A distribution to owners represents the transfer of assets from a business to its shareholders or owners, often observed as dividends in the USA.
Distributive share refers to the allocation of income, gain, loss, deduction, or credit to a partner in a partnership, typically determined by the partnership agreement.
A distributor is an intermediary or one of a chain of intermediaries that specializes in transferring a manufacturer's goods or services to consumers, often aiding in the efficient management of supply chains.
A district court is a type of court that hears civil actions against the United States for the recovery of any tax alleged to have been erroneously or illegally assessed or collected by the IRS.
The District Director serves as the chief operating officer of one of the Internal Revenue Service (IRS) districts and reports to the appropriate regional commissioner.
Diversification refers to the strategy of spreading investments or business activities across different fields or products to minimize risks and enhance growth.
A diversified company operates in multiple industries or markets, offering a range of products and services either through manufacturing them directly or acquiring/merging with other organizations.
The practice of spreading investments or a series of business operations across different sectors, asset classes, or geographies to mitigate risks and maximize returns.
Divestiture involves the loss or voluntary surrender of a right, title, or interest. It can also be a legal remedy where the court orders the offending party to rid itself of assets, often used in the enforcement of antitrust laws.
Divestment is the process of selling off assets, subsidiaries, or business segments to realize value or streamline operations. It serves as the opposite of investment.
A dividend is the distribution of a portion of a company's earnings to its shareholders, typically articulated as an amount per share. Its yield is a popular metric for investors.
In life insurance, a dividend addition refers to the increase in the face value of the policy, which is purchased using the dividends earned on that policy.
Dividend cover, or dividend coverage ratio, is a financial metric indicating how many times a company can pay dividends to its ordinary shareholders out of its net profits after tax in the same period. It measures the sustainability of dividend payments.
A tax concept that posits income earned by corporations is taxed at the corporate level and should not be subject to taxation again when distributed as dividends to stockholders, thereby avoiding double taxation of the same income.
The Dividend Growth Model (DGM) is a fundamental method used to estimate the cost of equity by using dividends currently paid along with their projected growth rate.
A dividend in specie refers to a type of dividend that is paid out in forms other than cash. Typically, this can include the distribution of assets, shares, property, or any other physical items that represent the value payable to shareholders.
The Dividend Payout Ratio is a financial metric that shows the percentage of earnings a company pays to its shareholders in the form of cash dividends. It helps assess a company's maturity and capital allocation strategy.
A company's predetermined approach on managing the distribution of profits to its shareholders versus retaining earnings for reinvestment in the business.
A Dividend Reinvestment Plan (DRP) is an option offered by companies that allows shareholders to automatically reinvest their cash dividends by purchasing additional shares or fractional shares of the company's stock.
The Dividend Requirement refers to the amount of annual earnings that a company needs to allocate in order to pay dividends on its preferred stock.
A method of buying and selling stocks around their ex-dividend dates to collect the dividend and potentially make a small profit on the trade.
A comprehensive guide to understanding the Dividend Tax in the UK, which was introduced in April 2016 to replace the previous tax credit system.
The choice by a major shareholder to forgo receiving dividend payments from a company, typically made when the company is facing financial constraints.
A dividend warrant is a cheque issued by a company to its shareholders that provides details of dividends paid, including tax deducted and the net amount payable.
A key metric used by investors to evaluate the income generated by an investment relative to its share price, providing insights into the return on investment from dividends.
Dividends in arrears are dividends that have been declared but remain unpaid by the due date. These unpaid dividends must be disclosed in the notes to the financial statements to inform investors and stakeholders.
Dividends Payable are dividends that have been declared by a company but not yet paid. They appear as an appropriation in the profit and loss account and as a current liability in the balance sheet.
An adjustment from taxable income in computing both the accumulated earnings tax and the personal holding company tax. The amount of the adjustment includes regular dividends, dividends paid during a 12-month grace period, consent dividends, and deficiency dividends (for the personal holding company tax only).
A tax deduction allowed to a corporation owning shares in another corporation for the dividends it receives. The deduction is often 70%, but in some cases, it may be as high as 100% depending on the level of ownership the dividend-receiving company has in the dividend-paying entity.
A part of an organization, usually an investment center or profit center which, although ultimately responsible to head office, enjoys a degree of autonomy in terms of decisions.
Division of labor refers to the separation of the workforce into distinct categories of labor and assigning specific tasks required to produce a product to different workers. This concept is integral to increasing efficiency and productivity in various industries.
Divisional performance measurement is a structured approach that allows the central management of an organization to assess the performance of its individual divisions. This is essential in a divisionalized structure to ensure each division is contributing effectively to the organization's overall goals. Common methods include Return on Capital Employed (ROCE), Residual Income (RI), and the profit-to-sales ratio.
A divisive reorganization involves the transfer of all or part of a division, subsidiary, or corporate segment in a tax-free manner. It includes three main types: split-up, split-off, and spin-off.
A taxpayer who was divorced under a final decree of divorce or separate maintenance by the last day of the tax year; considered unmarried for the entire year for tax purposes.
Docking refers to the practice of reducing an employee's wage due to infractions such as lateness or absence, as per company policies.
A docking station is a device that allows a notebook computer to connect seamlessly to other equipment, including a network, desktop monitor, keyboard, and more. It often includes a charger for the notebook's battery and may have additional disk drives.
A 'document' refers to any item containing information set forth by means of letters, numbers, or other symbols. In the context of computing, it specifically refers to a word processing file.
A unique number stamped on tax returns, checks, or other documents that enables the IRS to quickly identify and access specific documents.
Documentary credit, also known as a letter of credit, is a financial instrument commonly used in international trade transactions to reduce risk. It guarantees that a buyer's payment to a seller will be received on time and for the correct amount.
A documentary draft is a written order requiring the recipient to pay the amount specified on the document, either upon presentation (sight draft) or at a fixed future date (time draft).
Documentary evidence refers to any evidence introduced at a trial in the form of documents. This includes written or printed papers, such as contracts, wills, deeds, and letters. It plays a pivotal role in the legal proceedings, supporting the factual assertions made by the parties involved.
Documentation refers to the written descriptions and instructions for computer programs, serving various purposes such as user support, development assistance, and maintenance.
US legislation that provided for comprehensive changes to the framework of financial regulation in the US following the crisis of 2007--08. Named after its sponsors, Senator Chris Dodd and Representative Barney Frank, the act introduced new capital requirements and risk limits for banks and created new government agencies to oversee consumer protection and the regulation of financial institutions and credit-rating agencies.
A 'Dog' is a term used in the Boston Consulting Group (BCG) Growth-Share Matrix to categorize products or business units with low market share in a mature industry. Typically, Dogs generate low or negative cash flow and are considered prime candidates for divestitures.
Doing business refers to carrying on, conducting, or managing a business. A corporation is considered to be doing business in a state if it performs the ordinary functions for which it was organized or engages in activities that subject it to the laws and jurisdiction of that state.
A 'Doing Business As' (DBA) is a designation used when an individual or company operates under a name different from its legal, registered name.
A Doing Business As (DBA) name, also known as an assumed name, trade name, or fictitious business name, allows individuals or entities to operate a business under a name different from their legal one.
Dollar Cost Averaging (DCA) is an investment strategy where an investor consistently buys a fixed dollar amount of an asset, such as mutual funds or securities, at regular intervals. This results in purchasing more units when prices are low, effectively lowering the average cost per share over time.
Dollar drain refers to the amount by which a foreign country's imports from the United States exceed its exports to the United States, leading to a depletion of the country's dollar reserves.
In the USA, a method of expressing the value of an inventory in monetary values rather than units. Each homogeneous group of inventory items is converted into base-year prices using appropriate price indices. The difference between opening and closing inventories is measured in monetary terms of the change during the accounting period.
The adoption by a country of the US dollar in place of its own currency, usually as a means of controlling inflation and interest-rate volatility.
A domain in networks, such as the Internet, is a group of connected computers which may contain subdomains, typically indicated by a three-letter suffix like .com, .edu, .gov, and more.
Domestic corporations are entities established under the laws of the United States, operating primarily within the country, and are subject to federal and state regulations.
A domestic corporation or partnership refers to a business entity created or organized within the United States or under the laws of the United States or any state. Such entities are subject to federal and state regulations specific to domestic businesses.
Domicile refers to the country or place of an individual's permanent home, influencing their civil status and tax liabilities. It is distinct from nationality and residence, encompassing both physical presence and an intention to remain.
Dominant influence refers to the power exerted over a company to control its operating and financial policies, potentially treating it as a subsidiary within group accounts.
Dominant Tenement refers to the parcel of land that benefits from an easement on another property, which is typically adjacent.
In the USA, donated capital refers to a gift of an asset to a company. The value is credited to a donated-capital account, which is a stockholders' equity account.
Fully paid capital stock of a corporation contributed without consideration to the same issuing corporation. Donated stock is generally classified as capital stock and can impact both the financial and operational aspects of the corporation.
Donated surplus, also known as donated capital, refers to the contributions of cash, property, or the firm's own stock freely given to the company. It is a component of shareholders' equity that arises when such contributions are made by stakeholders without the expectation of anything in return.
A donee is a person or entity who receives a gift, trust, power, right, or interest without the need to provide consideration in return.
A donor is an individual or entity that provides a gift or transfers a power, right, or interest, often in the context of creating a trust or other legal arrangement.
A dormant company is an entity that has had no significant accounting transactions during the accounting period in question and therefore is exempt from certain financial and auditing obligations.
A dormant partner, also known as a silent partner, is an individual who invests capital in a partnership but does not take an active role in its management or operations.
The period (.) in an Internet domain name, which separates the different levels of the domain hierarchy.
The term 'dot-com' refers to companies and businesses that operate primarily on the Internet and have a web presence, typically associated with the .com (commercial) domain extension.
Dots Per Inch (DPI) is a unit of measurement used to describe the resolution of devices such as inkjet and laser printers, where a higher DPI signifies greater detail and clarity in the resultant printed images or text.
Double or treble damages refer to the practice of awarding a plaintiff twice or three times the actual amount of damages incurred. This punitive measure is authorized by statute for certain kinds of injuries to deter and punish improper behavior.
An outdated accounting method used to present financial statements in certain public utilities and railways prior to privatization.
The Double Declining Balance Method is a form of accelerated depreciation method that spreads the cost of an asset more heavily in the early years of its service life.
Double precision refers to a method of numerical computation that enhances the precision of floating-point numbers by keeping track of twice as many digits as standard (single) precision.
Double Taxation refers to the process under federal tax law where earnings are taxed at the corporate level and then taxed again as dividends of stockholders.
A Double Taxation Agreement (DTA) is an agreement between two countries aimed at preventing the same income from being taxed twice. These agreements offer various forms of double taxation relief to companies or individuals who are subject to tax in both countries.
Double time refers to a payment condition in which employees are paid twice their regular hourly rates for specific types of work, including overtime, Sundays, or holidays.
Double-click refers to the action of clicking a computer mouse twice in rapid succession. It is commonly used to perform actions such as opening files, folders, or applications. In some systems, a single click might replace the double-click functionality.
The double-declining-balance method of depreciation involves applying twice the straight-line rate to the depreciable balance of an asset.
Double-Digit Inflation refers to an inflation rate of 10% per year or higher, significantly impacting purchasing power, savings, and economic stability.
Double-dipping refers to the practice where individuals receive multiple forms of financial benefits or salaries simultaneously from two different sources, typically in contexts related to pensions and employment.
Double-entry accounting, also known as double-entry bookkeeping, is a system of financial records used in business whereby equal debits and credits are recorded for each transaction, ensuring the accounting equation (Assets = Liabilities + Owner's Equity) remains balanced.
A method of recording the transactions of a business in a set of accounts such that every transaction has a dual aspect and therefore needs to be recorded in at least two accounts.
Double-entry cost accounting involves maintaining cost accounting records using the principles of double-entry bookkeeping, which ensures that every financial transaction is recorded in at least two accounts, balancing debits and credits.
Doubtful debt refers to an amount owed to an organization by a debtor that is unlikely to be received. Organizations often create a provision for doubtful debts based on specific debts or general assumptions about debtor reliability.
Dow Jones is a highly reputable financial information services company, known for its influential publications such as The Wall Street Journal, Barron's National Business and Financial Weekly, and Smart Money, as well as its extensive computer databases and additional financial information services.
The Dow Jones Industrial Average (DJIA) is a widely-recognized stock market index that tracks the performance of 30 major publicly traded companies in the United States.
The Dow Jones Industrial Average (DJIA) is the most widely followed benchmark of stock market performance, containing value changes for stocks of 30 large corporations.
The Dow Jones Industrial Average (DJIA) is an index that tracks the stock prices of 30 significant publicly traded companies on the New York Stock Exchange (NYSE) and the NASDAQ. It serves as a key indicator of the performance of the industrial sector and the overall U.S. stock market.
Dow Theory is a theory that a major trend in the stock market must be confirmed by similar movements in the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average (DJTA). According to this theory, a significant trend is not confirmed until both Dow Jones indexes reach new highs or lows; if they do not, the market is likely to fall back to its previous trading range.
Dower is a statutory provision in a common-law state that directs a certain portion of a deceased individual's estate (often one-third) to the surviving spouse. The term 'curtesy' is used if the surviving spouse is the husband.
Refers to the state of a computer system or network being unavailable for use or out of service, typically due to malfunctions, maintenance, or testing.
A down tick occurs when a security is sold at a price lower than its most recent preceding sale price. This event is also referred to as a 'minus tick.'
The process of transmitting a file or program from one computer to another, typically from a central server to a personal computer or device.
A downpayment is the initial upfront portion of the total amount due for the purchase of property or goods, generally paid in cash, with the remaining balance being financed through debt.
Movement of a business activity from a higher to a lower level; pejorative term describing a downgrade in the quality of clientele or products. For instance, a retail store choosing to carry lower-grade merchandise is considered to be moving downscale.
An estimate of an investment's potential decline in value, considering the entire range of factors that could affect market price.
Downsizing is a strategic measure taken by organizations to reduce their workforce and operational size with the primary goal of boosting profitability, cost-efficiency, and flexibility.
The term 'downstream' refers to the flow of corporate activity from a parent company to its subsidiary. In finance, it typically pertains to loans, while in management, it relates to instructions that come from the headquarters.
Downtime refers to the period during which a system, service, or equipment is not operational or is unavailable. This term is often used in various fields including manufacturing, computing, and telecommunications.
A downturn refers to the shift of an economic or stock market cycle from rising to falling, indicating a move from expansion to recession or from a bull market to a bear market.
A fundamental characteristic of the demand for most goods and services, resulting in lower quantities demanded as the price increases, producing a curve that slopes downward on a graph.
Downzoning refers to the act of rezoning a tract of land for a less intensive use than that which is currently existing or permitted. This change aims to reduce the density of development and often impacts property values and land use policies.
