Cumulative Bulletin (CB)
The Cumulative Bulletin (CB) is a hardbound compilation that consolidates material found in the Internal Revenue Bulletin (IRB) and is typically issued on a semiannual basis.
Cumulative Dividend
A cumulative dividend is a feature often associated with preferred stock, entitling holders to receive dividends in arrears before any dividends can be paid to common stockholders.
Cumulative Liability
Cumulative liability is the total of the limits of liability that an insurer or reinsurer has outstanding on a single risk. It includes all contracts from various insurers and covers all lines of coverage for that risk.
Cumulative Preference Share
A type of preference share that entitles the owner to receive any dividends not paid in previous years, guaranteeing eventual payment before ordinary shares are addressed.
Cumulative Preferred Stock
Cumulative Preferred Stock is a type of preferred stock where omitted dividends must be paid out before any dividends can be paid to common stockholders.
Cumulative Voting
Cumulative voting is a system of stockholder voting for a board of directors that allows all votes an individual is eligible to cast to be cast for a single candidate. This system is designed to give minority stockholders representation on the board.
Curable Depreciation
Curable Depreciation in appraisal refers to deterioration or depreciation that can be corrected at a cost less than the value that will be added.
Curb Exchange
Curb Exchange, also known as the American Stock Exchange, refers to an organized market where securities, commodities, currencies, and bonds are traded directly between brokers or via telecommunication systems.
Currency
Currency refers to various forms of money that are in circulation within an economy, serving as a medium of exchange for goods and services.
Currency Appreciation or Depreciation
Currency appreciation refers to an increase in the value of a currency relative to another currency, while currency depreciation refers to a decrease in the value of a currency relative to another currency. These concepts are pivotal in international trade, impacting everything from import/export prices to inflation rates.
Currency Futures
Currency futures are contracts in the futures markets for delivery in a major currency such as U.S. dollars, Euros, or Japanese yen. Corporations that sell products globally can hedge against adverse exchange rate movements using these futures.
Currency in Circulation
Currency in circulation refers to the paper money and coins that are circulating within an economy and are counted as part of the total money supply, which also includes demand deposits in banks.
Currency Risk
Currency risk, also known as exchange-rate risk or foreign exchange risk, arises from the fluctuation in the exchange rate between two currencies, impacting the value of investments or transactions made in foreign currencies.
Currency Swap
A currency swap involves the exchange of principal and interest in one currency for the same in another currency, often to reduce exposure to foreign exchange risk and interest rate risk.
Current
The term 'current' is often used to denote anything that is not overdue or is occurring within the current period or time frame.
Current Account
A current account serves as an active account in the banking system where you can deposit and withdraw money via various mediums. It's crucial for personal, business, and international financial management.
Current Asset
A current asset refers to cash, accounts receivable, inventory, and other assets that are likely to be converted into cash, sold, exchanged, or expensed in the normal course of business, usually within a year.
Current Assets
Current assets, also known as circulating assets, circulating capital, or floating assets, are the assets of an organization that form part of the working capital and are constantly changing their form as they circulate from cash to goods and back to cash again.
Current Cash Equivalent (CCE)
Current Cash Equivalent (CCE) is a financial concept that refers to the amount of cash or cash-equivalent assets that a company holds, which can be quickly converted into cash without significant loss of value.
Current Cash Equivalent (CCE)
In continuously contemporary accounting, Current Cash Equivalent (CCE) refers to the measure of assets and liabilities in terms of their current cash value.
Current Cost
Current cost refers to a cost calculated to take into account current circumstances of cost and performance levels. It represents the amount required at current prices to purchase or manufacture an asset, possibly adjusted for inflation.
Current Dollars
Current dollars refer to the cost of an asset in terms of today’s price level, adjusted for inflation. For example, if today the Consumer Price Index (CPI) is 180, an automobile that cost $20,000 when the CPI base was 100 would cost $36,000 in current dollars.
Current Earnings and Profits (E&P)
In calculating a corporation's Current Earnings and Profits (E&P), nontaxable or tax-exempt income is added to the taxable income for the tax year. Current E&P, if not paid out, transitions into Accumulated E&P. Distributions are first taken from current E&P, and then from accumulated E&P. These distributions are taxable to shareholders to the extent of current and accumulated E&P.
Current Employment Statistics (CES)
Monthly data on national employment and unemployment, wages, and earnings across all non-agriculture industries, providing key economic indicators.
Current Liabilities
Current liabilities are amounts owed by a business to other organizations and individuals that should be paid within one year from the balance-sheet date, including trade creditors, bills of exchange payable, and short-term loans.
Current Liability (Liabilities)
Current liabilities are debts or obligations that a company expects to pay off within one year as part of normal business operations. Examples include accounts payable, short-term loans, and the current portion of long-term loans.
Current Market Value
An estimation of the financial worth of a property if it were to be sold in the present-day market, factoring in current economic conditions, comparable property sales, and general real estate trends.
Current Purchasing Power (CPP) Accounting
Current Purchasing Power (CPP) Accounting is a method of accounting that adjusts financial statements to reflect the effects of changes in the purchasing power of money. It aims to provide more accurate and relevant information during periods of inflation.
Current Ratio
The ratio of a business's current assets to its current liabilities, expressed as x:1. This metric helps gauge the liquidity of a company, indicating its ability to meet short-term obligations.
Current Replacement Cost
Current Replacement Cost refers to the expense involved in replacing an asset or the services it provides, calculated at the balance-sheet date. Determining this cost can be challenging, especially if the asset is obsolete.
Current Standard
A cost, income, or performance standard based on current operating conditions and established for use over a short period of time in accounting and finance.
Current Value Accounting
Current Value Accounting (CVA) is a method aimed at providing an income statement and balance sheet in terms of current dollars, enhancing the quality of financial information during times of inflation.
Current Yield
Current yield is the annual interest on an investment divided by its market price, providing a snapshot of the bond’s rate of return relative to its current price rather than its face value or yield to maturity.
Current-Cost Accounting (CCA)
Current-Cost Accounting (CCA) adjusts the value of assets and profits to account for changes in prices over time, providing a more accurate reflection of a company’s financial position.
Current-Cost Accounting (CCA)
Current-Cost Accounting (CCA) is an accounting approach focusing on the operating capability of a business, ensuring assets are valued to prevent business loss upon their deprivation. This method highlights adjustments for inflation and operational capacity, differentiating holding gains from operating profits.
Current-Cost Depreciation
Current-cost depreciation is a depreciation charge calculated on the current cost of an asset rather than its historical cost. It adjusts for changes in the value of assets over time to ensure financial statements reflect more accurate asset values.
Current-Cost Operating Profit
Current-Cost Operating Profit is the amount remaining after adjustments for cost of sales, depreciation, and working capital in current-cost accounting.
Current-Value Accounting
Current-value accounting is a method that values assets based on their current market value, taking into account changes in specific prices rather than general price levels. This technique is essential for providing a more precise and timely reflection of an entity's financial situation.
Current-Year Basis of Assessment
The current-year basis is an accounting principle used for tax assessment in the UK, wherein profits are taxed in a fiscal year based on the profits arising in the accounts for the period ending within that same tax year.
Curriculum Vitae (CV)
A biographical résumé of an individual's career, including educational credentials and professional experience. Its purpose is to give prospective employers an understanding of the applicant's professional abilities.
Cursor
A symbol on a computer terminal that indicates where on the screen the next character to be typed will appear. Cursors often appear as blinking underscores, vertical bars, or rectangles.
Curtesy
Curtesy refers to a husband's common law right to a life estate in all lands owned by his deceased wife, provided there were issue born of the marriage who are capable of inheriting the estate.
Curtilage
Refers to the land and immediate surroundings of a dwelling house, regarded as legally attached to it under common law.
Curvilinear Cost Function
A curvilinear cost function represents any cost relationship where the cost does not change proportionally with the level of activity. This type of cost function forms a curved line when plotted on a graph.
CUSIP
The Committee on Uniform Securities Identification Procedures (CUSIP) system uniquely identifies financial instruments and facilitates transactions and record-keeping in the securities industry.
Custodial Account
A custodial account is a type of account created for a minor by a parent or guardian, often held at a bank or brokerage firm, where the minor cannot make securities transactions without the approval of the account trustee.
Custodian
A custodian refers to a bank or financial institution responsible for safeguarding the assets of a mutual fund, individual, or corporation. It also describes a person who manages the care of a facility or building.
Custody
Custody refers to the condition of holding a property or person within one's care and control. This comprehensive term has applications in various fields, from property management to legal and family contexts.
Custom
In business or individual practices, 'custom' refers to habitual tendencies, traditional policies, or usual activities routinely followed as a matter of course. These practices can shape organizational behavior and culture and affect various business decisions and operations.
Custom Builder
A custom builder is a professional or company that constructs unique houses, designed specifically for individual clients based on their specifications and preferences.
Customer
A customer is an individual or entity that purchases goods or services from a business or organization. Customers are the primary source of revenue for businesses and play a critical role in the success and growth of any company.
Customer Capital
Customer capital refers to the value derived from an organization's relationships with its customers, which form part of the broader concept of intellectual capital.
Customer Perspective in a Balanced Scorecard
Customer perspective in a balanced scorecard focuses on the target customers and market segments that an organization aims to serve. It measures how well the company performs from the viewpoint of customers.
Customer Profile
A customer profile is a detailed description of a specific customer group or type, typically based on various demographic, psychographic, and/or geographic characteristics. It is used by businesses to understand and target their audience more effectively.
Customer Profitability Analysis (CPA)
Customer Profitability Analysis (CPA) evaluates the profitability of each customer or segment to help businesses focus on value-adding customers and optimize resource allocation.
Customer Relationship Management (CRM)
Customer Relationship Management (CRM) involves the practice of storing, analyzing, and utilizing data gathered from various customer interactions, including sales calls, customer service centers, and actual purchases, to gain a better understanding of customer behavior and enhance customer relationships.
Customer Service
Customer service is the department or function within an organization that responds to inquiries or complaints from customers. It ensures the resolution of issues through various communication channels and plays a crucial role in customer retention and satisfaction.
Customer Service Representative
An employee responsible for maintaining goodwill between a business and its customers by answering questions, solving problems, and providing advice or assistance on the organization’s goods or services.
Customer-Level Activities
Customer-level activities are tasks carried out to support specific customers and generate customer-related value.
Customs
An authoritative agency dedicated to regulating the import and export of goods, ensuring compliance with laws, and collecting duties and taxes on imports.
Customs and Excise
Customs and Excise refer to government agencies responsible for collecting taxes on goods imported into or exported out of the country, as well as enforcing regulations related to these activities.
Customs Court
A specialized federal court tasked with reviewing decisions made by customs collectors, which frequently involves determining the proper tariff classifications and duties for imported goods.
Customs Duty
A customs duty is a levy imposed on the importation of certain goods and on some goods manufactured from imported materials. It is also charged on some exports. Within the European Union, import duties between member states have been abolished and a Common External Tariff has been established.
Customs Invoice
A customs invoice is an essential document used in international trade to declare goods being imported or exported, prepared particularly for customs authorities to ensure legal and efficient handling of shipments.
Cut
The term 'cut' refers to various actions and meanings across different contexts, including stopping a film scene, making a pass/fail point, and removing electronic media.
Cut-Off Date
The date on which an accounting period ends and the accounts of a business are ruled off. It ensures the accuracy and integrity of financial statements, providing a true and fair view of the business's performance and position.
Cutoff Point
In capital budgeting, the cutoff point is referred to as the minimum acceptable rate of return on investments that an enterprise mandates for its projects. It essentially serves as the threshold for determining the viability of a project.
Cyberspace
Cyberspace is the conceptual environment where computer networking hardware, software, and users interact and communicate. It encompasses the global internet, private and public networks, and various data streams.
Cycle Billing
Cycle Billing is a method sometimes adopted in large organizations for invoicing their customers at different time intervals. Often using the alphabet as a basis, customers starting with the letter A may be invoiced on the first day, B on the second day, and so on. This method spreads the workload in the organization and ensures a steady inflow of cash—provided that there are many customers with comparable accounts.
Cycle Time
Cycle Time refers to the length of time required from the placing of an order by a customer to the delivery of the product or service. It is a crucial metric, particularly significant in companies employing just-in-time techniques.
Cyclic Variation
Cyclic variation refers to regular and recurring changes in economic activity influenced by factors such as the business cycle or seasonal fluctuations.
Cyclical Demand
Cyclical demand refers to patterns of consumer demand for goods and services that vary cyclically over time, often in response to external factors such as seasons, economic conditions, or business cycles.
Cyclical Industry
A cyclical industry is characterized by frequent variations in output, often influenced by seasonal changes and broader economic cycles. This is evident in industries like construction, which experiences reduced activity during winter and fluctuates with changes in interest rates and demand.
Cyclical Stock
Cyclical stocks are equities that tend to fluctuate significantly with the economic cycle, experiencing high volatility with economic upturns and downturns.
Cyclical Unemployment
Cyclical unemployment refers to the unemployment caused by a downturn in the business cycle. It typically rises during economic recessions and falls when the economy improves.
Data Compression
Data compression involves the process of encoding information using fewer bits or other information-bearing units than an unencoded representation would use through different compression algorithms.
Fixed Cost
A fixed cost is a type of business expense that is constant and does not fluctuate with changes in the level of goods or services produced. These costs are incurred regularly, regardless of the business's activity level.
Hedging
An action taken to reduce or eliminate the risk involved in having an open position in a financial, commodity, or currency market.
Incontestable Clause
An incontestable clause is a provision in an insurance policy that prevents the insurer from voiding coverage due to fraud or misstatement by the insured after a specified period.
Lower of Cost or Market (LCM)
The 'Lower of Cost or Market (LCM)' principle is a conservative accounting convention that dictates that inventory should be reported at either its historical cost or its current market price, whichever is lower.
Qualified Charity
A 'qualified charity' or 'qualified charitable organization' is a nonprofit organization recognized by the IRS as eligible to receive tax-deductible contributions.
The City of London
The City of London, often referred to simply as 'the City,' represents London’s financial district where many prominent banks, financial markets, and exchanges are headquartered. It remains an influential international merchanting center situated in a one-square-mile area known as the Square Mile.
Total Cost
Total cost refers to the sum of all costs incurred by a business in the production of goods or services, combining both fixed and variable costs.
Variable Cost
Variable cost refers to expenses that change in proportion to the production output or sales volume. They fluctuate based on the operational activity, such as material costs, labor costs, and utility expenses.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.