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Definition of Without recourse
without the lender having any right to seek payment or seize assets in the event of
The discounting, or sale at a discount, of receivables on a nonrecourse, notification
without recourse, as in a non-recourse lease.
Term describing a type of loan. If a loan is with recourse, the lender has a general claim against the
In the event a person defaults on a loan, recourse is the right of a person to receive payment. recourse could give the lender the ability to take possession of the borrowers assets.
If 70 were bid in the market and there was no offer, the quote would be "70 bid without." The
factoring arrangement that provides collection and insurance of accounts receivable.
factoring arrangement that provides collection, insurance, and finance for accounts receivable.
Goods may be returned to the seller by the purchaser without restrictions.
Provides additional financial security should an insured person be dismembered or lose the use of a limb as the result of an accident.
Administrative proceedings or litigation releases that entail an accounting or auditing-related violation of the securities laws.
A business for which a separate set of accounting records is being
‘Buckets’ within the ledger, part of the accounting system. Each account contains similar transactions (line items) that are used for the production of financial statements. Or commonly used as an abbreviation for financial statements.
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
Accretion (of a discount)
In portfolio accounting, a straight-line accumulation of capital gains on discount
Well, frankly, accrual is not a good descriptive
Accumulated Other Comprehensive Income
Cumulative gains or losses reported in shareholders'
Acquisition of assets
A merger or consolidation in which an acquirer purchases the selling firm's assets.
ad hoc discount
a price concession made under competitive pressure (real or imagined) that does not relate to quantity purchased
ADF (annuity discount factor)
the present value of a finite stream of cash flows for every beginning $1 of cash flow.
A means of compensating the broker of a program trade solely on the basis of commission
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
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
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.
The pool factor implied by the scheduled amortization assuming no prepayemts.
Present value of $1 paid for each of t periods.
Present value of an annuity of $1 per period.
A right of shareholders in a merger to demand the payment of a fair price for their shares, as
The amount of total risk that can be eliminated by diversification by
A firm's productive resources.
anything of value that a company owns.
Things that the business owns.
Items owned by the company or expenses that have been paid for but have not been used up.
A common element of a financial plan that describes projected capital spending and the
Automatic Benefits Payment
Automatic payment of moneys derived from a benefit.
A debt or equity security not classified as a held-to-maturity security or a trading security. Can be classified as a current or noncurrent investment depending on the intended holding period.
Average age of accounts receivable
The weighted-average age of all of the firm's outstanding invoices.
Average Collection Period
Average number of days necessary to receive cash for the sale of
Average collection period, or days' receivables
The ratio of accounts receivables to sales, or the total
An account receivable that cannot be collected.
The amount of accounts receivable that is not expected to be collected.
Refers to accounts receivable from credit sales to Customers
Balance of payments
A statistical compilation formulated by a sovereign nation of all economic transactions
Balance of Payments
The difference between the demand for and supply of a country's currency on the foreign exchange market.
Balance of Payments Accounts
A statement of a country's transactions with other countries.
Balance sheet identity
Total assets = Total Liabilities + Total Stockholders' Equity
Bank collection float
The time that elapses between when a check is deposited into a bank account and when the funds are available to the depositor, during which period the bank is collecting payment from the payer's bank.
Bank discount basis
A convention used for quoting bids and offers for treasury bills in terms of annualized
The risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk.
Regarding a futures contract, the difference between the cash price and the futures price observed in the
In the bond market, the smallest measure used for quoting yields is a basis point. Each percentage
One one-hundredth of one percent
One hundredth of one percentage point, or 0.0001.
One 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.
Price expressed in terms of yield to maturity or annual rate of return.
The uncertainty about the basis at the time a hedge may be lifted. Hedging substitutes basis risk for
Beneficiary (Credit Insurance)
The person or party designated to receive proceeds entitled by a benefit. payment of a benefit is triggered by an event. In the case of credit insurance, the beneficiary will always be the creditor.
A method of securities distribution/ underwriting in which the securities firm agrees to sell
The requirement that a claim holder voting against a plan of reorganization
risk of a firm measured from the standpoint of an investor who holds a highly diversified portfolio.
Large and creditworthy company.
The method used for computing the bond-equivalent yield.
Borrower (Credit Insurance)
A consumer who borrows money from a lender.
Break-even lease payment
The lease payment at which a party to a prospective lease is indifferent between
Break-even payment rate
The prepayment rate of a MBS coupon that will produce the same CFY as that of
A guaranteed investment contract purchased with a single (one-shot) premium. Related:
The risk that the cash flow of an issuer will be impaired because of adverse economic
The combination of cash flow uncertainty and reinvestment risk introduced by a call provision.
A lease obligation that has to be capitalized on the balance sheet.
A lease in which the lessee obtains some ownership rights over the asset
One where substantially all of the benefits and risks of ownership are transferred to the lessee. It must be reflected on the company's balance sheet as an asset and corresponding liability.
An incentive offered to purchasers of a firm's product for payment within a specified time
Cash settlement contracts
Futures contracts, such as stock index futures, that settle for cash, not involving
Change in Reporting Entity
A change in the scope of the entities included in a set of, typically, consolidated financial statements.
Chart of accounts
A listing of all accounts used in the general ledger, usually sorted in
Clearing House Automated Payments System (CHAPS)
A computerized clearing system for sterling funds
Clearing House Interbank Payments System (CHIPS)
An international wire transfer system for high-value
A transaction in which the seller's intention is to reduce or eliminate a long position in a stock,
An internal department within a company staffed by specialists in collecting past due accounts or accounts receivable.
The negative float that is created between the time when you deposit a check in your account
The percentage of a given month's sales collected during the month of sale and each
Procedures followed by a firm in attempting to collect accounts receivables.
Procedures to collect and monitor receivables.
Commercial Business Loan (Credit Insurance)
An agreement between a creditor and a borrower, where the creditor has loaned an amount to the borrower for business purposes.
The risk that a foreign debtor will be unable to pay its debts because of business events,
Common stock/other equity
Value of outstanding common shares at par, plus accumulated retained
assets acquired to create money. May include plant, machinery and equipment, shares of another company etc.
company cost of capital
Expected rate of return demanded by investors in a company, determined by the average risk of the company’s assets and operations.
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