.COM is a top-level domain (TLD) in the Domain Name System (DNS) of the Internet. It stands for 'commercial' and was originally intended for domains registered by commercial organizations.
An 'Agreement of Sale' is a legal contract between a buyer and a seller in which the seller agrees to sell, and the buyer agrees to buy, specific goods under predetermined terms and conditions. This agreement outlines the price, delivery terms, payment methods, and other essential provisions necessary for the transfer of goods ownership.
An allowable capital loss refers to the excess of the cost of an asset over the proceeds received on its disposal. Both individuals and companies may set capital losses against capital gains to establish tax liability.
A bear market is a financial term used to describe a market where the prices of securities are falling or are expected to fall. This state of the market is often characterized by a decline of at least 20% from recent highs.
The act of ceasing trading activities within a business, including winding down operations and finalizing outstanding financial obligations.
The business cycle refers to the fluctuations in economic activity that an economy experiences over a period of time. It consists of expansion, peak, recession, trough, and recovery phases.
A C Corporation is a type of corporation that is taxed separately from its owners under Subchapter C of the Internal Revenue Code. This structure allows the corporation to retain earnings and provides liability protection for its shareholders.
A C-type reorganization, also known as a stock-for-assets reorganization, is a type of corporate restructuring defined under the Internal Revenue Code (IRC) section 368(a)(1)(C). This specific type of merger involves the acquisition by one corporation of substantially all of the properties of another corporation solely in exchange for all or a part of its voting stock.
C.C.C. stands for 'Cwmni Cyfyngedig Cyhoeddus,' which is the Welsh equivalent of a Public Limited Company (plc) in English. It refers to a type of company in Wales that is permitted to offer its shares to the public.
A code of best practice, established by Thomas Dunfee and David Hess of the University of Pennsylvania, that outlines how a company and its employees should deal with any attempt to make or solicit improper payments. This code emphasizes ethical behavior in business practices to prevent bribery and corruption.
Computer-Assisted Audit Techniques (CAATs) are techniques that utilize computer systems to execute auditing processes, which streamline the traditional audit workflow, enhance accuracy, and improve overall audit efficiency.
A modern method of transferring funds or other assets internationally in an expeditious manner. Typically involving electronic communication channels rather than physical wires.
A cablegram is a telegram sent overseas by means of a submerged wire.
The CAC 40 (Cotation Assistée en Continu) is a capitalization-weighted price index of the 40 most actively traded shares on the Paris Bourse (now Euronext Paris).
A cache is a storage location that holds frequently accessed data to speed up future retrievals. It is commonly used in computing to improve performance by reducing the time to access data.
Cachet refers to a mark of quality or distinction, individuality, or authenticity typically associated with superior status or elite standing. A product or brand with cachet often enjoys a higher value and esteem among consumers and peers.
A cadastre is a comprehensive register of the real property in a jurisdiction, which includes detailed information about property boundaries, land ownership, and the value of the land and its improvements. It is commonly used to determine the amount of tax assessed on each parcel of land.
The Cadbury Report, issued in 1992, laid the foundation for the principles of corporate governance in the UK, emphasizing the importance of non-executive directors, formal appointing processes, and accountability.
An arrangement that allows employees to choose their own employee benefit structure, tailoring it according to their personal needs and preferences.
A cafeteria plan allows employees to choose from a variety of fringe benefits, including cash, without including the chosen benefit in their gross income for tax purposes.
A Comprehensive Annual Financial Report (CAFR) is a detailed presentation of a state, municipality, or other governmental entity's financial condition. It can serve various stakeholders, including citizens, governing bodies, investors, and creditors.
A calendar year refers to a continuous period beginning on January 1 and ending on December 31, widely used for financial and accounting purposes. In contrast, a fiscal year can vary depending on the organization's specific reporting requirements.
A call is a financial term used in various contexts, including banking, bonds, and options, signifying the right or action to demand repayment, redeem or buy securities under specific conditions.
A call center is a facility equipped to handle a large volume of telephone calls, mainly for taking orders, serving customers, or for selling products through telemarketing. Call centers can be primarily inbound or outbound, depending on their function.
A call feature or call provision is part of the agreement a bond issuer makes with a buyer, detailing the schedule and price of redemptions before maturity. Most corporate and municipal bonds have ten-year call features, while government securities usually do not.
Call forwarding is a telecommunication service provided by phone companies, allowing incoming calls to be automatically redirected to another designated phone number.
A call option is a financial contract that gives the holder the right, but not the obligation, to buy a specified amount of an underlying asset at a predetermined price within a fixed timeframe.
In financial terms, a call premium is either the amount paid by the buyer of a call option above the stock's or index’s current market price, or the additional amount over par that an issuer of bonds or preferred stock pays to redeem the security early.
The call price is the price at which a bond or a preferred stock with a call feature can be redeemed by the issuer prior to its maturity date. It is also known as the redemption price.
A call report is a detailed documentation maintained by an advertising agency, capturing the specifics of conferences between agency representatives and current or prospective advertiser clients. It is alternatively known as a conference report or contact report. This document includes information such as the date of the meeting, participants, and discussion points.
Call Waiting is a telecommunications service offered by local telephone companies that allows users to receive a tone indicating another incoming call while they are currently on the line, enabling them to answer the new call and place the first caller on hold.
A callable security can be redeemed by the issuer before its scheduled maturity date, usually triggering a necessity for extra payment to the holder, identified as a call premium.
Fixed-rate bonds wherein the issuer holds the right, but not the obligation, to redeem the bond at par value or at a premium during its lifetime. Callable bonds often include a grace period where the issuer cannot call the bond, with conversion possible later if specific conditions are met.
Called-up share capital refers to the part of issued share capital that has been requested to be paid by the shareholders. This term is relevant when dealing with partly paid shares.
Camera-Ready Copy (CRC) refers to artwork or a printout that is ready to be photographed and transformed into a printing plate for offset reproduction. This stage signifies the final step before actual printing, ensuring all elements are properly positioned and formatted.
The Canadian Institute of Chartered Accountants (CICA) is the professional body of practising accountants in Canada, originally founded in 1902 as the Dominion Association of Chartered Accountants. It plays a crucial role in setting accounting standards and providing professional development for its members.
In financial and legal contexts, 'cancel' refers to the act of voiding a negotiable instrument by annulling or settling it, prematurely terminating a bond or other contract, or voiding an order to buy or sell securities.
A cancellation clause is a contract provision that grants the right to terminate obligations upon the occurrence of specified conditions or events. For example, a cancellation clause in a lease might permit the landlord to break the lease upon the sale of a building.
A company-prepared selling presentation where sales representatives memorize and repeat it verbatim when making a sales presentation. This technique is often used for inexperienced sales personnel but can appear too artificial for complex selling transactions.
A canned program is a prewritten computer program available for purchase, often designed to perform a range of common tasks for users with minimal customization.
A ceiling on a charge; for example, an interest-rate cap would set a maximum interest rate to be charged on a loan, regardless of prevailing general interest-rate levels.
Cap and Trade is an environmental policy approach aimed at reducing pollutants by setting a limit on emissions and allowing companies to trade emissions permits.
The Cap Rate, or Capitalization Rate, is a fundamental metric used in real estate to determine the rate of return on an investment property based on the income it is expected to generate.
The Confederation of Asian and Pacific Accountants (CAPA) is an organization that represents professional accountancy bodies in the Asia-Pacific region, facilitating cooperation and advancing accounting standards.
Understanding an organization’s maximum achievable output given the available resources such as labor and machinery, under specific conditions.
Capacity planning is a long-term strategic process that determines the production capacity needed by an organization to meet changing demands for its products.
Capacity Usage Variance (CUV) measures the difference between the actual hours worked and the budgeted hours, specifically in relation to fixed overheads. It is an essential metric in manufacturing and production, providing insights into operational efficiency and resource utilization.
The landmark case of *Caparo Industries plc v Dickman and others* (1990) significantly influenced the realm of audit law by ruling that auditors owe a duty of care to existing shareholders as a collective entity rather than to individual shareholders.
In finance and accounting, 'capital' refers to various forms of assets, interests, or financial contributions that play a critical role in the functioning of an entity or the production process, enhancing productivity and enabling operations.
A comprehensive financial account in various types of business, recording different aspects of share capital, investments, and capital expenditures.
A critical metric used to evaluate a bank's ability to meet its liabilities, ensuring it maintains a sufficient buffer to absorb potential losses and protect the interests of depositors and creditors.
Capital allocation refers to the deployment of funds across various units or projects within an organization based on calculated potential returns and risks, often employing techniques like value-at-risk (VaR) and contributing to metrics such as shareholder value and Economic Value Added (EVA).
Capital allowances refer to allowances against UK income tax or corporation tax available to businesses, sole traders, partnerships, or limited companies that have capital expenditures on plant and machinery used in the business.
A capital asset is property of any type held by an individual or business, excluding inventory and certain other types of property. Capital assets can include buildings, land, equipment, vehicles, stocks, and bonds.
The Capital Asset Pricing Model (CAPM) is a sophisticated model that establishes a relationship between expected risk and expected return. It operates on the principle that investors require higher returns as compensation for higher risks.
The CAPM is a formula used to determine the expected return on an investment by accounting for both the risk-free rate of return and the risk premium.
The Capital Asset Pricing Model (CAPM) is a cornerstone of modern financial theory, providing a framework used to determine the expected return on an investment for a given level of risk.
Capital assets are forms of property with a relatively long life, often used in trade or business, that receive specific tax treatments when sold, resulting in either capital gain or capital loss.
A measure of possible worst-case losses in excess of the average used in banking to calculate both capital adequacy requirements and certain performance measures, such as risk-adjusted return on capital (RAROC). It is usually based on the value-at-risk (VaR) methodology.
The Capital Budget, also known as the capital expenditure budget or capital investment budget, is part of the master budget that outlines the anticipated capital expenditures an organization plans to make within a given budget period.
Capital budgeting, also known as capital investment appraisal or investment appraisal, is the process by which an organization evaluates different investment projects to determine which is likely to provide the highest financial return.
Capital calls are requests for additional money required of investors to fund a deficit. A corporate stockholder has no legal obligation to meet a capital call.
Capital Consumption Allowance (CCA) represents the allowance for depreciation included in the Gross Domestic Product (GDP). It accounts for around 11% of GDP and is subtracted to calculate the Net National Product (NNP).
Capital contributed in excess of par value represents the amount paid for stock above its stated par value, as reflected in the owner's equity section of a balance sheet.
Capital contribution refers to the cash or property acquired by a corporation from a shareholder without the receipt of additional stock. This amount is added to the basis of the shareholder's existing stock, and the corporation's basis is carried over from the shareholder.
Capital costs refer to the expenses incurred to acquire, upgrade, and maintain physical assets such as properties, industrial buildings, or equipment. Often, these costs are major, one-time expenses that have long-term benefits.
Capital cover is a crucial financial metric indicating the capital value of a portfolio relative to the capital sum required to finance it. It serves as a risk assessment tool, with lower capital cover indicating higher investment risk.
Capital deepening refers to the process of increasing the amount of capital per worker in an economy. This typically means that each worker has more tools, equipment, or technology to use in their work, leading to higher productivity and economic growth.
Capital distribution refers to the distribution of company’s funds to its shareholders. This usually happens in the form of dividend payments, share buybacks, or return of capital. It signifies how a company returns value to its shareholders.
Capital Employed is the total amount of capital that a company uses to generate profits and includes shareholder's equity and long-term debt, or the sum of fixed and net current assets. This metric is pivotal in ratio analysis for assessing the efficiency and profitability of a company's capital investments.
Capital expenditure, often referred to as capital costs or capital investment, pertains to substantial expenses incurred by an organization for purchasing or enhancing fixed assets. These costs are capitalized on the balance sheet and depreciated over the asset's useful life.
Capital Expenditure (CapEx) refers to the funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment. It is often used to undertake new projects or investments by the firm.
Capital Expenditure (CAPEX) refers to funds used by a business to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment. These expenditures are capitalized and either depreciated or depleted over their useful life, as opposed to repairs, which are deducted from the current year's income.
A Capital Expenditure Budget plans for significant investments in long-term assets, covering the costs of major projects or purchases essential for sustaining or growing an organization's operations.
A Capital Expense is any expenditure made by a business to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment. These expenses are typically substantial and offer a long-term benefit.
Capital flight refers to the large-scale exit of financial assets and capital from a country due to economic or political instability, or in search of higher returns elsewhere.
Capital formation refers to the creation or expansion of capital through savings, which are then invested in buildings, machinery, equipment, and other assets that produce goods and services, thereby contributing to economic growth.
A capital fund is a financing source specifically allocated for long-term initiatives, large projects, or investments, often used by non-profit organizations, governments, or businesses to support development and growth initiatives.
A capital gain represents the profit realized from the sale of an asset where the selling price exceeds the original purchasing price. This gain is often subject to capital gains tax, depending on the jurisdiction and applicable legal provisions.
Capital gain distributions refer to payments made by mutual funds or corporations to their investors, representing the gains earned from the sale of securities or liquidated assets. This distribution retains its character as capital gains when passed on to investors.
A capital gain dividend is any distribution that is designated as such by a regulated investment company in a written notice mailed to its shareholders not later than 60 days after the close of its taxable year. It is treated as a capital gain by the shareholders.
Capital Gains Tax (CGT) is a tax on the profit realized from the sale of certain types of assets, occurring at different rates depending on asset type and overall taxable income. This tax plays a significant role in tax planning for investors and businesses.
Capital Gains Tax (CGT) is a tax levied on the profit from the sale of assets or investments. The tax applies to the difference between the sale price and the original purchase price or basis of the asset.
Capital gearing refers to the proportion of debt to equity in the capital structure of a company. It is a crucial indicator of financial stability and risk.
Capital goods are items used in the production of other goods, including industrial buildings, machinery, and equipment, as well as highways, office buildings, and government installations. These goods significantly determine a country's productive capacity.
Capital improvement refers to the significant enhancement or betterment of a building or equipment, which extends its useful life or increases its productivity. The costs associated with capital improvements are added to the asset's basis and depreciated over time.
Understand the various means used by companies to raise finance including shares, debentures, loans, options, and warrants, and the important distinctions and regulations that govern them.
A capital intensive business involves significant investment in fixed assets such as plant and machinery. These companies are regarded as high-risk investments, particularly in times of economic downturns, due to the high proportion of fixed costs.
Capital investment involves the outlay of funds to acquire or upgrade physical assets such as property, buildings, or equipment, which are expected to improve the capacity or efficiency of a business.
Capital investment appraisal is a process used by companies to evaluate and compare potential large-scale investment opportunities to determine their viability and profitability.
A Capital Investment Budget outlines the funds allocated for significant investments in a company's long-term assets, such as property, plants, and equipment. These investments are typically intended to enhance a company's operational capacity, efficiency, and overall profitability.
A Capital Lease, in the USA, is a lease that does not legally constitute a purchase but is recorded as an asset on the lessee's books under certain conditions.
Understanding the financial and physical capital maintenance concepts helps ensure that a company's capital is preserved, facilitating accurate performance measurement over time.
Capital maintenance in units of constant purchasing power (CUPP) is an approach that maintains the financial capital's purchasing power by adjusting for changes in the general price level or inflation.
A market in which long-term capital is raised by industry and commerce, the government, and local authorities. Private investors, insurance companies, pension funds, and banks primarily fund this market.
Capital outflow refers to the exodus of capital from a country, driven by a combination of political and economic factors. Domestic and foreign owners of assets may sell their holdings and relocate their money to countries with more political stability and economic growth potential. Large capital outflows may prompt countries to impose currency controls or other measures to restrict the movement of money.
Capital outlay, also known as capital expenditure (CapEx), refers to funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment. It is a crucial aspect of an organization's investment strategy and financial management.
The relationship between the value of capital and the output it produces in a given period, usually a year; the lower the ratio, the more efficiently capital is being used to produce goods and services.
Capital paid in excess of par value refers to the amount of money shareholders have invested in a company that exceeds the par value of the issued shares. This extra amount is often reflected on the equity section of the balance sheet and signifies additional capital that the company can use for growth and operations.
The Capital Purchase Program (CPP) was an initiative under the Troubled Asset Relief Program (TARP) to stabilize the financial system by reinforcing the solvency of major banks through purchasing preferred stock and equity warrants.
