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.
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.
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.
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.
