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Definition of Plug

Plug Image 1

Plug

A variable that handles financial slack in the financial plan.



Related Terms:

balancing item

Variable that adjusts to maintain the consistency
of a financial plan. Also called plug.


Cash-equivalent items

Temporary investments of currently excess cash in short-term, high-quality
investment media such as treasury bills and Banker's Acceptances.


Counterpart items

In the balance of payments, counterpart items are analogous to unrequited transfers in the
current account. They arise because the double-entry system in balance of payments accounting and refer to
adjustments in reserves owing to monetization or demonetization of gold, allocation or cancellation of SDRs,
and revaluation of the various components of total reserves.


Extraordinary item

A transaction that rarely occurs, and which is unusual, such as
expropriation of company property by a foreign government. It is reported as a separate
line item on the income statement.


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Item master file

A file containing all item-specific information about a component,
such as its weight, cubic volume, and unit of measure.


Item number

A number uniquely identifying a product or component.


Plug Image 1

Leverage rebalancing

Making transactions to adjust (rebalance) a firm's leverage ratio back to its target.


Line item

Generic types of assets, liabilities, income or expense that are common to all businesses and
used as the basis of financial reporting, e.g. rent, salaries, advertising etc.


Nonrecurring Items

Revenues or gains and expenses or losses that are not expected to recur
on a regular basis. This term is often used interchangeably with special items.


Rebalancing

Realigning the proportions of assets in a portfolio as needed.


Slow-moving item

An inventory item having a slower rate of turnover than the
average turnover for the entire inventory.


Special Items

Significant credits or charges resulting from transactions or events that, in the
view of management, are not representative of normal business activities of the period and that
affect comparability of earnings. This term is often used interchangeably with nonrecurring
items.



 

 

 

 

 

 

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