An approach to auditing focused on evaluating an organization's internal control system to determine the quality of its accounting system, thereby assessing the required level of substantive testing for financial statements.
A visual representation used in accounting to depict individual ledger accounts, reflecting debits and credits in a format resembling the letter 'T'.
A visual representation used in accounting to represent individual accounts where debits and credits are recorded. Resembling the capital letter 'T', it simplifies the tracing of transactions and helps ensure accurate bookkeeping.
The T-statistic is a statistical measure used to compare the means of two groups or to assess if a sample mean significantly differs from a known value. It is instrumental in hypothesis testing, particularly when the sample size is small, and the population standard deviation is unknown.
A T1 Line is a special type of telephone line used exclusively for digital communication, offering a maximum data rate of 1.544 million bits per second. It is known for its speed and reliability, especially when compared to traditional dial-up connections.
A table is a coherent and systematic presentation of data and data calculations combined with textual descriptions for the purpose of conveying understanding of particular findings and information. A spreadsheet is a typical example.
A complete mobile computer, larger than a smartphone or PDA, integrated into a flat touch screen and primarily operated by touching the screen. Unlike traditional laptops, it often uses an onscreen virtual keyboard or a digital pen rather than a physical keyboard.
A tabloid is a type of newspaper with a page size smaller than that of a standard newspaper, typically focusing on sensational news stories and a multitude of photographs.
A tactic is a short-term method or plan employed to achieve a specific objective or resolve a particular problem, often within a larger strategic framework.
Performance targets established by middle management for achieving specific organizational outcomes. Also called tactical plans.
Taffler's Z Score is a financial metric used to predict the likelihood of a company going bankrupt within a year, specifically tailored to UK-based companies. It is often compared to other financial distress prediction models, such as the Altman Z Score.
The Taft-Hartley Act, formally known as the Labor-Management Relations Act of 1947, aims to protect employers' rights to resist unionization and restrict union activities, imposing on unions many of the conditions for good faith bargaining previously imposed on management by earlier laws.
A tag sale, also known as a garage sale, is an event where individuals sell used household items at marked prices, typically held on weekends at their homes.
The term 'take' can have multiple interpretations depending on the context, ranging from profit realization to the act of seizing property, as well as particular connotations in the securities market.
The term refers to suffering a large loss on a product, speculation, or investment.
To speculate, usually with the knowledge that the investment is highly risky, often in the context of buying securities.
Taking a position refers to the act of buying and holding stock in a company for the long term or to gain control, and can relate to holding long or short positions in stocks or bonds.
Take-home pay is the amount of wages a worker actually receives after all deductions, including taxes, have been made from their gross income.
Take-or-pay is an arrangement where a customer commits to purchasing a certain quantity of a product over a specified period, often at a predetermined price. If the customer fails to meet the agreed-upon purchase quantity, they must still pay the seller. This contract structure protects the buyer against price increases and secures the seller against price decreases.
Take-out loan or take-out financing is a permanent loan replacing short-term financing, especially for construction projects, where the conditions specified, such as unit sales or lease percentages, need to be met.
The term 'takeoff' refers to a critical point in the development and growth of a producer, an industry, or an economy, marking the stage at which it becomes economically viable and self-sustaining.
A takeout loan in real estate refers to a long-term mortgage loan made to refinance a short-term construction loan. In the securities industry, takeout refers to the withdrawal of cash from a brokerage account, usually after a sale and purchase have resulted in a net credit balance.
A takeover represents a change in the controlling interest of a corporation. This can occur through friendly acquisition and merger, or via an unfriendly bid that might be contested by the target company's management employing defensive strategies known as shark repellent techniques.
A comprehensive overview of the concept of a takeover bid in the context of corporate acquisitions, including explanations of types, outcomes, examples, related terms, and resources for further study.
The Takeover Panel, also known historically as the City Code on Takeovers and Mergers, provides the regulatory framework dedicated to overseeing corporate acquisitions and mergers, ensuring fair treatment of shareholders and maintaining confidence in the UK financial markets.
The acquisition of private property for public use under the power of eminent domain and the restrictions under police power that may preclude reasonable use of the property.
Taking delivery refers to the acceptance of goods, commodities, or securities by the recipient, with documentation such as a bill of lading, reflecting the transfer and acknowledgment of receipt.
Taking inventory involves the physical counting and valuation of stock in trade. Typically performed at year-end, it can also be conducted more frequently or at different times.
The phrase 'talk turkey' means to get serious and focus on the real business or important matters at hand. It often implies a straightforward and direct conversation.
A traditional hierarchical organization structure characterized by many levels of supervision and a narrow span of control.
A tally is a count of specific items or occasions, often used in contexts like voting, inventory counting, and record keeping. It is a fundamental method of tracking occurrences to aid decision-making and analysis.
A tallyman is an individual who either supplies goods on credit to be paid for in installments or one who tallies or keeps a count of items, such as votes or cargo.
A Tangible Asset is any asset with physical existence, such as real estate, gold, or machinery.
Tangible assets are physical items that hold value and can be seen and touched, used by businesses to generate revenue.
Tangible personal property refers to objects that can be physically touched and are not classified as real estate. When determining whether a fixture is real estate or tangible personal property, the method of attachment is pivotal.
A tank car is a type of transportation equipment specifically designed to carry liquids. It is commonly used in the railroad industry to transport a wide range of liquid commodities, including milk, chemicals, and petroleum products.
A tap stock, also known as a 'tap issue' or 'tap security,' is a gilt-edged security reissued in the market when its price reaches a pre-determined level. There are 'short taps' and 'long taps' depending on their maturity dates.
A versatile term used in various contexts, referring to the service that reports prices and transactions on exchanges, a news wire service, or a magnetic computer storage medium.
A tape drive is a storage device that converts information stored on magnetic tape into signals that can be sent to a computer. It is commonly used for backup and archival purposes due to its capacity to store large amounts of data.
Taper Relief was a tax relief mechanism used in the U.K. to reduce the amount of Capital Gains Tax (CGT) payable on the disposal of assets, provided these assets were held for a certain period. It was replaced by Entrepreneurs' Relief in 2008.
Tare weight refers to the weight of an empty container, such as an empty truck or packing material, and is used in logistics to measure the net weight of goods.
The specific group of consumers at which a company aims its products and services, generally defined by demographic and psychographic characteristics such as age, sex, education, income, and buying habits.
A company that is the subject of a takeover bid by another company. Understanding the dynamics and implications of being a target company is crucial for shareholders, managers, and potential acquirers.
A strategic method for pricing products or services based on the price customers are willing to pay, ensuring both market competitiveness and profitability.
A target market is a specific group of consumers at which a company aims its products and services. This group is identified based on various attributes and preferences that align with the company's offerings, forming a crucial aspect of marketing strategy.
Target price refers to the projected price level of a financial security, as projected by an analyst or determined by an acquirer in various financial and business contexts.
A tariff is a federal tax imposed on imports or exports, which can either be designed to raise revenue or protect domestic industries. Additionally, tariffs can refer to a schedule of rates or charges for freight.
A tariff war is an international trade conflict where nations impose counterbalancing tariff rates in retaliation to each other's tariff policies, aiming to gain trade advantages but often resulting in adverse economic consequences.
A temporary team of people assembled to achieve a specific objective, usually involving investigative activities. Often used in private and public organizations, a task force actively pursues the achievement of its mission, after which it is disbanded.
A task group is a collaborative team operating within a larger organizational context, assigned the mission to contribute specifically to the goals of the parent organization. These groups can be either ongoing or temporary.
Task management is the process of managing a task through its life cycle, which includes planning, testing, tracking, and reporting. It involves the coordination of procedures and materials needed to complete various tasks.
The taskbar is the area at the bottom of the screen in Windows operating systems, containing the Start Menu and buttons for every open application or window. It also includes icons in the System Tray (Systray) for various functions like volume control, clock, network connection, and specialized programs.
A tax is a mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures. Taxes include income tax, sales tax, property tax, estate tax, and others.
A tax abatement is a reprieve from a tax obligation, varying from partial to complete forgiveness. Governments often grant tax abatements as incentives for real estate or industrial development.
A tax accountant is a professional specializing in preparing, filing, and managing tax returns for individuals and businesses, ensuring compliance with tax laws and maximizing tax efficiency.
Tax accounting is an accounting specialization focusing on tax preparation, compliance, and planning. It involves the application of accounting principles to adhere to tax laws and accurately report tax-related information.
A tax advantage is a benefit that individuals and businesses experience when they are eligible for a reduction in a charge to taxation, which can arise through exemptions, deductions, credits, or deferrals.
The process of distributing a tax charge among different sources of income to ensure appropriate tax liability allocation.
A tax allowance is a threshold within the tax code that partially or completely exempts certain amounts of income, spending, or investment from taxation. This allowance can reduce the amount of tax that must be paid.
A Tax and Loan Account is a specialized account held in a private-sector depository institution, managed by the district Federal Reserve Bank as the fiscal agent for the U.S. Treasury, primarily serving as a repository for the operating cash of the U.S. government.
A Tax Anticipation Bill (TAB) is a short-term debt obligation issued by the U.S. Treasury, primarily utilized by corporations to streamline their tax payments and manage liquidity.
A Tax Anticipation Note (TAN) is a short-term debt instrument issued by state or municipal governments to finance immediate expenditures by borrowing against projected tax revenues. TANs help even out cash flow across fiscal periods and are repaid once the corresponding tax revenues are collected.
A tax assessment is a schedule issued by HM Revenue and Customs (HMRC) showing a calculation of a taxpayer's liability to income tax. Income sources are identified separately, and individuals could receive multiple tax assessments for each fiscal year, depending on the number of different income sources.
A tax assessor is an official who determines the value of properties within a specific jurisdiction for the purpose of calculating property taxes.
A tax audit is an examination of an individual's or organization's tax returns by the tax authorities to ensure that financial information is reported accurately and according to taxation laws. The primary aim is to verify that the amount of tax declared and paid is accurate.
Minimizing tax liabilities legally and by means of full disclosure to the tax authorities.
The specified domain on which a tax is levied, such as an individual's income for income tax, the estate of a deceased person for inheritance tax, and the profits of a company for corporation tax.
Tax basis refers to the value used for tax purposes to determine the gain or loss on the sale or transfer of an asset, and it includes various adjustments over time.
The Tax Benefit Rule addresses the treatment of certain recoveries or repayments as taxable or deductible based on how they affect tax liability in prior years.
A tax bracket refers to a range of income that is taxed at a specific rate. As income increases and moves into higher brackets, the rate of taxation is adjusted according to predefined thresholds set by the tax authority.
A tax break refers to a reduction in tax liability that the government offers to stimulate or incentivize particular economic activities or behaviors.
The tax code refers to the body of tax law applicable in a country, within which tax legislation is codified rather than laid down by statute. Understanding the nuances of the tax code is essential for both individuals and businesses to ensure compliance with tax obligations.
Tax Commissioners are officials responsible for overseeing tax assessments, collections, and tax-related legal matters within a designated area. They often play a crucial role in interpreting tax laws and policy application.
An independent 19-judge federal administrative agency that functions as a court to hear appeals by taxpayers from adverse administrative decisions by the Internal Revenue Service (IRS). The Tax Court does not require the taxpayer to pay the alleged deficiency prior to suit. An adverse decision may be appealed as of right to the Court of Appeals and in rare cases to the U.S. Supreme Court.
A tax credit is a tax incentive that allows certain taxpayers to subtract the amount of the credit from the total they owe the state. It can be used in various contexts such as dividends paid by a company, allowances against a tax liability, and social security payments in the UK.
A non-refundable tax credit designed to support elderly and disabled taxpayers by reducing their federal tax liability.
A tax-deductible expense can be used to reduce taxable income, resulting in a lower tax liability. Common examples include interest on housing, ad valorem taxes, depreciation, repairs, maintenance, utilities, and other ordinary and necessary business expenses.
A tax deduction reduces the amount of income subject to tax, thereby decreasing the total tax bill for individuals or businesses. Tax deductions can encompass a wide range of expenses, from mortgage interest to medical expenses.
A tax deed is an instrument given to a grantee by a government that has claimed the property due to unpaid taxes. It legally transfers ownership of the property from the government to the buyer at a tax sale.
A tax deposit is a method used to pay federal tax liabilities through either a Federal Reserve Bank or a commercial bank that has been designated as a U.S. depository.
A Tax Deposit Certificate is issued by HM Revenue and Customs (HMRC) to a taxpayer who has made an advance payment for future liabilities such as income tax, capital-gains tax, or inheritance tax. It offers an interest-bearing option for managing tax obligations efficiently.
A tax district, also known as a central assessment district, is a special area established by local government regions or authorities to delineate boundaries within which property taxes are assessed and collected based on common valuation metrics.
Tax evasion is the illegal act of deliberately misrepresenting or not reporting income to reduce tax liabilities. This practice involves concealing income, inflating deductions, or using deceptive methods to evade tax obligations.
Minimizing tax liabilities illegally, typically by not disclosing taxable income or providing false information to tax authorities. It contrasts with tax avoidance, which is the legal practice of reducing tax liabilities through lawful means.
A tax exemption refers to a statutory provision which reduces or eliminates the obligation to pay a financial charge (tax) that would otherwise be imposed by a governing body.
A tax exile is an individual who relocates to a country with more favorable tax conditions to avoid high taxation in their home country.
Tax foreclosure is the legal process to enforce a lien against a property due to nonpayment of delinquent property taxes.
Tax harmonization refers to the process of making tax systems more compatible across different jurisdictions, typically to minimize differences in tax bases and tax rates. This process aims to reduce tax competition and prevent tax evasion while fostering economic integration. However, it often faces resistance as it can limit the fiscal autonomy of individual governments.
A tax haven is a country or jurisdiction with very low 'effective' rates of taxation for foreign investors. It may also refer to those providing the services.
A tax holiday is a government incentive program that offers a temporary reduction or elimination of tax payments for businesses, providing economic impetus for specific activities such as export growth or new industry development.
Tax impact refers to the effect of a tax upon the production and consumption of the good being taxed, as well as the influence of the tax on broader economic processes such as production or consumption.
A tax incentive is a feature of the taxation system that encourages or discourages certain economic activities.
Tax incidence refers to the analysis of the distribution of the tax burden between buyers and sellers. It assesses who ultimately bears the economic burden of a tax.
Tax Increment Financing (TIF) is a public financing method used by municipalities to subsidize costs for development or redevelopment projects in distressed areas, with the goal of stimulating economic growth and increasing future tax revenues.
A detailed value added tax (VAT) invoice provided by a taxable person to another taxable person when a taxable supply exceeds £100, containing essential transaction and tax information.
Tax liability refers to the total amount of tax debt owed by an individual, organization, or corporation to a tax authority. It includes both current taxes due and any unpaid taxes from prior periods.
An encumbrance placed upon property as a claim for payment of a tax liability.
A tax loophole is an ambiguity or omission in the tax code that allows individuals or corporations to reduce their tax liabilities legally. These loopholes are often the result of complex tax laws and can be used to advantage through strategic financial planning.
A financial loss incurred by an organization that can be carried forward to subsequent periods to reduce the tax payable in those periods.
Tax loss carryback and carryover are tax benefits that allow taxpayers to use losses from one year to offset taxable income in other years, effectively reducing tax liability.
