tax

1031 exchange

1031 exchange (also called a tax-deferred exchange) refers to the ability of investors and organizations to replace one investment for a similar one instead of keeping the proceeds. For certain transactions, the exchange allows the investor...

401(k)

401(k) plans (also just called 401k) are types of retirement plans that an employer sponsors which allows employees to defer taxes. 401k plans originate from the Internal Revenue Code (IRC) section 401(k) which allows contributions to these...

401(k) plan

401(k) plans (also just called 401k) are types of retirement plans that an employer sponsors which allows employees to defer taxes. 401k plans originate from the Internal Revenue Code (IRC) section 401(k) which allows contributions to these...

A/R

Definition

Abbreviation for accounts receivable.

AB Trust

AB trust (also called a bypass trust or a credit shelter trust) is a tool used by well-off married individuals to legally maximize their estate tax exemptions.

The strategy involves creating two separate trusts after one...

Accelerated Depreciation

Accelerated depreciation is any method of depreciation where the business depreciates a greater proportion of an asset’s value earlier in its life. A common accelerated depreciation method is MACRS. Compare with straight-line depreciation...

Accord

Definition

1) A harmonious agreement, especially between countries.

2) An offer to substitute a different obligation for one that was previously owed, plus the acceptance of that offer. Either of the parties involved can propose an accord. If...

Account Receivable

Definition

See accounts receivable.

Accounts Payable

Accounts payable is short-term debt that a company owes to its suppliers for products received before a payment is made. Accounts payable may be abbreviated to “AP” or “A/P.” Accounts payable may also refer to a business department of a...

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...

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