Commodity codes are numerical identifiers used to categorize goods for inventory, sales, and accounting purposes in an organization. They streamline material and finished goods control systems and ensure effective tracking and management of resources.
A commodity contract is a binding agreement involving the receipt or delivery of a commodity at a future date, often used in trading and risk management.
Commodity money is a type of currency that is valued for the material it is made from, such as gold coins, where the value of the money is typically the value of the commodity itself, rather than the denomination stamped on it.
A common area is a portion of a property that is used and enjoyed by all owners or tenants within that property. Typical examples include clubhouses and pools in condominium developments, hallways and stairs in apartment buildings, elevators in office buildings, and the central mall area in shopping centers.
A common carrier is an entity or individual that provides transportation services for people or goods and is classified as a public utility.
Common costs refer to the expenses shared by multiple products, processes, or departments before any differentiation occurs. These can often be fixed costs and are important in allocations to determine accurate product costing.
Common elements in a condominium refer to those portions of the property not owned individually by unit owners but held in an indivisible interest by all unit owners. These typically include the grounds, parking areas, recreational facilities, and the external structure of the building.
Common Law is a system of jurisprudence that originated in England and was later applied in the United States. It is based on judicial precedent rather than on legislative enactment and is therefore derived from principles rather than rules.
Common size analysis is a standard tool used to compare the financial statements of different companies by converting account groupings to a percentage of the whole, often sales revenues.
In the USA, the equivalent of the ordinary shares in a public company or privately held firm that give the holders voting and dividend rights. Common stock holders are paid after bondholders and the holders of preferred stock in the event of corporate bankruptcy.
Preferred stocks or bonds convertible into common stock, or warrants to purchase common stock at a specified price or discount from market price. Common stock equivalents represent potential dilution of existing common shareholder equity.
A common stock fund is a type of mutual fund that exclusively invests in common stocks of publicly traded companies. These funds aim to provide capital growth through equities.
The Common Stock Ratio is a financial metric that represents the percentage of a company's total capitalization that is comprised of common stock. This ratio is significant as it reflects the degree of financial leverage and stability of the company from both creditor and investor perspectives.
Common-size financial statements are a method of analyzing and comparing financial statements by expressing individual elements as percentages of the total. This allows for easier comparison across companies and industries.
The term 'Commorientes' refers to individuals who die at the same time, or in circumstances where it is uncertain who died first. In legal terms, this is significant for the purposes of property devolution and inheritance.
A well-defined pattern of communications that emerges when a small number of people link themselves together to exchange information, whether to solve a problem or to spread rumors.
Communism, in theory, refers to the anti-capitalist proposals of Karl Marx and his followers advocating for communal ownership of the means of production. In practice, it describes economic systems where production facilities are state-owned and production decisions are made by official policies rather than market actions.
Community Antenna Television (CATV) is a system that uses coaxial cables to transmit television signals to subscribers, often catering to communities in areas with poor reception from traditional broadcast antennas.
Community Antenna Television (CATV) encompasses the distribution of television signals to residents using satellite dishes or high master antennas. Subscribers gain access to various national network broadcasts, specialized stations, and premium channels.
A community association is an organization of property owners that oversees common interests and responsibilities within a community, such as managing common elements in a condominium or enforcing deed covenants in a subdivision.
A Community Interest Company (CIC) is a special type of limited company that exists primarily to benefit the community or with a social purpose, rather than to maximize profit for shareholders.
A Community Interest Company (CIC) is a type of limited company registered in the UK under the Companies (Audit, Investigations, and Community Enterprise) Act 2004. These companies focus on social objectives and ensure their assets are used for the community's benefit.
Community property refers to property acquired during marriage and is recognized in nine states in the U.S. whereby the law presumes the property to be the product of joint efforts.
The Community Reinvestment Act (CRA) is a federal law encouraging financial institutions to meet the credit needs of the communities they serve, with a focus on low- and moderate-income residents and inner-city neighborhoods.
The privilege of a beneficiary to convert unpaid income payments under a settlement option of an annuity or life insurance policy into a lump-sum payment.
An individual who frequently travels between two places, typically their place of residence and their workplace.
A commuter tax is a form of income tax levied on individuals working in a jurisdiction different from where they reside.
A Compact Disc (CD) is an optical storage device capable of holding up to 650 MB of digital data. It uses a 4.75-inch reflective disk, and utilizes laser technology for data reading. CDs come in various forms such as CD-ROM, CD-R, and CD-RW.
Legislation governing the activities of companies in the UK, with a comprehensive overhaul implemented in the Companies Act 2006.
Companies House is the official registrar of companies in the UK, handling the incorporation, administration, and dissolution of companies. It maintains records on corporate details including accounts, annual returns, prospectuses, memoranda, articles of association, directors, secretaries, registered office, certain company charges, and notices of liquidation.
A company is a corporate enterprise that has a legal identity separate from that of its members; it operates as a single unit in which all members participate. Companies can have limited or unlimited liability and may be registered or unregistered.
A company auditor examines the financial statements of a company to ensure accuracy and compliance with the Companies Act. Since 1989, appointment as a company auditor is restricted to registered auditors only.
Company benefits are various types of non-wage compensation provided to employees in addition to their normal wages or salaries. These can include health insurance, retirement plans, and paid time off, among other perks aimed at improving employee satisfaction and retention.
A company car is a vehicle owned by a business but made available for employees to use for business and, in some cases, personal purposes.
A company doctor is a seasoned businessperson or accountant with extensive commercial experience, specializing in analyzing and rectifying issues within struggling companies. They offer both advisory and executive solutions to turn around the business.
Detailed process and requirements for forming a company in the UK, including the necessary documents to be submitted to the Registrar of Companies.
A company structure where the liability of members is limited to a predetermined amount they agree to pay in the event of liquidation. This type of company does not issue shares to its members and differs significantly from other company structures like limited companies.
An incorporated organization in which the liability of members is limited by the constitutional documents to the amounts paid, or due to be paid, for shares. In the UK, this is the most popular form of company.
Company officers are high-ranking employees or executives who manage the day-to-day operations of a business and are responsible for the company's overall strategic direction.
An EU directive (2006) designed to enhance public confidence in financial reporting within the EU by increasing the transparency of financial statements and reports.
A company seal is an official embossed emblem used to authenticate share certificates, important documents, and contracts. It often includes the company's name engraved in legible characters.
An officer of a company with duties that encompass administrative tasks, legal compliance, and increasingly broader managerial roles.
A labor union that is generally perceived to be overly sympathetic to the management of the company where it is situated, potentially compromising the representation of its members' true interests.
A Company Voluntary Arrangement (CVA) is a legally-binding arrangement between a company and its creditors to restructure debt. This process helps businesses avoid bankruptcy by agreeing to pay back a portion of what they owe over a fixed period.
A Company Voluntary Arrangement (CVA) is a legally binding agreement between a company and its creditors to restructure debt and avoid liquidation.
The accounting principle that financial information for a company should be comparable with financial information for other similar companies, ensuring that stakeholders can make well-informed decisions.
Comparable worth, also known as 'equal pay for equal work,' is an employment theory advocating for compensation based on the value of the job to the organization, irrespective of who performs it. This principle is particularly relevant for addressing compensation inequities among female employees in the United States.
In real estate, comparables, or COMPS, refer to properties similar to the one being sold or appraised. These properties are used to estimate the value of the subject property based on their similarities in key attributes like location, size, condition, and amenities.
Comparables, often abbreviated as COMPS, are an essential element in real estate appraisal and valuation processes. They refer to the comparability of properties with similar characteristics, used primarily to determine the market value of a subject property.
The concept of comparative advantage explains the efficiency of individuals or groups in particular economic activities compared to others, encouraging specialization and trade for maximum benefit.
The comparative amount refers to the financial figure reported in a previous period, which is used for comparison with the current period to assess performance and detect trends over time.
Comparative Credit Analysis is a method of company evaluation in which a firm is compared with other similar firms that have a desired credit rating to decide on appropriate accounting ratio targets for the company being analyzed.
Comparative figures are provided in financial statements for previous years of an organization, allowing for comparison and sometimes requiring adjustment if accounting policies have changed.
Financial statements covering different dates but prepared consistently and therefore lending themselves to comparative analysis, as accounting convention requires.
In some states, Comparative Negligence is a principle of tort law providing that in the event of an accident, each party's negligence is based on that party's contribution to the accident.
A Comparative Market Analysis (CMA) is an estimate of the value of real property using indicators from sales of comparable properties. It utilizes factors such as price per square foot but is not considered an official appraisal and does not adhere to professional appraisal standards.
Comparison Shopping is the process whereby a consumer gathers as much information as possible about particular products and services for comparison before purchasing them. It involves visiting stores, comparing advertisements, and conducting related research.
In the context of technology and computing, the term 'compatible' refers to the ability of two devices or systems to work together without special adaptation. This typically means that hardware or software from different manufacturers can operate in conjunction with one another seamlessly.
Compensated absences refer to certain periods during which employees are paid even though they do not attend work. This concept is crucial for proper financial reporting and management in organizations.
A compensating balance is a sum of money deposited at a bank by a customer, which acts as a condition for the bank to lend money to the customer. It serves as a form of collateral or security for the loan.
A compensating error is an accounting error that is balanced out by another error, making the errors cancel each other out so that the trial balance does not reveal the mistake.
Compensation refers to the direct and indirect monetary and nonmonetary rewards provided to employees in recognition of the value of their job, their personal contributions, and their performance. These rewards must align with the organization's ability to pay and comply with relevant legal guidelines.
A compensation for loss of office is a lump-sum ex gratia payment made to an employee or director when their service contract is terminated. This payment can be wholly or partly tax-free provided the employee is not entitled to the compensation under the service contract.
Payment to someone who has suffered harm, such as for loss of income, expenses incurred, property destroyed, or personal injury. These payments, except for personal injury damages, are generally taxable.
Compensatory stock options are financial instruments provided to employees as partial compensation for their services, commonly used by firms to align employee interests with those of shareholders.
Compensatory time, often referred to as comp time, is time off that an employee is allowed to take in lieu of overtime pay.
A person legally capable of entering a contract. They must be of legal age and not mentally incompetent or under the influence of intoxication.
Competition refers to the rivalry in the marketplace wherein goods and services are bought from those who provide 'the most for the money.' It rewards efficient producers and suppliers, driving the economy toward the efficient use of resources.
The Competition and Markets Authority is a UK government body responsible for protecting consumer interests, and ensuring businesses compete fairly, while promoting thriving economic markets.
The Competition and Markets Authority (CMA) is a regulatory body in the UK responsible for ensuring that competition law is enforced to maintain market fairness, protect consumers, and enhance business innovation.
A competitive advantage is the measure of an organization's product, service, or unique capability that allows it to outperform its peers within the market. It signifies the unique position and value proposition that a company holds over its competitors.
A competitive bid is a sealed offer, including price and terms, submitted by a contractor to a purchaser, who selects the bid with the best combination of price and terms. This system is widely used by municipalities, railroads, and public utilities.
A competitive bought deal is an underwriting agreement wherein the borrower seeks simultaneous competitive quotations from multiple banks for the purchase of an entire new issue of bonds or similar securities at a fixed price.
Competitive equilibrium refers to a market state where supply equals demand, resulting in an equilibrium price where no buyer or seller has an incentive to change their behavior.
A competitive strategy is a plan formulated by an organization to gain a competitive edge over its rivals. In the context of advertising, it may include tactics designed to discredit rival brands, undercut prices, or highlight unique product qualities and consumer benefits not found in competitors' offerings.
A competitor is a manufacturer or seller of a product or service that is sold in the same market as that of another manufacturer or seller. Competitors offer products or services that satisfy similar consumer needs within the same market.
The gathering of data about a competitor's products and prices to identify actual or future sources of competitive advantage. Understanding a competitor's strengths and weaknesses helps an organization develop its own strategy.
The presentation of financial statement information by the entity without the accountant's audit or assurance as to conformity with Generally Accepted Accounting Principles (GAAP).
A compiler is a computer program that transforms code written in high-level programming languages like FORTRAN or PASCAL into machine language.
A complaint is the initial pleading by the plaintiff in a civil action that sets out the facts and the basis of the claim. It serves to give notice to the adversary of the nature and basis of the plaintiff's assertions. In criminal law, a complaint is the preliminary charge made by one person against another, though formal proceedings cannot commence without an indictment or information.
Complementary goods are products that are often consumed together, where the demand for one increases when the price of the other decreases, and vice versa.
A complete audit is an extensive examination of a company's system of internal controls and the details of its books of account, including subsidiary records and supporting documents.
Complete Liquidation refers to a series of distributions that redeem all the stock of a corporation under a specific plan.
The completed-contract method is an accounting approach where net profit on a long-term contract is reported only when the contract is fully completed. Pre-completion expenses are also deferred until the project is finished.
The principle that the financial information provided by a company should not omit anything material, ensuring the financial statements are comprehensive and useful for decision-making.
A legal instrument used to guarantee the completion of a real-estate development according to specifications. It is more encompassing than a performance bond, which ensures that one party will perform under a contract on the condition that the other party performs.
Completion risk refers to the inherent risk within project financing schemes that the project might not be completed on time, within budget, or to the required specifications. This type of risk is a critical concern for investors and stakeholders in large-scale projects.
A financial structure with stock outstanding that has potential for dilution, requiring a dual presentation of earnings per share by showing primary earnings per common share and fully diluted earnings per common share.
A complex trust is a type of trust that can either distribute or retain income according to its governing instrument or state law, or has a charitable beneficiary. It is entitled to only a $100 exemption.
Compliance in accounting and corporate governance refers to the adherence to laws, regulations, and internal controls that govern an entity's operations, ensuring legal and regulatory obligations are met.
A compliance audit is an extensive evaluation of an organization's adherence to regulatory guidelines. This includes a scrutiny of internal control procedures to ensure proper operation according to established protocols.
Tests used during an audit to determine the effectiveness of a company's control procedures. The extent of compliance testing will depend upon the extent to which specific controls are relied upon. Results of compliance testing will indicate the necessary level of substantive testing (tests of transactions, balances, etc.). If controls are found to be working well, substantive testing may be reduced to some extent.
An effort to depreciate a property based on the lives of individual assets within it, allowing for more accurate allocation of expense over time compared to composite depreciation.
A component part is a unit of a system that performs part of the transformation or processing activity. For example, a fuel injector is a component part of an automobile's fuel system.
Composite depreciation is a method where a single depreciation rate is applied to an entire asset, despite its components having varying useful lives.
A composition in accounting refers to an agreement between a debtor and creditors, where the debt is partially forgiven in exchange for a proportion of what is due. This can be formalized through a deed of arrangement or an individual voluntary arrangement.
An alternative to bankruptcy, in which creditors agree to accept partial payment in full settlement of their claims. Most often seen in failures of small, unincorporated businesses, whose creditors reason that they will benefit more in profits on future sales to a going concern than they would on liquidation.
The compound amount of one refers to the value that $1 would grow to if it is left on deposit with interest allowed to compound over a period of time.
Compound discount is the difference between the value of an amount in the future and its present discounted value. For example, if £100 in five years' time is worth £88 now, the compound discount will be £12.
The single periodic rate of growth for several periods, typically years, which accounts for cumulative growth in a manner similar to compound interest.
