date. This type of loan typically involves fixed interest rates and scheduled payments that cover both principal and interest.
- Constituent Company
A constituent company is a firm that is part of a group of affiliated, merged, or consolidated corporations. These companies work together, often sharing resources and strategies, to achieve mutual corporate goals.
- Constitution
Fundamental principles of law by which a government is created and a country is administered, representing a mandate from the people on governance.
- Constitutional Rights
Constitutional rights are the fundamental rights and freedoms guaranteed to individuals by the constitutions of a country, whether at the federal or state level. These rights often include freedoms related to speech, religion, assembly, and protection against unfair governmental actions.
- Constraining (Limiting) Factor
A constraining factor, also known as a limiting factor, is an element that restricts or limits the production or sale of a given product. Nearly all firms encounter one or more constraining factors, which could involve limited machine-hours and labor-hours, shortages of materials and skilled labor, or restrictions related to display space, warehouse space, and working capital.
- Constraint
A constraint is a circumstance that prevents an organization from achieving higher levels of performance. Constraints typically result from limiting factors such as a shortage of skilled labor, materials, production capacity, or sales volume, and must be eliminated or reduced to improve performance. Constraints are also integral in linear programming problem statements.
- Construction Industry Scheme (CIS)
The Construction Industry Scheme (CIS) is a set of regulations established by the UK government to manage tax payments within the construction sector.
- Construction Industry Scheme (CIS)
The Construction Industry Scheme (CIS) is a set of statutory provisions established to ensure tax is deducted at the basic rate from payments made to subcontractors in the building industry unless the subcontractor can provide a specific Revenue certificate. Implemented on 6 April 2007, the scheme helps to manage tax collection in the construction sector effectively.
- Construction Loan
A construction loan is a short-term real estate loan utilized to finance building costs. Funds are disbursed as needed or according to a prearranged plan, repaid upon project completion, often from a mortgage loan. These loans typically come with higher interest rates and origination fees.
- Constructive Dividend
Constructive dividend involves the disallowance or reclassification of a transaction between a closely held corporation and a shareholder, often recharacterizing a loan to a stockholder as a dividend.
- Constructive Notice
Constructive notice is a legal concept that presumes an individual has been given notice of a property or legal matter as a result of the information being publicly available or recorded, even if the individual has not been personally informed.
- Constructive Ownership of Stock
Constructive ownership of stock refers to situations in which a taxpayer is treated as owning shares that are actually owned by another person or entity, due to the application of specific tax rules, also known as attribution rules.
- Constructive Receipt of Income: Taxation
Constructive Receipt of Income is a doctrine where a taxpayer must include in gross income amounts that, though not actually received, are deemed received during the taxable year. This principle ensures that taxpayers cannot defer taxation by simply delaying the physical receipt of income.
- Consultant
A consultant is an individual or organization that provides professional advice to entities for a fee, often in areas such as management, accounting, finance, legal, and technical matters. Consultants operate as independent contractors, not employees.
- Consultative Committee of Accountancy Bodies (CCAB)
The Consultative Committee of Accountancy Bodies (CCAB) is a body consisting of five accountancy institutes in the UK and Ireland, aimed at coordinating activities within the profession and maintaining high standards of practice and ethics.
- Consultative Committee of Accountancy Bodies (CCAB)
The Consultative Committee of Accountancy Bodies (CCAB) is a collaborative umbrella group set up in 1970 by the six main accountancy bodies in the UK and Ireland to foster cooperation and address financial accounting and reporting issues.
- Consumable Materials
Materials that are used in a production process but do not form part of the direct cost of sales, such as lubricants and sanding discs.
- Consumer
The ultimate user of a product or service, who may not always be the purchaser of the product.
- Consumer Behavior
Consumer behavior involves understanding how and why individuals make purchasing decisions, influenced by internal and interpersonal factors. Marketers use this knowledge to create effective stimuli that prompt sales by aligning with customer personalities and needs.
- Consumer Confidence Survey
A leading indicator of consumer spending that gauges public confidence about the health of the U.S. economy through a survey of opinions on various economic factors.
- Consumer Credit Protection Act of 1968
A landmark federal legislation establishing rules of disclosure that lenders must observe in dealings with borrowers, ensuring transparent consumer lending practices.
- Consumer Finance Company
A consumer finance company is a type of financial institution that specializes in offering credit products and services to individuals who require loans for personal use.
- Consumer Goods
Consumer goods are items purchased by individuals for personal or household use, as opposed to capital goods, which are used to produce other goods. These goods are essential for daily life and can be classified into durable, non-durable, and services.
- Consumer Interest
Interest incurred on personal debt and consumer credit, which is not deductible for tax purposes after 1990.
- Consumer Price Index (CPI)
The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
- Consumer Price Index (CPI)
The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
- Consumer Price Index (CPI)
The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. It is a critical indicator used to understand inflation and the cost of living.
- Consumer Products
Consumer products are tangible personal properties that are typically used for personal, family, or household purposes.
- Consumer Protection
Laws designed to aid retail consumers of goods and services that have been improperly manufactured, delivered, performed, handled, or described. Such laws provide the retail consumer with additional protection and remedies not generally provided to merchants and others who engage in business transactions.
- Consumer Research
Consumer research is the process of gathering and analyzing data about consumers to understand their behaviors, preferences, and motivations. This research employs techniques such as focus groups, in-depth interviews, inquiry tests, aided recall interviews, consumer surveys, and attitude testing. The primary goal is to determine factors that influence consumer buying habits and decision-making processes.
- Consumer Sovereignty
Consumer sovereignty refers to the ability of consumers to obtain exactly what they want by paying a price that is satisfactory to suppliers. It is considered a prerequisite of properly functioning markets. However, sovereignty can be limited by factors such as lack of information, constraints on prices and supplies, and third-party influences on purchasing decisions.
- Consumer Surplus
Consumer surplus is an economic concept that represents the excess value a consumer derives from consuming goods over the amount paid for those goods.
- Consumer-Driven Healthcare
Consumer-driven healthcare (CDHC) encompasses a variety of health insurance plan designs aimed at providing insurance protection while encouraging participants to be cost-conscious about their healthcare choices.
- Consumerism
Consumerism focuses on public concern over the rights of consumers, the quality of consumer goods, and the honesty of advertising. The ideology gained significant momentum in the 1960s after President John F. Kennedy introduced the Consumer Bill of Rights.
- Consummate
The term 'consummate' refers to the completion or finalization of a business arrangement, contract, or event. It signifies the successful conclusion of a particular process or agreement.
- Consumption
Consumption represents the total spending by individuals or a nation on goods and services during a specific time period. This macroeconomic concept reflects the usage of resources, and although many durables like clothing, appliances, and automobiles are consumed over a longer period, their expense is accounted for within the consumption cycle.
- Consumption Function
The consumption function is a mathematical relationship between the level of consumption and the level of income. It posits that consumption is greatly influenced by income.
- Consumption Possibility Line
The Consumption Possibility Line represents the maximum amounts of consumption possible at varying levels of disposable income, or of Gross Domestic Product (GDP).
- Consumption, Investment, Government Expenditures (C&I or C&I&G)
Consumption, Investment, Government expenditures (C&I or C&I&G) are key components of the Gross Domestic Product (GDP), used to measure a country's economic performance.
- Container Ship
A container ship is a type of vessel specifically designed for the transportation of cargo packed into large, standardized containers. It revolutionizes the shipping industry by allowing for efficient and flexible movement of goods.
- Contingencies in Accounting
Contingencies in accounting refer to potential gains and losses that are known to exist at the balance-sheet date. These outcomes will only be known after one or more future events occur or do not occur. The way these contingencies are handled in financial statements depends on their nature, and specific accounting standards provide the required guidance.
- Contingency
A contingency is a potential event or circumstance that is uncertain but could have either positive or negative consequences on an entity's financial situation or operations. It is often considered in risk management and financial planning.
- Contingency Fund
A contingency fund is an amount reserved for a possible loss, such as those caused by a business setback. Contingency funds and other reserves set aside are not deductible for tax purposes.
- Contingency Leadership
Contingency Leadership Theory, advanced by Frederick E. Fiedler, posits that successful leadership styles are determined by the specific situation or context within an organization. According to this theory, effective leadership depends on an alignment between leadership style and situational variables, rather than a one-size-fits-all approach.
- Contingency Planning
Contingency planning is an approach used to anticipate future events that, while unlikely, are possible. It involves creating a plan of action to respond effectively if these events occur. Examples include crisis management and disaster recovery plans.
- Contingency Table
A contingency table is a type of data matrix presenting sample observations classified by two or more characteristics, such as categories or attributes.
- Contingency Theory of Management Accounting
The Contingency Theory of Management Accounting posits that there is no single universally acceptable management accounting system suitable for all organizations or consistently effective within an organization across all situations. Instead, accounting systems must adapt to prevailing circumstances, such as shifts in the environment, competition, organizational structures, and technology.
- Contingent Agreement
A Contingent Agreement is a contract arrangement in which certain obligations depend on the occurrence of a particular event. These agreements often come into play during mergers and acquisitions, real estate transactions, and litigation settlements.
- Contingent Asset
A possible asset that arises from past events and whose existence will be confirmed only by the occurrence of one or more uncertain future events, beyond the control of the accounting entity.
- Contingent Beneficiary
A contingent beneficiary is an individual or entity entitled to receive the proceeds or benefits of a trust or estate only when a specified event occurs, such as the death of a named beneficiary.
- Contingent Consideration
Contingent consideration refers to a payment made as part of a business acquisition that is contingent on future events. This concept is commonly used in earn-out agreements.
- Contingent Contract
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.
- Contingent Fee
A contingent fee is a payment to a lawyer for legal services that depends, or is contingent, upon winning the case. Often indicates a percentage of the awarded amount.
- Contingent Gain
A contingent gain is an economic benefit that may be realized when a favorable event occurs, though it is not guaranteed and depends on future uncertainties.
- Contingent Liability
Either a possible obligation arising from past events that will be confirmed by one or more uncertain future events not wholly within an entity's control, or a present obligation from past events that cannot be measured reliably or is not probable to require settlement.
- Contingent Liability (Vicarious Liability)
A contingent liability refers to potential financial obligations that a business may incur due to actions of parties other than its own employees, notably when independent contractors are involved.
- Contingent Loss
A contingent loss is an economic loss that may occur in the future depending on the outcome of a specific event, typically related to a contingent liability.
- Contingent Rent
An element of rent that varies based on certain conditions, such as sales, usage, interest rates, or inflation indexes, rather than being fixed at the inception of the lease.
- Continuation of Benefits
A right conferred by federal law on employees and their spouses and dependents to continue participation in an employer-sponsored healthcare plan even after their coverage is terminated due to specified events such as death or divorce of the employee.
- Continuing Education
Courses offered by colleges or other institutions that are not for degree credit. Many professions require licensed individuals to take a certain number of continuing education hours or units (CEUs) each year.
- Continuity
Continuity in marketing refers to the existence of a similar theme throughout an advertising or marketing campaign. It also pertains to the length of uninterrupted media schedules, ensuring consistent and cohesive messaging over time.
- Continuity of Life
Continuity of Life refers to the characteristic of a corporate structure where the organization continues its existence despite the death, incapacity, bankruptcy, retirement, resignation, or expulsion of its members.
- Continuous Audit
A continuous audit is an in-depth examination of financial records conducted on a recurring basis throughout the accounting period, aimed at detecting and correcting mistakes and improper accounting practices before the reporting year-end.
- Continuous Budget
A budget for a future month or quarter, which is added to an organization's budget as the past month or quarter is dropped. The entire period's budget is revised and updated as necessary, prompting management to continuously consider short-range plans.
- Continuous Improvement
The ongoing process of improving an organization's goods or services, with the aim of increasing customer satisfaction. In a highly competitive environment, organizations need to actively seek ways to reduce costs, improve quality, and eliminate waste.
- Continuous Process
An industrial process that continuously receives raw materials and processes them through to completed units. Hospital healthcare is a 24-hour-a-day, 7-day-a-week continuous process.
- Continuous Production
Continuous production is a manufacturing process where raw materials are constantly fed into the production system to create a standardized product.
- Continuous Reinforcement
In motivational theory, continuous reinforcement refers to the process of providing an individual with positive feedback on a continuous basis. It is a method often used to enhance and maintain desirable behavior by offering immediate and consistent reinforcement after each occurrence of the target behavior.
- Continuous Stocktaking (Continuous Inventory, Continuous Stock-Checking, Perpetual Audit)
Continuous stocktaking is a system of inventory management designed to regularly verify stock levels by counting and reconciling physical stock with accounting records.
- Continuous-Operation Costing
A system of costing applied to industries where production methods are continuous, such as in electricity generation and bottling. This system uses average costing to determine unit cost by dividing the total production cost by the number of items produced.
- Continuously Contemporary Accounting (CoCoA)
Continuously Contemporary Accounting (CoCoA) is an accounting methodology that values assets and liabilities based on their current market conditions rather than historical costs.
- Continuously Contemporary Accounting (CoCoA)
A method of accounting that evaluates a company's financial position based on its ability to adapt to changing environments and recognizes general price level changes. While favored by some academics, it has seen limited interest among practitioners.
- Contra Account
A contra account is an account used in a general ledger to reduce the value of a related account. These entries are used to adhere to accounting principles such as matching and conservatism.
- Contra Accounts
Contra accounts are used in financial accounting to offset balances between accounts, often simplifying the settlement process and providing clearer financial statements.
- Contract
A contract is a legally binding agreement that arises from an offer and acceptance, meeting certain legal criteria and compliance for enforceability.
- Contract Carrier
A contract carrier is a transportation service that accepts people or goods from one or more shippers under an agreement for compensation, typically providing specialized services and equipment tailored to meet the unique needs of its customers.
- Contract Cost
Contract cost refers to the total cost incurred in fulfilling a long-term contract, typically calculated using contract costing techniques.
- Contract Costing
Contract costing is a costing technique used for long-term contracts like civil engineering projects, where costs are allocated on a contract-by-contract basis. It addresses the complications in determining annual profits for incomplete contracts through the valuation of work in progress.
- Contract for Differences (CFD)
A financial derivative that allows traders to speculate on the price movement of underlying assets without owning them.
- Contract for Differences (CFD)
A derivative contract in which one party agrees to pay another the difference between the current value of an underlying asset and the value at the time the contract was made.
- Contract for Services
A contract undertaken by a self-employed individual, distinguishing it from a contract of employment. Understanding the distinction is crucial for tax purposes.
- Contract Interest Rate
The contract interest rate, also known as the face interest rate or nominal interest rate, is the stated annual interest rate on a loan or bond, before any adjustments for compounding or inflation.
- Contract of Employment
A Contract of Employment defines the relationship between an employer and an employee, outlining duties, control measures, and compensation.
- Contract of Indemnity
A contract of indemnity in property and liability insurance aims to restore the insured to their original financial condition after suffering a loss, without allowing for profit from the loss.
- Contract Price in an Installment Sale
The contract price in an installment sale, for tax purposes, is generally defined as the selling price less the existing mortgages assumed by the buyer. This definition is crucial for correctly determining the taxable portion of payments received from the sale.
- Contract Rate
The contract rate, also known as the face interest rate, refers to the interest rate stated on a financial instrument, such as a bond or loan, which dictates the amount of interest the issuer will pay periodically to the holder.
- Contract Rent
Contract Rent refers to the amount of rent that has been explicitly stipulated in a lease agreement between a tenant and a landlord.
- Contraction
In the context of finance and economics, contraction can refer to various scenarios including the distribution of assets and economic downturns. It is important to distinguish these different contexts to understand the implications fully.
- Contractor
A contractor is an individual or company who contracts to do work for another party. Independent contractors take on specific tasks while maintaining control over the means and methods of executing the job.
- Contrarian Investing
Contrarian investing is a strategy that involves going against prevailing market trends by buying assets that are performing poorly and selling those that are performing well. Contrarian investors believe that markets often overreact to news and developments, leading to opportunities for buying low and selling high.
- Contributed Capital
Contributed capital, also known as paid-in capital, refers to the total value of cash and other assets that shareholders have directly invested in a company in exchange for stock. This equity portion represents funds that are raised and used for the growth and operational needs of the business.
- Contribution Income Statement
A financial statement that presents income using the marginal costing layout, emphasizing the distinction between variable and fixed costs, and aids in understanding the profitability of products based on contribution margins.
- Contribution Margin Ratio
The contribution margin ratio, also known as the contribution-to-sales ratio, production-volume ratio, or profit-volume ratio, is a financial metric that shows the relationship between a product’s contribution margin and its sales value. This ratio is essential for ranking products based on their relative profitability.
- Contribution Profit Margin
In cost accounting, Contribution Profit Margin is the excess of sales price over variable costs. It provides an amount to offset fixed costs, thus contributing to gross profit.
- Contribution to Capital
Contribution to capital refers to the funds or assets provided by shareholders or owners to a company, which increases the company's equity but does not constitute income for tax purposes.
- Contributions
Contributions in the context of finance and taxation refer to payments made by individuals or businesses, either for charitable purposes or as required unemployment taxes. Understanding the implications of these contributions is crucial for effective financial planning.
- Contributory Negligence
A principle of law recognizing that injured persons may have contributed to their own injury. This concept can significantly impact the ability to recover damages in personal injury cases.
- Contributory Pension
A contributory pension is a type of pension scheme where both the employee and the employer contribute to the employee's pension fund.
- Contributory Pension Plan
A contributory pension plan is a retirement savings plan in which both the employee and employer contribute funds. These plans are designed to provide financial security to employees after retirement by pooling resources from both parties.
- Control Accounts
Control accounts are ledger accounts structured to equal the aggregate balances of a large number of subsidiary accounts, serving functions such as consolidating data and providing cross-verification of subsidiary record accuracy.
- Control in Accounting
Control refers to the ability of one entity to direct the financial and operating policies of another entity or to obtain the economic benefits from an asset. This term is central to the consolidation of financial statements and the conceptual framework for financial reporting.
- Control Key
A control key on a computer keyboard functions primarily in combination with other keys to execute specific commands. On PC keyboards, these include the Ctrl and Alt keys in addition to the Shift key. The Apple equivalents are the Command and Option keys.
- Control Period
A control period is the span of time for which budgeted figures are compared with actual results. Splitting up the financial year into control periods makes control of the financial figures more manageable.
- Control Premium
An amount paid above the average market value of shares to gain enough ownership to set policies, direct operations, and make decisions for a business. Contrast with Minority Discount.
- Control Risk
Control risk, also known as internal control risk, refers to the possibility that misstatements in a company's financial statements will not be prevented or detected on a timely basis by the internal control system. It is an essential component of audit risk and requires an in-depth assessment during the auditing process.
- Controllability Concept
The principle that managers should only be held responsible for the costs and investments they have the ability to influence directly. Understanding and applying the controllability concept is crucial for effective managerial accountability and performance evaluation.
- Controllable Contribution
Controllable Contribution refers to the sales revenue of a division, less those costs that are controllable by the division's manager. It is a key metric for assessing the performance of divisional managers.
- Controllable Costs
Controllable costs are expenses that can be directly influenced and managed by a particular level of management. Responsibility is assigned to specific personnel who can influence these costs within an organization.
- Controllable Investment
A measure of the capital employed that is under the direct influence of a divisional manager, used to accurately assess performance.
- Controllable Variance
In standard costing or budgetary control, a controllable variance is a variance regarded as controllable by the manager responsible for that area of an organization. The variance occurs as a result of the difference between the budget cost allowance and the actual cost incurred for the period.
- Controlled Corporation
A controlled corporation is a company whose policies and major decisions are determined by another firm, which owns more than 50% of its voting shares.
- Controlled Economy
A controlled economy is a type of economic system where the government exerts significant control over production, distribution, and consumption of goods and services, rather than relying on market forces. This model is often associated with socialist and communist economies.
- Controlled Foreign Company (CFC)
A Controlled Foreign Company (CFC) is a foreign-based corporation that is controlled by residents of the home country, allowing individuals or companies to potentially shift profits and reduce their tax liabilities.
- Controlled Group
A Controlled Group is defined as two or more corporations whose stock is substantially held by five or fewer persons. Included in this category are brother-sister groups, parent-subsidiary groups, combined groups, and certain insurance companies. These corporations are subject to special rules for computing income tax, the alternative minimum tax (AMT) exemption, the accumulated earnings credit, and the environmental tax exemption.
- Controller
In the USA, the chief accounting executive of an organization responsible for financial reporting, taxation, and auditing but typically leaving the planning and control of finances to the treasurer.
- Controlling Interest
An interest in a company that gives a person or another company control of it, usually through ownership of more than half the voting shares. Controlling interest can also be achieved with fewer shares if they are widely dispersed.
- CONUS
CONUS stands for the Continental United States, referring specifically to the 48 contiguous states and the District of Columbia. This designation is often used in federal regulations to differentiate from OCONUS, which includes Alaska, Hawaii, and other U.S. territories.
- Convenience Food
Convenience food refers to processed food products and prepared meals designed for fast and easy consumption, appealing to individuals who lack the desire or time to cook.
- Convenience Goods
Frequently purchased consumer items that provide convenience in terms of time savings and utilitarianism. Examples include hair spray, shaving cream, and tissues.
- Convenience Sampling
Convenience sampling is a non-probability sampling method where the sample is taken from a group that is easy to access or contact.
- Convenience Store
A convenience store primarily trades on the convenience it offers to customers. The products stocked may be influenced by local tastes or ethnic groups, and the stores often have extended hours and are conveniently situated in residential areas. They are often part of a chain.
- Convention
In accounting, a convention refers to a general agreement, customary practice, or accepted norm that is followed by accountants in the preparation and presentation of financial statements. Accounting conventions aim to provide consistency and comparability across financial statements.
- Conventional Mortgage
A conventional mortgage is a residential mortgage loan that is not insured by the Federal Housing Administration (FHA) or guaranteed by the Veterans Administration (VA). It often refers to a mortgage with a fixed term and a fixed rate.
- Conversion (Tort)
Conversion is the tort equivalent to the crime of theft. It involves the unauthorized taking or use of someone else's property and can result in damages being awarded to the rightful owner.
- Conversion Cost
The costs incurred in a production process as a result of which raw material is converted into finished goods. The conversion costs usually include direct labor and manufacturing overheads but exclude the costs of direct material itself.
- Conversion Parity
Conversion parity is a concept in finance that refers to the equivalence between the value of a convertible security, such as a convertible bond, and the value of the common stock into which it can be converted.
- Conversion Price
The dollar value at which convertible bonds, debentures, or preferred stock can be converted into common stock; announced when the convertible security is initially issued.
- Conversion Ratio
The conversion ratio is a relationship that determines how many shares of common stock will be received in exchange for each convertible bond or preferred share when the conversion takes place.
- Conversion Right
A conversion right is a provision under the terms of a debenture trust deed that provides the investor with an option to convert their debt into equity.
- Converter
A converter is an active real estate entrepreneur who changes the ownership and/or physical configuration of property.
- Convertible Currency
A currency for which there are no barriers or restrictions in the foreign exchange market, allowing it to be freely exchanged for other currencies.
- Convertible Securities
Convertible securities can be crucial financial instruments for both investors and companies, offering the potential for conversion into common stock under specific conditions.
- Convertible Term Life Insurance
Convertible Term Life Insurance is a type of life insurance coverage that can be converted into permanent insurance regardless of the insured's physical condition, and without a medical examination.
- Convertibles
Convertibles are corporate securities, typically preferred shares or bonds, that are exchangeable for a set number of another form, commonly common shares, at a preset price.
- Convey
In real property law, 'convey' refers to the transfer of property from one party to another through a written instrument and other necessary formalities.
- Conveyance
Conveyance refers to the act of transferring the title of real estate property from one party to another. This term can also denote the medium or method used to effect such transfer.
- Conveyancing
Conveyancing is the legal process of transferring property ownership from one person to another. It involves a series of administrative and legal checks to ensure the transaction is legitimate and secure.
- Cook the Books
To falsify financial records or statements with the intention of misleading others about the financial performance or financial position of an accounting entity.
- Cookie
A small file downloaded to your computer when you browse a web page. Cookies hold information that can be retrieved by other pages at the site.
- Cooling-Off Period
A cooling-off period is an interval designated by regulation or agreement, during which specific actions, such as the launching of securities to the public or striking by a union, are prohibited to provide time for due consideration and resolution.
- Cooperative
A cooperative, commonly known as a co-op, is a type of corporate ownership of real property where stockholders of the corporation are entitled to use a certain dwelling unit or other units of space. It can also be an organization for the production or marketing of goods owned collectively by members who share the benefits.
- Cooperative (Co-Op)
A cooperative, or co-op, is a real estate arrangement where tenants or members own shares in a corporation that owns the building, and often entails collaboration between agents in real estate transactions.
- Cooperative Advertising
Cooperative advertising, often referred to as co-op advertising, is a cost-sharing arrangement where manufacturers and retailers or distributors collaborate to promote a product or brand. This mutually beneficial strategy leverages the strengths and resources of both parties to optimize marketing efforts and expand market reach.
- Cooperative Advertising
Cooperative Advertising, also known as co-op advertising, is a strategic partnership between manufacturers and retailers where the manufacturer provides financial support to the retailer for advertising expenditures. This collaboration aims to boost the brand and sales of both parties by combining resources and efforts in advertising campaigns.
- Copy-Protected Software
Computer software that cannot be fully copied by the software tools normally used for such purposes, designed to prevent unauthorized duplication.
- Copyright
Copyright is the protection granted by statute or by the common law, giving artists and authors exclusive rights to publish their works or to determine who may do so.
- CORE
The term 'core' has multiple definitions across various fields including technology, economics, and hardware, among others. This article provides a detailed definition, examples, frequently asked questions, related terms, and suggested resources for further study.
- Core Competence
Core competence refers to a distinctive employee, product, or service capability that leads to a long-term organizational advantage.
- Core Inflation
Core inflation is the measure of inflation which excludes certain volatile items, usually food and energy, to provide a clearer picture of the long-term inflation trend.
- Core Values
Core values are the fundamental beliefs or guiding principles of an organization or individual. These values dictate behavior and help in decision-making, setting a foundation for organizational culture and personal conduct.
- Core-Based Statistical Area (CBSA)
A statistical geographic entity comprised of at least one core area with a population of at least 10,000 people, along with adjacent counties that have high social and economic integration with the core.
- Corner Lot
A corner lot is a parcel of land that is bounded on at least two sides by the intersection of two roads. Corner lots are often considered more valuable because they offer greater visibility and ease of access.
- Cornering the Market
An illegal practice of purchasing a security or commodity in such volume that control over its price is achieved.
- Corporate Acquisition
A corporate acquisition involves one company purchasing most or all of another company's shares to gain control of that company, which can lead to significant structural and operational changes.
- Corporate Bond
A Corporate Bond is a debt instrument issued by a private corporation, as distinct from one issued by a government agency or a municipality. Corporate bonds typically have three distinguishing features: they are taxable, have a par value of $1,000, and have a fixed maturity.
- Corporate Campaign
A corporate campaign is a program of coordinated advertisements aimed at improving a business's corporate image rather than specifically promoting the company's products or services.
- Corporate Charter
A corporate charter is a legal document that establishes a corporation's existence and outlines its basic operational structure, rights, and responsibilities. Also known as articles of incorporation, it is filed with the state government and includes key details about the corporation.
- Corporate Culture
Corporate culture refers to the general organizational operating environment, including ethical and value structures, impacting employees, management, and customer relations, as well as the types of products and services the organization produces, and the approaches to production, marketing, advertising, and service quality.
- Corporate Failure Prediction
The use of various techniques to assess whether a company is likely to go into liquidation, utilizing models such as Altman's Z score and Argenti's failure model based on financial statements.
- Corporate Governance
Corporate governance refers to the system by which companies are directed and controlled, focusing on the structure and relationships that determine corporate performance and accountability.
- Corporate Governance Code
A code of best practice in corporate governance that outlines expected standards for UK's listed companies, originally issued with the Hampel Report of 1998.
- Corporate Insider
An individual within a corporation who has access to privileged, non-public information about the company’s activities, often due to their significant shareholding or role within the company.
- Corporate Modelling
Corporate modelling involves the use of simulation models to assist the management of an organization in planning and decision-making. A budget is a quintessential example of a corporate model.
- Corporate Performance Management
Corporate Performance Management (CPM) encompasses the methodologies, metrics, processes, and systems used to monitor and manage the business performance of an enterprise. CPM is a form of business intelligence used to gauge and manage organizational performance to achieve strategic goals and corporate initiatives.
- Corporate Reorganization
Corporate reorganization involves significant changes in the structure of a corporation through mergers, acquisitions, divisive acquisitions, or other forms of restructuring.
- Corporate Report
Corporate reports are comprehensive packages of information that describe the economic activities of an organization. For limited companies, these typically take the form of annual reports and accounts, aimed at providing stakeholders with a detailed view of the company's financial health.
- Corporate Social Reporting
Corporate social reporting involves the disclosure of an organization's performance in social, environmental, and ethical dimensions. It reflects a company's commitment to social responsibility and transparency to stakeholders.
- Corporate Social Responsibility (CSR)
The notion that a company has responsibilities to society that go beyond its legal obligations and its duties to shareholders. CSR includes a company's impact on the environment, ethical issues, and internal policies regarding transparency and fair treatment of employees.
- Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR) is a business model in which companies integrate social and environmental concerns in their operations and interactions with stakeholders.
- Corporate Strategic Planning
Corporate strategic planning is a management process involving the determination of the basic long-term objectives of an organization and the adoption of specific action plans to attain these objectives. It encompasses the analysis of the environment, establishing objectives, performing situational analyses, selecting alternative strategies, and implementing and monitoring the strategic plans.
- Corporate Structure
Setup of an organization in terms of departments and agencies; distribution and delegation of functional responsibilities throughout an organization. Reacting to a complex environment of business, the modern organization has become very complex, usually having many departments with a wide array of responsibilities.
- Corporate Veil
The corporate veil is a legal concept that separates the actions and liabilities of a corporation from its shareholders or officers, offering them protection against personal liability. Courts may pierce the corporate veil to hold individuals accountable for a corporation's actions.
- Corporate Venturing Scheme (CVS)
A former UK scheme designed to encourage established companies to invest in the full-risk ordinary shares of companies similar to those qualifying under the Enterprise Investment Scheme (EIS). Companies investing through the CVS obtained corporation tax relief (at 20%) on the amount invested, provided that the shares were held for at least three years. The scheme was discontinued in 2010.
- Corporate Venturing Scheme (CVS)
Corporate Venturing Scheme (CVS) is an initiative where large corporations invest in small start-ups or emerging firms. This strategy helps established companies gain innovative capabilities while providing financial and strategic support to the emerging enterprises.
- Corporation
A corporation is a legal entity composed of individuals that acts as a single entity with distinct legal rights and liabilities, separate from its members. It can be created by various legal forms, and can either be composed of a single person or several individuals.
- Corporation Tax (CT)
Corporation Tax (CT) is a tax charged on the total profits of a company resident in the UK during each accounting period. The rate of corporation tax varies depending on the level of profits of the company.
- Corporation Tax (CT)
Corporation Tax (CT) is a tax imposed on the profits of corporations or businesses. This tax is calculated and administered by national governments and varies widely between countries.
- Corporeal
Corporeal refers to having material reality and being the opposite of incorporeal or intangible. It is used to describe objects or entities that exist in physical form.
- Corpus
The term 'Corpus' refers to the principal or res of an estate, trust, devise, or bequest from which income is derived, consisting of funds, real estate, or other tangible or intangible property. In civil law, it refers to a positive fact, as distinguished from a possibility.
- Correcting Entry
A correcting entry is an accounting entry made to fix an error in a previously recorded transaction to ensure that the financial statements accurately reflect the financial position and performance of a business.
- Correlation
Correlation refers to the statistical measure that describes the degree to which two variables move in relation to each other. Its value ranges between -1 and 1, indicating the strength and direction of the relationship.
- Correlation Coefficient
A statistical measure of the degree to which the movements of two variables are related. It quantifies the direction and strength of the relationship between variables.
- Correspondence Audit
An examination of a tax return that is conducted largely by telephone or mail, usually involving substantiation or explanation of only a few items.
- Correspondent
In financial contexts, a correspondent refers to a financial organization that regularly performs services on behalf of another institution within markets that the latter finds inaccessible. This commonly involves a depository relationship to cover expenses and streamline transactions.
- Correspondent Bank
A correspondent bank in a foreign country offers banking facilities to the customers of a bank in another country. These arrangements are usually the result of agreements, often reciprocal, between the two banks. The most frequent correspondent banking facilities used are those of money transmission.
- Corresponding Amount
Corresponding amount refers to an amount in the published financial accounts of a limited company that relates to the previous financial year to provide a basis for comparison.
- Corridor
A corridor is a long, narrow strip of land designated for a specific purpose such as a rail line, highway, pipeline, or overhead power line, facilitating efficient transportation or utility distribution.
- Cosign
The act of affixing one's signature on a contract, such as a loan, in addition to the principal signature of another. Both signers are liable for the loan or other contract.
- Cosigner
A cosigner is an individual who agrees to take on the financial obligations of a loan or debt if the primary borrower defaults. This person provides assurance to the lender of repayment.
- Cost
The expenditure on goods and services required to carry out the operations of an organization. Different methods of defining cost are used in accounting to reflect various aspects of financial reporting and decision making.
- Cost Absorption
Cost absorption involves assigning all costs, both fixed and variable, to the product or service being produced or delivered.
- Cost Accounting Standards Board (CASB)
The Cost Accounting Standards Board (CASB) is a regulatory board established in the USA in 1970 by Congress to promote consistency and uniformity in cost-accounting practices among government contractors, facilitating accurate reporting of costs associated with government contracts.
- Cost Accumulation
Cost accumulation is the systematic process of gathering costs associated with production activities, allowing businesses to determine the total cost required to manufacture products in an organized manner.
- Cost Allocation
Cost allocation is the process of assigning indirect costs to specific cost objects in a way that reflects resource consumption. This is crucial for making informed decisions, setting prices, and measuring profitability.
- Cost and Freight (C&F)
Cost and Freight (C&F) denotes a shipping agreement wherein the seller is responsible for covering the cost and freight to transport goods to a specified destination. However, the buyer assumes the responsibility for insurance once the goods are loaded onto the shipping vessel.
- Cost Application
Cost Application refers to the allocation of costs to a product, process, or department using a rational allocation basis. For example, rent expense can be allocated to each department based on its square footage.
- Cost Apportionment
Cost apportionment, a vital concept in accounting, involves the distribution of costs across various departments, products, or periods based on specific criteria. This ensures that expenses are accurately allocated, enabling precise financial tracking and reporting.
- Cost Approach
The cost approach is a method of appraising property based on summing the reproduction cost of improvements, minus depreciation, to the market value of the site.
- Cost Ascertainment
The process of determining the costs of the operations, processes, cost centres, and cost units within an organization.
- Cost Assignment (Cost Attribution)
Cost Assignment or Cost Attribution refers to the procedures by which direct or indirect costs are charged to or made the responsibility of particular cost centers, and ultimately charged to the products manufactured or services provided by the organization.
- Cost Basis
Cost basis refers to the original price of an asset and is fundamental in determining depreciation as well as capital gains or losses. Typically, it is the purchase price, but in cases of inheritance, it is the market value of the asset at the donor's death.
- Cost Behaviour
Cost Behaviour refers to the relationship and changes in total costs as a response to changes in activity levels within an organization, playing a crucial role in breakeven analysis and decision-making techniques.
- Cost Center
A cost center is a non-revenue-producing segment of an organization where costs are separately figured and allocated, and for which someone has formal responsibility. Common examples include departments like Human Resources (HR) and IT services.
- Cost Centre
A cost centre is an area of an organization for which costs are collected for the purposes of cost ascertainment, planning, decision-making, and control.
- Cost Classification
Cost classification is the process of grouping expenditures according to common characteristics, facilitating the proper allocation and management of expenses within an organization.
- Cost Code
Cost codes are standardized numerical systems used in accounting and project management to categorize and track specific types of expenditures.
- Cost Containment
Cost containment is the process of maintaining organizational costs within a specified budget, focusing on restraining expenditures to meet organizational or project financial targets.
- Cost Control
Cost control refers to the techniques used by various levels of management within an organization to ensure that costs incurred fall within acceptable levels. It involves the provision of financial information to management by the accountant and the use of various techniques such as budgetary control and standard costing to highlight and analyze any variances.
- Cost Control Account
Cost control accounts, also known as cost ledger control accounts, are essential for capturing and managing all costs associated with a company's production processes.
- Cost Convention
The cost convention refers to the basis used for recording costs charged against profit during an accounting period, which can be based on historical cost, current cost, or replacement cost.
- Cost Depletion
Cost depletion refers to the method used to recover the tax basis in a mineral deposit by deducting it proportionately over the productive life of the deposit. It is contrasted with the percentage depletion method.
- Cost Driver
In a system of activity-based costing, any factor such as the number of units, number of transactions, or duration of transactions that drives the costs arising from a particular activity. When such factors can be clearly identified and measured, they serve as the basis for allocating costs to cost objects.
- Cost Estimating
Cost estimating involves determining the total costs of labor, materials, capital, and professional fees required for a proposed product. This process is crucial in project management, construction, manufacturing, and other sectors where budgeting and financial planning are essential.
- Cost Estimation
Cost estimation is the process of predicting the cost of a project, product, or service by assessing the unit costs of direct costs and overheads for the purposes of planning, control, and pricing.
- Cost Function in Accounting
A Cost Function is a formula or equation that represents how specific costs behave when visualized on a graph. It typically depicts total cost as the sum of fixed costs and variable costs.
- Cost Item
A cost item refers to a category of costs incurred by an organization that are similar in nature. These costs are collected together both for reporting purposes and because they can be subjected to similar treatment by the costing system. Examples include rent, consumable materials, and sundry selling expenses.
- Cost Ledger
A comprehensive record-keeping system to maintain the transactions associated with a company's cost accounting. It facilitates detailed tracking of costs and aids in financial control and reporting.
- Cost Ledger Control Account
The Cost Ledger Control Account, also known as the Cost Control Account, is an essential component of an accounting system where separate books are maintained for financial and cost records, ensuring the accuracy and integrity of the overall accounting system.
- Cost Method
The Cost Method is an accounting technique used by a parent company for investments in subsidiary companies, particularly when ownership is less than 20% of the outstanding voting common stock.
- Cost Model
The traditional method of measuring fixed assets where they are valued at their historical cost less accumulated depreciation, with an alternative being the revaluation model.
- Cost Object
A cost object is any item for which a separate measurement of costs is desired, including products, services, customers, or specific operations.
- Cost Objective
A cost objective is the budget limit set for an activity, task, or project, intended to constrain spending within predefined financial boundaries to ensure financial discipline and project feasibility.
- Cost of Capital
The cost of capital is the return, expressed in terms of an interest rate, required by an organization to finance its activities. It can vary depending on the types of capital employed, such as equity share capital or loan capital. A unique weighted average cost of capital (WACC) is often computed for each organization based on their specific mix of capital sources. The cost of capital is frequently used as a hurdle rate in discounted cash flow calculations.
- Cost of Carry
Cost of carry refers to the expenses associated with holding a particular asset over a period of time, which can include storage costs, insurance, and financing.
- Cost of Debt
The effective overall rate of interest that a company pays on its loans, bonds, and other debts, used in calculating the total cost of capital for that firm. This is usually calculated as an after-tax figure.
- Cost of Equity
The rate of return that a company's shareholders expect for holding stock in that company, used as part of the calculation of the total cost of capital for a firm. It represents the opportunity cost to investors of holding shares. The cost can be calculated by a formula dividing dividends per share by the current market value and adding the dividend growth rate.
- Cost of Funds
Cost of funds refers to the interest cost paid by a financial institution for the use of money, including various liabilities such as money market accounts, passbook savings accounts, and CDs.
- Cost of Goods Manufactured (COGM)
The Cost of Goods Manufactured (COGM) represents the total production cost of finished goods transferred from a production facility to inventory over an accounting period.
- Cost of Goods Sold (COGS)
An essential metric in accounting, Cost of Goods Sold (COGS) represents the direct costs associated with the production of goods sold by a company. This value is critical in determining the business's gross profit and provides insights into the efficiency and cost management of production processes.
- Cost of Quality
The total costs incurred to ensure good quality or rectify poor quality. By enhancing quality, managers can reduce costs and boost profits. These costs are categorized into prevention, appraisal, internal failure, and external failure costs.
- Cost of Sales (Cost of Goods Sold, COGS)
A key financial metric representing the direct costs to an organization of supplying goods or services, used to calculate gross profit by deducting this figure from sales revenue.
- Cost of Sales Adjustment (COSA)
Cost of Sales Adjustment (COSA) refers to modifications made to the cost of goods sold (COGS) to reflect changes in inventory levels, obsolescence, shrinkage, or other factors that may affect the reported cost of sales.
- Cost of Sales Adjustment (COSA)
Cost of Sales Adjustment (COSA) refers to an adjustment made to the trading profit of an organization due to a holding gain on the cost of sales, commonly within the framework of current-cost accounting.
- Cost Overrun
A cost overrun occurs when the actual cost of a project exceeds the project budget, requiring additional funding to cover the shortfall. This situation necessitates revisiting financial planning and resource allocation.
- Cost Pool
A cost pool is an accounting term referring to a grouping of individual costs typically by department or service center. These groupings are used to allocate and better manage indirect costs.
- Cost Prediction
Cost prediction involves forecasting future cost levels based on historical cost behavior using various statistical techniques, such as linear regression, to inform budgeting, decision-making, and strategic planning.
- Cost Records
Cost Records refer to documents that provide evidence of the prices at which investments were purchased or the costs incurred in producing goods, providing services, or supporting activities. These records are essential for calculating capital gains and substantiating financial performance.
- Cost Segregation
Cost segregation is the process of accurately classifying assets for federal tax depreciation, which can result in significant tax savings for businesses. This process involves a professional and supportable analysis of the property to separate faster depreciable assets.
- Cost Sheet
A cost sheet is a form used in costing to collect and present all the costs associated with a service, product, process, or cost center, often for management analysis or use in a costing system.
- Cost Standard
A predetermined level of cost expected to be incurred by a specific cost item in the supply, production, or operation of a service, product, process, or cost centre. Cost standards are often applied to performance standards in order to calculate standard overhead costs.
- Cost Tracing
Cost tracing refers to the process of directly associating costs with specific cost objects such as projects, departments, or products, ensuring more accurate tracking of financial performance.
- Cost Unit
A cost unit represents a unit of production for which costs are aggregated. It can vary from a single item like a chair or light bulb to a sub-assembly in more complex products like an aircraft wing or gearbox. In cases where individual unit costs are minimal, cost units might be expressed as batches.
- Cost-Benefit Analysis
Cost-Benefit Analysis is a technique used in capital budgeting that evaluates the estimated costs against the expected benefits of a proposed investment.
- Cost-Effectiveness
Cost-effectiveness refers to the ability to generate sufficient value to offset the associated costs of an activity. In a business context, this value is often interpreted as revenue.
- Cost-of-Living Adjustment (COLA)
A Cost-of-Living Adjustment (COLA) is an increase in income that keeps up with the cost of living. It is typically used in wage contracts, pensions, social security benefits, and other financial agreements to counteract inflation.
- Cost-of-Living Adjustment (COLA)
A COLA is an adjustment in wages or benefits intended to offset changes in the cost of living, typically indexed to metrics such as the Consumer Price Index (CPI).
- Cost-of-Living Index
The Cost-of-Living Index is a tool that measures the relative cost of living over time or between different locations. It is typically used to compare the expense required to maintain a certain standard of living across various cities or countries.
- Cost-Plus Contract
A cost-plus contract is an agreement where a supplier is reimbursed for all costs incurred in generating a product or service, plus a specified profit margin. This form of contract is commonly used in situations with unpredictable costs or projects requiring substantial research.
- Cost-Plus Pricing
A method to establish the selling price of a product or service by estimating the total cost and adding a percentage mark-up to achieve a profitable price.
- Cost-Plus Transfer Prices
Cost-plus transfer prices are set by cost-plus pricing, which includes a mark-up to provide a profit for the supplying division. This method incorporates variable costs and fixed costs for the purpose of setting a transfer price that includes a profit margin.
- Cost-Plus-Percentage Contract
An agreement on a construction project where the contractor earns a specified percentage profit over the actual costs incurred. This contract type is considered suboptimal due to reduced incentives for cost control. An alternative approach is the cost-plus-fixed-fee contract.
- Cost-Push Inflation
A type of inflation caused by increasing prices, typically resulting from rising costs of production inputs such as raw materials and wages.
- Cost-Volume-Profit (CVP) Analysis
Cost-Volume-Profit (CVP) Analysis helps businesses understand how changes in costs and volume affect a company's operating income and net income, providing critical insights for decision-making in financial planning and strategy.
- Cost-Volume-Profit (CVP) Analysis
Cost-Volume-Profit (CVP) analysis is a method used by businesses to understand the inter-relationships between cost, volume, and profit. It helps in decision-making by determining the break-even point, analyzing the profit potential of a company, and evaluating the impact of different levels of sales and production.
- Cost, Average
The cost per unit of production that a firm sustains at varying levels of output.
- Cost, Insurance, and Freight (CIF)
Cost, Insurance, and Freight (CIF) is a trade term used in international shipping to indicate that the seller covers the cost, insurance, and freight charges up to the destination port.
- Costing Methods
Techniques and procedures in cost accounting and management accounting to obtain the costs of services, products, processes, and cost centers for decision making, planning, and control.
- Costing Principles
Costing principles are the fundamental guidelines that direct how costs are recorded and reported in management accounting, ensuring that financial data is accurate and useful for decision making.
- Cottage Industry
A cottage industry is a system of production where goods are manufactured by artisans or workers at their homes rather than in factories. These are often small-scale and involve manual or semi-mechanized operations.
- Council of Economic Advisers (CEA)
An expert group of economists appointed by the President of the United States to provide counsel on economic policy.
- Council Tax
Council tax is a UK local government tax applied based on property valuation, replacing the community charge in 1993–94. It includes various rebates and exemptions depending on occupancy and income.
- Counsel
Counsel refers to an attorney or legal adviser who provides advice or aid concerning legal matters. Counsel can represent clients in court, offer legal opinions, and guide individuals and businesses through legal complexities.
- Counselor
The term 'counselor' is frequently used interchangeably with 'attorney' or 'lawyer' and refers to a professional who offers legal and financial advice. Additionally, counselors may provide services for specific loan programs and advise on financial matters.
- Counterclaim
A counterclaim is a counter demand made by a defendant against the plaintiff. It is not merely an answer or denial of the plaintiff's allegations; rather, it asserts an independent cause of action in favor of the defendant.
- Countercyclical Policy
Government economic policies designed to dampen the effects of the business cycle, such as the Federal Reserve Board's action during the early 1980s inflation to raise interest rates and reduce demand.
- Counterfeit
Counterfeit refers to items or documents that are forged, imitated, or fabricated without authorization, usually with the intent to deceive and pass the imitation off as genuine.
- Countermand
Countermand refers to the action of revoking or retracting a previous order by issuing a new and contradictory directive. It is commonly used in various business contexts where changes in instructions or decisions are needed promptly.
- Counteroffer
A counteroffer is the rejection of an original offer to buy or sell along with a simultaneous substitute offer. They are commonly encountered in various transactions, particularly in real estate, where factors other than price might be negotiated.
- Countervailing Credit
Countervailing credit, often referred to as back-to-back credit, is a form of financing used in international trade that involves two separate but interdependent letters of credit. This type of credit is typically established by an intermediary in trade transactions to facilitate complex trade processes.
- Country Risk
Country risk refers to the potential financial losses that can arise when conducting transactions or holding assets in a foreign country due to political or economic instability.
- Country Screening
Country screening involves using countries as the basic unit of analysis for market evaluation, allowing businesses to identify the most favorable markets for their products or services.
- Coupon
A coupon can refer to several aspects in the context of bonds, including the dated slip attached to a bond for interest payment collection, the rate of interest paid by a bond, or a general term for certain bonds and notes in the US Treasury markets.
- Coupon Bond
A bond issued with detachable coupons that need to be presented to a paying agent or the issuer to receive semiannual interest payments. These are bearer bonds, meaning the interest is payable to whoever holds the coupon.
- Coupon Collection
The Coupon Collector's Problem is a classic example in probability theory concerning how many trials are expected to collect all possible outcomes. This can be represented by the process of collecting coupons, each of which represents a unique outcome in a finite sample space.
- Coupon Stripping
Coupon stripping is a financial process in which the coupons are stripped off a bearer security and then sold separately as a source of cash, with no capital repayment; the bond, bereft of its coupons, becomes a zero coupon bond and is also sold separately.
- Couponing
Couponing is an advertising method where vouchers are distributed to consumers allowing discounts on merchandise or service purchased within a stated period of time. Couponing provides an incentive for increasing sales.
- Court Bond
A court bond, also known as a judicial bond, is a form of surety bond that ensures compliance with a court's orders and protects against potential financial losses from legal proceedings.
- Court of Record
A court that is required by law to maintain a record of its proceedings, including orders and judgments, and has the authority to imprison and levy fines.
- Covariance
Covariance is a statistical measure that indicates the extent to which two variables change together. A positive covariance suggests that the variables tend to increase or decrease in tandem, whereas a negative covariance indicates that as one variable increases, the other tends to decrease.
- Covenant
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.
- Covenant Not to Compete
A covenant not to compete is a contractual promise to refrain from conducting business or professional activities similar to those of another party, found primarily in employment, partnership, or sale of a business contracts.
- Cover
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.
- Coverdell Education Savings Account (ESA)
A Coverdell Education Savings Account (ESA) is a type of Individual Retirement Account (IRA) designed to help parents save for their child's education expenses. These accounts allow for tax-free growth and withdrawals for qualified education expenses.
- Covered Option
A covered option is a type of option contract that is backed by the shares underlying the option. It involves the holder of the option also owning the equivalent amount of the underlying shares, reducing the risk compared to naked options.
- CPA
CPA can stand for multiple terms including Certified Public Accountant, Critical-Path Analysis, and Customer Profitability Analysis. Each of these has specific implications in fields ranging from accounting to project management and customer relations.
- Cracker (Computer Security)
A cracker is an individual who breaks into computer systems via the Internet and uses them without authorization, often with malicious intent.
- Craft Union
A Craft Union is a union of skilled tradespeople sharing comparable trade skills. These unions are often organized locally and may be affiliated with larger organizations such as the AFL-CIO. An industry-wide union, such as the United Auto Workers or United Steelworkers, represents the opposite structure.
- Cram Down
In bankruptcy, a cram down refers to the reduction of various classes of debt to a lower amount. It allows a bankruptcy reorganization plan to be confirmed even if some creditor classes vote against it, provided the plan is fair and equitable and does not unfairly discriminate against any dissenting class.
- Crash
A rapid and significant decline in stock prices or economic activity, or a catastrophic hardware or software failure in data processing systems.
- Crawler (Web Crawler)
A crawler, also known as a spider, is a computer program that automatically navigates the World Wide Web (WWW) and collects information for various purposes such as indexing for search engines.
- Creative Accounting
Creative accounting involves the use of accounting practices and principles that adhere to the letter of the rules of standard accounting practices but deviate from the spirit of those rules. This kind of accounting presents company financial performance in an overly favorable light, often inflating profits and hiding liabilities.
- Creative Black Book
An annual two-volume worldwide directory of creative suppliers such as photographers, illustrators, directors, production facilities, and photofinishers, sometimes referred to as the 'Black Book.' The Creative Black Book sells advertising space on an annual basis.
- Creative Destruction
Creative destruction is a free-market concept popularized by economist Joseph Schumpeter that holds economic progress results from entrepreneurial innovation, inevitably leading to the destruction of established businesses that become obsolete.
- Creative Financing
Any financing arrangement other than a traditional mortgage from a third-party lending institution. Creative financing devices include loans from seller, balloon-payment loans, wraparound mortgages, assumption of mortgage, sale and lease-backs, land contracts, and alternative mortgage instruments.
- Credit
Credit is a financial term that refers to the ability to borrow money or access goods or services with the understanding that you'll pay later. It encapsulates various arrangements and concepts within personal and corporate finance. Credit influences numerous aspects of the economy, from individual purchasing power to corporate financial strategies.
- Credit (CR)
A term used in accounting to indicate an entry made on the right-hand side of an account ledger, typically representing a decrease in assets or an increase in liabilities and equity.
- Credit Analyst
A credit analyst is a professional responsible for evaluating the financial affairs of individuals or corporations to determine their creditworthiness. They assess the risk associated with lending and determine credit ratings.
- Credit Balance
A credit balance is an accounting term that refers to the situation where the total of credit entries in an account exceeds the total of debit entries. These balances typically represent revenue, liabilities, or capital.
- Credit Bureau
A private organization that maintains consumer credit data files and provides credit information to authorized users for a fee.
- Credit Bureau Scores
Credit bureau scores are numerical expressions based on a statistical analysis of a person's credit files, representing the creditworthiness of that individual.
- Credit Card
A credit card is a plastic card issued by a bank or finance organization allowing the holder to make purchases in shops, hotels, restaurants, petrol stations, etc., on credit.
- Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009
Legislation designed to curb fees, interest rate increases, and other abusive practices by credit card companies. The legislation went into effect fully in February 2010.
- Credit Control
Credit control is a system used by organizations to ensure their outstanding debts are paid within a reasonable period, involving the establishment of a credit policy, assessment of clients' credit rating, and the management of overdue accounts.
- Credit Crunch
A period during which lenders are unwilling to extend credit to borrowers. The term is particularly associated with the period beginning in late 2007, when the previous era of 'easy credit' came to a sudden end in the wake of the subprime lending fiasco.
- Credit Default Option (CDO)
A Credit Default Option (CDO) is an option that grants the holder the right, but not the obligation, to enter into a credit default swap at a predetermined price on a specified future date. It is a form of swaption and is used to hedge against credit risk.
- Credit Default Swap (CDS)
A Credit Default Swap (CDS) is a financial derivative that allows an investor to 'swap' or offset their credit risk with that of another investor.
- Credit Default Swap (CDS)
A financial derivative that functions like an insurance contract where one party pays periodic fees in exchange for compensation in the event of default by a third party, known as the reference entity.
- Credit Default Swap (CDS)
A credit default swap (CDS) is a financial derivative that allows an investor to swap or offset their credit risk with that of another investor. The buyer of a CDS makes periodic payments to the seller and, in return, receives a payoff if the underlying financial instrument defaults.
- Credit Derivative
A financial instrument where the payoff is linked to the credit rating or payment performance of the underlying asset, involving various structures such as unfunded and funded derivatives.
- Credit Enhancement
Credit enhancement involves various techniques to improve the credit rating of asset-backed securities, either through internal measures by the issuer or external methods such as third-party guarantees.
- Credit Entry
A credit entry is made on the right-hand side of an account, representing an increase in a liability, revenue, or equity item, or a decrease in an asset or expense.
- Credit History
A comprehensive record of an individual's debt repayment behaviors and actions, utilized by lenders to evaluate creditworthiness.
- Credit Limit
A credit limit refers to the maximum balance that a credit card issuer allows a customer to borrow on their credit card. It is a fundamental aspect of credit management and determines the extent of a cardholder's purchasing power.
- Credit Line (Line of Credit)
A credit line, also known as a line of credit, refers to a pre-approved loan amount that a borrower can draw upon as needed and repay either immediately or over time. It is commonly used for short-term borrowing needs.
- Credit Note
A Credit Note is a financial document issued by a seller that reduces the amount payable by a customer, typically issued when goods are returned or an overcharge needs correction.
- Credit Order
A credit order is a transaction where goods or services are provided without immediate payment, rather, billing occurs at a subsequent time. This is a standard practice in many business transactions.
- Credit Rating
An assessment of the creditworthiness of an individual or a firm, indicating the extent to which they can safely be granted credit. It is a crucial element in financing and investing decisions.
- Credit Rationing
Credit rationing refers to the allocation of loans to creditworthy borrowers by means other than pure market mechanisms. This often occurs when interest rates are maintained below the level that an unregulated market would set, resulting in excess demand for loans.
- Credit Requirements
Standards established by creditors that must be satisfied by potential debtors in order for credit to be given, typically reflecting the applicant's ability to repay the loan or make payments for goods or services acquired.
- Credit Risk
Credit risk refers to the potential that a borrower or counterparty will fail to meet its obligations in accordance with agreed terms. This concept is crucial for lenders and investors as it impacts the stability and profitability of financial institutions and markets.
- Credit Sale
A sale made on terms in which cash is to be paid at an agreed future date. As the debtors, who are customers to whom credit sales have been made, pay, the debtors' control account balance will be reduced.
- Credit Scoring
Credit Scoring is an objective methodology used by credit grantors to determine how much credit to grant to an applicant. Various factors like income, assets, employment history, residence stability, and past credit behavior are considered.
- Credit Standing
Credit standing refers to the reputation an individual or business earns for paying debts. It relates to the perceived reliability in fulfilling financial obligations based on past behavior.
- Credit Tenant
A shopping center or office building tenant that is large enough, old enough, and financially strong enough to be rated at least investment grade by one of the major credit rating services. A property leased to such a tenant may obtain mortgage financing underwritten on the basis of the tenant's likelihood of honoring its lease.
- Credit Transfer
A credit transfer is a system that enables the transfer of money from one bank account to another, based on instructions given by the payer, detailing the receiver’s sort code and account number.
- Credit Union
A credit union is a not-for-profit financial institution, typically formed by employees of a company, a labor union, or a religious group, and operated as a cooperative.
- Credit Watch
Credit Watch is a term used by bond rating agencies to indicate that a company's credit is under review and its rating is subject to change. The implication is that if the rating is changed, it will typically be lowered, usually due to an event that adversely affects the income statement or balance sheet.
- Creditor
A creditor is an entity that is owed money, either for goods or services provided or as a result of a loan. Creditors have a legal right to claim the owed amount from the debtor.
- Creditor-Days Ratio
Creditor-days ratio provides an estimate of the average number of days credit an organization takes before paying its creditors. It's an essential measure of financial stability and cash flow management.
- Creditors
Creditors are individuals or entities to whom an organization or an individual owes money, such as unpaid suppliers of raw materials. Effective management of creditor payments is essential for maintaining credit periods and securing prompt-payment discounts.
- Creditors' Buffer
Fixed capital of a company which gives confidence to creditors for investing in the company by providing assurance of a stable capital base.
- Creditors' Ledger (Bought Ledger or Purchases Ledger)
A creditors' ledger is a memorandum ledger account used to track individual creditors' accounts, contributing to internal control by recording and comparing transactions with the nominal ledger.
- Creditors' Ledger Control Account (Purchases Ledger Control Account)
A comprehensive guide covering the definition, examples, FAQs, related terms, online resources, and suggested books for further study on Creditors' Ledger Control Account, also known as Purchases Ledger Control Account.
- Creditors' Voluntary Liquidation (CVL)
Creditors' Voluntary Liquidation (CVL) is the process of winding up a company by a special resolution of its members when the company is insolvent. It involves a meeting with creditors and appointing a liquidator to manage the liquidation process.
- Creditors' Voluntary Liquidation (CVL)
Creditors' Voluntary Liquidation (CVL) is a process whereby the directors of a company make the decision to voluntarily liquidate the company to pay off its debts, with the creditors actively participating in and overseeing the liquidation process.
- Creditworthiness
An assessment of a person's or a business's ability to pay for goods purchased or services received. Creditworthiness is often represented by a credit rating, which provides lenders insight into the risk of extending credit to the borrower.
- Credo
A corporate philosophy that guides the way a company does business. It encompasses the company's values, mission, and principles, influencing decision-making, behavior, and company culture.
- Creeping Inflation
Creeping inflation refers to slow but continuous inflation that appears manageable over short periods but can lead to substantial long-term price increases if left unchecked.
- CREST
CREST is an electronic share settlement system established by the Bank of England in 1996, revolutionizing the way securities transactions are settled in the UK by enabling electronic registration and instantaneous settlement, ultimately streamlining dividend payments and eliminating the need for paper certificates.
- Crime
A crime is an act that the government has determined to be injurious to the public and which can therefore be prosecuted in a criminal proceeding. Crimes encompass felonies and misdemeanors.
- Crisis Management
Crisis management is a systematic approach to mitigating potentially severe outcomes in various critical situations, including disaster response for aircraft, naval incidents, fire emergencies, and flood protection.
- Critical Mass in Business
Critical mass refers to the size or scale at which a business activity acquires self-sustaining viability.
- Critical Path Analysis (CPA)
Critical Path Analysis (CPA), also known as Critical Path Method (CPM), is a decision-making technique used to determine the minimum time necessary to complete a project by identifying the longest sequence of dependent activities from initiation to completion.
- Critical Path Method (CPM)
The Critical Path Method (CPM) is a planning and control technique that optimizes the order of steps in a process given the costs associated with each step. It is widely used in the manufacturing industry to plan and control the complete process of material deliveries, paperwork, inspections, and production.
- Critical Region
In statistical hypothesis testing, the critical region refers to the set of values for the test statistic that leads to the rejection of the null hypothesis.
- Critical-Path Method (CPM)
The Critical-Path Method (CPM) is a step-by-step project management technique for process planning that defines critical and non-critical tasks to minimize schedule delays and time-cost trade-offs.
- Crony Capitalism
Crony capitalism refers to an economic system characterized by close, mutually advantageous relationships between business leaders and government officials.
- Crore
A core terminological aspect of South Asian finance representing a unit in the Indian numbering system, which equals ten million (10,000,000) in the International System.
- Cross
A securities transaction in which the same broker acts as agent on both sides of the trade. The practice, called 'crossing,' is legal only if the broker first offers the securities publicly at a price higher than the bid.
- Cross Merchandising
Cross merchandising is a retail strategy involving the display of complementary products together to increase sales. This technique, often used in supermarkets, aims to encourage customers to purchase related items.
- Cross Purchase Plan
A Cross Purchase Plan is a life insurance strategy used among business partners. Each partner buys a life insurance policy on the other partners to ensure business continuity and facilitate buyouts in the event of a partner's death.
- Cross Rate
A cross rate refers to the exchange rate between two currencies which is derived from their individual exchange rates with a third currency, often the US dollar.
- Cross Tabulation
Cross tabulation, also known as contingency table analysis, is a statistical technique used to establish an interdependent relationship between two or more tables of values, without identifying a causal relationship. This method is widely utilized in data analysis to compare and understand the relationship between two categorical variables.
- Cross-Default Clause
A cross-default clause in a loan agreement that stipulates that a default on one loan can trigger defaults on other loans held by the same borrower.
- Cross-Footing in Spreadsheets
Cross-footing is a verification process used in spreadsheets where the sums of rows and columns of numbers are compared to ensure accuracy.
- Cross-Functional Teams
Cross-functional teams are employee teams consisting of individuals from two or more functional organizational areas who work together to achieve a common goal.
- Cross-Price Elasticity
Cross-price elasticity measures the extent to which the price of a specified good is affected by the price of another complementary or substitute good. It is a crucial concept in microeconomics that helps understand the interdependencies between different products in the market.
- Cross-Sectional Analysis
Cross-sectional analysis involves comparing the accounting ratios of one company with those of its peers to assess profitability, liquidity, and capital structure. This method helps in determining a company's performance relative to its competitors.
- Crossed Cheque
A crossed cheque is a cheque that has two parallel lines drawn across its face with the purpose of instructing the bank that the cheque should only be deposited directly into a bank account and not immediately cashed by the bank over the counter.
- CROWD
A group of exchange members with a defined area of function, tending to congregate around a trading post pending execution of orders, including specialists, floor traders, odd-lot dealers, and other brokers, as well as smaller groups with specialized functions.
- Crowdfunding
Crowdfunding refers to the financing of a new company or other project by selling shares or bonds directly to small private investors via the Internet. Despite its attractions, there have been fears that this growing practice offers scant legal protection to investors or to entrepreneurs, who may find their ideas are stolen and developed by others. In the UK and the USA, crowdfunding platforms have increasingly been brought within the remit of the regulatory authorities.
- Crowding Out
Crowding out occurs when heavy federal borrowing leads to higher interest rates, which subsequently reduces the borrowing ability of businesses and consumers.
- Crown Jewel Option
A Crown Jewel Option is a defensive strategy used by companies to prevent hostile takeovers by giving a partner or friendly company the right to buy some of its best assets at a favorable price if a takeover were successful.
- Crown Jewels
In corporate mergers and acquisitions, the term 'crown jewels' refers to the target company's most desirable and valuable properties. The disposal or sale of these assets can significantly reduce the company's overall value and attractiveness as a candidate for takeover.
- Crown Loan
A Crown loan is a demand loan extended to children or parents of the lenders, named after Chicago industrialist Harry Crown. Originally interest-free, such loans are now regulated to include a market rate of interest or they are subject to gift taxes.
- Crunch Time, Crunch Mode
A slang term referring to a work situation where a deadline is near, and employees are working intensely, often with extended hours. This situation usually results from time estimates made by management rather than genuine emergencies.
- Cul-de-Sac
A dead-end street with a single entrance and a turning circle at the closed end, commonly used in residential subdivision design to increase privacy and reduce traffic.
- Culpable
Culpable means deserving of moral blame or punishment; at fault. One is considered culpable when they have acted with indifference to consequences and to the rights of others.
- Cum Dividend, Cum Rights, and Cum Warrant
A comprehensive look at cum dividend, cum rights, and cum warrant stock scenarios, covering the stipulations for buyers to be eligible for declared distributions upon purchasing stock. This article also addresses related terms such as the ex-dividend date.
- Cum Rights
Cum rights refer to trading shares that include the rights or entitlements attached to securities, typically related to dividends or other special benefits. Investing in cum rights allows shareholders to receive upcoming dividends or participate in other corporate actions.
- Cumulative Bulletin (CB)
The Cumulative Bulletin (CB) is a hardbound compilation that consolidates material found in the Internal Revenue Bulletin (IRB) and is typically issued on a semiannual basis.
- Cumulative Dividend
A cumulative dividend is a feature often associated with preferred stock, entitling holders to receive dividends in arrears before any dividends can be paid to common stockholders.
- Cumulative Liability
Cumulative liability is the total of the limits of liability that an insurer or reinsurer has outstanding on a single risk. It includes all contracts from various insurers and covers all lines of coverage for that risk.
- Cumulative Preference Share
A type of preference share that entitles the owner to receive any dividends not paid in previous years, guaranteeing eventual payment before ordinary shares are addressed.
- Cumulative Preferred Stock
Cumulative Preferred Stock is a type of preferred stock where omitted dividends must be paid out before any dividends can be paid to common stockholders.
- Cumulative Voting
Cumulative voting is a system of stockholder voting for a board of directors that allows all votes an individual is eligible to cast to be cast for a single candidate. This system is designed to give minority stockholders representation on the board.
- Curable Depreciation
Curable Depreciation in appraisal refers to deterioration or depreciation that can be corrected at a cost less than the value that will be added.
- Curb Exchange
Curb Exchange, also known as the American Stock Exchange, refers to an organized market where securities, commodities, currencies, and bonds are traded directly between brokers or via telecommunication systems.
- Currency
Currency refers to various forms of money that are in circulation within an economy, serving as a medium of exchange for goods and services.
- Currency Appreciation or Depreciation
Currency appreciation refers to an increase in the value of a currency relative to another currency, while currency depreciation refers to a decrease in the value of a currency relative to another currency. These concepts are pivotal in international trade, impacting everything from import/export prices to inflation rates.
- Currency Futures
Currency futures are contracts in the futures markets for delivery in a major currency such as U.S. dollars, Euros, or Japanese yen. Corporations that sell products globally can hedge against adverse exchange rate movements using these futures.
- Currency in Circulation
Currency in circulation refers to the paper money and coins that are circulating within an economy and are counted as part of the total money supply, which also includes demand deposits in banks.
- Currency Risk
Currency risk, also known as exchange-rate risk or foreign exchange risk, arises from the fluctuation in the exchange rate between two currencies, impacting the value of investments or transactions made in foreign currencies.
- Currency Swap
A currency swap involves the exchange of principal and interest in one currency for the same in another currency, often to reduce exposure to foreign exchange risk and interest rate risk.
- Current
The term 'current' is often used to denote anything that is not overdue or is occurring within the current period or time frame.
- Current Account
A current account serves as an active account in the banking system where you can deposit and withdraw money via various mediums. It's crucial for personal, business, and international financial management.
- Current Asset
A current asset refers to cash, accounts receivable, inventory, and other assets that are likely to be converted into cash, sold, exchanged, or expensed in the normal course of business, usually within a year.
- Current Cash Equivalent (CCE)
Current Cash Equivalent (CCE) is a financial concept that refers to the amount of cash or cash-equivalent assets that a company holds, which can be quickly converted into cash without significant loss of value.
- Current Cash Equivalent (CCE)
In continuously contemporary accounting, Current Cash Equivalent (CCE) refers to the measure of assets and liabilities in terms of their current cash value.
- Current Cost
Current cost refers to a cost calculated to take into account current circumstances of cost and performance levels. It represents the amount required at current prices to purchase or manufacture an asset, possibly adjusted for inflation.
- Current Dollars
Current dollars refer to the cost of an asset in terms of today’s price level, adjusted for inflation. For example, if today the Consumer Price Index (CPI) is 180, an automobile that cost $20,000 when the CPI base was 100 would cost $36,000 in current dollars.
- Current Earnings and Profits (E&P)
In calculating a corporation's Current Earnings and Profits (E&P), nontaxable or tax-exempt income is added to the taxable income for the tax year. Current E&P, if not paid out, transitions into Accumulated E&P. Distributions are first taken from current E&P, and then from accumulated E&P. These distributions are taxable to shareholders to the extent of current and accumulated E&P.
- Current Employment Statistics (CES)
Monthly data on national employment and unemployment, wages, and earnings across all non-agriculture industries, providing key economic indicators.
- Current Liability (Liabilities)
Current liabilities are debts or obligations that a company expects to pay off within one year as part of normal business operations. Examples include accounts payable, short-term loans, and the current portion of long-term loans.
- Current Market Value
An estimation of the financial worth of a property if it were to be sold in the present-day market, factoring in current economic conditions, comparable property sales, and general real estate trends.
- Current Purchasing Power (CPP) Accounting
Current Purchasing Power (CPP) Accounting is a method of accounting that adjusts financial statements to reflect the effects of changes in the purchasing power of money. It aims to provide more accurate and relevant information during periods of inflation.
- Current Purchasing Power Accounting (Constant Purchasing Power Accounting)
Current Purchasing Power Accounting is an accounting method that adjusts financial statements for changes in the general price level to maintain the purchasing power of shareholders' capital.
- Current Replacement Cost
Current Replacement Cost refers to the expense involved in replacing an asset or the services it provides, calculated at the balance-sheet date. Determining this cost can be challenging, especially if the asset is obsolete.
- Current Standard
A cost, income, or performance standard based on current operating conditions and established for use over a short period of time in accounting and finance.
- Current Value Accounting
Current Value Accounting (CVA) is a method aimed at providing an income statement and balance sheet in terms of current dollars, enhancing the quality of financial information during times of inflation.
- Current Yield
Current yield is the annual interest on an investment divided by its market price, providing a snapshot of the bond’s rate of return relative to its current price rather than its face value or yield to maturity.
- Current-Asset Investment
An investment (e.g., shares) intended to be held for less than one year. See also fixed-asset investment.
- Current-Cost Accounting (CCA)
Current-Cost Accounting (CCA) adjusts the value of assets and profits to account for changes in prices over time, providing a more accurate reflection of a company’s financial position.
- Current-Cost Accounting (CCA)
Current-Cost Accounting (CCA) is an accounting approach focusing on the operating capability of a business, ensuring assets are valued to prevent business loss upon their deprivation. This method highlights adjustments for inflation and operational capacity, differentiating holding gains from operating profits.
- Current-Cost Depreciation
Current-cost depreciation is a depreciation charge calculated on the current cost of an asset rather than its historical cost. It adjusts for changes in the value of assets over time to ensure financial statements reflect more accurate asset values.
- Current-Cost Operating Profit
Current-Cost Operating Profit is the amount remaining after adjustments for cost of sales, depreciation, and working capital in current-cost accounting.
- Current-Value Accounting
Current-value accounting is a method that values assets based on their current market value, taking into account changes in specific prices rather than general price levels. This technique is essential for providing a more precise and timely reflection of an entity's financial situation.
- Current-Year Basis of Assessment
The current-year basis is an accounting principle used for tax assessment in the UK, wherein profits are taxed in a fiscal year based on the profits arising in the accounts for the period ending within that same tax year.
- Curriculum Vitae (CV)
A biographical résumé of an individual's career, including educational credentials and professional experience. Its purpose is to give prospective employers an understanding of the applicant's professional abilities.
- Cursor
A symbol on a computer terminal that indicates where on the screen the next character to be typed will appear. Cursors often appear as blinking underscores, vertical bars, or rectangles.
- Curtesy
Curtesy refers to a husband's common law right to a life estate in all lands owned by his deceased wife, provided there were issue born of the marriage who are capable of inheriting the estate.
- Curtilage
Refers to the land and immediate surroundings of a dwelling house, regarded as legally attached to it under common law.
- Curvilinear Cost Function
A curvilinear cost function represents any cost relationship where the cost does not change proportionally with the level of activity. This type of cost function forms a curved line when plotted on a graph.
- CUSIP
The Committee on Uniform Securities Identification Procedures (CUSIP) system uniquely identifies financial instruments and facilitates transactions and record-keeping in the securities industry.
- Custodial Account
A custodial account is a type of account created for a minor by a parent or guardian, often held at a bank or brokerage firm, where the minor cannot make securities transactions without the approval of the account trustee.
- Custodian
A custodian refers to a bank or financial institution responsible for safeguarding the assets of a mutual fund, individual, or corporation. It also describes a person who manages the care of a facility or building.
- Custody
Custody refers to the condition of holding a property or person within one's care and control. This comprehensive term has applications in various fields, from property management to legal and family contexts.
- Custom
In business or individual practices, 'custom' refers to habitual tendencies, traditional policies, or usual activities routinely followed as a matter of course. These practices can shape organizational behavior and culture and affect various business decisions and operations.
- Custom Builder
A custom builder is a professional or company that constructs unique houses, designed specifically for individual clients based on their specifications and preferences.
- Customer
A customer is an individual or entity that purchases goods or services from a business or organization. Customers are the primary source of revenue for businesses and play a critical role in the success and growth of any company.
- Customer Capital
Customer capital refers to the value derived from an organization's relationships with its customers, which form part of the broader concept of intellectual capital.
- Customer Perspective in a Balanced Scorecard
Customer perspective in a balanced scorecard focuses on the target customers and market segments that an organization aims to serve. It measures how well the company performs from the viewpoint of customers.
- Customer Profile
A customer profile is a detailed description of a specific customer group or type, typically based on various demographic, psychographic, and/or geographic characteristics. It is used by businesses to understand and target their audience more effectively.
- Customer Profitability Analysis (CPA)
Customer Profitability Analysis (CPA) evaluates the profitability of each customer or segment to help businesses focus on value-adding customers and optimize resource allocation.
- Customer Relationship Management (CRM)
Customer Relationship Management (CRM) involves the practice of storing, analyzing, and utilizing data gathered from various customer interactions, including sales calls, customer service centers, and actual purchases, to gain a better understanding of customer behavior and enhance customer relationships.
- Customer Service
Customer service is the department or function within an organization that responds to inquiries or complaints from customers. It ensures the resolution of issues through various communication channels and plays a crucial role in customer retention and satisfaction.
- Customer Service Representative
An employee responsible for maintaining goodwill between a business and its customers by answering questions, solving problems, and providing advice or assistance on the organization’s goods or services.
- Customer-Level Activities
Customer-level activities are tasks carried out to support specific customers and generate customer-related value.
- Customs
An authoritative agency dedicated to regulating the import and export of goods, ensuring compliance with laws, and collecting duties and taxes on imports.
- Customs and Excise
Customs and Excise refer to government agencies responsible for collecting taxes on goods imported into or exported out of the country, as well as enforcing regulations related to these activities.
- Customs Court
A specialized federal court tasked with reviewing decisions made by customs collectors, which frequently involves determining the proper tariff classifications and duties for imported goods.
- Customs Duty
A customs duty is a levy imposed on the importation of certain goods and on some goods manufactured from imported materials. It is also charged on some exports. Within the European Union, import duties between member states have been abolished and a Common External Tariff has been established.
- Customs Invoice
A customs invoice is an essential document used in international trade to declare goods being imported or exported, prepared particularly for customs authorities to ensure legal and efficient handling of shipments.
- Cut
The term 'cut' refers to various actions and meanings across different contexts, including stopping a film scene, making a pass/fail point, and removing electronic media.
- Cut-Off Date
The date on which an accounting period ends and the accounts of a business are ruled off. It ensures the accuracy and integrity of financial statements, providing a true and fair view of the business's performance and position.
- Cutoff Point
In capital budgeting, the cutoff point is referred to as the minimum acceptable rate of return on investments that an enterprise mandates for its projects. It essentially serves as the threshold for determining the viability of a project.
- Cyberspace
Cyberspace is the conceptual environment where computer networking hardware, software, and users interact and communicate. It encompasses the global internet, private and public networks, and various data streams.
- Cycle Billing
Cycle Billing is a method sometimes adopted in large organizations for invoicing their customers at different time intervals. Often using the alphabet as a basis, customers starting with the letter A may be invoiced on the first day, B on the second day, and so on. This method spreads the workload in the organization and ensures a steady inflow of cash—provided that there are many customers with comparable accounts.
- Cycle Time
Cycle Time refers to the length of time required from the placing of an order by a customer to the delivery of the product or service. It is a crucial metric, particularly significant in companies employing just-in-time techniques.
- Cyclic Variation
Cyclic variation refers to regular and recurring changes in economic activity influenced by factors such as the business cycle or seasonal fluctuations.
- Cyclical Demand
Cyclical demand refers to patterns of consumer demand for goods and services that vary cyclically over time, often in response to external factors such as seasons, economic conditions, or business cycles.
- Cyclical Industry
A cyclical industry is characterized by frequent variations in output, often influenced by seasonal changes and broader economic cycles. This is evident in industries like construction, which experiences reduced activity during winter and fluctuates with changes in interest rates and demand.
- Cyclical Stock
Cyclical stocks are equities that tend to fluctuate significantly with the economic cycle, experiencing high volatility with economic upturns and downturns.
- Cyclical Unemployment
Cyclical unemployment refers to the unemployment caused by a downturn in the business cycle. It typically rises during economic recessions and falls when the economy improves.
- Data Compression
Data compression involves the process of encoding information using fewer bits or other information-bearing units than an unencoded representation would use through different compression algorithms.
- Fixed Cost
A fixed cost is a type of business expense that is constant and does not fluctuate with changes in the level of goods or services produced. These costs are incurred regularly, regardless of the business's activity level.
- Hedging
An action taken to reduce or eliminate the risk involved in having an open position in a financial, commodity, or currency market.
- Incontestable Clause
An incontestable clause is a provision in an insurance policy that prevents the insurer from voiding coverage due to fraud or misstatement by the insured after a specified period.
- Lower of Cost or Market (LCM)
The 'Lower of Cost or Market (LCM)' principle is a conservative accounting convention that dictates that inventory should be reported at either its historical cost or its current market price, whichever is lower.
- Qualified Charity
A 'qualified charity' or 'qualified charitable organization' is a nonprofit organization recognized by the IRS as eligible to receive tax-deductible contributions.
- The City of London
The City of London, often referred to simply as 'the City,' represents London’s financial district where many prominent banks, financial markets, and exchanges are headquartered. It remains an influential international merchanting center situated in a one-square-mile area known as the Square Mile.
- Total Cost
Total cost refers to the sum of all costs incurred by a business in the production of goods or services, combining both fixed and variable costs.
- Variable Cost
Variable cost refers to expenses that change in proportion to the production output or sales volume. They fluctuate based on the operational activity, such as material costs, labor costs, and utility expenses.
