![]() |
|
Financial Terms | |
big bath |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: business, investment, stock trading, tax advisor, inventory control, money, credit, payroll, |
Definition of big bathbig bathA street-smart term that refers to the practice by many businesses Big BathA wholesale write-down of assets and accrual of liabilities in an effort to make the
Related Terms:Big BangThe term applied to the liberalization in 1986 of the London Stock Exchange in which trading was Big BoardA nickname for the New York Stock Exchange. Also known as The Exchange. More than 2,000 "Soft" Capital RationingCapital rationing that under certain circumstances can be violated or even viewed ABM (automated banking machine)A bank machine, sometimes referred to as an automated teller machine (ATM). Absolute AdvantageThe ability to produce a good or service with fewer resources than competitors. See also comparative advantage. Absolute priorityRule in bankruptcy proceedings whereby senior creditors are required to be paid in full ![]() Absolute Right of ReturnGoods may be returned to the seller by the purchaser without restrictions. Absorption costingA method of costing in which all fixed and variable production costs are charged to products or services using an allocation base. absorption costinga cost accumulation and reporting Absorption costingA methodology under which all manufacturing costs are assigned Abusive Earnings ManagementThe use of various forms of gimmickry to distort a company's true financial performance in order to achieve a desired result. Abusive Earnings ManagementA characterization used by the Securities and Exchange Accelerated cost recovery system (ACRS)Schedule of depreciation rates allowed for tax purposes. Acceleration ClauseClause causing repayment of a debt, if specified events occur or are not met. AccountingA collection of systems and processes used to record, report and interpret business transactions. ![]() accountingA broad, all-inclusive term that refers to the methods and procedures Accounting and Auditing Enforcement Release (AAER)Administrative proceedings or litigation releases that entail an accounting or auditing-related violation of the securities laws. Accounting changeAn alteration in the accounting methodology or estimates used in Accounting earningsearnings of a firm as reported on its income statement. Accounting entityA business for which a separate set of accounting records is being Accounting equationThe representation of the double-entry system of accounting such that assets are equal to liabilities plus capital. Accounting equationThe formula assets = liabilities + Equity. accounting equationAn equation that reflects the two-sided nature of a Accounting ErrorsUnintentional mistakes in financial statements. Accounted for by restating Accounting exposureThe change in the value of a firm's foreign currency denominated accounts due to a Accounting insolvencyTotal liabilities exceed total assets. A firm with a negative net worth is insolvent on ![]() Accounting IrregularitiesIntentional misstatements or omissions of amounts or disclosures in Accounting liquidityThe ease and quickness with which assets can be converted to cash. Accounting periodThe period of time for which financial statements are produced – see also financial year. Accounting PoliciesThe principles, bases, conventions, rules and procedures adopted by management in preparing and presenting financial statements. Accounting rate of return (ARR)A method of investment appraisal that measures accounting rate of return (ARR)the rate of earnings obtained on the average capital investment over the life of a capital project; computed as average annual profits divided by average investment; not based on cash flow Accounting systemA set of accounts that summarize the transactions of a business that have been recorded on source documents. ACCRUALA method of accounting in which you record expenses when you incur them and sales as you make them—not when you pay bills or receive checks in the mail. AccrualAn expense for profit purposes even though no payment has been made. Accrual accountingThe recording of revenue when earned and expenses when accrual-basis accountingWell, frankly, accrual is not a good descriptive Accrual bondA bond on which interest accrues, but is not paid to the investor during the time of accrual. Accruals accountingA method of accounting in which profit is calculated as the difference between income when it is earned and expenses when they are incurred. Accrued expenses payableexpenses that have to be recorded in order for the financial statements to be accurate. Accrued expenses usually do not involve the receipt of an invoice from the company providing the goods or services. accrued expenses payableThe account that records the short-term, noninterest- Accumulated Other Comprehensive IncomeCumulative gains or losses reported in shareholders' acid test ratio (also called the quick ratio)The sum of cash, accounts receivable, and short-term marketable Acquisition of assetsA merger or consolidation in which an acquirer purchases the selling firm's assets. Acquisition of stockA merger or consolidation in which an acquirer purchases the acquiree's Stock. Adjustable rate preferred stock (ARPS)Publicly traded issues that may be collateralized by mortgages and MBSs. Adjusted EarningsNet income adjusted to exclude selected nonrecurring and noncash items of reserve, gain, expense, and loss. Aggregate SupplyTotal quantity of goods and services supplied. Aggregate Supply CurveCombinations of price level and income for which the labor market is in equilibrium. The short-run aggregate supply curve incorporates information and price/wage inflexibilities in the labor market, whereas the long-run aggregate supply curve does not. Aggressive AccountingA forceful and intentional choice and application of accounting principles American Stock Exchange (AMEX)The second-largest Stock Exchange in the United States. It trades Annual fund operating expensesFor investment companies, the management fee and "other expenses," applied overheadthe amount of overhead that has been assigned to Work in Process Inventory as a result of productive activity; credits for this amount are to an overhead account AssetAny possession that has value in an Exchange. AssetA resource, recorded through a transaction, that is expected to yield a benefit to a Assetsomething that is owned; a financial claim or a piece of property that is a store of value. AssetProbable future economic benefit that is obtained or controlled by an entity as a result of assetAnything owned by, or owed to, an individual or business which has commercial or Exchange value (e.g., cash, property, etc.). AssetAll things of value owned by an individual or organization. Asset activity ratiosRatios that measure how effectively the firm is managing its assets. Asset allocation decisionThe decision regarding how an institution's funds should be distributed among the Asset-Backed SecuritiesBond or note secured by assets of company. Asset-backed securityA security that is collateralized by loans, leases, receivables, or installment contracts Asset-based financingMethods of financing in which lenders and equity investors look principally to the Asset-Based FinancingLoans granted usually by a financial institution where the asset being financed constitutes the sole security given to the lender. Asset classesCategories of assets, such as Stocks, bonds, real estate and foreign securities. Asset CoverageExtent to which a company's net assets cover a particular debt obligation, class of preferred Stock, or equity position. Asset-coverage testA bond indenture restriction that permits additional borrowing on if the ratio of assets to Asset/equity ratioThe ratio of total assets to Stockholder equity. Asset for asset swapCreditors Exchange the debt of one defaulting borrower for the debt of another Asset/liability managementAlso called surplus management, the task of managing funds of a financial asset mixThe weighting of assets in an investment portfolio among different asset classes (e.g. shares, bonds, property, cash, overseas investments. Asset pricing modelA model for determining the required rate of return on an asset. Asset pricing modelA model, such as the Capital asset Pricing Model (CAPM), that determines the required Asset-specific RiskThe amount of total risk that can be eliminated by diversification by Asset substitutionA firm's investing in assets that are riskier than those that the debtholders expected. Asset substitution problemArises when the Stockholders substitute riskier assets for the firm's existing Asset swapAn interest rate swap used to alter the cash flow characteristics of an institution's assets so as to Asset turnoverThe ratio of net sales to total assets. asset turnovera ratio measuring asset productivity and showing the number of sales dollars generated by each dollar of assets asset turnover ratioA broad-gauge ratio computed by dividing annual AssetsA firm's productive resources. ASSETSAnything of value that a company owns. AssetsThings that the business owns. AssetsItems owned by the company or expenses that have been paid for but have not been used up. Assets requirementsA common element of a financial plan that describes projected capital spending and the Auction rate preferred stock (ARPS)Floating rate preferred Stock, the dividend on which is adjusted every Automated Clearing House (ACH)A collection of 32 regional electronic interbank networks used to Automated Clearing House (ACH)A banking clearinghouse that processes direct Automated storage/retrieval systemA racking system using automated systems Average accounting returnThe average project earnings after taxes and depreciation divided by the average Average lifeAlso referred to as the weighted-average life (WAL). The average number of years that each Average Propensity to ConsumeRatio of consumption to disposable income. See also marginal propensity to consume. AwayA trade, quote, or market that does not originate with the dealer in question, e.g., "the bid is 98-10 Back-up1) When bond yields and prices fall, the market is said to back-up. Balance of Merchandise TradeThe difference between exports and imports of goods. Balance of paymentsA statistical compilation formulated by a sovereign nation of all economic transactions Balance of PaymentsThe difference between the demand for and supply of a country's currency on the foreign Exchange market. Balance of Payments AccountsA statement of a country's transactions with other countries. Balance of tradeNet flow of goods (exports minus imports) between countries. Balance of TradeSee balance of merchandise trade. Balance sheetAlso called the statement of financial condition, it is a summary of the assets, liabilities, and Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |