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Financial Terms | |
Leasehold improvement |
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Definition of Leasehold improvementLeasehold improvementThis is any upgrade to leased property by a lessee that will be
Related Terms:Leasehold improvementsThe cost of improvements made to property that the company leases. continuous improvementan ongoing process of enhancing employee task performance, level of product quality, and level of company service through eliminating nonvalue-added activities to reduce lead time, making products Farm Improvement and Marketing Cooperatives Loans ActSee here Land improvementsThe cost of improvements to land owned by the company, such as fencing and outdoor lighting. continuous budgetinga process in which there is a rolling Continuous compoundingThe process of accumulating the time value of money forward in time on a Continuous CompoundingThe process of continuously adding interest to a principal plus ![]() Continuous DiscountingThe process of calculating the present value of a stream of future continuous lossany reduction in units that occurs uniformly Continuous random variableA random value that can take any fractional value within specified ranges, as Land improvementsThe cost of improvements to land owned by the company, such as fencing and outdoor lighting. 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 Accelerated cost recovery system (ACRS)Schedule of depreciation rates allowed for tax purposes. accepted quality level (AQL)the maximum limit for the number of defects or errors in a process ![]() Accounting and Auditing Enforcement Release (AAER)Administrative proceedings or litigation releases that entail an accounting or auditing-related violation of the securities laws. Accounting periodThe period of time for which financial statements are produced – see also financial year. Accounts receivable turnoverThe ratio of net credit sales to average accounts receivable, a measure of how accounts receivable turnover ratioA ratio computed by dividing annual accrual-basis accountingWell, frankly, accrual is not a good descriptive Acquisition of assetsA merger or consolidation in which an acquirer purchases the selling firm's assets. Activity-based costingA method of costing that uses cost pools to accumulate the cost of significant business activities and then assigns the costs from the cost pools to products or services based on cost drivers. activity based costing (ABC)A relatively new method advocated for the activity-based costing (ABC)a process using multiple cost drivers to predict and allocate costs to products and services; Activity-based costing (ABC)A cost allocation system that compiles costs and assigns Actual costThe actual expenditure made to acquire an asset, which includes the supplierinvoiced ![]() actual cost systema valuation method that uses actual direct Agency basisA means of compensating the broker of a program trade solely on the basis of commission Agency cost viewThe argument that specifies that the various agency costs create a complex environment in Agency costsThe incremental costs of having an agent make decisions for a principal. Agency pass-throughsMortgage pass-through securities whose principal and interest payments are Aggregate Production FunctionAn equation determining aggregate output as a function of aggregate inputs such as labor and capital. Aggressive Capitalization PoliciesCapitalizing and reporting as assets significant portions of Aggressive Cost Capitalizationcost capitalization that stretches the flexibility within generally All-in costTotal costs, explicit and implicit. All or noneRequirement that none of an order be executed unless all of it can be executed at the specified price. All-or-none underwritingAn arrangement whereby a security issue is canceled if the underwriter is unable Amortized Costcost of a security adjusted for the amortization of any purchase premium or Annualized holding period returnThe annual rate of return that when compounded t times, would have Annuity PeriodThe time between each payment under an annuity. 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 appraisal costa quality control cost incurred for monitoring 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 At-the-moneyAn option is at-the-money if the strike price of the option is equal to the market price of the attribute-based costing (ABC II)an extension of activitybased costing using cost-benefit analysis (based on increased customer utility) to choose the product attribute Average Amortization PeriodThe average useful life of a company's collective amortizable asset base. Average Collection PeriodAverage number of days necessary to receive cash for the sale of Average collection period, or days' receivablesThe ratio of accounts receivables to sales, or the total Average-Cost Inventory MethodThe inventory cost-flow assumption that assigns the average Average cost of capitalA firm's required payout to the bondholders and to the stockholders expressed as a Average lifeAlso referred to as the weighted-average life (WAL). The average number of years that each Avoidable costscosts that are identifiable with and able to be influenced by decisions made at the business backflush costinga streamlined cost accounting method that speeds up, simplifies, and reduces accounting effort in an environment that minimizes inventory balances, requires Bank discount basisA convention used for quoting bids and offers for treasury bills in terms of annualized Bank overdraftMoney owed to the bank in a cheque account where payments exceed receipts. Bankruptcy cost viewThe argument that expected indirect and direct bankruptcy costs offset the other BARRA's performance analysis (PERFAN)A method developed by BARRA, a consulting firm in Base YearThe reference year when constructing a price index. By tradition it is given the value 100. BasisRegarding a futures contract, the difference between the cash price and the futures price observed in the Basis pointIn the bond market, the smallest measure used for quoting yields is a basis point. Each percentage Basis Pointone one-hundredth of one percent Basis pointone hundredth of one percentage point, or 0.0001. Basis Pointone one-hundredth of a percentage point, used to express variations in yields. For example, the difference between 5.36 percent and 5.38 percent is 2 basis points. Basis pricePrice expressed in terms of yield to maturity or annual rate of return. Basis riskThe uncertainty about the basis at the time a hedge may be lifted. Hedging substitutes basis risk for Batch costA cost that is incurred when a group of products or services are produced, batch-level costa cost that is caused by a group of things Blue-chip companyLarge and creditworthy company. Bond-equivalent basisThe method used for computing the bond-equivalent yield. Break-even lease paymentThe lease payment at which a party to a prospective lease is indifferent between Break-even timeRelated: Premium payback period. budgeted costa planned expenditure business process reengineering (BPR)the process of combining information technology to create new and more effective business-value-added activityan activity that is necessary for the operation of the business but for which a customer would not want to pay Buy limit orderA conditional trading order that indicates a security may be purchased only at the designated by-productan incidental output of a joint process; it is salable, By-productA product that is an ancillary part of the primary production process, having By-productA material created incidental to a production process, which can be Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |