A legal arrangement by which property is owned by more than one person. Co-ownership can take several forms, including tenancy in common, joint tenancy, community property, partnership, and limited liability company (LLC).
The possession of and holding of rights in a unit of property by two or more persons simultaneously. The term does not describe the estate, but the relationship between persons who share the property.
The cost of passenger transportation based on an ordinary class of service that is less luxurious and less expensive than first-class service.
The Coase Theorem posits that markets can resolve externalities without government intervention if parties can negotiate costlessly.
COBOL is a high-level programming language developed in the early 1960s, designed primarily for business data processing tasks such as payroll and accounts payable.
COBRA is a federal law that allows employees and their families to continue their group health benefits even after losing their job or experiencing other qualifying events.
An explanation of market adjustments to changes in supply and demand, in which prices oscillate toward an equilibrium price, often forming a pattern resembling a spider web on a graph.
COD is a versatile acronym used in finance and business, referring either to 'Cash on Delivery' or 'Cancellation of Debt.' Cash on Delivery is a transaction method where the buyer pays for goods upon receipt, while Cancellation of Debt involves forgiveness of a borrower's obligation to repay a loan. This article will explore both definitions in detail.
The term 'Code' in various contexts may refer to the Internal Revenue Code governing federal taxation, source code within computer programs, or compilations of laws like the Motor Vehicle Code.
A Code of Ethics is a crucial framework for guiding professional conduct and maintaining integrity within a profession. It outlines the standards of behavior and practices that are expected, providing a foundation for ethical decision-making.
The Code of Ethics for Professional Accountants established by the International Ethics Standards Board for Accountants (IESBA) provides a global framework for the ethical conduct of accounting professionals.
The Code of Professional Responsibility is a set of rules based on ethical considerations that govern the conduct of lawyers. It was passed by the American Bar Association and adopted by most states, and is enforced by state disciplinary boards.
A codicil is a supplement to a will intended to add to, subtract from, or alter the provisions of the original will.
Coding is the process of writing an algorithm or other problem-solving procedures in a computer programming language. It forms the backbone of software development, bridging the gap between theoretical algorithms and practical applications.
The assignment of an identification number to each account in the financial statements, enabling organized and efficient tracking and management of financial information.
Test statistic that quantifies the amount of variability in a dependent variable explained by the regression model's independent variable(s).
A brief time period allowed during the working day to permit employees to unwind from the pressures of work so they are refreshed to carry out their duties effectively.
Cognitive behavior refers to the ability to judge, reason effectively, and perceive one's surroundings, influencing decision-making and thought processes.
Cognitive dissonance is a psychological theory that explains the mental discomfort experienced by a person who holds two or more contradictory beliefs, values, or attitudes, especially when their behaviors contradict these beliefs.
Cohesiveness refers to the measure of the extent to which members of an organizational workgroup are bonded together and demonstrate loyalty and commitment to each other and the group's goals.
Coincident indicators are economic indicators that coincide with the current pace of economic activity. They provide insight into the current state of the economy by measuring various key areas of economic performance.
Coinsurance is a provision in insurance policies that mandates the insured to cover a certain percentage of the risk or loss, sharing the burden alongside the insurer. This encourages the insured to maintain adequate coverage corresponding to the property’s value.
A cold boot, also known as a cold start, refers to the process of starting a computer or any electronic device from a completely powered-off state. This involves turning on the machine's hardware and initiating the boot sequence that loads the operating system.
Cold calling is a sales strategy where a sales representative reaches out to potential customers who have not previously expressed interest in the product or service being sold. This method includes making unsolicited calls or visits to potential customers.
Cold canvassing is the process of contacting potential buyers in a specific area to solicit sales of one's products.
Cold type refers to type set by computer, xerographic, or photographic means, replacing the traditional hot-type setting used in printing.
A corporation that dissolves before realizing a substantial portion of the taxable income to be derived from its properties. The Internal Revenue Service (IRS) treats the gain on the sale or liquidation of a collapsible corporation as ordinary income to the stockholder.
A financial arrangement in which both the maximum (cap) and minimum (floor) rate of interest payable on a loan are fixed in advance, offering protection against interest rate fluctuations.
Collate refers to the process of arranging individual elements in a prescribed order. In the context of printing, collating involves organizing pages of a multi-page document into sequential sets.
Collateral refers to a valuable asset that a borrower offers to a lender as a way to secure a loan. This asset provides security to the lender in the event the borrower defaults on the loan.
Collateral assignment is the designation of a policy's death benefit or its cash surrender value to a creditor as security for a loan. If the loan is not repaid, the creditor receives the policy proceeds up to the balance of the outstanding loan, and the beneficiary receives the remainder.
Collateralize refers to the action of pledging assets to secure a debt in the USA. If the borrower defaults on the terms and conditions of the agreement, the pledged assets will be forfeited.
A Collateralized Bond Obligation (CBO) is a type of structured security backed by a diversified pool of high-yield bond issuances. CBOs are a subset of Collateralized Debt Obligations (CDOs), designed to earn investors returns based on the performance of the underlying bond collateral.
A Collateralized Bond Obligation (CBO) is an investment-grade bond backed by a pool of variously rated bonds, including junk bonds. CBOs represent different degrees of credit quality rather than different maturities.
A CDO is a structured finance instrument consisting of a bond or note backed by a pool of fixed-income assets, with varying levels of credit risk allocated to different tranches.
A Collateralized Loan Obligation (CLO) is a complex financial tool that repackages pools of loans, often corporate loans, into different classes of securities to be sold to investors. CLOs provide high returns for investors with an appetite for risk while offering a source of financing for companies.
A Collateralized Mortgage Obligation (CMO) is a type of mortgage-backed security that splits mortgage pools into different maturity classes, called tranches, to optimize the distribution of interest rate and prepayment risk among investors.
A collateralized mortgage obligation (CMO) is a type of mortgage-backed security that combines multiple mortgage loans and separates them into tranches based on maturity and risk.
A colleague is a fellow member of a profession, association, occupation, or organization, essential for mutual consultations, discussions, and often friendship.
COD or 'Collect on Delivery' is a financial transaction where payment for goods is collected at the time of delivery rather than at the time of purchase. This term is often used interchangeably with 'Cash on Delivery'.
A rare object collected by investors, ranging from stamps, coins, oriental rugs, antiques, baseball cards, to photographs. Collectibles are often valued higher during inflationary periods, but they are not valid investments for IRAs and self-directed Keogh plans.
Items such as art, stamps, and antiques acquired for their aesthetic merits and potential source of capital gains and inflation protection.
The term 'Collecting Bank,' also known as the remitting bank, refers to the bank to which a person who requires payment of a cheque (or similar financial document) has presented it for payment.
The term 'collection' has various meanings within the financial and banking sectors, including the presentation of negotiable instruments, debt collection, financial conversion of accounts receivable to cash, and a set of collectibles.
A collection account is a specific type of bank account opened with the purpose of reducing bank float for remittances from specific customers or groups of customers, often those located abroad or who remit payments in a foreign currency.
The time, expressed in days, weeks, or months, that it takes to obtain payment of a debt by a customer.
The Collection Ratio measures the efficiency of a company's ability to collect its accounts receivable. It indicates the average number of days it takes to convert receivables into cash.
Collective bargaining is the process of negotiation between employers and a group of employees aimed at establishing agreements to regulate working conditions. The employees are usually represented by a trade union or another bargaining organization.
Collective goods, also known as public goods, are resources that can be consumed simultaneously by a large number of consumers without diminishing their availability to others. Typical examples include streets and roads, police and fire protection, and national defense. Unlike market goods, collective goods cannot be efficiently priced or quantified based on market dynamics, hence they are generally provided by the government.
A civil servant tasked with the collection of taxes that have been assessed by Inspectors of Taxes and under the pay-as-you-earn (PAYE) system.
A College Savings Plan, often referred to as a Qualified Tuition Program (529 Plan), is a tax-advantaged investment plan designed to encourage saving for future education expenses.
Collusion involves seeking to prejudice a third party or achieve an improper purpose, often by secret agreement, that is typically punishable as conspiracy.
A collusive oligopoly is an industry comprising a few producers (oligopoly), in which producers agree among themselves as to pricing of output and allocation of output markets.
Columnar accounts refer to accounts that are organized in multiple columns to present financial information more clearly and systematically. This structure is often used to present a trial balance, facilitating automatic adjustments into financial statements.
A columnar journal is a specialized accounting book or ledger with pre-printed columns designed to systematically facilitate the recording and categorization of numerical data. Often used in bookkeeping, these journals streamline the process of capturing financial transactions for further processing.
Combinations refer to the different subgroups that can be formed by sampling a larger group or population without considering the order of elements. Combinations are essential in probability, statistics, and various branches of mathematics.
The Combined Code on Corporate Governance, also known as the Corporate Governance Code, sets out standards of good practice for governance practices in UK companies, focusing on board leadership, effectiveness, remuneration, accountability, and stakeholder relations.
In the USA, a combined financial statement involves the aggregation of the financial statements of a related group of entities to present financial information as if the group was a single entity. Intercompany transactions are eliminated from combined financial statements.
A Combined Statistical Area (CSA) is defined by the U.S. Census Bureau as a combination of several adjacent Metropolitan Statistical Areas (MSAs) or Micropolitan Statistical Areas (μSAs), or a mix of the two, which are linked by economic ties.
COMEX, or the Commodity Exchange Inc., is a futures and options market for trading metals such as gold, silver, copper, and aluminum. It functions as a division of the New York Mercantile Exchange (NYMEX), part of the CME Group. COMEX is renowned for its standardized contract specifications, serving as a key platform for commodities trading and price determination.
A Comfort Letter, often known as a Letter of Comfort, is a document provided by an accounting firm, lawyer, or financial institution to assure the recipient about the financial stability or intention of a company or individual.
A comprehensive guide to understanding 'command' in both hierarchical and technological contexts.
A command economy is an economic system where supply, demand, and the prices of goods and services are regulated by a central authority, often the government. This centralized control typically aims to manage a society's economy to ensure equal distribution of resources, rather than relying on market forces.
The commencement of coverage is the date at which insurance protection begins, indicating the starting point for the validity of an insurance policy.
Commerce Clearing House (CCH) is a leading provider of information services, software, and workflow tools for tax, accounting, and legal professionals.
Commerce Clearing House (CCH) is a prominent publisher of tax services and a range of other business-related publications, providing essential resources for professionals in various sectors.
A commercial is an advertising message that is broadcast on television or radio. Unlike print advertisements, which are focused on space, broadcast commercials leverage time and must creatively integrate elements such as words, sound, and music for radio; and additionally sight and motion for television.
An in-depth definition and overview of Commercial Banks, their functions, examples, frequently asked questions, related terms, resources for further reading, and a fundamental quiz.
A Commercial Blanket Bond is an insurance product that covers an employer for losses caused by the dishonest acts of its employees on a blanket basis, offering a maximum limit of coverage for any one loss, regardless of the number of employees involved.
A commercial broker is a real estate professional who specializes in listing and selling commercial properties including shopping centers, office buildings, industrial properties, and apartment projects.
A commercial collection agency specializes in debt collection services for businesses, helping them recover past-due accounts from other businesses or clients.
Commercial credit insurance provides coverage for an insured firm if its business debtors fail to pay their obligations.
A Commercial Forgery Policy provides coverage for an insured who unknowingly accepts forged checks. This insurance policy helps businesses mitigate the financial loss from fraudulent activities involving forged instruments.
Insurance policies covering various business risks, often tailored to protect businesses from a range of eventualities including property damage, liability, and employee-related risks.
Commercial law, also known as business law or mercantile law, is the body of law that governs the rights and obligations of persons in their commercial dealings with one another, including trade, sales, business operations, and the regulatory framework influencing these activities.
A commercial loan is a short-term (typically 90-day) renewable loan designed to finance the seasonal working capital needs of a business, such as the purchase of inventory or the production and distribution of goods.
A relatively low-risk short-term form of borrowing, typically maturing in 60 days or less in the U.S, often used by large creditworthy institutions as a substitute for Treasury bills, certificates of deposit, and similar instruments.
Commercial property refers to real estate intended for use by retail, wholesale, office, hotel, or service users, or for manufacturing or other industrial purposes. Examples include shopping centers, office buildings, hotels and motels, resorts, and restaurants.
A commercial property policy provides coverage for various business risks such as goods in transit, fire, burglary, and theft. These policies are crucial for protecting the assets of a business against potential losses and damages.
A unit considered by trade or usage to be a whole that cannot be divided without materially impairing its value, character, or use. Relevant in contractual dealings when partial rejection of goods may constitute acceptance of the entire unit.
Located at the principal place from which a corporation's trade or business is managed or directed.
The practice of mixing personal funds with client or customer funds by a fiduciary or trustee, which is generally prohibited by law unless an exact accounting is maintained.
A commissary is a retail store that sells food and supplies, often located at a military outpost or other facilities. These establishments are frequently subsidized, enabling them to offer products at reduced prices to qualified customers, such as military personnel.
A commission is a fee paid to an intermediary for facilitating a transaction, typically calculated as a percentage of the sale value. It can be paid by the seller, buyer, or shared between them, and finds applications across various markets such as real estate, commodities, and advertising.
A commission broker is a type of broker, usually a floor broker, who executes trades of stocks, bonds, or commodities for a commission.
An account used to record commissions paid by an organization to agents and others. This account is essential for tracking costs attributed to sales commissions within a company's financial statements.
An account used to record commissions received by an organization in a double-entry accounting system.
Commitment refers to a promise or pledge made by one entity to perform or refrain from performing a specific act, often involving legal obligations and enforceable terms.
A commitment fee is a fee charged by a bank to keep open a line of credit or to continue to make available unused loan facilities. The fee is typically an annual charge made by the lender on the daily undrawn balance of the facility and is often expressed in basis points.
An official notification to a borrower from a lender indicating that the borrower's loan application has been approved and stating the terms of the prospective loan.
Expenditure on fixed assets to which a company is committed for the future. Such commitments are usually disclosed in the directors' report and notes to the accounts.
Committed costs are typically fixed costs that management has a long-term responsibility to pay, such as rent on a long-term lease and depreciation on an asset with an extended life.
A committed facility is an agreement between a bank and a customer that ensures the bank will provide funds up to a specified maximum at a pre-agreed interest rate, typically for a specified period.
A committee is a group of people appointed for a specific function or task, usually with the goal of making decisions or recommendations. Committees exist in various contexts, such as corporate, governmental, academic, and nonprofit organizations.
A specialist committee established by the Accounting Standards Board to advise on the application of accounting standards to smaller entities.
The Committee on Uniform Securities Identification Procedures (CUSIP) assigns identifying numbers and codes for all securities. These CUSIP numbers and symbols are used when recording all buy and sell orders.
Commodities futures are contracts in which sellers promise to deliver a specified commodity by a future date at an agreed-upon price. These contracts are standardized and traded on commodity exchanges.
An independent agency of the U.S. federal government that regulates the U.S. derivatives markets, which include futures, swaps, and certain kinds of options.
Commodities are raw materials or primary agricultural products that can be bought and sold, ranging from grains and metals to livestock and other goods.
An organization, usually comprising producing countries, that attempts to control the price and quantity supplied of a particular commodity, typically a raw material.
