Emolument means the return from personal labor received or accrued in the form of compensation, such as a salary, wage, commission, fee award, price concession, or other personal benefit.
Employee Contribution means the money individual employees pay to participate in company benefit plans, especially common in the areas of insurance, pension, and savings plans. The usual practice is to reduce employee contributions directly from their pay
Equalizing Dividend is a dividend paid to correct inequities caused by changes in established regular dividend dates. As an example, when two companies are merged and each has a different dividend date, an equalizing dividend may be paid.
Equitable Owner means one who has conveyed the title to possessions in trust but retains the right to use and enjoy the property.
Equity Financing means the sale of capital stock by an organization for cash or other things of value to the operation of the corporation.
It means a transferable certificate of ownership, sometimes used in concerned with capital stock, stock warrants, or indebtedness convertible into stock. Also a controlling company’s interest and holding of stocks, bonds, notes, and other formal evidences
It is a clause included in a contract, which may take some time to complete. Such a clause, if accepted with the contract, enables the contractor to incline the price when incidence of inflation causes costs to rise. The rate of incline, etc. is detailed
It is a deed that has been signed and sealed but is delivered on the conditions that it will not become operative until some stated event happens. It will become effective as soon as that event occurs and it cannot be revoked in the meantime. Banks often
It means an employee share-ownership plan.
It is a bond issued in a Eurocurrency, which is now one of the largest markets for borrowing money. Issues of new Eurobond normally take place in London, largely through syndicates of US and Japanese investment banks, they are bearer securities, unlike th
Euroclear means one of two settlement houses for the clearance of Eurobonds. Based in Brussels, it was set up in 1968 by a number of banks. The other settlement house in Centrale de Livraison de Valeurs Mobilieres.
Euro commercial Paper (ECP)
It is a commercial paper issued in a eurocurrency, the market for which is centered in London. It provides a quick way of getting same day funds by the issue of unsecured notes.
Eurocredit means a loan in a eurocurrency.
Euromarket is a market which is established in the 1950s for providing finance to international trade. Its members are commercial banks, large companies, and the central banks of members of the EC. Its main business is in eurobonds, euro commercial paper,
It is a form of euro commercial paper consisting of short term negotiable bearer notes. It could be in any currency but are mostly in dollars or ECUs. It is a form of note issuance facility set up by a syndicate of banks, which underwrites the notes.
Exact Interest in accounting means a simple interest based on a year based on a year of 365 days, as compared with ordinary interest and a base of 360 days. The ratio of exact interest to ordinary interest is 0.9863878, the reciprocal is 1.0138.
It is an insurance company which obtained by a firm or individual through a foreign or alien insurance company. Lloyd’s of London is popular for writing excess line insurance coverage.
It is a method of filling an order to purchase a large block of stock on the floor of an exchange, in securities trading. Under several circumstances, a member broker of the exchange can facilitate the purchase of a block of stock by soliciting orders to
It is a provision in an insurance contract or bond that limits the scope of the coverage offered by the insurer.
Exemplary Damages means the sum assessed as punishment by the jury, above the compensatory damages, in order to make an example of the wrongdoer as deterrent to others who might consider similar conduct. The injuries or damages caused by willful, maliciou
Extended Coverage Endorsement
Extended coverage is a term used in the property insurance business. All insurance policies have exclusions - specific causes of loss (also called "perils") that are not covered by the insurance company. The aggregate liability of the insurer is not incli
It is a depreciation which is caused by unusual wear and tear, unexpected disintegration, obsolescence, or an inadequacy beyond what can be attributed to loss of physical or useful life through ordinary condition.
It is a form of socialism recommended by a group of socialists. It emerged as an outgrowth of utopian socialism and advocated gradual, evolutionary reform within a democratic framework. Fabian Socialism is the philosophical basis of the British Labour Par
The right of a factor to hold ownership of goods consigned to him for the purpose of reimbursing himself for all advances previously made to the consignor of the goods, in law.
Factory Mutual Company
It is an insurance company which provides coverage only for factory property.
Fallacy of Composition
It is an assumption that what is true of one portion is necessarily true of the whole. It is a common problem in economics, what is good for a firm or individual family may not be good for the aggregate of all firms or families.
Basically it is the breakdown of an account into two more basic accounts.
Fee Simple Estate
According to law it means the complete possession of land. Such an estate passes upon the death of the owners to the heirs, free from any conditions. Opposed to an estate for life, in which all rights to the land cease with the death of the owner. It is a
Fidelity and Surety Bonding Insurance
This type of insurance policy provides coverage against fiscal, material, or property loss resulting from an employee’s dishonesty or treachery. There are three types of fidelity bonds which are 1.individual bonds, which name a particular person, 2.schedu
It means a person in a position of trust and confidence, as a broker with respect to a principal. The broker as a fiduciary owes a loyalty that cannot be breached under the rules of agency.
Fill or Kill Order
It means a market or limited price order to a stockbroker that is to be performed in its completely as soon as it is presented to the exchange. If not so performed, the order is treated as canceled.
Final Average Pay
It means an individual's earnings during the final period of employment or participation in a compensation plan, typically the last three, five, or ten years’ average pay. It is used in the figuring of pension benefits.
Finder is a person, who acts as a single or as an enterprise; It brings together a customer and seller and earns a charges for the service.
Fire Legal Liability
It is an insurance policy which covers legal liability to other as a result of a fire that develops through the negligence of the insured.
First-class Mail Insurance
This type of insurance policy covers for stock certificates, coupons, bonds, stamps, money orders, and other securities of institutions such as banks, insurance companies, trust companies, stock clearing corporations, and general corporations.
First in System, First Served
It is a rule used to determine for production scheduling that is based on the due dates for orders waiting in line. The order that has the earliest planned due date will be assigned first.
It is a mortgage that has preference as a lien over all other mortgages. It is also called senior mortgage and first loan.
It is a huge budgetary surplus that might be created by the tax system as the economy approached full employment. Fiscal Drug may act as a brake on the growth of the economy.
Fiscal Monopoly is a government monopoly created to generate revenue. Goods such as salt and tobacco, for example are sometimes reserved for sale by the government, and their profits are used for public welfare.
Fixed Order Quantity
It is a system of inventory control in which a reorder point is set to permit the inventory level to be drawn down to the safety stock, or buffer inventory level, assuming average us age is being experienced, in manufacturing.
Fixed Reorder Cycle
It is a system of inventory control that operates by placing orders for replenishment of stock at regular intervals. The size of the reorder is differs to absorb the fluctuations in usages, so that the maximum inventory is maintained at a predetermined le
Floater Policy is a type of insurance policy or contract covering property that floats or moves about from place to place, or goods of a class in which the specific items turn or shift in quantity over relatively short period of time.
Floating Address in data processing is an address written in such a way that it can be easily converted to a machine address by indexing, assembly, or some other means.
It is that part of the capital of a business firm that is not invested in fixed or capital assets but in current and working assets.
It is a type of insurance coverage common for property that is being transported from one place to another. This type of property includes airplanes, boats, and other goods that are of necessity moved from place to place.
Floating Debt means current liabilities, short term obligations. It represents the total liabilities to outsiders.
Flood Insurance is such insurance which is difficult to achieve in areas subject to flooding because of the frequency of catastrophic losses. A federal flood insurance program has been approved to make such protection available at reasonable rates.
Floor Broker is a member of a stock exchange who performs orders on the floor of the exchange to purchase or sell any listed security.
It is an act of giving up the right to enforce a valid debt, right, or obligation. It is treated as enough consideration to make a new promise given by the debtor legally binding.
Forced Sale Value
Forced Sale Value is the amount derived from a sale of assets or goods on an urgent basis, where the seller is under lawful or economic compulsion to sell.
Foreign Credit Insurance Association
It s purpose is to provide insurance policies for the protection of American exporters against such political risks as inconvertibility, cancellation of an import license, war, and expropriation, and against such commercial risks as the buyer’s insolvency
Forgery means the modification or false writing of an instrument with the intent of deceiving and injuring another person, suppose signing someone’s name to a cheque without his or her consent.
Formula Pension is the category of pension covering most salaried employees, under which a rate formula is applicable to individual earnings to calculate the employee’s pension.
Fraud, Agreement to Commit
It is an agreement to commit a fraud is unlawful and not enforceable by law.
It is an act of bankruptcy. An insolvent debtor’s deliberate choice of one creditor or surety.
Free Alongside Ship
Free Alongside Ship means when an exporter delivers goods ‘Free alongside ship’, he pays all the expenses involved up to that point.
It means money that may be exchanged for the money of another country without legal restrictions.
Free Exchange Rates
Free Exchange Rates means rates of exchange in the foreign currencies which are governed by normal forces of supply and demand, without any sort of state supervision or control at a national or international level. When a country decides to abandon fixed
Free from Particular Average
It is a marine insurance term which means that the Insurer is not responsible for anything other than Total Loss and General Average Loss. The clause may be made effective in many ways the Insurer may take responsibility for several specified items of car
Free on Board
It means delivery of goods by an exporter under the condition of free on board condition means, it is the exporter’s responsibility to pay all charges engaged in getting the goods on board of the ship. The responsibility includes putting the goods in a go
Free Port is a restricted area at a seaport for the handling of duty exempted import goods. It is also known as foreign trade zone.
Free Trade Area
It means an association of trading countries whose participants ready to impose no restrictive devices such as tariffs or quotas on one another, but are free to impose whatever restrictive devices they wish on non-participants.
It refers to creation of blockade in order to prevent a person or an enterprise to use the owner’s fund, assets, etc. It is used in concern with accounts, wages, salary, dearness allowance, etc.
Freight Allowed, this expression means that shipments will move freight collect and, unless otherwise specified, that an amount equal to the charges paid by the customer to the carrier will be reduced from the total cost of the goods when the seller’s inv
It means an independent contractor who gets many small shipments for the account of one industrial company and combines them into one carload or truckload.
Functional Authority is a portion from the line and staff, a third form of authority also exists in an organization known as the functional authority. For the first time, The idea of functional authority is proposed by F.W Taylor.
Funded Debt means outstanding bonds or notes that are proof of a debt.
Funded Pension Plan
It is a pension plan that has a fund specifically set aside for the payment of promised funds to retirees. The fund consists of company contributions, employee contributions, and the income from investments of the fund.
It means bonds that are issued for the aim of retiring current or long-term indebtedness or to finance current expenditures.
Fund Obligation is a liability or encumbrance of a specific fund.
It refers to purchase and sell goods, traded on a commodities exchange. The contracts or futures deal in the deliveries of commodities at some particular date in the future.
This contract is a contract involving the playing of a game of chance by any number of people for money. In general, gaming contracts are by statute null and void and no action can be taken to recover money paid or won under them.
Gamma Stocks means a stocks in relatively small companies in which trade was infrequent. It was used in the former classification system on the Stock Exchange, but has now been replaced by normal market size.
It is a pictorial method for displaying and monitoring a procedure, project, or production schedule so as to judge performance against a timetable. It can serve as valuable tools for planning, scheduling, and controlling the different aspects of a product
It is a person upon whom a garnishment is served. Garnishee is the debtor or a defendant and has money or property that the plaintiff is trying to reach in order to satisfy a debt from the defendant.
It is a legal procedure by which a plaintiff seeks to reach the money or property of the defendant that is in the hands of a third party. It differs from an attachment in that by an attachment an officer of the court takes actual custody of property throu
Geared Investment Trust
It is an investment trust that borrows money, usually to expand its investment in equities. The shares of a geared investment trust tend to increase faster in rising markets and fall faster in falling markets than ungeared trusts.
It is an adjustment in current-cost accounting to approve for the fact that in inflationary times profits may accrue to a company from its fixed-interest capital, so that the whole cost of capital maintenance need not fall on the profits available to the
It is the way in which the capital gearing of a company affects its shareholder’s dividends.
General Average Loss
It is applicable to ocean marine cargoes, regardless of whether or not insurance is carried. It is one of the perils covered by modern ocean marine insurance policies. It incurred in time of emergency for the common welfare of the vessel, and it involves
General Average Sacrifice
General Average Sacrifice means a sacrifice made by the master of the ship for the benefit of the ship-owner, charterer, and cargo-owners. It is concerned with Marine Insurance.
General Merchandise Warehouse
It means, this operation stores and ships a huge variety of merchandise rather than specializing in one type, provided that controlled environmental situation are not required.
It is a type of mortgage which involves all the holding of a mortgagor.
It is a section of a city in which people of certain races or religious beliefs were required to live and to earn their livelihoods. Now a days it is an economically depressed urban area in which members of minorities live.
It is an instrument that transfer the title to real estate for which the consideration is love and affection, rather than material consideration.
It is a high grade bond issued by a company that has proved its ability to earn profits over a period of years and pay its bondholders their interest without interruption.
Glass Insurance is a property insurance coverage including plate glass, glass signs, windows, motion picture screens, glass bricks, glass doors, showcases, countertops, and insulated glass panels. This policy is used to provide all risk coverage, excludin
Go No-go Gage or Not-Gage
It is a type of limit gage used to measure the dimensions of a mechanical part to decide whether or not the portion is within allowable limits, in a manufacturing. Not necessarily intended for use in determining the exact variance or departure from the me
It is a name or title to land or property that is free from encumbrances, such as mortgages and liens, as disclosed by a complete abstract of the title taken from the records in the recorder’s office.
It is a lease of property that provides for a changeable rental rate often based on future determination such as a periodic appraisal. It s feature is primarily of long term leases.
Graduated Life Table
It means calculations the tabular counterpart of a mortality curve or of a survivor-life curve, in insurance.
Gray Market is a market in which scare goods are bought and sold using business methods that are generally disapproved of even though they are not strictly illegal.
It is a term descriptive of the development of huge yielding varieties of seed grains, which has had a dramatic impact on the agricultural output of developing countries.
Gross Domestic Product
It is calculated by subtracting payments of wages, interest, rent, profits, and other items paid abroad as income from Gross National Product. Countries in which foreigners have a heavy investment or whose citizens have extensive holdings abroad usually
Gross Merchandise Margin
It means net sales less the cost of merchandise, in retail accounting.
Gross National Debt
It means the whole national debt outstanding. It includes that portion of the debt held by government units in trust, in investment, or in sinking funds.
Gross Operating Spread
It means gross merchandise margin minus the cost of merchandise procurement, in retail accounting.
In a process of production in which the total requirements for a portion or assembly, quantity on hand is not considered.
Group Dynamics means the study of the behavior of group and of the interacting behavior of individuals as members of the group.
It is a stock of a company with prospects for future expansion. Also, a company whose earnings are expected to incline at a relatively rapid rate, with anticipation that the market value of the stock will also incline.
It means Good Till canceled.
It is the part of a labor contract in which employees are guaranteed either employment or a stated amount of wages during a certain period of time.
Half Commission Man
It is a stock exchange term which refers to the person who is neither a stockbroker nor a stockjobber. He introduces clients to a broker, in return for a share in the commission.
Hall Mark means the mark made on gold or silver after an Assay test indicating their genuine quality. There are two qualities of silver and four of gold. The British Hall mark is accepted internationality as a guarantee of standard. There are four marks,
It means a member of the Stock Exchange is hammered when he cannot pay his debts.
It means the people who are unemployed because they lack the education or skills required by a complex economy. The ranks of the hard-core unemployed consist mainly of members of several minority groups such as blacks and Mexicans, persons who are "too yo
It means the various factors or the primary factor contributing to uncertainty in a given insurance situation. The risk of loss to any particular person or company may be calculated as the total of all hazards present. A hazard may be anything that may co
Head end Business means the transportation of property such as mail, baggage, and express in the cars immediately behind the locomotive of a passenger train.
Head tax means the tax that may be applied on immigrant aliens entering at any port of the U.S.
Hidden Amenities means a conditions of agreeable living or beneficial influence arising from the location of or improvements to property, which are not noticed at one but which enhance property value; such conditions include superior materials and workman
It means the amount of the understatement of net worth that may result from a variety of accounting practices, for example, classifying additions to fixed and other assets as expense. Disclosure of hidden reserves is required for any substantial amounts t
Historical Cost means the cost of a fixed asset at the time of acquisition by the present owner.
It is a method for appraising property; it is no longer in use.
It means wages withheld by an employer for the purpose of calculating payroll periods. For example, employees may be paid for Friday for all work up to the previous Tuesday of a given weekly period, the difference between the wages earned between Tuesday
It is a contract whose terms assure one party to the contract that the liability described in the contract will be assumed by another party in the event of loss or legal action.
Hold Order in manufacturing means a written order directing that several operations or work activities be interrupted or canceled, pending a modification in design or material.
Hold Point is a stock storage point for semi-finished inventory.
Hold Track means a railroad where cars are arranged while awaiting disposition orders from shippers or receivers.
It means mergers involving firms that produce closely related products and sell them in the same market. The usual objective is to round out a product line that is sold through the same distribution channels, thereby offering joint economies in sales and
Hotchpot in accounting means a combining of the properties of two or more persons to enable an equal redistribution of the properties.
Hundred Percent Location
It is a retail business location considered optimum for attracting business.
It is an economic situation in which prices are increasing with little or no incline in output. It is also known as runaway inflation and galloping inflation.
It is a very large super market. It is called as Hypermarket.
It means the pleading of securities as collateral for a loan. This security is said to be hypothecated.
Hypothecation, Letter of
It is a formal letter by which property is hypothecated or pledged. This is given to a banker for raising credit on goods, or such movable property.
Identity Equation is an equation stating an equality that is true by definition. For example, the total output of an economy its gross national product or GNP is equal to the sum of consumption, investment, and government expenditures in a closed economic
It means the costs of self owned or self-owned or self-employed resources that are not entered in a company’s account books. Rental receipts wages that a self employed proprietor forgoes by owning and operating his or her own business is example.
Implied Contract is a contract that is inferred from actions of the parties who fulfill promises without the existence of an expressed contract.
An easement that is not recorded but is apparent through continued use, in real estate.
Impound in government accounting, to decrease authority to incur obligations by withholding all or any part of a congressional appropriation. Also, any action by the office of management and budget that has the effect of modifying the character of an agen
It is a style of managerial leadership that exerts a minimum effort to get the required work done with the minimum of control considered to be appropriate to sustain organization membership.
Imputed Cost in accounting means a cost that is indirectly determined and that is attributed rather than directly measured.
In and out Trade is a security market expression for the buying and selling of the same security within a short time period, a day, a week, or a month. It is more interested in day-to-day price changes than in dividends or long-term expansion.
Income Consumption Curve
A line showing the amounts of two commodities that will be bought by a customer whose income fluctuates while the prices of the commodities remain the same. Geometrically, it is a line connecting the tendency points of price lines and indifference curves
It is a clause is an insurance policy stating that after a specific period of time the policy may not be contested except for the nonpayment of premiums.
Inconvertible Paper Standard
It is a monetary system by which a nation’s unit of currency cannot be converted into any metal or other precious substance in terms of which it may or may not be defined. This standard has existed on a domestic basis in all countries.
It is a legal protection or security whereby a person or an organization is obligated to make good a loss or damage another has suffered. The compensation for that loss or damage. Also, legal exemption incurred by one’s actions.
Indemnity, Principle of
According to this principle the purpose of insurance is not to permit the insured to make a profit, but to indemnify the party or the firm for a loss that has been suffered. To avoid a mortal hazard, insurance companies sometimes contract to pay less than
Indented Bill of Material
Indented Bill of Material in manufacturing, means a bill of material that has the highest-level assemblies positioned on the left-hand margin of the reporting document and subsequent lower levels indented sequentially to the right. It is also referred to
Indenture in financial transactions, a written agreement under which debentures are issued, setting forth maturity date, interest rate, and other terms. In real estate proceedings, a deed executed by both parties to the transfer of title to land or proper
Inducement to Break a Contract
Inducement to Break a Contract means if a person induces another to break a contract, he is committing an actionable wrong. But this does not applicable to any contract between the employer and employee of an enterprise, when such contract is the result o
This term is used in Personnel Management with particular reference to Recruitment and Hiring of personnel. Induction involves imparting to the new employee the whole concept of the enterprise within the shortest possible time a clarification of the parti
It denotes attempts by one company to achieve access to unpublished information of another. Such information may relate to new invention to labour-saving devices, production method, cost reduction techniques, proportion and component of ingredients to a p
Industrial Unit, Sick
An industry is said to be sick if it is running with fiscal loss regularly. The Board for Industrial and Financial Reconstruction, India, has viewed a sick unit as an industrial company registered for not less than seven years which has at the end of any
Inflationary Gap means the amount by which actual private spending and government expenditure exceed the theoretical amount of spending necessary to maintain full employment or to exceed the theoretical amount of spending that is adequate to absorb all av
Inherent Vice in insurance refers to a characteristic of an article that makes it tend to destroy itself. An improperly constructed machine or a precious stone with imperfections that could cause it to break apart under normal handling is said to have an
It refers to the introduction of a new procedure, a new product or a new market. The first employer or the enterprise, who innovates, gets extra income which lasts till the process, product or market becomes common to all. Innovation is used in business a
It means transactions in shares and securities by people who possess special knowledge affecting the value of those shares. Such people are generally the company directors and auditors who may have prior knowledge of events likely to influence the market
Inspection Ticket in manufacturing, a sheet, card or other document used to report that an inspection functions has been done.
It is a collective term for enterprises supplying intelligence and assistance in setting up new business and industrial establishment.
Insurable Interest is an interest of such nature that the insured party would be fiscally damaged by the occurrence of the event insured against. It is required in all lines of insurance before a contract is lawfully valid.
Insurance Underwriter is a member of a syndicate or a single firm touched with assessing and arranging insurance coverage.
Insuring Clause in an insurance policy means a description of the risk assumed by the insurer.
This term refers to the manager who likes to become part of the people, things, and processes he or she manages. Such managers are joiners and take pains to get involved with individuals and groups about their work. They like to communicate in-group setti
Integrated Pension Plan
This plan is made to adjust the employee's pension benefits down-ward to reflect the company’s contribution to social security.
It is an interest calculated not as a fixed amount per annum based on the capital to which it applicable, but on an accumulating balance consisting of both capital invested and the interest already earned.
Interest Cover is the number of times that the total fixed interest payable can be met out of the current income of a business concern. The break even point indicates when the income before tax becomes equal to total fixed interest payable before tax.
Interest Rate Risk
The uncertainty of future return or security prices resulting from fluctuations in market rates of interest, in the securities market
Interline Waybill in transportation carriers is used whenever more than one carrier is engaged in an individual shipment of goods.
Intrinsic Forecast in marketing, means a forecast based on past history, probably developed from a moving average set of data.
It is the value contained in the substance from which an article is produced. This term in trade and commerce is mostly used in relation to metallic currency.
It means losses that result from such nonproductive procedure and actions as deterioration, disposal as scrap, and pilferage. A ratio of the performance of a company, inventory turnover is calculated by dividing the material cost of annual sales by the av
Investment Advisor is a person who provides the advice to another person on investment situations. They are required to register with and report their activities to the Securities and Exchange commission.
Investment Company is a company handling mutual funds or closed end funds, or any of certain other types of companies are connected in the business of investing the money of their share-holders in securities and in other organizations.
According to the book of Adam Smith "The wealth of Nations" in which he contends that the hope for personal profit within the framework of a competitive economic system works like an invisible hand to guide the system toward the highest welfare for all.
It is a fiscal institution, usually a merchant bank, that specializes in the flotation of private companies on a stock exchange. In few situations the issuing house will itself bought the whole issue, thus ensuring that there is no uncertainty in that amo
It is a Japanese concept for stock exchange dealing in which all orders that reached at a broker’s or dealer’s office before the exchange has opened are treated as having arrived at the same time, i.e. the time the exchange opened.
It means an appropriation of funds with detailed specifics for the disposition or application of the funds, In finance.
It means a former dealer in stocks and shares, who had no contact with the general public, except through a stockbroker. It was replaced by market makers on the London Stock Exchange in the Big Bang of October 1986.A dealer who purchases and sells goods,
Jobbing Backwards means looking back on a transaction or event and thinking about how one might have acted differently, and one known then what one knows now.
It is the procedure of describing the duties, responsibilities, and characteristics of a job, point-rating it, and then ordering the jobs into graduated classifications with corresponding, wage rates and wage ranges.
It is a series of different things, such as stocks or shares, sold together as one lot at one all inclusive price.
It is a functional organization whose departments or work centers are organized around certain types of equipment or operations, such as drilling, forging, wave soldering, and assembly. Products flow through departments in batches corresponding to individ
Joint and Several Liability
It is a liability that is entered into by a group, on the understanding that if any of the group fails in their undertaking the liability must be shared by the remainder. If two people enter into a joint and several guarantees for a bank loan, if one beco
Joint life and Last Survivor Annuities
It usually involves husband and wife. It begins payment on a given date and continues until both persons have died. A last survivor annuity only begins payment on the death of one of the two people and pays until the death of the other.
Joint Tenancy in law, a individual estate in property, whether real or personal, owned by two or more persons under one instrument or act of the parties, with an equal right of all to share in the enjoyment of the property descends to the survivor or surv
Journeyman is a skilled worker who has finished an apprenticeship and is an employee, not an employer and not self-employed. In medieval times, descriptive of the practice of skilled artisans who journeyed from place in pursuit of work.
Judgement Creditor is the person, in whose favour a court decides, giving the judgement debtor to pay the sum owed. If the judgment debtor fails to pay, the judgement creditor must return to the court asking for the judgement to be enforced.
It is a mortgage second in lien to a previous mortgage; a subordinate mortgage. It is also known as Junior Financing.
It is a bond which offers a high rate of interest because if carries a higher than usual probability of default. The issuing of junk bonds to finance the takeover of large companies in the USA is a practice that developed in the 1970s.
It means providing loans at exceptionally low rates of interest to capture a bigger share of the corporate banking market.
It is relevant to meetings, particularly with closure of the meeting. It is applied by the speaker of the Parliament or the Chairman of a meeting, if authorized by the rules. A Kangaroo walks by jumping. This jumping principle is also applied at a meeting
Key Area Control
Key Area Control means a firm s measurement of self performance in a number of vital areas such as profitability, market standing, employee attitudes, product leadership, social responsibility and productivity.
It is an insurance policy which is provides temporary protection to ensure fiscal solvency in the event of loss through death of a key executive. The business firm pays the premium and is the beneficiary. Premium costs are non tax-deductible.
Keynes’s Law of Consumption
According to this principle of Keynesian economics that at each level of income a several extent of that income is spent for consumption goods, the proportion declining as the income increases.
Kinked Demand Curve
A bend in the demand curve of an oligopoly that occurs at the present market price, suggesting the possible behavior of the oligopolies when confronted with the possibility of a changing price. If the company increases its price above the kink, its sales
It means an illegal borrowing or theft of money through the continuing action of drawing and cashing a check on one bank, following that shortly by a covering deposit in the form of an unrecorded check on another bank, that check, in its turn, being cover
A list of items that are required to fill requisitions and that are to be from inventory and delivered to the production area, in manufacturing.
It is concerned with Automobile Insurance, and indicating the mode of payment by the insurance companies in an accident involving two or more cars. Insurance companies, in such case generally concede to the claims of their respective clients and pay out w
It is a Specialized knowledge or talent or method developed in producing several things or developed for a specific use. It is the result of intensive research for years together. World it is saleable at a very high price, in a commercial and industrial.
A 40 to 60 years wavelike movement in economic activity that is approximately divided between good and bad times. A theory of business cycles proposed by the Russian economist Nilolai D. Kondatrieff. It is also known as the wave theory.
It means, a 15 to 25 years’ wavelike movement in rates of economic expansion that appears to be associated with changes in population growth.
Labor Cost Ratio
Labor Cost Ratio means the standard cost of direct labor divided by its original cost.
It is a procedure or product is called labor intensive if it uses proportionately more labor than other elements in its production. Goods which are hand-made with a low material content are produced by a labor intensive process. The example of labor inten
Labor Theory of Value
Labor Theory of Value is the basis of Marxian economic theory. The doctrine that all exchange value in economic transactions is created by labor.
A person in a profession who are not skilled with respect to that profession. In accounting, for example, the laity includes those who are not skilled in accounting but who need auditor’s reports in the fulfillment of their own tasks.
Landed Price is the quoted or invoiced price of a commodity. It including costs of loading, shipping, and unloading at its destination.
It is a legal recourse for getting payments for rent upon default in a lease, giving the landlord the right to hold the tenant’s personal property as security until the debt is paid.
This term is used by central government agencies, to denote the narrative part of an appropriation bill that accompanies an agency’s submission of its budget to congress, in their accounting practice.
Lapse means expire, or be forfeited, as in the case of an insurance policy that is canceled or lapses on its expiration date or for nonpayment of the premium. In government accounting, the unexpected balance of an ordinary appropriation is said to lapse a
Laundering Money is the processing money purchased illegally which means by theft, drug dealing, etc. so that it appears to have come from a legitimate source. This is achieved by paying the illegal cash into a foreign bank and transferring its equivalent
Law of Selective Gravity
According to this law that an object will fall so as to do the much damage.
Lay Days means the agreed upon number of days that a marine vessel may stay in port for loading and unloading without any penalty.
A written legal document which generally conveys all rights of the assignor for the left term of the lease.
It means a long term lease of real estate or equipment that has been sold to an independent agent, and under the lease agreement taken back by the actual seller.
Leasehold Insurance is the policy written for a tenant who has an unusually favourable lease, less in cost that could be achieved at current market prices. Against fiscal protection it provides a measure in the event the premises are rendered uninhabitabl
Lease Purchase Agreement
It is an instrument whereby it is agreed that a part of the note payments will be applicable to the purchase price. On the completion of the agreement, the title is transferred.
Legal Debt Margin
It means the surplus of approved debt over out-standing debt, in municipal accounting.
It is a currency that a creditor must accept in payment of a debt by law.
It means a person to whom a legacy or bequest is given by the terms of a will.
It is a writing from an official person or establishment that confers on a planned person a grant such as a right, title, status, property, authority, privilege, monopoly, franchise, immunity, or exemption in a form readily open for inspection by all. It
Letter Stock is the stock issued to founders, early executives, and investors that is not registered with the securities and Exchange Commission and thus is not subject to restrictions on sale and disposition.
The effect created by a dominant person who, by force or personality or rank and title, causes others in his group or among his peers to tend to agree with his views, that is, come to his level, in management meeting
Leverage means the extent to which the money capital of a firm is divided between fixed interest or fixed dividend capital (debentures, preference shares, loan capital) and equity or ordinary shares that are not entitled to a guaranteed or minimum return.
Levy is a tax assessment. In management, a request made on members of an organization for contributions of capital. In law, a writ of levy refers to the seizure of a defendant’s property by the sheriff to satisfy the plaintiff’s judgement. It is used to i
It is intended to cover the insured party’s responsibility for payment obligations to others as a result of bodily injury or property damage. In order to qualify for protection by an insurer, such a liability must have been incurred as a matter of legal j
It is also called third party risk or legal liability risk, it involves the possibility that the insured party may become lawfully obligated to pay money to a third party.
Licensed Public Accountant
It is a person who has registered under state law to practice as a public accountant; the license must be a certified public accountant, in many states.
Lien means a right one person has to keep ownership or control of the property of another in satisfaction of a debt. Among the many kinds of liens are the artisan’s lien, the attorney’s lien, the innkeeper’s lien, the mechanic’s lien, and the vendor’s lie
Life Annuity means an annuity whose payments complete on the death of the beneficiary. It may be an annuity derived from the purchase of an insurance policy of a particular type, or the result of a particular perquisite provided as part of an employment c
It means a person entitled to the use of or income from property during his or her lifetime. It is also applicable to organizations.
Limited Access Land
Limited Access Land means the real property that is hard to reach or is partially inaccessible.
Limited Price Order
Limited Price Order in securities trading, means an order to purchase or sell a stated amount of a security at a particular price, or better price, it is achievable after the order is presented on the floor.
In liquidation, a pro rate distribution to stockholders or owners by an organization. Also, a pro rate distribution to the stock holders of a company having wasting assets, such as mines, oil wells, and timber, representing a return of paid in capital, a
According to this theory that people like to hold assets in the form of money because it is more readily changeable into other forms. Money flows or can be made to flow quite readily, thus money is liquid. It is also known as the theory of interest, formu
Fiscal data ratios used as indicators of an enterprise’s ability to meet its current obligations in the event of stress. The example of liquidity ratios are the current ratio and the quick ratio. It is also known as the acid test.
It is a term which is used to describe a security that has been granted the trading privileges of an exchange.
A stock which is traded on a securities exchange, and for which a listing application and a registered statement giving detailed information about the company and its operations have been filed both with the securities and Exchange Commission. Unless the
It means the orders or the load of manufacturing orders that are actually available to be worked on by a manufacturing facility.
It is an insurance policy which is intended to provide coverage for groups of animals, or for individual animals such as a valuable racing horse. This type of insurance is available to those who professionally raise or bread game or fur-bearing animals fo
It is a group of related machines or workstations that can all the considered simultaneously for planning the workload. It is also known as work center and machine center.
Lock box system a means of accelerating the flow of funds from the time of customer payment to the time of deposit in the company’s bank account. It is based on a regional basis, with the company choosing regional banks according to its billing patterns.
In a security trading term. An investor is said to be locked in when a security he owns shows a profit but he refrains from selling the security because the profit would immediately become subject to the capital gains tax.
It means the ownership of securities in the terms of securities trading.
Long term Lease
It means an obligation for rental payments on real or personal property over an extended period, in surplus of one year.
Lost Usefulness in accounting means the gradual dissipation from any cause or for any reason of the service life or usefulness of an asset.
A non-liability letter issued by a title company showing the last owner of record and any encumbrances thereafter. Such a letter is not a title report, in real estate transactions.
Lot size Inventories means the quantity of supplies or materials essential to support production for a certain time period, usually expressed in weeks. It is also known as cycle inventories.
Any system for the distribution of goods that involves the three elements of payment of consideration, a return promise, an act performed, and forbearance. This involves a prize to few but not all of those who give consideration, and also involves chance.
Lump sum Appropriation
It means an allotment of funds for a certain purpose or for the operation of an economic unit without a statement of the details applied to individual items of planned expenditure.
Macro Accounting is a composite of accounts which is maintained by industry members for the whole of an economic activity within an area or a country.
While processing data, an instruction to a computer consisting of a sequence of micro instructions, the more powerful instructions that combine certain operations in one instruction.
In the distribution of goods, serving as a middleman. This merchant substitutes mail order catalogs and order forms for a personal sales force. Basically wholesaler meets the needs of retailers who are situated at long distances from regular merchant whol
In a process of manufacturing, the time limit to prepare machines and other facilities earlier to the start of a process or of production. It is also known as lead time and setup time.
Management of Objectives
It s function is to set the specific and verifiable objectives at the various levels of the organization. These objectives are set toward expected results for all units in quantitative terms. In this procedure, all levels of management jointly identify th
Management by Exception
In this method subordinates handle detail of their assignment and are sensitive to exceptional events that they then bring to the attention of their supervisors.
Management Control System
It is a scientific method, according to this method managers set goals, measure performance in terms of results, and take necessary action in the form of rewards, penalties, or additional training for employees.
Managerial Effectiveness means the limit to which a manager achieves the productivity or output requirements of his or her position.
In terms of insurance, it is an established premium rate, stated on dollars cost per thousand dollars of safety or risk.
Margin Regulations means the authority for fixing the percentage down payment required of a borrower to finance the buying of stock. This rate is fixed by the Federal Reserve System’s Board of Governors. An addition in margin requirement is intended to da
In case of retail merchandising, the amount by which an actual selling price is deducted.
Market Equilibrium is the condition in which the supply of goods is restricted to the quantity already produced and brought into the market.
This term refers to short publications or newsletters issued by brokerage firms and investment advisory services to provide investors with recommendations to purchase or sell securities and with other pertinent investment information.
The theoretical point at which, because of decline consumer need or disappearance of prospective buyers, less or no surplus sales are in a marketplace.
According to this theory the level of wage is fixed by the supply of and demand for labor. In case if there is a lack of qualified workers with a particular skill, those who possess that skill should be paid more wages than workers possessing skills that
During a given period, the total amount by which established selling prices are expand in setting new selling prices. An amount that is added to the purchase price of merchandise to arrive at a selling price; it is also known as markon.
According to Karl Marx, characterized by the central claims that the ruling middle class will be overthrown by the working class through revolutionary action, and that a classless society will emerge in which the principal means of production will be publ
Master Tariff is a tariff with the Interstate Commerce Commission demanding to a huge number of applicable tariffs.
Matched and Lost
This term means in securities trading, when two bids to purchase the same stock are made on the trading floor simultaneously and each bid is equal in price or bigger than the quantity of stock offered, both are considered to be on an equal basis. The two
Materials Management is a concept of organization that places under an individual manager the whole functions are concerned with the movement of materials, production control, inventory control, storage, materials, traffic, handling, purchasing, and other
Matured Liability refers to bonds an obligation that is due or former due.
According to this method we can calculate the values of bonds and their rates of return; it is based on the assumption that the bonds will be held until maturity.
Mechanic s Lien is a lien that has been created by statute to assist laborers in collecting their wages. Its purpose is to subject the land of an owner to a lien for materials and labor expended in the construction of buildings.
It is a medical aid program which is operated by an individual state and intended to supplement the federal Medicare program.
Member Bank is belonging to a Federal Reserve System. All national banks chartered by the federal government must be members of the Reserve System. State banks may join if they meet several requirements established by the Federal Reserve Board.
It is a securities brokerage firm which is organized as a partnership and having at least one general partner who is a member of the New York Stock Exchange.
Memorandum Bill of Lading
It is the third copy of a bill of lading.
Memorandum of Satisfaction
It is a document stating that a Mortgage or charge on property has been discharged by repayment of the money lent. Memorandum of Satisfaction should be signed by all parties concerned.
It is a set of economic principles and practices designed to build national prosperity and government power by accumulating precious metals through maintaining a favorable trade balance, achieving economic independence through imperialism, and exploiting
Merger means under one ownership amalgamation of two or more firms There are three types of common forms of merger are, horizontal, uniting similar plants and products; vertical, uniting dissimilar plants in various stages of production; and conglomerate,
Methods Manual means detailed information developed as sets of instructions for the routing and operations to be done in the manufacturing process or a part of a product.
It is a systematic process for the analysis of work planned to eliminate unnecessary work, arrange the remaining work in the best order possible, and standardize the use or proper work methods.
Micro Accounting means accounting for individual, nonprofit, business, or government organizations, or for any department or other sub-division thereof.
It is a style of managerial leadership based on the belief that sufficient organization performance is possible through balancing the need to get out the work with the need to save the morale of people at a satisfactory level.
It is a legal contract that approved the lessee to explore for and extract minerals from the leased property under prescribed conditions as to time, rental, price, or royalties. It is also known mining lease.
It is an industrial process for stock replenishment that establishes points at which the minimum quantity on hand indicates the need to reorder so as to return the quantity to the maximum level.
Mint Ratio is the ratio of the weight of one metal to another, fixed by the equivalent value of those quantities of metal in terms of the national unit of currency (such as the dollar) as defined by the government. During the nineteenth century when the U
It is an asset of minor significance that cannot be classified under any other heading or subheading of a balance sheet.
It is an inventory of a class of goods whose individual items are not or cannot be identified with a particular lot.
Mnemonic System in accounting is an indexing of accounts or groups of accounts by means of letters that suggest their name or nature.
Monetary Theory of Business Cycles
It is a theory that attributes business cycles to monetary factors, such as variation in the quantity of money and credit and changes in interest rates. Upswings occur when credit and borrowing conditions become favourable enough for business firms to bor
It is a situation in which two or more countries share a common currency and common fiscal policies and institutions.
Articles, which serve as a substitute of money but are not regarded as ‘proper money’. Such substitutes are Cheques, Bills of Exchange, Postal Orders, Treasury Bill and Bearer Bonds, used for making payments among known parties but are not generally accep
It is the legal Tender Money which is linked with a particular metal gold or silver. The money is either made of the chosen metal or may be convertible into it. The value of money in use depends upon the value of metal. From 1835 to 1893, India had silver
Monopolies and Restrictive Trade Practices Act.1969
The Government of India has introduced this act to regulate and control the share of big business houses over the production and market of a product. The act has given the yardstick against which it is to be ascertained whether a business is big and, ther
Monte Carlo Method
It is a trial and error method of repeated calculations to discover the best solution to a problem. monte carlo method is used when a great number of variables are present with interrelationships so complex as to preclude the practicability of doing a dir
Moral Suasion in the field of finance, oral or written appeals by the Federal Reserve Board to member banks urging them to develop or restrict credit but not requiring them to comply.
Mortality Curve is that curve which displays the estimated life spans of persons or things, in management procedures. To display the history of actual life spans, it can be used.
It is a conditional conveyance of property that operates as a lien on land, buildings, and other property, fixed or movable, given by a borrower to the lender as security for his or her loan.
Mortgage Bonds are those bonds which are secured by a mortgage against several property or properties of the issuer of the bond.
Mortgage Guaranty Insurance
It is an insurance which is available to mortgagee to protect them against fiscal loss.
Mortgage Insurance Policy
It is a policy that protects the mortgagee against loss in case that title should prove defective.
Mortgage Statement is a summary by the holder of a mortgage note denoting the present status of payments and the remainder owed.
Most Favoured Nation Clause
It is related with international bilateral trade agreements where each nation offers ‘most favoured nation’ position to the other and a clause is incorporated to this effect in the trading agreement. In this event, both the countries agree to afford the o
It is known as methods analysis, methods engineering, methods research, work-study, and work analysis. F.B. and L.M Gilbreth define motion study as the science of eliminating wastefulness resulting from using unnecessary, ill-directed, and inefficient mot
It is an expression which is used marketing for investigations of the reasons why consumers may choose one product in favor of another.
Multi-maturity Time Deposit
It is a type of savings deposit that has limited withdrawal privileges and pays a greater than normal interest rate.
Mutual Investment Company
It is fiscal investment company that has a variable number of shares outstanding and that is ready at any time to issue or redeem shares at or near the current liquidating value. It is also known as mutual investment trust.
National Product, Gross
It means gross income generated from within the country plus net income received from abroad during a year. This is expressed either ‘at current prices’, i.e., at prices prevailing during the period to which the figures refer; or ‘at constant prices’, i.e
National Product, Net
National Product, Net means during the process of production the capital equipment of the country is gradually worn out. Few machines become obsolete. Certain part of the Gross National Product of the country must be used for the replacement of worn out a
Natural Financing means a sale or exchange or real property that requires no outside financing or mortgage, as when properties are traded and each party assumes the other’s mortgages, or as in an all-cash sale.
Navigational Change Principle
It is a principle of management decision-making that holds that a decision-maker should consider the ability he or she will have to change a decision once it is made.
Near Money is a fiscal instrument with some of the qualities of money. Savings deposits, shares in savings and loan associations, United State Treasury bills, and the cash value of personally held life insurance policies are examples of such an instrument
Negative Income Tax
Negative Income Tax is a proposed government payment to a family to equalize the variation between income earned and a minimum guaranteed income level.
Negligence in legal procedures means, the failure to do what an ordinary, reasonable, prudent person would do, or the act of doing what an ordinary, reasonable, prudent person would not do. Ordinary negligence is attributable to recklessness and an extrem
Net Avails means the net proceeds of a discounted note.
Net Change is the price of security change from the closing price on one day to the closing price on the following day on which the stock is traded. In the case of a stock that is entitled to a dividend is considered in computing the change. The same appl
Net Lease is a lease on real property requiring the lessee to assume all operating expenses, such as maintenance, taxes, and insurance in surplus to the payment of rent.
Net Proceeds means proceeds from the sale or disposition of property or the marketing of an issue of securities less directly related costs.
It is a ratio for fixing an aspect of the fiscal worth of an enterprise, calculated by dividing net sales by stockholder’s equity.
It is a clause added to their bills of lading by various transportation companies and agencies such as railroads and motor carrier lines. It provides that any insurance payable in connection with the property being transported shall be payable to the tran
The traditional method of compensating automobile accident injuries, in which the victim makes a claim directly against an individual wrongdoer or, in reality, against the wrongdoer’s insurance company. Under no-fault, a claim for damages is made to the v
Initials for Not Otherwise Indexed, It is related to tariff classification.
Initials for not otherwise indexed by name, It relates to tariff classification.
No-Load Mutual Fund
It is a type of mutual fund that does not charge sales commissions. These types of funds are readily identified in the lists of mutual fund quotations appearing in the press because bid and asked prices are identical.
Non-assessable Capital Stock
It is a capital stock that is fully paid for by the stockholder who is not normally accountable for the liabilities of the corporation. It is the common stock ordinarily issued by the U.S Corporations.
Non-cumulative Dividend is a dividend on preferred stock that does not become cumulative or need not be made up at a later date, if passed (not distributed to stock holders). This may not hold in all jurisdictions, since some courts have declared that suc
Non-cumulative Stock is a preferred stock on which the unpaid dividends do not accrue. Omitted dividends, as a rule, are gone forever.
It is the revenue of an enterprise that is received from sources not classified as being within the firm’s regular activities.
Non-price Competition is the market situation that occurs among rival sellers whose goods or services are priced comparably or identically, and whose competition in the marketplace is generally concerned with claims of superiority in quality or service.
Nonqualified Stock Option
Those stock option which is not eligible for capital gains or profit, tax treatment; It is also known as unqualified stock option.
Non-revenue Receipts in government accounting, means collections that are other than earned income during a given accounting period.
Non-stock Corporation is a corporation without issued capital shares. Examples include mutual savings banks, savings and loan associations, credit unions, and charitable organizations.
It is a trade restrictive practice other than customs tariffs employed either by government or by private firms.
Non-par-value Capital stock
It is a capital stock that does not have a specified par on nominal value.
It is related with values, ethics, and opinions of what ought to be rather than of what is. Normative propositions would be, unemployment is too high, and inflation ought to be stopped and other similar generalities about the economy.
Notice Account is a type of savings account that requires the depositor to give notice of his or her intent to withdraw funds. It receives a premium rate of interest.
Notice of Default
Notice of Default is a notice filed by the owner of a trust deed with the country recorder informing that official that a borrower has defaulted and foreclosure proceedings or repossession may be started.
Notice of Loss
Notice of Loss in insurance policies require that the insured party give written notice of loss of the insurance company either immediately or as soon as practicable. The oral notice is not acceptable.
Objective Value in accounting procedures, a value for an asset established by an independent appraisal made by an agent deemed to be free of bias or prejudice, established by market quotation for a similar quantity, quality, usefulness, and condition.
It is the ratio of apartment units or offices rented as compared with the total number contained within the building or the ratio of leased to total space, expressed as a percentage.
Ocean Marine Insurance
It is the oldest type of commercial insurance; it may be obtained in either domestic or foreign ports. Lloyd’s of London has gained fame as an ocean marine insurer.
Odd Lot in the securities market, an amount of stock that is less than the established 100-share or 10-share unit of trading; from one to 99 shares for the great majority of issues, from one to 9 for the so-called inactive stocks.
Off Board Transaction is an over the counter transaction in unlisted securities or a transaction involving listed shares that was not performed on a national securities exchange.
Offence Handelsegesellschaft (OHG)
It is a general partnership under the law of the Federal Republic of Germany.
Offset Statement is a report by the owner of a property or the owner of a lien against a property, which sets forth the present status of liens against that property.
Off Setting Error is an error in bookkeeping that eliminates or reduces the effect of another erroneous entry.
Of the Books
Of the books means the payment of wages for services performed but not recorded in the books or on the payroll records of the employer. Paying an employee off the books may be illegal, depending on rules and regulations pertaining to the number of employe
Oil and Gas Lease
It is a deed by which a landowner grants another party the right to extract oil and gas from the leased property.
It is a market situation in which seller are so few that the supply offered by any one of them materially affects the market price. Thus, each company is able to measure with a high degree of accuracy the effect its price and production decision will have
It is a market condition wherein there are few purchasers for the output of specific sellers.
On Consignment means transmitted to another for the purpose of sale, display, demonstration, or similar use without real transfer of title, as in merchandise delivered on consignment.
Open-end Investment Company
Open end Investment Company is an investment company that can expand its size through the sale of surplus stock.
It is a mortgage agreement that approve the mortgagor to borrow additional money after the loan has been deduced, without requiring that the mortgage agreement be rewritten.
The export order is known as Indent. An Open Indent signifies carte blanche, i.e. full discretionary power given to an agent in selecting the manufacture.
Open to buy Reports
Open to buy Reports means a report of relationships between inventory and sales, used to calculate open to purchase amounts or quantities.
Operating Cycle is the period of time between the purchase of inventory and its conversion to cash receipts.
Operating Revenue is the gross sales of goods and services, less returns and allowances and cash discounts, together with gross amounts received from any other regular source of income; net revenue from sales.
Operating Statement is a detailed income statement that displays fiscal operations over a stated accounting period.
Operation Sheets tell us in detail how an operation is to be performed. Compared with drawings those specify what part or product is to be manufactured, route and operation sheets how to manufacture it.
Operations Research (OR)
The application of scientific methods of analysis, including mathematical models, to process complex information and arrive at decisions that offer a maximum probability for achieving organizational objectives.
Opportunity Cost means the return on capital that might have resulted if the capital had been used for some purpose other than the one to which it had actually been put. These terms used to indicate the best alternative use of capital.
Optimize means to rearrange the instructions of data stored in a computer so that a minimum number of time-consumed to run a program.
Optional Dividend is a dividend payable in more than one form, such as cash and capital stock, at the election of the individual shareholder.
It is an arrangement under which an individual with a stock option pays for the shares over a period of time. Fiscal provisions may range from a personal bank loan negotiated by the individual, at times with the unofficial assistance of the company to low
It is a bill of lading term; to request surrender of the original bill of lading before the freight is delivered. These documents are handled through a bank.
Order Point is a level or inventory for a certain item at which it must be reordered. The order point is calculated on the basis of estimated demand, replenishment lead-time, and a safety stock to cover forecast errors.
Ordinary Annuity is an annuity that is payable at the end of each period of certain time.
Organizational Audit means complete and periodic re-assessment of all of an enterprise’s plans, process, personnel, allocation of resources, etc. to find if each of those mechanisms is being utilised most efficiently and effectively in pursuit of enterpri
Organization for European Economics Co-operation (O.E.E.C)
The parent body of many organizations set up within Europe after the Second World War to facilitate and coordinate the national and international efforts for promoting the full recovery of the European economy. In 1961 its responsibilities were taken over
Organization Manual denotes enterprise Handbook which indicates the functions, authority, duties and relationships of each major enterprise unit. The manual, properly prepared, makes possible the availability of complete information on pertinent matters a
It means a study of group and individual behavior, motivations, influences, and conflicts to find more effective means of organization management or incorporation.
Origin Period in statistical analysis is the period of time within a time series selected as the base period.
It is a minor asset not classifiable under other usual headings, generally a small portion of the total assets.
Other Deductions in accounting procedures, a grouping of minor costs shown as an individual total in order to minimize the presentation of unimportant detail.
Outlay Cost is the cost represented by an expenditure of cash or a transfer of property.
Out-of pocket Cost
Out of pocket Cost is an expense incurred by an individual, paid for in cash not charged to the individual’s personal account, for which reimbursements may be sought.
It is characterized by prices considered too huge, as in reference to a security that has had a sharp increase or to the securities market as a whole after a period of vigorous buying.
Over Freight in possession of a carrier, without way bill or identifying markings.
It is a theory of business cycles holding that economic fluctuations are caused by too much investment in the economy as business firms try to anticipate the increase in demands during an upswing, and by sharp cutbacks in investment during a downswing whe
It characterized by prices considered too less, as when an individual security or a securities market has decreased to an unreasonable level.
Over-the Counter market
Over the counter market is a market for securities made up of securities dealers who may or may not be members of a securities exchange. Mainly it is made over the telephone. Various companies have insufficient shares outstanding, stockholders, or earning
Package Mortgage is a popular form of mortgage used with new residential sales in which the debt includes the cost of several mechanical or electrical equipments.
A widespread fear, uncertainty, and insecurity concerning the fiscal stability of a nation. A panic results in efforts by large segments of the populace to quickly convert assets, especially securities, into cash, in runs on banks by depositors, and in th
Paper Profit is an unrealized profit on a security that has not been sold by its owner. The market value of a security may have risen over the purchase price, such paper profits become realized profits only when the security is sold.
Par means the dollar value assigned to a share by the company’s charter. It can also be used to compute the dollar amount of the common shares on the balance sheet. It has little significance as far as market value of common stock is concerned; many compa
Paradox of Thrift
Paradox of Thrift means the demonstrated proposition that an addition in saving may be desirable for an individual family, but for an entire economy it will lead to a reduction in income, employment, and output if it is not offset by an increase in invest
It is a title given to real property that is superior to all others.
Parent Company is a company that controls the fiscal and operations of subsidiary companies. A company is known as a holding company or controlling company if the controlling company does not have a trade or business of its own.
Parity of Authority
Parity of Authority means the management principle holding that a superior within an organization has the legal and moral right to issue orders to his or her subordinates.
Parity Price is the price that yields an equivalence to some defined standard. For example, in agriculture, a price of agricultural commodity that provides buying power, in terms of the goods farmers buy, equivalent to its purchasing power in a previous b
Party Ratio in agriculture, means the prices farmers currently receive divided by the prices they pay. Party Ratio is used to measure the economic status of agriculture.
Par of Exchange
Par of Exchange means the ratio of one country’s unit of currency to that of another country, as defined by the official rates between the two countries.
Partial Re-conveyance Deed
It is an instrument used for transferring a title used to re-convey a part on of land encumbered by a blanket mortgage or a trust deed.
Partial Release Clause
According to this clause a portion of mortgage or trust deed that provides for removal of several properties from the effect of the lien on payment of an agreed-on sum. A subdivider must have such a clause in his mortgage if his tract is subject to a blan
Participating Preferred Stock
Participating Preferred Stock is a security in a company, entitled to its stated dividend as well as to farther dividends on a specified basis at the time of dividend payment on common stock.
It is a style of management in which the leader plays an active consulting and advising role but gives subordinates a considerable amount of independence in making last decisions.
Partnership Life Insurance
In a Partnership Life Insurance, when a partner dies, the partnership is dissolved. Partnership life insurance is supported by a purchase and sell agreement that assures that authority is given to use the procedure of the policy to purchase the partnershi
Parts Consolidation in manufacturing, a report showing the gross requirements, without relation to time, for a build plan, specified as a series of part numbers and quantities.
Patent Insurance covers expenses a patentee might incur in legal actions to protect the patent against infringement by others. The defensive type of this insurance provides coverage against legal actions alleging that the insured has infringed on the pate
Patent Monopoly means the monopoly power a firm exercises because the government has conferred upon it the exclusive right, through issuance of a patent, to make, use, or market its own invention or discovery.
Patronage Dividend means a distribution by a co-operative to its members, in the form of a rebate on purchased made by the individual member.
Payback means fiscal return usually related to the time required for a project, product, or other investment with measurable return in revenue to reach the dollar level of the actual investment.
It is a pricing policy intended to capture as huge a share of the market for a goods or service as possible. This may be done by offering the goods or service at an unusually less price.
Penny Stocks in securities trading means a less priced issue that is often highly speculative and sells for less than a dollar a share. Although some penny stocks have developed into investment caliber issues.
Percentage Order is a market or limited price order to purchase or sell a stated amount of a specified stock after a fixed number of shares of such stock have been traded.
Perfection Standard Cost
It is a standard cost based on the best possible productivity achieved under the most favourable situation.
Performance Share is a long term stock bonus with vesting and payout terms that depend on several corporate performance conditions such as earnings per share growth a form of long term incentive and a capital accumulation vehicle.
Peril means within the terms of an insurance policy, the actual reason of a given loss. The specific loss-producing agency, such as fire, windstorm theft, explosion, riot, and so forth. It involved in an actual loss may be defined as covered or not covere
Permission to Deal
Permission to Deal means when a company issues a prospectus it often states that permission has been achieved, or is to be sought, for the shares to be dealt with on a recognized stock exchange.
Perpetual Inventory System
Perpetual Inventory System in manufacturing means a system of inventory control or measurement in which each transaction in and out is recorded and a new balance is calculated.
Perquisite is a special benefit or privilege provided as an additional, indirect form of compensation. It may take such forms as a company car, club memberships, or special entertainment allowances. Colloquially known as perk.
Personal Effects Floater
Personal Effects Floater is an all-risk insurance policy introduced to cover the personal property generally carried by travelers. Written for a single face amount with certain limitations on payments of claims.
Personal Holding Company
Personal Holding Company is a corporation the majority of whose outstanding capital stock is owned by a small group of individuals. It is also known as in incorporated pocketbook.
Personal Property Floater
Personal Property Floater means an all risk insurance contract intended to offer personal rather than business protection, it covers all perils except those specifically excluded. Unscheduled, or unspecified, property that is related to the insured’s busi
Phantom Freight is a transportation charge included in the delivery price of a commodity that is an excess of the charge for service actually performed.
Phantom Stock Option
Phantom Stock Option is a form of stock that simulates an option on paper. Under a phantom stock plan, a grant of stock units is made and the executive receives the appreciation in market price, and sometimes the dividends, over a period of time. It is al
Physical Budget is a budget expressed in units other than dollars, such, as number of employees, number of worker-hours, and units of material.
Physical Inventory is an inventory fixed by actual measurement of weight, or by unit count.
Pictorial Chart is a chart readily understood and enjoying widespread use by all management disciplines in charting statistics. Graphic symbols represent numerical magnitudes; quantities are compared or evaluated by means of lengths, heights, or areas of
It is a marketing concept that incorporates into the original plan describing or defining the life of a product a finite time interval during which the product will be actively produced and offered for sale. At the end of the designated time interval, the
Pledged Asset is an asset that has been placed in trust or given as security for an obligation, loans, or mortgage. It is also known as hypothecated asset.
Point in the securities market, when referring to the price of shares of stock, a point means $1. In the case of bonds, it means $10. In the case of market averages, it means a change of one whole integer; for example, if the Dow Jones average rises from
Policy Method in accounting means a method of depreciation determined by fiscal or social policy, sometimes used in public works projects.
The uncertainty of future returns from a security, in the securities market, because of political developments, such as revolution, currency devaluation nationalization of facilities, and so on.
Portfolio means a total security held by an individual or an institution. It may contain bonds, common stocks, preferred stocks, and other securities of a variety of enterprises.
Positive Economics is related with propositions about what is rather than about what ought to be. The essence of a positive proposition is its concern with matters of fact, not with matters of values and ethics.
Post-claim Underwriting means the analysis of insurance claims for the purpose of fixing whether the policy should be cancelled. In many companies to refer large claims to the underwriting department. The practice is often employed where the insured party
Power of Attorney
It is a legal document approving a person to act as the agent for the person granting the power. A general power of attorney authorizes the agent to act generally without restriction on behalf of the principal. A special power of attorney limits the agent
Pre-acquisition Profits is the retained earning of a corporation as stated immediately prior to being acquired by, or in any way having come under the control of, another corporation.
Preemptive Right means the privilege to purchase for a pro rata share of any new capital stock a corporation is about to issue, given to a stockholder in the corporation’s charter or under the common law.
It is an agreement under which an employer gives first choice of available jobs to members of a particular trade union. It is also known as preferential shop.
Preferred Stock is a class of stock with a claim on the company’s earnings before payment is made on the common stock and usually entitled to priority, or preferred treatment, if the company is liquidated. Normally entitled to dividends at a special rate,
It is a dividend paid to the registered holders of preferred stock, usually at a fixed rate per quarter and expressed as a percentage or in dollars per share.
Pretax Income means an income reported for accounting purposes before income taxes have been reduced. It is also known as pretax earnings.
It is a statistical device for comparing the amount by which prices have changed during a given period of time. A specific year is chosen as the base year and prices in all other years are measured as a percentage of the price in this base year.
Price Leader means an item or merchandise priced abnormally low. The main motive is to attract customers, in retail sales operations.
Price System means an adherence by firms in an oligopolistic industry, and without formal agreement, to the pricing policies of one of the members of the same industry. Frequently, but not always, the price leader will be the largest firm in the industry,
Price Variance comes into result due to change in the cost of materials and labour.
Primary Investment means the original purchase of shares of stock form a company, the money derived from there giving the company the capital it needs to perform.
The sale of securities that is issued to the group of subscribers by the issuer, usually without the intermediation of an investment banker.
Productivity of Capital
Productivity of Capital means output produced per unit of capital employed.
Productivity of Labor
Productivity of Labor means output produced per unit of labor employed, It can be measured on the basis of per worker or per worker hour.
Product Layout means the arrangement of machines and equipment in a production or processing facility according to the sequence of operations required to fabricate and assemble the item. The workers & machines are specialized in the performance of certain
Profitability Ratios means a set of ratios of fiscal data focusing on the profit realized by an enterprise and its relationship to the revenue generated or the resources employed. It include the profit margin on sales defined as net profit divided by sale
Profit, Capitalisation of
Conversion of additional accumulated profits of a company into capital, e.g., bonus shares.
Profit Center is a department, division, unit, or other clearly identifiable segment of a business that for purposes of fiscal control is treated budgetary as an entity, enabling expenses and revenues to be accounted as a measure of the center’s performan
It is the part of profit of a business concern for the year not distributed but retained in the business with an intention to utilize it for the purpose of development.
It is a situation in which prices and business profits start to increase before any increase in wages or other production costs takes place. The process stimulates labour unions to seek wage increases, thereby prompting sellers to make further price incli
Profit Unappropriated means that part of the profit of an economic enterprise not distributed as dividend nor has been allocated to any particular use.
Profit Windfall is a condition in which unexpected profit arise due to sudden rise in prices of goods and articles It sometimes occurs due to a f changes in taste, fashion, war, inflation, etc. This type of profit is a temporary in nature.
Progress Billing means an accounting process based on work performed under contract and allowing for the billing of work at progressive levels of completion.
Progressive Consumer in market analysis, means a consumer who would be receptive to an offer of a better product or service at a slightly more prices.
Progress Payments means payments made at stages of a construction or manufacturing program as it moves toward completion.
Projected Financial Statement
It is a fiscal statement for the future date or period of activity, as opposed to a statement of past performance, based on estimates of transactions to be conducted. It is also known as a pro forma statement and giving effect statement.
Purchase Money Obligation
Purchase Money Obligation means a mortgage or other type of debt secured by a lien that has priority over any lien subsequently created.
It is an internal document approving the purchasing department to issue a purchase order.
Purchasing Power Risk
Purchasing Power Risk in the securities market means the uncertainty of the purchasing power of future returns on investment because of changes in the price level.
It is a condition in which there is no chance of profit or gain, only for loss. This type of risk is covered by insurance contracts.
Puts and Calls
It is an option that gives the holder the right to sell (put) or buy (call) a fixed amount of a several stock at a specified price within a specified time period. Puts are purchased by those who think a stock price may go down, and they obligate the selle
Pyramid Selling is a system of selling in which purchaser buy the right to sell a product. This right usually includes a requirement to purchase a minimum quantity of the product. The technique takes on the form of a pyramid by the fact that the first pur
It is a statement in an auditor’s report directing the reader’s attention to any important limitation or to any doubt or disagreement the auditor feels about item reported.
Qualified Report is an audit report that contains one or more qualifications or exceptions.
Qualified Stock Option
Qualified Stock Option is a stock option plan that qualified for capital gains tax treatment. Under such a plan a stock must be awarded at market value, exercised over no longer than a five year period, and then held for three years before it is sold capi
Qualified Stock Purchase
Qualified Stock Purchase is a formal, plan under which employees can bought company stock at less than the market price at the time of purchase, on a payroll reduction basis, over a fixed period of time.
Quantity Discount means an allowance, in credit, cash, or goods, given by a seller to a purchaser because of the size of an individual purchase. The practice does not violate laws dealing with price discrimination provided the seller can demonstrate that
It is a technical procedure for estimating the cost of a new construction wherein it involves detailed estimates of the quantities of raw materials to be used. The current price of the materials, and the labour costs. It is also known as the price takeoff
Quasi Corporation is a public or municipal body or organization (as a county) not specifically incorporated or vested with all the usual powers of a corporation but exercising several corporate functions and rights in connection with public duties.
It is a condition which occurs when the impact of demand or production facilities exceeds production capabilities.
Quick Asset is a current asset normally convertible into cash within a relatively short time period, in the order of one month. Examples are cash call loans, marketable securities, and a commodity or good that can be sold quickly on the open market at quo
Quota in trade relations means, a physical limit, mandatory or mandatory or voluntary, set on the import of a product. In marketing-sales operations, the definition of a budget for orders in terms of a physical limit that becomes mandatory, a numerical qu
Quo Warranto in latin means "by what warrant." A court procedure by which a government body attempts to oust a person from public office.
According to Rack Jobber in the wholesale marketing of such non-food products as drugs, toilet articles, and house wares to grocery retailers, the rack jobber stocks merchandise into display racks he has himself installed. He is a full service merchant wh
An equipment which is used in warehouses and storerooms for storing. Few types are pallet, bin, tier, cantilever, flow through, drive through, a frame, stationary, fixed arms, rollaway, single deck, adjustable arms and double deck.
It is an insurance policy which is issued primarily in conjunction with outdoor events to which the public pays admission. The coverage usually extends for a brief period, possibly in the order of a few hours, and specified the perils of rain, hail, snow
Rally means a brisk risk following a decrease in the price level of stock market, or in an individual stock. It is also known as upswing, up-turn, and uptrend.
Rate buster means a piece worker who takes benefits of rates to earn higher bonus payments and does not join with fellow workers in holding production back to the bogey level agreed on unofficially by the group. The unpopularity of rate busters derives fr
Rate Group in transportation means, the group in which a given area is identified for the fixing of rates in a tariff.
Rate of Exchange
Rate of Exchange means the price that must be paid in one unit of currency to buy another unit of currency.
Rate of Return Pricing
It is a method which determines a selling price for an item by adding a markup that will produce a target return on investment.
It is a method which determines the financial or credit position of a person or a business enterprise as determined by another enterprise or by a credit-checking agency. In the securities market, the relative worth of a security as determined by any of th
From balanced sheet data financial ratios can be derived. From items of income and expense we can derive operating ratios. Ratios serve as a measure of merit of several aspects of an enterprise when data for one accounting period are compared with similar
Raw Materials means items which come from mines, forests, farms, and it includes goods such as gain, wool, ore, tobacco, petroleum and wood. Also, semi-finished goods purchased for use as an ingredient or component of a finished product.
Re-aquired Stock means a capital stock that has been reverted in title to the issuing corporation, usually through repurchase, by donation, or in settlement of a debt to the issuing company. A shares that are re-aquired are not canceled and are known as
Real Cost in accounting refers to the cost expressed in terms of physical units, such as pounds, bushels, miles, tons, and workers hours. In economics, the cost of goods and services adjusted for factors such as inflation.
Real Estate means the land and land improvements, including buildings and attachments, also, standing timber and orchard trees. It is also known as real property, in comparison to personal property.
Real Estate Investment Trust (REIT)
It is a special arrangement under federal and state law whereby investors may pool funds for investments in actual estate and mortgages.
Real Gross Domestic Product
The above terms in economics, refers to Gross Domestic Product data adjusted for current inflation.
Real Gross National Product
A data which is adjusted for current inflation is called as Gross National Product.
Real Income means an income which is measured in terms of the actual commodities and services it can purchase. Real Income can be calculated by dividing money income by a suitable index of prices.
Real Investment in finance means expenses that create a new capital asset. It results in new capital formation.
Re-appropriation in government accounting means, legislative action that approved the government to continue to incur obligations under an expired or soon to expire appropriation.
Rebate means an adjustment in a charge that has been paid to the supplier of a service or good, resulting in a return of a part of the payment. If the adjustment was the result of an overcharge, the returned part would be referred to as a refund. If the a
Recapture Clause means in a lease, a provision to terminate the lease if several of its conditions are not met by the lessee.
Receivable means a collectible money obligation, whether due yet or not. Usually referred to as accounts (s) receivable or note (s) receivable.
Receivables Turnover means a ratio of business activity, net sales divided by average receivables during the sales period.
Receiving means in business and industry, the department or section responsible for receiving and identifying all incoming material and transferring the material to stores or other areas within the company.
Receiving (or receiver’s) Report
It is a document prepared by the receiver of a shipment as a formal record of goods received, generally used as a source document for warehouse and inventory accounting and to support shippers and carriers invoices. This report includes the name and addre
It means a downtown in economic activity, one phase of the business cycle. Declined investment, falling incomes, falling consumption, and increased unemployment are characteristic of this phase.
Reclassify in accounting means, to break down a transaction into secondary classifications.
Reconciliation in accounting means, fixing and recording the items necessary to bring the balances of two or more related accounts or statements into agreement.
Reconsignment means changing the bill of lading provisions with respect to the consignee or destination while the goods are still in transit.
Reconveyance means transfer of the title of land from one person to the immediately preceding owner, commonly used when the performance or debt is satisfied under the terms of a deed of trust, thus allowing the trustee to convey the title he or she has he
Recovery Value in accounting means estimated revenue from a resale or scrapping of a fixed asset.
Redemption means, the act of buying back in a financial transactions. For example, a debtor purchase back or redeems his or her mortgaged property on completely repaying the debt, or the issuer of a bond buys back the bond from the holder.
The price at which a bond may be redeemed before maturity, at the option of the issuing company. Also applies to the price the company must pay to call in certain types of preferred stock.
Red Herring in finance means a colloquialism for a preliminary prospectus prepared in conjunction with a proposed security offering filed with the Securities and Exchange Commission.
It is a negotiable instrument, previously acquired by a bank at a discount, sold to a Federal Reserve Bank. The act or procedure of rediscounting such an instrument.
Rediscount Rate means when the Central Reserve System was originated, loans were the chief earning asset of commercial banks. Since then, purchasing and selling marketable securities, particularly government securities, have become significant means for o
Redlining means the practice whereby banks and other institutional lenders deny mortgage credit to an entire decreasing neighbourhood regardless of the condition of the specific property or the creditworthiness of potential borrowers.
Reducing balance Method
It is a method of depreciating an asset. The amount to be depreciated annually is derived by applying a fixed percentage to the diminishing balance of the asset account, or by applying a diminishing rate to the original cost of the asset. For example, an
Refinancing in the securities market means, new securities may be sold by a company and the money used to retire other debts. For example, the receipts from a new issue for common stock may be used to redeem outstanding bonds in order to save interest cos
Refund means the return of an overpayment made for commodities or services. It can be in the various forms like money, merchandise, services, or a credit voucher applicable to the purchase of new goods or services.
It is a book which is maintained by an enterprise to record matters of importance. Each enterprise has to maintain a number of registers for that purpose, e.g. Register of Members, Register of Directors, Register of Creditors, Mail Register, Stock Registe
Register, Closure of
Before the Annual General Meeting, most companies keep the Register of Members closed for a several days in order to enable the department concerned to prepare the Annual Return and the preliminary work connected with divided distribution, i.e., preparati
Registered Bond is that bond which is registered on the books of the issuing company in the name of the owner. It can be transferred only when endorsed by the registered owner.
Registered Mail Insurance
Registered Mail Insurance provides all-risk coverage for currency, securities, bullion, and similar valuables when shipped by registered mail. It covers the period from the messenger’s departure from the insured party’s premises to delivery of the item to
Registered Trader means a member of the New York Stock Exchange who trades in stock on the floor for an account in which he or she has an interest. It is also known as floor trader.
Register of Charges
It is a register which has to kept by each company and enter therein all charges and mortgages specifically affecting property of the company and all floating charges on the undertaking or on any property of the company, giving in each case the following
Registration of Business Names
It means a partnership firms are required to register their names if they do not consist solely of the name of the existing partners themselves. It is compulsory for companies to register their name with the Registrar of Companies. Where the business is c
Regulated Investment Company
Regulated Investment Company is an investment company that has met the requirements of the Investment Company Act of 1940.
Reinsurance means the sharing of risk among several insurance companies in cased where an insurance policy involves the possibility of a large indemnification and where the possibility of catastrophic loss exists. Reinsurance is also known as insurance of
It is a clause in which, on payment of a certain sum of money to the holder of a trust deed or mortgage, the lien on the specifically described lot or property shall be removed from the blanket lien on the whole area involved.
Renewal Fund is a reserve fund which is established for the replacement or renewal of an asset. It is also known as replacement fund.
Replacement Method is a method of depreciation in which an estimate is made of the cost of replacing an asset that is in use and has a limited life. The amount of the current depreciation expense, usually on a straight-line basis, is increased by a percen
Replacement Theory in accounting means of fixing the optimum balance between the costs of breakdowns or failure versus the cost of replacement under conditions of uncertainty.
Rentier means an Pensioners, annuity holders owners of Government Promissory Notes and others who draw a fixed income in terms of money.
Repurchased Stock means capital stock bring back by an issuer from its stockholders.
Requirements Contract means a contract wherein one party to the contract agrees to buy all his or her requirements of a particular product from another party to the contract.
Requisition is a written request for several articles or services, it is an internal process.
Residuary Legatee means one who is entitled to receive the balance of an estate after certain bequests, taxes, and other liabilities have been satisfied.
Responsibility Costing is an accounting process that identifies costs with persons assigned to their control rather than with products or functions.
The shifting of responsibility within an organization, caused, by, altered assumptions of responsibility, changes in personnel, growth of individuals, and informal changes in objectives.
It is a situation in which cash can be withdrawn under specific circumstances or conditions for special purposes. Basically the cash is maintained in a separate bank account.
Restricted Retained Earnings
Restricted Retained Earnings means the part of retained earnings not legally available for disbursement as dividends.
Restricter means a worker who performs or produces at a level considered to be the norm for the group of which he or she is part.
Retirement Method in accounting means a method of depreciation used by public utilities, now obsolete.
Retrogressive Consumer in marketing analysis means a buyer who is eager to economize on an existing goods or service.
Retrospective Rating means a method of adjusting the amount of a premium to the actual loss covered by an insurance policy.
Revenue Deduction in municipal accounting is an expense, tax, or uncollectible account receivable of a municipal utility or other enterprise.
Revenue Sharing is a plan by which by which the central government turns over a part of its tax revenues to state and local governments each year.
Revenue Tariff means an import tax usually applicable to products that are not produced in the importing country.
Reverse Split or Reserve Split-up
It means the recall of shares by the issuer, who then reissues certain shares in exchange. It is also known as splitback and splitdown.
Revolving Fund is a fund whose resources are continuously expended, replenished, and expended again. An example is an asset available for loans the repayments of which are available for other loans. In government accounting, a revolving fund is one create
Riparian Owner is a person who owns lands bounding a river or watercourse.
Risk Manager is an insurance specialist who diagnoses risks to which a project or enterprise may be subjected and prescribes appropriate action with respect to insurance coverage.
Rolling Forecast means a continuing series of periods of marketing activity in the form of a budget.
Rollover means the renewal of a short term debt at the option of the borrower under an agreement with the lender.
Rollover Bonus are those bonus which is partially paid out in the year in which it is earned, the remainder being paid over the following several years.
Round Lot in the securities market, is a unit of trading or a multiple thereof. On the New York Stock Exchange the standard unit of trading is 100 shares in stocks and a par value of $1,000 In the case of bonds. The unit of trading in some inactive stocks
Round Sum is a figure whose final digits have been rounded off.
In the manufacturing procedure a portion is analyzed to fixing the operations required and to select and specify the functions required to complete the processing. The routing of the part is summarized on route sheets. These show 1. The operations require
A last posting in a ledger account. The main purpose is to indicate that no further entries are to be made above the rule-off line and that a total of transactions have been reached.
Runaway Shop is a business organization that moves from one location to another primarily to escape unionization of its employees or the application of labour laws. It is possible for geographically centered industry to make a similar physical move for th
Runout List is a list of items to be scheduled into production in sequence by the dates on which the present available stock is expected to be exhausted.
Sabbatical Year is originally a year of rest for the land observed each seventh year in ancient Judea, in modern practice, a leave granted every seventh year, with or without pay, for the purpose of travel, research, or rest.
Salary Roll is the payroll for salaried person or employees.
Salary Structure is the minimum dollar limits within which jobs are ranked according to compensation values. Usually, the structure consists of a series of coded grades, with each grade having a range of salary levels.
Sales Load means the commissions and other selling expenses used in fixing the price of a share to an investor.
Sales Revenue means total sales in dollars, usually for a certain period of time.
The real or appraised selling price of an asset in the form of second-hand material, junk, or scrap. This term is also applicable to both the sale of merchandise through channels that are not ordinarily used for the class of product and to the value recei
Savings Bank Life Insurance
Life insurance sold over the counter by mutual savings banks as approved by law in few states.
Saving Bond is a debt security sold by the treasury to individual investors. Savings Bonds are fully registered securities, usually sold in small amounts to make them affordable to the majority to the population.
It is a cash incentive program for employees based on sharing the savings from a deduction in labor costs from a described standard. This plan was developed by in the 1930s and 1940s by Joseph Scanlon of the Massachusetts Institute of Technology and imple
Schedule Coverage is an insurance policy that defines a number of risks of the same general type to be covered under a single policy (rather than under separate policies for each risk). For example, the insured who has four properties may insure all four
Schedule Rates are those rates which is applicable to insurance risks where there is enough difference to make it unfair to apply general class rates. The rates for such risks are usually fixed after a physical inspection of the property by a representati
Scrip is a fractional or temporary share of stock or other security. It may be issued in connection with a recapitalization or reorganization and is ultimately converted into regular certificates. Also, scrip is paper "money" issued by corporations to pay
A dividend which is paid in promissory notes referred to as scrip. The notes may be negotiable, bear interest, mature at different dates, and call for payment in cash, stock, bonds, or property.
A secondary investment is the change of ownership of shares of a company’s stock, such as occurs through purchasing and selling common shares on a stock exchange.
Secondary Offering is the redistribution of a block of stock some time after that stock has been sold by the issuing company. The sale is done by a securities firm or group of firms, and the shares are usually offered at a fixed price that is related to t
Second Mortgage is different from first mortgage, A mortgage that differs from a first mortgage only in that it constitutes a second, or junior, lien or encumbrance on the property. In the case of default, the claims of the first mortgage are given priori
Secular Price is that price resulting from the interaction of economic forces over a period of years.
It is a definite tendency to modify in particular direction because of long-term economic influences. Secular trends are used mainly to predict the growth rates of various industries.
Secured Account is any account against which collateral or other security is held.
Secured Creditor is a person whose claim against another is protected by collateral, or by a mortgage or other lien.
Secured Liability is an obligation against which particular assets have been pledged or guarantees given.
It is an aspect of credit terms given to customers. During periods of slack sales, firms may sell to customers without requiring payment for some time to come. This extension of the credit period is referred to as seasonal dating; the practice may be empl
Seasonal Fluctuations means the patterns of orders or sales that last for periods of less than one year. For examples, retail sales generally expand at Easter and Christmas time, and agricultural activity increases during the summer and decreases during t
Seasonal Inventories are those inventories whose levels are adjusted to absorb seasonal differences in demand. Many products have reasonably predictable seasonal demand patterns. Where this is true, management has the choice of either using seasonal inven
Seasoned Security is a listed stock with narrow price fluctuations which yields regular quarterly dividends and is backed by net assets and an earning capacity considered adequate to protect the investor in such stock.
Secondary Account is an account that is based on internal transactions involving transfers from primary accounts and other secondary accounts. These accounts include a finished product account, a bad debt account and a retained earnings account.
Security Risk in the securities market means there are certain classic types of risk that the investor must recognize.
Self fulfilling Prophecy
It means a forecast that is made more realizable because special effort is given toward its fulfillment. This could be happen in marketing where a decision that a particular product or market is most (or least) promising is followed by a concentration (or
Self Insurance often confused with non-insurance, which means not taking out an insurance policy, however, self-insurance as practiced by huge companies means the actual setting aside of a reserve fund that may be used in the event of loss.
Sell and Leaseback Agreement
Sell and Leaseback Agreement means an arrangement whereby a business that owns and occupies improved real estate sells it to an investor and takes a long term lease on the property, which it continues to occupy. The agreement may include an option to repu
Semitrailer is a freight carrying vehicle that has not power of its own. Semitrailer is attached to a tractor to achieve motive capabilities.
Semi-variable Cost means an operating expenditure that differs, not necessarily at the same rate, with production rates.
This term is applicable to a class of securities (bond, note, or share) to indicate its preference over another class of securities in the event of liquidation. For example, a first mortgage is a senior security as compared with a second mortgage. Preferr
Separable Cost is a cost that may be identified with a specific goods or service.
Separated Manager is a manager who is very concerned with correcting deviations. He tends to write more than talk and, partly because of this, has relatively little personal communication in any direction. He perspective tends to be dictated by past exper
Serial Bond is an issue that matures in relatively small amounts at periodic stated intervals.
Service Yield Basis
Service Yield Basis is a method of depreciating an asset whereby cost is spread over the useful life of the asset in proportion to service units consumed or outputted by the asset. It is also known as production method of depreciation or unit of product m
Settlement Options means the provisions of a special compensation plan that govern the form and timing of the payout of benefits, used particularly with pension, thrift plans and profit-sharing.
It is a contract in which each party makes a separate promise and is therefore separately liable. There may be certain promises in the same contract. If the promisors make a single promise, the obligation is joint. This accounts for the use of the phrase
Shopping Goods means consumer goods whose price, fashion, quality, and service are relatively important to the buyer. Generally bought infrequently, they are of high unit value, and the consumer may spend considerable time in shopping for price and qualit
Short Covering in securities trading, means the buying of stock in order to return stock that was previously borrowed to make a delivery on a short sale.
Shortfall means the gain from a sale of an investment owned for a huge period, such as six months.
Short Rate means the disproportionate amount of an insurance premium returned when an insured cancels the policy. The insurance company retains a part of the unused premium as a cancellation penalty.
Short Sale means a person who believes that a stock will decrease and sells it even though he does not own any has made a short sale. By example, a trader instructs his brokers to sell short 100 shares of xyz. The broker borrows the stock in order to deli
Short-term Debt means any current liability, including the maturing part of a long-term liability. Short-term debts are usually payable within the next 12 month period.
Short term Equilibrium is a time period that is long enough to permit market supply to vary within the limits of existing productive capacity.
Sight Draft means a written order drawn by one party (drawer) ordering a second party (drawee) to pay a specified amount of money upon demand (usually supported by particular documentation of a transaction) to a payee.
Sight Test in auditing refers to, an examination of accounts without formal analysis.
Simple Interest means the charges made by a lender for the loan of money or for a deferment of the collection of an account. It s calculation is done by applying an interest rate against the principal of the loan only.
Simple Journal in accounting means, a book of original entry that contains only two money columns, one for debits, and the other for credits.
Simple Trust is a trust that must distribute its income currently but does not distribute capital before its termination.
Single-level Bill of Materials
Single level Bill of Materials in manufacturing, a list of components or raw materials for a single assembly level.
It is a type of retail sales establishment that carries a wide variety of one line of merchandise. The goods handled are related items, such as might be found in a sporting goods shop, a furniture store, or a large men’s clothing store where one could exp
Sit Audit means an audit conducted on the premises of the organization being examined, especially in fiscal examinations performed by government agencies such as the IRS.
In organizational behaviour, Situational Sensitivity means the skill in appraising conditional elements in terms of task and relationships demands.
Slander Liability Insurance
A insurance policy which is available to radio and television broadcasting stations, credit bureaus, and other organizations that may face accusations of oral defamation of character. Usually written with a high dollar value deductible clause. The insured
It is a large net into which freight is placed for hoisting into or out of a ship.
Smallest Processing Time Rule
Smallest Processing Time Rule in manufacturing means a dispatching rule that directs the sequencing of jobs in ascending order according to the time required to process. Following this rule, the maximum number of jobs per time period will be processed. Th
Social Balance means the relative distribution of resources between the private and public sectors.
Social Benefits means a gain that accrues to individuals and to society as a whole, but for which the individual does not have to pay directly. Highway construction and police and fire protection are examples.
Social Costs means a disadvantage to society that may result from private production but that is not necessarily reflected in the money costs to the single producer of acquiring the resources needed for production. Pollution is a social cost of production
Social Overhead Capital
It is the capital of a society, consisting of facilities for energy production, transportation, education and communications. It is also known as the infrastructure of a society.
Society Risk in the securities market means the uncertainty of future returns from a security because of shifts in public attitudes. It may involve changing consumption patterns, pollution, and population control, for examples.
Social Security Integration
It is a technique whereby a pension or profit-sharing retirement plan is discounted for social security benefits. This is done by applying a formula, by excluding several earnings from the benefits, calculation, or by subtracting social security under the
Soft Currency means a currency whose exchange rate is tending to decline because of persistent balance-of-payment deficits or because of the building up to speculative selling of the currency in anticipation of a change in the exchange rate.
Soft Loan means a loan bearing no interest rate, or a rate that is abnormally below the true cost of the capital lent. The International Bank for Reconstruction and Development, working through its affiliate, the International Development Association, giv
Source and Disposition of Funds
Source and Disposition of Funds means a statement often included with published accounts showing the cash coming in and the cash going out during the fiscal year.
Sovereign means when first minted it had a value in exchange of twenty-two shillings and six pence. This fell in subsequent years but was legally fixed at twenty shillings in 1817. It ceased to be Legal Tender in 1914 even though sovereigns and half-sover
Span of Control
Span of Control is a theory and practice of management holding that a supervisor, manager, or executive cannot operate efficiently if he has more than a limited number of subordinates reporting directly to him. Generally, the higher the level of work, the
It is a charge which is levied by a municipal government on those who will benefit most from an improvement or service (such as installing pavements or sewers). Often bonds are issued to finance the work, and interest and payments on the principal are inc
Special Bid means the purchase of a large block of stock on the floor of the New York Stock Exchange. In a special bid, the bidder for the block of stock will pay a special commission to the broker who represents him or her in making the purchase. The com
Speciality Debt is a debt which is not barred until twelve years have elapsed, e.g. a Dividend or a Call on shares.
It is a highly specialized form of career insurance, generally providing indemnify for the loss of a member or function of the body related directly to the fiscal success of the insured. Examples are insurance for the hands of a well known pianist, the le
It is a class of consumer goods offering distinctive qualities for which the consumer may have a strong preference. Such products are very similar to shopping goods except that price is not the principal consideration in the purchase. One example is a bra
Special Warranty Deed
Special Warranty Deed In real estate is a deed that, instead of guaranteeing the title from the sovereignty to the last grantee, merely guarantees the title against claims arising by, through, or under the grantor.
Specific Coverage is a specific insurance policy, written for a definite amount on individual item of property at one location.
It is a Sophisticate form of gambling. Speculation is recognised in business as a necessary constituent of a healthy, free enterprise economy. In the commodity market particularly, the willingness of dealers to speculate on future prices can serve to main
Speculative Risk is a condition in which there is both a chance of loss and an element of gain. A business venture and a gambling transaction these are the examples of speculative risk.
Spillover Effects means benefits or costs associated with the production or consumption of a good that spill over to parties other than the customer or seller.
Spinoff means the transfer by a corporation of a part of its assets to a newly establish company in exchange for the latter’s capital stock.
Split in a securities market means the division of the outstanding shares of a corporation into a huge number of shares. For example, a 2 for 1 split by a company with a millions shares outstanding results in 2 million shares outstanding, Each holder of 1
Splitoff Point in accounting means, when two or more products are involved in the same or similar operation, the point at which joint costs end and costs that can be identified with individual products begin.
Cash which is readily available, usually in hand, for a quick purchase.
Spot Price is the price of goods available for quick sale and delivery. The commodity is referred to as a spot commodity.
Stag indicates an individual who purchase heavily on a new issue of shares or stocks in the assumption that the price will rise very quickly and thus enable his to earn a huge profit. Such buyers normally hold shares for a very short period. This term is
Standard Cost Accounting
Standard Cost Accounting means estimates or forecasts of costs to be incurred in the production of goods or the delivery of services. Such type of costs are known as standard costs. Estimates are based on assumptions of particular conditions. After the ac
It is a method of accounting whereby standard costs are the basis for credits to work-in-process accounts. Standard costs can be applicable to charges for materials, labor and other costs related to work in process. Physical and book inventories may be re
Standard Labor Rate
Standard Labor Rate is an employee s base pay, plus any incentives and premiums in money, estimated to be attained under efficient working conditions.
Standard Machine Time
Standard Machine Time is the time allocated or forecast to be required for the use of a machine in a specific operation in a production process. Standard Machine Time may be referenced to a specific quantity of output of units produced against a time base
Standard of Living Theory
It is a wage theory which holds that employees should be paid more than a subsistence wage. Wage level, it maintains, should be such that employees can afford higher education and some of the luxuries of life, such as recreation.
Standard Order is a constant work order that directs the production of an item to meet specified sales objectives.
In a market the chief commodity traded. Also, raw materials, or a linen, cotton, wool, or synthetic fiber.
Starboard the right side of a ship when facing forward toward the bow.
Stated Capital means the dollars received by a corporation from the purchasers of its capital stock. It is also known as declared capital.
Stated Value is the value given by a corporation to its capital stock for any of various taxation purposes. It is also known as declared value.
Statement of Identity
Statement of Identity is a questionnaire by which real estate title companies are helped in identifying a person, such a statement is essential, for example, when records show more than one person with the same name.
Stepped cost is a cost that increases in steps with increased volumes of activity.
Stock Appreciation Rights
Stock Appreciation Rights is an executive compensation plan intended to deduct the risk of market of market decreases that may be experienced with conventional stock options. Such a plan also eliminates the need for cash investment.
Stock clearing Corporation is a subsidiary that acts as a central agency of the Stock Exchange for clearing firms in providing a clearing operation through which transaction made on the floor are confirmed and balanced, it also provides a settlement oper
It is a program under which a company cancels outstanding stock options whose exercise price is substantially more than the current market price. The company then issues new, lower-priced options to replace the cancelled options.
Stop limit Order
Stop limit Order in securities trading, to purchase becomes a limit order executable at the limit price, or at a better price of obtainable, when a transaction in a security occurs at or above the stop price after the order has been presented to the tradi
Stop Order in securities trading means, an order to purchase or sell a specified price or better. A stop order to buy becomes a market order when a transaction in the security occurs at or above the specific price after the order is presented to the tradi
Stoppage in Transitu
Stoppage in Transitu means in law, the right of a seller of goods that have not been paid for, upon learning that the buyer of the goods is insolvent, to stop the goods in transit and hold them as security for the purchase price.
Storekeeper’s Burglary and Robbery Policy
It is an insurance policy specially designed for small business firms. It covers low-limit losses similar to those described in a comprehensive crime policy.
Stores Ledger Cards
Stores Ledger Cards in manufacturing are those cards on which are maintained records and data related to material on hand and on order.
The buying of a put and a call for an individual security at the same market price, also known as a double option. The purchase of two puts and one call is referred to as a strip. And of one put and two calls as a strap. Speculators in securities make use
Straight Deductible in insurance is the most common form of deductible clause; it provides that there is no coverage for small losses, typically in the amounts of $25, $50, or $100. In some policies the deductible clause is mandatory. In others, it is opt
Straight Lease is a lease for a fixed, agreed upon price for a specific period, with constant payments of equal amounts. It is also known as flat lease.
Straight Life Insurance
In Straight Life Insurance, Premiums are paid by the insured throughout his or her lifetime. When death occurs, the face value of the policy is paid to the beneficiary. Straight Life Insurance policy has cash surrender or loan value. It is also known as o
Street Name means securities held in the name of a broker instead of the consumer are said to be carried in a street name. This occurs when the securities have been bought on margin or when the consumer wishes the security to be held by the broker.
Style Flexibility in organizational behaviour, the skill of a manager in varying his or her basic style of behaviour appropriately to meet a changing condition, so that managerial effectiveness is improved.
Style Resilience in organizational behaviour, the tendency of a manager to maintain a single, appropriate basic style, so that his effectiveness as a manager is increased.
Subassembly in manufacturing means a low level assembly or minor assembly of individual components or materials later combined with other subassemblies to form a high level assembly or an end product.
Subjective Value in accounting, a value assigned to an asset by management without supporting verification from an independent source, possibly without relative to market value, and usually based on opinion or experience rather than or hard data.
Subordinated Debt is a debt that ranks below the actual amounts owed to general creditors. In times of fiscal embarrassment, an arrangement is sometimes made between a creditor and a debtor to subordinate a specific debt, where the creditor has faith in t
It is the right of an insurance company, after paying the insured’s loss in accordance with the amounts described in the policy, to take over all the insured’s legal right against negligent third parties. If not for subrogation, the insured might attempt
Subscribed Capital Stock
Subscribed Capital Stock is the part of the capital stock of a corporation against which unpaid subscriptions are outstanding. As subscriptions become fully paid, capital stock is issued.
Subsidiary Accounts is a group of similar accounts that related to the same activity or object and that are prepared in a separate record and controlled by an account in the general ledger.
Subsidiary Ledger is a supporting ledger keeping a group of accounts. Examples are an expense ledger, customer’s ledger, creditors ledger, and a departmental ledger.
Subsidy is a grant of fiscal aid, usually by a government agency, to a person or institution. One form of subsidy, called a grant-in-aid is restricted to special purposes.
Substitution Effect is a situation in which the price for a commodity, good, or service is extended beyond a critical level, consumers will seek lower priced alternatives or substitutes. When such phenomenon occurs and is successful, the tendency is for t
Summary Prospectus is a prospectus in short form authorized by the Securities Exchange Commission under regulations relating to promotional activities of dealers in SEC-registered securities.
Sunk Costs in accounting represents the costs that have been incurred and are not reversible in the event of a decision to discontinue an incomplete project.
Sunspot Theory is a theory of business cycles proposed in England during the late 9th century. It held that sunspot cycles (disturbances on the surface of the sun) exhibited an extremely high correlation with agricultural cycles, for a number of years; th
Superintendent is a title used to denote factory manager or a department, equivalent to general foreman or works manager in some countries.
The supermarket initially was designed to appeal to people with limited incomes by offering less prices and minimum services. The first supermarkets were located in warehouses, had poor lighting, and offered extremely ordinary displays of goods, primarily
In government accounting, a Congressional grant of funds that has the effect of expanding an appropriation that has been previously sanctioned.
Supplementary Cost in accounting term means the cost of product that is excluded in prime cost data
Support Deed is an instrument used in the transfer of assets or property in which the consideration is the support for life of the grantor by the grantee.
Supporting Style in organizational behavior means the basic managerial style a manager uses next most frequently after the dominant style.
According to Karl Max, additional value is the variation between the value that a worker creates as determined by the labor time embodied in the goods he produces, and the value that he receives as determined by the subsistence level of the wages. This su
Surrender Value is the part of premiums paid or another amount recoverable on an insurance policy if the policy is canceled immediately after having been supplied.
Surtax is a tax imposed on a tax base in addition to a so-called normal tax. Note that a surtax is imposed on an existing tax base. It is not a tax on a tax as is popularly believed.
Surviving Company is a company functioning as an entity that has acquired the assets of other companies and continues the operations of those it has acquired but under its own name.
Sweat Equity means the leading or substitution of services and labor for money.
In securities trading, an order for the buy or sale of one stock and the sale or buy of another stock at a stipulated price variation.
Syndicate means in the securities market, a crowd of investors or investment bankers who together underwrite and distribute a new issue of securities or a large block of an outstanding issue.
In accounting practice that present data in a two column format, with a vertical line separating the two columns and a horizontal line centered over the top of the vertical. The title of the account it written along the horizontal line. Entered on the lef
Takeout Loan is a long term loan that replaces an interim construction loan.
Takeover means the acquisition of a business by another through purchase, exchange of capital stock, or any other device.
Packing material weight, in carload shipments, the weight of the vacant freight car.
Tariff is a schedule of duties sanctioned by a government and imposed on goods imported or exported. The intent may be to generate revenue for the government or to protect domestic supplies. Also, in transportation, a publication that sets forth the charg
Tax anticipation Note in municipal accounting means, a note issued in prospect of the collection of property taxes and scheduled to be repaid from the collected taxes.
It is a management of fiscal matters so as to reduce taxes as much as is legally possible.
Tax Base in economics means the object on which a tax is applied, such as sales, property, income, and so on. For example, the base may refer to objects owned by an individual or to the aggregate real estate of a community.
Tax Certification means the confirmation by city and country treasures that no taxes remain unpaid prior to the acceptance of a warranty deed for recording, required in some states in real estate transactions.
Tax Receivable in municipal accounting means, the uncollected part of current and delinquent taxes.
Tax Evasion means taxes owed by deliberately not paid an unlawful position.
Tax exempt bond is a debt security of a state, city, or other public authority, the interest receipts of which are exempt from federal income taxation.
Technical Analysis means, the technique of analyzing factors of supply and demand to determine the direction of security prices, in the securities market
Tentative Balance Sheet
It is in a work form, designed for discussion, review, or any other managerial purpose prior to its publication in final form.
Terminal Account is a general or expense ledger account appearing as an item on a balance sheet or income statement. Also, any account that is not changed, in which transactions are not transferred, reclassified, or reallocated, and that is considered clo
This type of insurance provides protection for a specific period of time, without savings, investment, or cash-value features. Usually written for 5, 10, or 15 year periods, although some companies issue policies for longer terms than 15 years.
Test Check means the verification of chosen items in an account as an indication of the probability of, or the development of an opinion concerning, the accuracy of the entire account or record.
Thin Market is a securities market in which there are comparatively several bids to purchase or offers to sell, or both, the phrase may apply to an individual security or to the entire stock market. Price fluctuations between transactions are usually larg
Generally it is an insurance contract between two parties, the insured party and the insurance company. Under several situations, such as where an insurance company offers a life insurance contract that specifies a beneficiary who would eventually receive
The entirety of the poor countries that are burdened by problems of underdevelopment, poverty, illiteracy, and technological backwardness.
Throughput Accounting is an accounting system that enables original expenditures recorded in primary accounts to be identified in secondary accounts and fiscal statements.
It is a practice in which a seller requires the buyer to purchase one or more additional or tied products as a situation for purchasing the desired or tying product. It is also known as typing contract.
A fiscal policy that has a restrictive impact on economic activity usually connected with high interest rates.
It is a type of a draft in which a draft is payable within a specified time usually 30 days after acceptance by the drawee.
Time order is an order to purchase or sell a security that becomes a market or limited price order at a specified time.
A company that insures titles and issues title insurance policies to possessions or property owners.
Trace is an auditor’s term for the procedure of ascertaining whether or not an item has been disposed of in accordance with the facts as reported.
Traceable Cost is a cost element whose origin can be identified even though it may have been disposed of in accordance with the facts as reported.
It is a bill of exchange drawn on the customer by the seller of merchandise and unconditionally accepted by the buyer. Made out in accordance with the terms of the contract between the seller and the buyer.
Trade Account Payable
Trade Account Payable means an amount payable by a company to a supplier that has received goods or services provided by the supplier.
Trade Account Receivable
Trade Account Receivable means an amount owed to a supplier by a company to which the supplier has provided goods or rendered services.
Trade Balance means the variation between the value of goods exported by a country and those it has imported.
Trade Investment in the U.K. means an investment by one business firm in another for the purpose of protecting or widening the investor’s activities. Usually represented by a minority ownership of capital stock.
Trade Note Receivable
Trade Note Receivable is a customer’s promissory note, pledging payment for goods provided or services rendered.
Trade Payable means an amount owed to a creditor for goods and services received. It is also known as account payable.
Trade Price means the price charged to regular customers who purchase constantly or in great volume for resale to their own customers. It is usually the list price or suggested end-user price less an applicable discount.
Trading Certificate is a Certificate which is issued by Registrar of Companies to the public company enabling it to start business. It is also known as Commencement Certificate.
Trading Limit means one of the prices above or below which trading on commodity exchanges is not accepted during any one day. Also, the maximum number of contracts an individual is allowed to hold at one time in commodities covered by regulation.
Trading on the Equity
Trading on the Equity means taking the profit obtained from borrowing capital at a less rate and employing it in a business or venture that yields a higher rate.
Transfer Payment is a disbursement by the government for which it receives no goods or services. Items such as Social Security payments to the aged, unemployment compensation, and certain business subsidies are included because they channel tax revenues b
Traveling Requisition (TR)
Traveling Requisition is a purchase requisition built up once and reused each time the raw material or product is to be reordered so that new requisitions do not have to be written repeatedly.
Travelling Auditor is a staff auditor whose duty is to inspect branches and divisions of a corporation at outlying locations as an aid to corporate control.
Treasury Bill is a short term obligation that matures in 13 or 26 weeks, sold by the United State government primarily through competitive bidding to meet current requirement for working funds that are not fulfilled by receipts from income taxes paid. The
Treasury Stock is a stock which is issued by a company but later needed. It may be held in the company’s treasury indefinitely, reissued to the public, or retired. Treasury stock receives no dividend and grants not voting right when held by the company.
Trust and agency Fund
Trust and agency Fund in municipal accounting, a fund consisting of money and property received and occupied by a municipality or an institution as trustee or custodian, or in the capacity of an agent for certain individuals or government units.
A conveyance of a title to a trustee to be held until a loan or a performance secured by a note is paid or completed, at which time the title is re-conveyed.
Trust Fund is a fund held by one person, the trustee, for the benefit of other, the affairs of the trust being conducted in accordance with the provisions of a formal trust agreement. Various states have passed legislation governing the conduct of the tru
Trust Mortgage is a mortgage to an individual or an organization as trustee, who holds the security for the benefit of others in accordance with the terms and conditions set forth in the instrument. Such a mortgage to various persons and transferable at t
The situation wherein a company’s trend of declining sales and or earnings is reversed.
Turnover in accounting means, the number of times in a certain period that numerous assets are bought and replaced. When used in ratio analysis, one of the indicators of the specific performance of management and the firm. Also, the fiscal statements of c
Two dollar Broker are those who is a member on the floor of the New York Stock Exchange who executes orders either for other brokers having more business at that time than they can handle themselves or for firms that do not have their Exchange member part
Ultra Vires in Latin words denote for "beyond power". The acts of a corporation are ultra vires when they are beyond the power or limit of the corporation as granted by the state in its charter to the corporation.
Unadmitted Asset is an asset determined to have little or no liquidation value. In reporting the economical position of an insurance company, such assets are segregated and reduced as a group. Also referred to as inadmitted asset and non admitted asset.
Unallocated Appropriation in government accounting means, the remainder of an appropriation available for purposes defined by the original appropriation determination.
Unamortized Debt Discount
Unamortized Debt Discount is that part of debt discount that remains and is to be spread over future financial periods. Usually appears as a prepaid expense, if related to a bank loan, or as a deferred charge, if related to a long term bond issue.
The term Unapplied Cash in municipal accounting, means cash not reserved for particular purpose and available for use within the fund of which it is part.
Unappropriated Budget Surplus
In case of municipal accounting, the surplus of the estimated revenues of a fund over the original appropriation for a given period of time.
Unappropriated Earned Surplus
Unappropriated Earned Surplus is that part of earned excess that has not been transferred to a subordinate account or earmarked for a specific purpose. Such excess therefore remains available for distribution in the form of dividends.
Unappropirated Income means an account set up for budgetary control to which is credited the surplus of income, according to a related and approved expense or earnings budget.
Unbilled Cost means a recoverable cost which can be identified with specific and uncompleted contracts for goods and services. Such uncompleted contracts are classified as assets or receivables.
Unclaimed Dividends means the dollar amount of the dividend checks not yet cashed by stock holders or not yet in their hands.
Unclaimed Wages means wages earned but not claimed by employees. Although cash is available to make the payments. Also wage checks not yet granted for payment.
Government loans for which there is no stated redemption date, e.g. consols. The holder gets an annual income of fixed interest rate on the loan. The stock may be dealt in on the market.
Under Bond denoting imported goods kept in a government warehouse awaiting payment of duty on re export.
Undercut means to offer a goods or service at a less price than competing suppliers.
Underlying Company is a company that is part of a bigger consolidated organization and is kept in existence only because of non transferable rights or franchises that it possesses.
Underlying Security is a security which is issued by a subsidiary company and guaranteed by the parent company.
Undischarged Bankrupt means a bankrupt who has not get from the court a certificate of discharge whereby normal business and personal rights are restored.
Undisclosed Factoring is the collection of debts by a factor whose role is hidden from the public. The factor sells the goods as the undisclosed principal of his client and is liable for any bad debts.
Unearned Increment in accounting means, any addition in the value of property due to circumstances beyond the control of the property owner and not attributable to direct expenditures or efforts. An example would be the increased market value of a piece o
Unencumbered Allotment in government accounting is the portion of an allotment or allocation that has been neither expended nor encumbered.
Unencumbered Appropriation in government accounting is the portion of an appropriation that has not yet been expended, nor encumbered. Also known as unencumbered balance.
Unexpended Appropriation in case of government accounting the portion of an appropriation that has not yet been expended, although it may be committed in whole or in part. Also known as unexpended balance.
It is expenditure, including prepaid expenses, whose benefits will be realized in the future.
Unenforceable Contract are not at all contracts, either because they are promises not supported by consideration, or because the formalities of the law have not been compiled with.
Uniform Accounting System
Uniform Accounting system is a system of accounts common to similar enterprise. Trade associations, for example, propose accounting system that is uniform in application to all members of their particular associations. Federal and state regulatory agencie
Unintended Investment means unforeseen buildup of stocks in the economic system. Actual saving and actual investment are brought into equality in the economy by this means.
Unissued Capital is a capital in the form of shares which a company is approved to issue but which it has not done so.
A state existing when quantity purchased varies with price charged so that total revenue remains the same.
United States Rule
It is the method of identifying the amounts of interest and principal included in a partial payment of an interest bearing debt. This rule is also known as merchant’s rule.
Unitization means a variety or quantity of goods within a single unit to facilitate carriage, handling, etc.
Unlisted Securities are those which are not listed on the official Stock Exchange list, but it is traded on the Unlisted Securities Market.
Unquoted Investments refers to the shares and stock of a company not having a stock exchange quotation and which are occupied by another company. These investments must be recorded in the holding company’s balance sheet at cost or at an estimated current
An item granted as security for a loan which has not been redeemed by repaying the loan.
Unrequited Exports means the exported goods whose value is used to repay a previous debt. Additional foreign exchange earnings are thus not generated by the exports.
Unsecured Creditors is an individuals or companies who have loaned money without acquiring a charge against the borrower’s assets. Such creditors rank equally with each other and, upon bankruptcy of the borrower, are paid parri passu according to the size
Unsecured Account is a personal account supported only by the general credit of the debtor, without collateral or other tangible guaranty.
Unsecured Liability is a liability for which the creditor holds no security.
In the case of equity proceedings in a bankruptcy, the amount established by the court as the less acceptable price for a firm’s assets when offered at public auction. More generally, the lowest price at which a seller is willing to sell. Also, the initia
Up Tick in, securities trading means, a transaction made at a price more than the preceding transaction. It is also called a plus tick. A stock may be sold short only on an uptick or on a zero-plus tick. A zero plus tick is a transaction at the same price
Useful Life in accounting means, the normal operating life of a fixed asset or its utility to the proprietor.
This term means the right to use property owned by other while refraining from actions which might diminish the value of the property or alter it materially.
It is a practice of lending money in return for the payment of interest. This is not applicable to money lent at exorbitant rates of interest.
Vacancy Factor means during a specific accounting period, the percentage of unoccupied space in a rental building.
Valorize means to determine the price of a commodity by setting an arbitrary market value, usually by government intervention as in buying up surpluses or making loans to producers to enable them to store their products for release to the market at more a
Valuation Account is a reserve account that relates to and partly or wholly offsets one or more other accounts, including accumulated depreciation, allowance for bad debts, and unamortized debt discount.
Value Added means the difference between the income received from the sale of the products or services of a business and the expenses incurred in buying materials from outside sources to produce those products.
Value Added Statement
It is a financial statement prepared by a business relating to its value added during the accounting period. This statement identifies the value added and shows how this value has been appropriated to numerous claimants, for example the government (taxes)
Value Added Tax
It is a method of taxation of goods and services whereby tax is levied on the extra contribution to the value of a good or service rendered through a business’s operations. The tax rate is applicable to the value added, as calculated by deducting the invo
Basically Value Analysis is performed by the purchasing department, the study of materials, parts or components, purchased or manufactured. The purpose is to determine the value received for the dollars spend and to start specific action intended to impro
Value Buying means purchasing of materials by the purchase department of an organization which looks to quality and economy. It is expected that any purchase of materials should satisfy the quality required by the production department, and the quality sh
Valued Policy is an insurance policy .Insurance usually issued for property whose accurate value may be difficult to establish, such as a coin collection, a work of art, or a rare book. Such a policy establishes a face amount for the value of the insured
Variable Annuity is a pension benefit plan that changes in value with the changes in the worth of the assets, typically common stocks, in which the pension fund is invested. The variable annuity was planned to provide an adjustment mechanism for inflation
Variable Cost is an operating expense that varies in connection to sales or production volume, facility use, or other indicator of activity. It is also known as variable expenditure.
Variable Cost Ratio
Variable Cost Ratio means the ratio between sales revenues and variable costs. One of many ratios by which the performance of management or a business may be measured.
Variable Price Option
Variable Price Option is a form of non qualified stock option under which the exercise price decline as the stock price increases in relation to the stock price at the time of the award. Also known as yo-yo option.
In accounting, variance means the difference between corresponding items in comparative balance sheets or in income or other operating statements. Also, the difference over a period of a year or less between standard costs and actual costs, the difference
Variety Store is a store which carrying a wide range of relatively economical goods for the household. Small appliances, stationery, dry goods and notions are typical of the items offered. Also known as five and ten five and dime store and five and ten ce
Vendee’s Lien means the encumbrance of a buyer for the return of his or her deposit in case seller default on a contract.
Vendor means an outside company selling or providing material or services.
Vendor’s Shares means shares in a company which are given to the seller of a business which is converted into a limited company. These shares are issued as consideration for the sale of the business.
Venture means a business organization or project undertaken, often in corporation with one or more partners, with a view to making profits, but in which there is a risk of loss.
Venture Capital means investment in projects which have a high risk potential.
The switching from own production to external purchase of specific component, induced by circumstances in which optimum production needs a large resources than can be provided by the company. Specialist manufacturers are thereby established, serving the n
Vertical Filling system is a filling system in which paper, documents or holders are stacked on edge one behind the other in some specific sequence.
Vertical Integration means the merger of firms engaged in various stages of production of an item. ‘Backward integration’ would be used to describe the merging of a tyre manufacturer with a rubber plantation. ‘Forward integration’ would be used to describ
Vertical Market is a business environment in which the possession of natural resources, their manufacture and the final use of the finished goods are vested in a single organization.
An allowance given by a seller to a buyer in cash, credit, or goods, because of the aggregate size of the purchases in a sequence of transactions over a specific period of time. Distinguished from a quantity discount which is usually related to a single t
Volume Rate in motor carrier tariffs means any rate to which a volume minimum weight applicable.
It is a transfer by two or more persons of their shares of stock of a corporation to a trustee who is to vote the shares and act on behalf of such shareholders.
Voucher Audit means authorized examination by an individual’s of a proposed disbursement. In case of government accounting, the post-audit of individual disbursements done by the comptroller general.
Voucher Check is a document which shows the datails of a payment made, including date, amount, invoice number, discount, deductions, and other references to goods or services for which payment has been or is to be made. It combines the features of a check
Voucher System is a systematic accounting treatment of documentation, designed to ensure the proper recording of transactions.
Vouching means the process of tracing a transaction to its source and ensuring that all documentation, recording and posting are accurate and appropriate to that transaction.
Voyage Charter means a contract for the hire of a vessel or cargo space for an individual journey.
Wage Differentials means a difference between the price of one form of labor and another, increasing through a particular demand and supply condition for each type of labor. Reasons for differentials vary, but include experience, skill and regional locati
Wage Drift means the tendency for earnings from employment to addition, despite an official fixed level of pay, through overtime working and bonus payments.
Wage Freeze is a condition in which wages are not allowed to increase.
A financial encouragement paid to stimulate greater production, superior quality of work, etc. Incentives may be part of the pay structure (e.g. piece rates, relating earnings to output, with bonuses for extra output) or may take the form of annual awards
It is a contract between two parties involving the staking of worth upon the outcome of an event, past or future, on which the parties differ. Neither party must have any interest in the event except in the stake. In Britain wagering contracts are void, a
Wage Spiral means the continuing upward change in wage levels, occasioned by the attempt through wages increases to offset the effects of inflation on living standards. To the level that wage increase themselves induce inflation (through price increases n
Wage Theory means any of the varying approaches to or theories for deciding the wages paid to employees.
Waiver is the voluntary relinquishment of a right or privilege without causing the insurance policy to be canceled. A premium waiver may become part of the contract terms, as when as incident temporarily prevents a business firm form conducting its affair
Waiver Clause is a clause in a marine insurance policy whereby either the insurer or insured may take action to minimize a loss arising from an accident without prejudicing their position vis-à-vis the insurance policy.
Primary wants means the minimum requirements of food, clothing and shelter, which must be satisfied to ensure survival.
Wall Street is a street in New York where the New York Stock Exchange is located. The United State monetary world in general.
In the field of accounting, a transaction that is reversed or offset by other transaction in a short time.
The sale and purchase of substantially identical securities within a period of 30 day. Losses from such transactions are not legal reductions from income subject to federal income taxes.
Wasting Asset is a fixed asset with a limited useful life and it is subject to depreciation. Examples include assets from which natural products such as ore, oil, and timber are extracted at a rate exceeding the natural replacement rate, thereby causing a
The excessive capital stock issued, at its par or stated value, over the fair value of the assets contributed in exchange.
Watered Stock is any class of the capital stock of a corporation having watered capital.
Way bill is a bill which is issued by a carrier to the shipper. It is a record of details describing a unit of freight. Copies may be provided to all interested agents of the carrier.
Welfare State is a state in which country provides through the central government and its agencies minimum standards of living for the population in terms of income, education, health, housing, etc.
Welfare Theory of Taxation
Welfare Theory of Taxation is the theory of taxation based upon the maximizing of community advantage by minimizing the total loss of satisfaction resulting from taxation. The loss of satisfaction to a poor man resulting from a tax of £x will be greater t
Wharfage Charge is a charge which is made for receiving and removing goods on a wharf.
A report in manufacturing that displays, for every part, all assemblies that contain the part in their single level bill of material.
Wholesale Life Insurance
Wholesale Life Insurance is a life insurance for individual persons of a group that is smaller than the minimum required for a group life insurance policy.
Wholesale Price Index
A procedure of the average prices of commodities bought in large quantities in transactions between firms.
A labor strike which is unofficial called on short notice or without notice and without going through contractual process for settling grievances.
It is a type of mutual fund account that pays a certain amount of money timely to the owner of the account, often used by retired persons as a source of income.
In a savings plan and in a qualified profit sharing plan, the timing and terms under which either individual contributions or a portion of the accrued company contributions can be withdrawn by the participator.
In the field of business accounting, the procedure of automatically deduction from salaries or wages the amounts of money specified by law or regulation, as in the case of government income taxes, and specified by contract with the employee, as in the cas
A tax which is reduced from interest or dividends before they are paid to the investor.(United State) Income tax which is reduced at source.
Without Prejudice means a form of words written in a letter to announce that the writer does not consider himself legally bound to do what he offers to do in the letter.
With Profits Policy
It is a type of life assurance policy in which, in return for more premiums than on an ordinary life policy, a bonus is paid, being a share of the surplus in the life fund on its revaluations.
Working Capital Turnover
Working Capital Turnover is the ratio of net sales to working capital. One of many ratios by which the performance of management or a business may be measured.
Theoretically, control of a corporation is required at least ownership of 51 percent of the corporation’s voting stock. In practice, effectual (working) control may be exercised through ownership, individually or by a group acting as one, of less than 50
Work Order in business and industry, is an internal document that authorizes the performance of a specific task or job. Also known as work ticket.
The shift of a part of an asset account to an expense account, the deliberate deduction of the book value of an asset.
The shift of the remainder of the value of an asset to an expense account, the act of decreasing book value.
The recording of an addition in the book value of an asset without incurring additional outlays of cash or the property and without producing an inflow of cash, the act of setting down an unduly more value.
In a standardized format a statement of document that all United State employers must provide to their employees. The w-2 form contains the dollar amounts of wages and other compensation paid to the employee, contributions to Social Security (FICA tax), f
The ability of a firm in purchasing and using inputs. Mostly firms are not operating a maximum X-efficiency.
xr or Ex-Right
A quoting shares method in a stock exchange whereby the current purchase is not entitled to a right of issue by the company which is contemplated or declared to be issued.
A human motivation in a traditional view that, because of an inherent dislike of work and responsibility, people prefer to be directed, coerced and financially induced within a closely controlled organizational structure.
A bond in dollars which is issued in the US by a foreign company.
A Stock Exchange term which is used to define United State Securities.
It indicated a review and modification of a ledger account at the close of a financial year. It is not related to corrections of clerical errors, but it refers to adjustments made necessary by accruals, prepayments, changes in accounting policies, invento
1.From an investment, the actual rate of return received or obtainable, usually expressed as the annual income calculated as a percentage of the purchase price of the investment.2.The rate of return for a capital investment project, which equates the net
The difference between the dividend yield obtainable from ordinary shares and the yield obtainable from fixed interest stock, the difference being due to the greater risk associated with ordinary shares and the likely future expansion of the company.
A portion of material’s usage variance that is due to the variation between the standard yield specified and the actual yield obtained.
Yield to Maturity
A calculation of yield that takes into account the connection between a security’s maturity value, current price, time to maturity and coupon yield. The calculation allocates bond premium or discount over the life of the security and is the most closed ty
A Regulation is designed to establish international conformity in the administration of matters related to the carriage of goods by sea. The rules may be included, at the option of the contracting parties, in general average clauses relating to charter pa
A human motivation theory based on the location that people are interested in work, want responsibility and will direct themselves without the need for coercion by management.
Zero-base Budgeting (ZBB)
An inventive general management tool meant to provide a systematic methodology for the evaluation of operations and programs relevant to the public and private sectors. The practice of Zero base budgeting is in its evolutionary stages. The basic assumptio
A bond which is not carrying any interest and it is issued at a substantial discount to its face value, the return being in the gain the bond makes between the date of purchase and the maturity date.
The allocation of 0% VAT to a few type of good or service.
The United State postcode. Each address contains five figure-number.
A custom union characterized by the abolition of duties between member states and the establishment of a common tariff policy in regard of non-members.
A district or area established for defining parcel post or freight rates or for defining time with regard to local areas.
A regulation passed by a city council by virtue of its police power and used to manage and prescribe the kind of buildings, residences, or business that shall be constructed and put into service and use within the city’s regional limits.
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