ACADEMIC TOPICS

Accounting

Definition

1) The procedure of recording, analyzing, summarizing and classifying the financial transactions and information of a person or business which aids in accurate administration of resources.

2) A plaintiff's legal action to recover money...

Accounts Payable

Definition

Short-term debt that a company owes to its suppliers for products received before payment is made. Accounts payable entries are listed under "Current Liabilities" in the business' balance sheet and the items are removed once the account has...

Accounts Receivable

Definition

Money owed to a business by another business or individual in exchange for property or services that were provided on credit. The settlement of an account receivable begins by sending an invoice to the customer. A company enters accounts...

Accredited Investor

Under federal law, no securities may be sold or offered for sale unless they are registered, or there is an exception. An accredited investor is one such exemption: certain high-net-worth individividual, as defined in Rule 501 of Regulation D who may...

Accrual Method of Accounting

One method of accounting where economic events, such as income and expenses, are recorded at the moment they are incurred, as opposed to when they are received. This provides a more accurate statement of the current financial state of a company and...

Accrue

1. To be added as a matter of periodic gain or advantage, as interest on money.

2. To become a present and enforceable right or demand.

From: Dictionary.com

Accumulated Earnings

Definition

Net profits of a company that are not distributed as shareholder dividends. Accumulated earnings are often reinvested into the company itself.

See alsoDividendProfit

Actual Authority

An agent's power to act on behalf of a principal, because such power was expressly or impliedly conferred.

See Express authority, Implied authority, Inherent authority, and Apparent authority.

Ad Valorem

A Latin term meaning "according to [the] value [of something]". The term is used in taxation to designate taxes levied against property, real or personal, at a certain rate based upon the property's value.

An ad valorem tax is levied according...

Ad Valorem Tax

Ad valorem is a Latin phrase that translates to “according to the value.” The essential characteristic of ad valorem tax is that it is proportional to the value of the underlying asset, unlike specific tax, where the tax amount remains constant,...

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