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Definition of Lapse subsidized
This refers to the practice of some life insurance companies to offer policies which are lower in price because they have assumed a high probability that the policies will be cashed in by their owners for one reason or another before the death benefit becomes available. It is a bold and risky offer by the insurance company because sometimes the purchasers of these policies simply don't lapse them.
This refers to the termination of an insurance policy due to the owner of the policy failing to pay the premium within the grace period [Usually within 30 days after the last regular premium was required and not paid]. It is possible to re-instate the coverage with the same premium and benefits intact but the life insured will have to qualify for this coverage all over again and bring up to date all unpaid premiums.
Termination when a policy has no cash value after all attempts at conservation have failed.
Policies which are sold but do not remain in force because the policyholder fails to pay premiums.
A line representing equilibrium in the goods and services market, on a diagram with aggregate demand on the vertical axis and aggregate supply on the horizontal axis.
The option of terminating an investment earlier than originally planned.
Part of the return that is not due to systematic influences (market wide influences). In
Goods may be returned to the seller by the purchaser without restrictions.
Schedule of depreciation rates allowed for tax purposes.
Any depreciation method that produces larger deductions for depreciation in the
(1) The estimated useful life of the fixed asset being depreciated is
Any of several methods that recognize an increased amount
coverage that provides a lump-sum payment to you or your survivors if an accident results in the loss of a limb, paralysis or your death.
coverage against accidental death Usually payable in addition to base amount of coverage.
Provides additional financial security should an insured person be dismembered or lose the use of a limb as the result of an accident.
A monetary policy of matching wage and price increases with money supply increases so that the real money supply does not fall and push the economy into recession.
The sum of all the interest options in your policy, including interest.
Accounting and Auditing Enforcement Release (AAER)
Administrative proceedings or litigation releases that entail an accounting or auditing-related violation of the securities laws.
The change in the value of a firm's foreign currency denominated accounts due to a
Intentional misstatements or omissions of amounts or disclosures in
The period of time for which financial statements are produced – see also financial year.
The 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
Money owed to suppliers.
Amounts a company owes to creditors.
Amounts owed by the company for goods and services that have been received, but have not yet been paid for. Usually Accounts payable involves the receipt of an invoice from the company providing the services or goods.
Short-term, non-interest-bearing liabilities of a business
Acurrent liability on the balance sheet, representing short-term obligations
Amounts due to vendors for purchases on open account, that is, not evidenced
Accounts Payable Days (A/P Days)
The number of days it would take to pay the ending balance
Money owed by customers.
Amounts owed to a company by customers that it sold to on credit. Total accounts receivable are Usually reduced by an allowance for doubtful accounts.
Amounts owed to the company, generally for sales that it has made.
Short-term, non-interest-bearing debts owed to a
A current asset on the balance sheet, representing short-term
Amounts due from customers for sales on open account, not evidenced
Money owed to a business for merchandise or services sold on open account.
Accounts Receivable Days (A/R Days)
The number of days it would take to collect the ending
Accounts receivable turnover
The ratio of net credit sales to average accounts receivable, a measure of how
accounts receivable turnover ratio
A ratio computed by dividing annual
an increase in units or volume caused by the addition
Accretion (of a discount)
In portfolio accounting, a straight-line accumulation of capital gains on discount
Accrued expenses payable
Expenses 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 payable
The account that records the short-term, noninterest-
The accumulated coupon interest earned but not yet paid to the seller of a bond by the
The amount of interest accumulated on a debt security between
The amount of interest owing but not paid.
Accumulated Benefit Obligation (ABO)
An approximate measure of the liability of a plan in the event of a
A contra-fixed asset account representing the portion of the cost of a fixed asset that has been previously charged to expense. Each fixed asset account will have its own associated accumulated depreciation account.
A contra, or offset, account that is coupled
The sum total of all deprecation expense recognized to date
Accumulated Other Comprehensive Income
Cumulative gains or losses reported in shareholders'
An amount of money invested plus the interest earned on that money.
acid test ratio (also called the quick ratio)
The sum of cash, accounts receivable, and short-term marketable
A firm that is being acquired.
A firm or individual that is acquiring something.
Additional paid-in capital
Amounts in excess of the par value or stated value that have been paid by the public to acquire stock in the company; synonymous with capital in excess of par.
Additional paid-in capital
Any payment received from investors for stock that exceeds
additional paid-in capital
Difference between issue price and par value of stock. Also called capital surplus.
Adjustable rate preferred stock (ARPS)
Publicly traded issues that may be collateralized by mortgages and MBSs.
Adjusted Cash Flow Provided by Continuing Operations
cash flow provided by operating
Adjusted present value (APV)
The net present value analysis of an asset if financed solely by equity
Advance material request
Very early orders for materials before the completion
After-tax profit margin
The ratio of net income to net sales.
After-tax real rate of return
Money after-tax rate of return minus the inflation rate.
Total quantity of goods and services demanded.
Aggregate Demand Curve
Combinations of the price level and income for which the goods and services market is in equilibrium, or for which both the goods and services market and the money market are in equilibrium.
Aggregate Expenditure Curve
Aggregate demand for goods and services drawn as a function of the level of national income.
A budgeting process using summary-level information to
Aggregate Production Function
An equation determining aggregate output as a function of aggregate inputs such as labor and capital.
Total quantity of goods and services supplied.
Aggregate Supply Curve
Combinations 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.
Process in corporate financial planning whereby the smaller investment proposals of each of the
A forceful and intentional choice and application of accounting principles
Aggressive Capitalization Policies
Capitalizing and reporting as assets significant portions of
Aggressive Cost Capitalization
Cost capitalization that stretches the flexibility within generally
All equity rate
The discount rate that reflects only the business risks of a project and abstracts from the
Total costs, explicit and implicit.
All or none
requirement that none of an order be executed unless all of it can be executed at the specified price.
An arrangement whereby a security issue is canceled if the underwriter is unable
assign based on the use of a cost driver, a cost predictor,
the systematic assignment of an amount to a recipient
The process of storing costs in one account and shifting them to other
Allocation base A measure of activity or volume such as labour
hours, machine hours or volume of production
Allowance for bad debts
An offset to the accounts receivable balance, against which
Allowance for doubtful accounts
A contra account related to accounts receivable that represents the amounts that the company expects will not be collected.
Allowance for Doubtful Accounts
An estimate of the uncollectible portion of accounts receivable
A method of adjusting accounts receivable to the amount that is expected to be collected based on company experience.
American Depositary Receipts (ADRs)
Certificates issued by a U.S. depositary bank, representing foreign
Securities certificates issued in the U.S. by a transfer agent acting on behalf of the foreign
Amortization (Credit Insurance)
refers to the reduction of debt by regular payments of interest and principal in order to pay off a loan by maturity.
Amortizing interest rate swap
Swap in which the principal or national amount rises (falls) as interest rates
The process of attempting to infer the presence of potential problems
date on which particular news concerning a given company is announced to the public.
Yearly amount payable by a client for a policy or component.
Yearly record of a publicly held company's financial condition. It includes a description of the
The report required by the Stock Exchange for all listed companies, containing the company’s financial statements.
A report issued to a company’s shareholders, creditors, and regulatory
The fund return, for any 12-month period, including changes in unit value and the reinvestment of distributions, but not taking into account sales, redemption, distribution or other optional charges or income taxes payable by any unitholder that would reduce returns.
Annualized holding period return
The annual rate of return that when compounded t times, would have
An annuity with n payments, wherein the first payment is made at time t = 0 and the last
Annuity where the payments are to be made at the beginning of
a series of equal cash flows being received or paid at the beginning of a period
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