The Child and Dependent Care Credit is a non-refundable tax credit in the United States designed to help families offset the cost of care for children and dependents while they work or look for work.
A provision in a will or insurance policy that states how property should be distributed if both the insured (or will-maker) and their beneficiary die in the same event or within a short period of each other.
The dagger (†) is a typographical symbol used as a footnote reference mark, often seen in scholarly and legal documents to indicate additional information or commentary.
A Daily Trading Limit is the maximum amount by which the price of a commodity or option is allowed to rise or fall in a single trading day. This mechanism is used to curb excessive volatility and protect investors.
Daisy chain refers to the buying and selling of the same items multiple times, often to artificially inflate trading activity. Commonly associated with stocks and shares, the term describes a practice where the same items are included in sales figures multiple times.
Compensation, in monetary form, for a loss or injury, breach of contract, tort, or infringement of a right.
Dangling debit is an accounting term describing a practice where companies wrote off goodwill to reserves, creating a goodwill account deducted from the total shareholders' funds; a practice discontinued under Financial Reporting Standard (FRS) 10.
Dark pools are specialized financial trading platforms that enable the buying and selling of large quantities of securities, often anonymously, without immediate public disclosure of the trade prices. These platforms offer benefits like improved trading prices for investors but also pose risks such as increased market volatility and reduced market transparency.
Data refers to the information that is processed, stored, or produced by a computer. The distinction between program (instructions) and data is a fundamental concept in computing.
Data capture refers to the process of inserting information into a computerized system. It enables efficient storage, retrieval, and utilization of data, often in real-time, to facilitate optimized business operations.
Data Communication refers to the exchange of data between two or more connected computers or devices. It involves the transfer of data from one point to another over a network, ensuring accurate and instant information dissemination.
Data compression is a technology that reduces the size of a computer file, which is especially crucial for files used on Web pages, like graphics and sound files. Compression methods are categorized as lossless or lossy.
A Data Encryption Key (DEK) is a fundamental element used in cryptographic processes to secure and protect data, ensuring confidentiality and integrity in digital communication and storage.
Data Encryption Standard (DES) is a symmetric-key algorithm for encrypting and decrypting data that was widely adopted for securing sensitive information before the advent of more advanced encryption methods.
A Data Flow Diagram (DFD) is a graphical tool used to illustrate the flow of data through a computer system, highlighting its processes, data stores, and data sources/destinations.
The accuracy, consistency, and completeness of the information held on a computer database. Data integrity is a crucial aspect of information assurance and refers to the reliability and trustworthiness of data throughout its lifecycle.
Data Interchange Format (DIF) is a standardized text format used to export and import spreadsheet data between different applications, particularly useful for data exchange and simple file sharing.
The Data Interchange Format (DIF) is a standardized file format used to transfer computer files such as spreadsheets or databases between different programs and systems.
The process of extracting useful knowledge from the huge volumes of data kept in modern computer databases using sophisticated algorithms and statistical techniques.
Data processing is a class of computing operations that manipulate large quantities of information. It forms a major use of computers in business operations such as bookkeeping, printing invoices, payroll calculations, and general record keeping.
Data Processing Insurance offers coverage for data processing equipment, data processing media such as magnetic tapes and disks, and expenses involved in returning to usual business conditions after a loss. Coverage can be obtained on a specified perils basis or on an all risk/all peril basis.
An overview of legislative and practical safeguards for handling personal data, including the responsibilities and rights articulated by laws like the Data Protection Act 1998.
Computer technology enabling data from multiple operational processing systems to be brought together into a single source, which can then be accessed and interrogated. The data can be both current and historical. Warehousing differs from previous management information systems in that designers do not need to think about what questions might be asked of the system.
A Database is an organized collection of information held on a computer. It can be managed by a Database Management System (DBMS), which allows for efficient handling of data.
Database Management refers to the methodology of storing, manipulating, and retrieving data within a database, encompassing tasks such as data entry, classification, modification, updating, and output reporting.
A Database Management System (DBMS) is a software system that uses a standard method to store and manage data. It allows users to define, create, maintain, and control access to the database.
Database marketing refers to a marketing strategy that relies on the collection, analysis, and usage of customer data to devise targeted marketing campaigns. Utilizing detailed information from various consumer interactions, this method ensures messages are relevant and personalized but can be costly due to extensive data collection and analysis.
The specific date when the donor's full control and ownership of a property or asset is relinquished to the recipient.
The date when an insurance company formally issues a policy. This date can differ from the actual effective date of the insurance coverage.
The date on which a corporation uses its list of stockholders to mail a dividend check. It is usually two days after the ex-dividend date. Also called record date.
Dating in commercial transactions refers to the extension of credit beyond the supplier's customary payment terms, allowing buyers more time to pay for goods or services.
A standard used in court proceedings to determine the admissibility of expert witness testimony, focusing on the relevance and reliability of the testimony.
The Davis-Bacon Act is a United States federal law mandating the payment of prevailing wages on public works projects. This legislation ensures that all federal government construction contracts, along with most contracts for federally assisted construction over $2,000, include provisions for paying on-site workers no less than the locally prevailing wages and benefits.
An aggressive strategy by a company or investor to acquire a substantial equity stake in another company by purchasing available shares immediately as the stock market opens, often catching the target company off guard.
DAX is a stock performance index that includes dividends and is composed of the 30 most actively traded German blue-chip stocks on the Frankfurt Stock Exchange.
A specialized book of prime entry recording specific transactions, serving as a foundation for accurate bookkeeping and financial reporting.
A day order is an order to buy or sell securities that expires unless executed or canceled the day it is placed. All orders are typically day orders unless otherwise specified.
A financial strategy involving the purchase and sale of a position within the same trading day, often employed by traders to capitalize on short-term market movements.
A day trader is an individual who buys and sells financial instruments within the same trading day, with the goal of profiting from short-term price fluctuations.
Days' Sales in Inventory (DSI) is a crucial efficiency metric that indicates the number of days a company's current inventory will last, based on its average daily cost of sales. It's used to measure how efficiently a company manages its inventory.
Days' Sales in Receivables is a financial metric that indicates the average number of days it takes a company to collect payment after a sale has been made. This ratio helps businesses understand the efficiency of their credit and collection processes.
Days' Sales Outstanding (DSO) is a financial metric that indicates the average number of days it takes for a company to collect payment after a sale has been made.
A DB Scheme, or Defined-Benefit Pension Scheme, promises a specified pension payment, lump-sum, or combination thereof on retirement that is predetermined by a formula based on the employee's earnings history, tenure of service, and age.
De facto refers to situations that exist in reality, even if not legally recognized or officially sanctioned. It applies to scenarios where practices or institutions operate as though they were legal, even if they lack official authorization.
A de facto corporation is an entity that operates as a corporation in fact but lacks formal incorporation or official recognition by law.
De jure refers to a state of affairs that is in accordance with law, that is lawful and legitimate. It is commonly contrasted with de facto, which refers to a state of affairs that exists in reality, irrespective of its legality.
De minimis refers to matters too trivial or minor to be considered by the judicial or taxation systems. Originating from the legal principle 'De minimis non curat lex,' meaning 'The law does not concern itself with trifles.'
The term 'de novo' denotes starting anew or afresh, suggesting a second trial or review as if the first had never occurred. It is commonly used in legal contexts, particularly concerning appeals and retrials.
A dead key refers to a nonfunctioning key on a typewriter, computer keyboard, or word processor. This could occur due to design or disrepair, serving to print a character for placing a grammatical mark or statistical symbol over or under another character without moving the cursor or carriage.
A 'dead letter' refers to a piece of mail that cannot be delivered to its intended recipient nor can it be returned to the sender, making it effectively undeliverable.
Dead stock refers to inventory that remains unsold for an extended period. This unsold inventory can result from factors such as changing consumer preferences, overstocking, or product obsolescence. Businesses often seek to identify and manage dead stock effectively to minimize storage costs and free up capital for more profitable inventory.
A period during which a worker is idled due to machine malfunction or interruption of materials flow; also known as downtime. Dead time is a direct cost to the company.
A dead-cat bounce is a temporary, short-lived recovery in the price of a declining financial asset, typically seen in stock markets following a sharp, severe drop. This term derives from the idea that even a dead cat will bounce if it falls from a significant height.
A dead-end job, also known as a blind alley job, refers to a position that offers no opportunity for promotion, increased pay, or increased responsibility.
A deadbeat is an individual or entity that neglects or intentionally avoids paying their bills for goods or services received, creating financial burdens for service providers and creditors.
In the context of transportation, 'deadhead' refers to the act of moving a piece of transportation equipment, such as a bus, train, or truck, when it is not carrying a paying load (either people or freight). It also extends to describe a nonpaid trip or someone who uses a service without paying.
A deadline is the due date or latest time for the completion of a negotiation, project, service, or product, often carrying significant consequences for non-compliance.
A deadlock is a situation in which two or more competing actions are waiting for the other to finish, and thus neither ever does.
Deadweight loss represents the cost to society created by market inefficiency, which can occur in different forms, such as monopoly pricing, externalities, taxes, subsidies, and scarcity pricing.
In finance, a dealer is an individual or entity involved in the buying and selling of financial securities or other commodities, often at their own risk, for personal sales or to customers.
A computerized securities marketplace where transactions are facilitated by market makers and brokers using distributed processing, replacing the earlier centralized auction markets.
The Dearing Report, officially titled 'The Making of Accounting Standards,' was a landmark document published in 1988 aimed at reforming the setting of accountancy standards in the UK.
Definition, explanation, and discussion around the term 'Death Benefit,' including examples, FAQs, related terms, online resources, and suggested books for further readings.
A comprehensive guide to understanding death duty, also known as estate duty, a tax levied on the estate of a deceased person.
The term 'Death Tax' is commonly used to refer to state inheritance taxes, though it is frequently conflated with estate taxes. It represents the taxation imposed on the transfer of wealth upon an individual's death.
A deathbed gift, also known as a gift in contemplation of death, refers to a transfer of property or assets by an individual who is facing imminent death. This transfer is made with the understanding that ownership will only take effect upon the death of the donor. It differs significantly from inter vivos gifts made during one's lifetime.
Debasement is the act of deliberately rendering a currency less valuable, not through devaluation but by reducing the precious metal content of the coinage.
A debenture is the most common form of long-term loan taken by a company, offering a fixed date for repayment and often secured against the borrower's assets.
A capital reserve created to ensure that funds are available for the redemption of debentures at maturity, limiting profits available for distribution but not providing actual redemption funds directly.
An agreement specifying the rights of debenture holders, often including the power to appoint a receiver in cases of company default.
A debit is an entry on the left-hand side of an account in double-entry bookkeeping that increases assets or recorded expenditures of an organization. In the context of a bank account, a debit indicates an outflow of funds.
In accounting, a debit (DR) refers to any entry recording an addition to an asset or expense account, or a reduction from a liability or equity account.
Understanding the fundamental rules of debit and credit in double-entry bookkeeping is essential for accurate financial accounting.
A debit balance is the balance of an account where the total debit entries exceed the total credit entries. This typically indicates expenditures or assets on a company's financial statements.
A plastic card issued by a bank or building society that allows customers to pay for goods or services at retail outlets by directly debiting their accounts using a telephone network.
An essential accounting term used in double-entry bookkeeping to record increases in assets or expenses and decreases in liabilities, revenues, or equity.
A debit memorandum is a notice sent by a bank or financial institution indicating a deduction or charge made to an account, often due to reasons such as insufficient funds or returned checks.
A debit note is a document sent by an organization to a person, indicating the recipient's indebtedness to the organization for the amount shown. Debit notes are less common than invoices and are used in specific scenarios such as inter-company transfers other than the sale of goods or services.
Debt is an amount of money borrowed by one party from another, which is often incurred by businesses and individuals to finance specific activities or projects.
Debt administration refers to the process of managing and overseeing the repayment of debts, ensuring that they are correctly and timely settled in compliance with agreed terms and conditions.
Debt capital refers to borrowed funds that a firm utilizes to support its business operations, growth, or investment projects. These funds come with the obligation to pay back with interest and can be sourced from various lenders, such as banks, bond investors, or other financial institutions.
The debt ceiling is the maximum amount of money that the federal government is allowed to borrow. When the federal government approaches the ceiling, Congress must raise it in order to authorize additional borrowing and the issuance of new debt by the Treasury.
An organization that specializes in collecting the outstanding debts of its clients, typically charging a commission for their recovery services.
The Debt Coverage Ratio (DCR) is a financial metric used to evaluate the ability of an income property to cover its debt-related obligations, often applied in the underwriting of mortgage loans.
Debt Discharge Income refers to the forgiven portion of outstanding debt that becomes taxable income to the borrower, subject to specific exemptions.
Debt financing is the process of raising capital through borrowing, typically via the issuance of bonds. It contrasts with equity financing, where capital is raised through the sale of ownership stakes in the company (stock).
A debt instrument is a document used to raise non-equity finance, typically consisting of a promissory note, bill of exchange, or any other legally binding bond.
The debt limit refers to the maximum amount of debt that a municipality or other applicable entity can incur. It is a critical financial constraint that ensures entities do not exceed prudent borrowing levels.
Debt restructuring involves adjustments to the terms of debt, either through legal action or by agreement, to provide more favorable conditions for the debtor to meet financial obligations. It can involve both corporate and sovereign entities.
Debt retirement refers to the repayment of outstanding debt, which is often achieved through mechanisms such as sinking funds, amortization, or prepayment. It is essential for managing corporate and personal finance efficiently.
A security representing money borrowed that must be repaid, typically having a fixed amount, specific maturity, and usually a specific rate of interest or an original purchase discount.
Debt service refers to the cash required in a given period, usually one year, for payments of interest and current maturities of principal on outstanding debt. This includes obligations from mortgage loans, corporate bond issues, and government bonds. Understanding debt service is crucial for assessing the financial stability and repayment ability of an individual or entity.
Debt service coverage is a critical financial metric used in corporate, government, personal, and real estate finance to measure the availability of cash flow for meeting annual debt obligations.
A financial ratio illustrating the proportional relationship between a company's debt and its equity, reflecting its financial leverage and risk.
The Debt-to-Equity Ratio is a financial metric that indicates the relative proportion of shareholders' equity and debt used to finance a company's assets.
The debt/equity ratio is a financial metric that indicates the relative proportion of a company’s debt to its total equity. It demonstrates how leveraged a company is in terms of its debt financing compared to its equity financing.
A debtor is an individual or entity that owes money to another party, typically referred to as a creditor. In bankruptcy or similar legal proceedings, a debtor is the subject on whom the actions are primarily focused.
Debtor Collection Period, also known as Average Collection Period, is the average time it takes for a business to collect the money owed to it by its trade debtors. This period is critical for managing cash flow effectively.
Debtors refer to individuals or entities that owe money to an organization, often due to sales of goods or services. This concept is significant in accounting as it affects the balance sheet and requires careful management to ensure accurate financial reporting.
The Debtors' Ledger, also known as the Sales Ledger or Sold Ledger, is a memorandum ledger account where individual debtors' accounts are recorded. It is an essential component in the internal control system used to monitor sales, payments, discounts, and returns.
