Fund accounting is a system used by nonprofit organizations and governments to track resources and ensure accountability and compliance with legal requirements, rather than focusing on profitability.
A fund family, also known as a family of funds, is a group of mutual funds offered by the same investment company that share similar investment objectives, management, and administrative structures.
A Fund of Funds (FoF) is a mutual fund or hedge fund that invests in a portfolio consisting of other investment funds rather than investing directly in stocks, bonds, or other securities. This investment strategy provides enhanced diversification and the potential for reduced risk by spreading investments across multiple fund managers and asset classes.
Fund raising involves efforts to solicit contributions from individuals or organizations for nonprofit entities with educational, medical, religious, political, charitable, or other stated purposes.
Fund switching refers to the process of moving money from one mutual fund to another within the same fund family, often to respond to market fluctuations or changing financial needs.
Fundamental accounting concepts are the core principles that underpin the practice of accountancy, shaping the integrity, consistency, and efficiency of financial reporting.
Fundamental analysis involves evaluating a company's financial statements, health, competitors, and markets to assess the intrinsic value of its stock. This method helps determine whether a stock is undervalued or overvalued.
A material mistake or omission from the accounts of a business, which is not a recurring adjustment or the correction of an accounting estimate made in a prior period.
Funded debt refers to debt that is due after one year and is formalized by the issuing of bonds or long-term notes. It often involves a sinking fund to ensure the debt can be retired systematically.
A funded pension plan is a type of retirement plan where funds are currently allocated to purchase future retirement benefits, ensuring that employees receive retirement payments even if the employer is no longer in business at the time of retirement.
A funded pension scheme is a retirement plan that pays benefits to retirees from a fund that is actively invested in securities. The returns generated by this fund are distributed as pensions to its members.
A funded retirement plan is a type of retirement savings arrangement where contributions are made to a dedicated fund to provide future retirement benefits.
Funding is the act or process of providing financial resources, typically in the form of money, to finance a program, project, or organization. Funding is critical across various sectors for initiating and sustaining operations and achieving objectives.
A funds flow statement provides a detailed analysis of the changes in a company's working capital during a specific period, detailing the sources and applications of funds.
A Funds Flow Statement describes how a business has raised and used its funds over a specific period, detailing sources like trading profits, issues of shares, and sales of fixed assets, and uses like trading losses, dividends paid, and repayment of borrowings.
Funds from operations (FFO) is a financial performance metric primarily used by real estate investment trusts (REITs) to define the cash generated by their operations. It specifically excludes the depreciation and amortization that obscures the actual cash earnings of these types of entities. FFO is essential to assess a REIT’s capability to pay dividends to its shareholders.
Funds From Operations (FFO) is a key measure used to determine the profitability and performance of a Real Estate Investment Trust (REIT).
A fungible issue refers to a bond or security that can be interchanged with another of the same class, offering benefits such as consistent documentation and an increased market depth.
Interchangeable goods, securities, etc., that allow one to be replaced by another without loss of value. Bearer bonds and banknotes are notable examples. Additionally, perishable goods whose quantity can be estimated by number or weight fall under this category.
A furlough is a temporary leave of absence from an organization, typically granted to employees for a specified period, often without pay. Furloughs can be used for various reasons, including economic downturns, training, or personal necessity.
Domestic accommodation available for letting for at least 140 days each year and actually let for at least 70 days. Each letting during a seven-month period of the year must also be for less than 31 days. When this arithmetical definition is satisfied, the income arising is treated as if it were trading income. Loss relief is available, pension contributions can be made on the basis of the letting income, and the income qualifies as earned income.
Furniture, Fixtures, and Equipment (FF&E) are tangible assets that businesses use to enrich their operations. Unlike real property, these items are typically moveable and are not permanently affixed to buildings.
Furniture, fixtures, and equipment (FF&E) are movable assets essential to the operation of a business, often found in hospitality industries such as hotels and motels. These items typically wear out faster than other properties, necessitating detailed management of their condition, cost, and replacement frequency.
Future Interest refers to an individual’s legal right to possess or enjoy property or assets in the future, usually upon the occurrence of a specified event or the fulfillment of certain conditions.
The future value is the value that a sum of money will have in the future when invested at compound interest. If the future value is *F*, and the present value is *P*, at an annual interest rate *r*, compounded annually for *n* years, the formula is *F = P*(1 + r)^n. This concept is crucial for understanding the growth of investments over time.
Future Worth, also known as the Future Value (FV), refers to the amount of money that an investment made today will grow to at a specific point in the future when interest is compounded over time.
In financial mathematics, the future worth (or value) of one per period, also known as the compound amount of one per period, is the amount of money that an investment of one monetary unit will grow to after a certain number of periods at a constant rate of interest.
A futures contract is a standardized legal agreement to buy or sell a particular commodity, currency, or financial instrument at a predetermined price at a specified time in the future. Unlike options, futures contracts entail a mandatory obligation to execute the transaction.
A futures market is a financial exchange where futures contracts, which are agreements to buy or sell specific commodities or financial instruments at a predetermined future date and price, are traded.
A futures option is a derivatives contract that grants the holder the right, but not the obligation, to buy or sell a futures contract at a predetermined price before the option expires.
A futures transaction refers to the buying and selling of futures contracts on commodities or financial instruments, which obligate the buyer to purchase or the seller to sell an asset at a predetermined future date and price.
Fuzzy logic is a system of computer instructions enabling computers to deal with ambiguities, emulating human-like decision-making processes.
FX, or Foreign Exchange, refers to the global market where currencies are traded. It is one of the most liquid and largest financial markets in the world, encompassing all aspects of trading, buying, selling, and exchanging currencies at current or determined prices.
The G-10, or Group of Ten, is an advisory forum for the International Monetary Fund (IMF), established in 1962. It consists of finance ministers and central bank governors from 11 key economies, including Canada, France, Germany, Belgium, Italy, Japan, the Netherlands, Sweden, Switzerland, the United Kingdom, and the United States.
A G-Type Reorganization involves the transfer of assets by a corporation in bankruptcy to another corporation, where stocks or securities of the transferee corporation are distributed to shareholders either tax-free or partially tax-free.
A forum of the heads of state or government of the major industrial democracies meeting annually since 1975 to deal with the major economic and political issues facing their domestic societies and the international community as a whole.
A gain refers to an increase in value, measured by the difference between the adjusted tax basis and the selling price. It is a key concept in accounting and finance, encapsulating various types, such as capital gain, realized gain, and recognized gain.
Gain Contingency refers to a potential or pending development that may result in a future gain to the company, such as a successful lawsuit against another company.
Gain sharing is an employee motivational technique where compensation is provided for measurable performance gains in areas such as sales, customer satisfaction, and cost reductions. This compensation is often awarded to employee teams for achieving specified goals.
Gainful Employment or Occupation refers to employment that is suited to the ability of the employed individual, enabling them to earn an income. In the context of disability covered by insurance, it generally pertains to the insured individual's ordinary employment or other employment that approximates the same livelihood, considering their circumstances and physical and mental capabilities.
Galloping inflation is an episode characterized by extraordinarily high inflation rates, leading to significant economic instability.
The Gallup Poll is a longstanding method of gauging public opinion on various issues, originally developed by Dr. George Gallup. The term has evolved to symbolize public opinion polling more generally.
Game Theory is a branch of mathematics and economics that studies strategic interactions where the outcomes depend on the actions of multiple agents, each aiming to maximize their own payoff.
The process of two or more participants attempting to reach conflicting objectives or goals. The process of bidding for contracts is a game. Logically, each participant would bid estimated costs plus some amount for profit. Since only one contract would be awarded, the outcome depends jointly on the actions of all bidders.
Gaming Duty is a tax levied on the profits of a gaming company, imposed in addition to corporation tax. It includes taxes from both traditional and remote gaming activities.
A Gantt chart is a bar chart that represents a project schedule and shows the start and finish dates of various elements of a project. It is a useful tool for project management and planning.
The term 'gap' in finance refers to the amount of financing need for which provision has not yet been made. It can pertain to various scenarios such as funding gaps in project finance or coverage gaps in insurance.
A loan provided to bridge the gap between a floor loan and the total amount of the permanent loan for real estate development, especially during the rent-up period.
A garage sale, also known as a tag sale, is a casual event where individuals sell used or second-hand goods, typically from their homes or garages. These sales are often organized to declutter household items or to raise funds for personal or charitable reasons.
In the context of data processing and computational models, the term 'Garbage In, Garbage Out' (GIGO) denotes the idea that flawed or nonsensical input data will inevitably produce similarly flawed or nonsensical output.
Garden apartments are a type of housing complex that provides tenants with access to a common lawn or garden area, enhancing the living environment with green spaces.
A legal precedent established in 1904, critical to determining financial obligations during the dissolution of a partnership, especially when dealing with the insolvency of a partner.
A garnishee is a person, often an employer, who receives notice to retain custody of assets in his control that are owed to or belong to another person, holding the assets until legal proceedings determine who is entitled to the property.
A Garnishee Order, now known as a Third-Party Debt Order, is a legal mechanism used to seize money directly from a debtor's bank account to satisfy a judgment debt.
Garnishment is a legal process by which a creditor seeks to obtain payment from a debtor by taking a portion of the debtor's wages or bank account funds. This is typically done through legal proceedings.
Garnishment is a legal process where a court orders an employer to withhold all or part of an employee's wages, directing the funds to the court or a party that has secured a legal judgment against the employee. This can occur in situations such as divorce settlements or debt repayment.
A tax imposed on the sale, use, or lease of automobiles that do not meet specific fuel economy standards. It applies to vehicles that fail to meet the required fuel efficiency and extends to both imported and domestically produced vehicles.
The Governmental Accounting Standards Board (GASB) is an independent, private-sector organization that sets accounting and financial reporting standards for U.S. state and local governments.
The GE/McKinsey Matrix is a strategic tool used for analyzing the strength of business units within a large diversified corporation. It evaluates units based on industry attractiveness and competitive strength, aiding investment and divestment decisions.
Gearing refers to the relationship between funds provided to a company by ordinary shareholders and long-term funds with a fixed interest charge such as debentures and preference shares. High gearing implies higher fixed charges on debt, impacting investment risk and returns.
In current-cost accounting, a gearing adjustment is a financial modification that reduces the charge to the owners for the effect of price changes on depreciation, stock, and working capital. This adjustment is rationalized by the fact that a part of the extra financing is provided by the loan capital of the business.
Gearing ratios, also known as leverage ratios, measure the relationship between a company's capital structure, particularly its debt and equity. These ratios are crucial for assessing a company's financial stability and risk level.
An enthusiastic computer specialist; a person with an intense interest in computers to the exclusion of other human activities. The term is usually not considered an insult.
Gender analysis involves assessing names on mailing lists to identify which names correspond to male or female individuals, utilizing a database of typically gendered names. This analysis enables tailored marketing efforts based on gender-specific demographics.
The General Accounting Office, now known as the Government Accountability Office, is an independent agency that provides auditing, evaluation, and investigative services for the United States Congress.
The General Agreement on Tariffs and Trade (GATT) was a multilateral treaty created to reduce tariffs and other trade barriers, aimed at promoting international trade and economic cooperation. It was later replaced by the World Trade Organization (WTO) in 1995.
The General Agreement on Tariffs and Trade (GATT) was a legal agreement between many countries, whose overall purpose was to promote international trade by reducing or eliminating trade barriers such as tariffs or quotas.
The General Agreement on Tariffs and Trade (GATT) was a trade treaty aiming to promote international trade by reducing or eliminating trade barriers such as tariffs and quotas. Active from 1948 until 1995, it was replaced by the World Trade Organization (WTO).
General Anti-Abuse Rule (GAAR) is a set of regulations to prevent tax avoidance by disallowing tax benefits from transactions, arrangements, or practices that have no substantial commercial purpose other than to gain a tax advantage.
A measure designed to counter tax avoidance in the UK by outlawing any arrangement that creates a tax advantage through means judged 'artificial and abusive.' The rule evaluates the reasonableness of the arrangements.
In the UK, General Commissioners are an unpaid local body of reputable individuals appointed to hear appeals against income tax, corporation tax, and capital gains tax assessments or related disputes.
A general contractor is an individual or firm responsible for overseeing the construction and management of a building or other improvement projects for an owner or developer, often utilizing subcontractors.
General controls are designed to ensure the proper development, implementation, and operation of applications within computer-based accounting systems, ensuring the integrity of programs and data files.
The General Depreciation System (GDS) is the primary method used for calculating tax depreciation under the Modified Accelerated Cost Recovery System (MACRS). GDS allows for the use of the declining-balance method over short recovery periods.
General Equilibrium Analysis is a complex and systematic theoretical model in economics that includes all markets simultaneously and is used to examine relationships among markets.
A general expense refers to costs incurred during business operations that do not fall under categories such as selling, administrative, or cost of goods sold (COGS). These are typically miscellaneous expenses essential for running a business but not directly tied to core operational sectors.
General expenses are those expenditures by an organization that cannot be conveniently categorized into any other specific cost classifications, encompassing a wide variety of costs essential for business operations.
The General Fund represents the primary operating accounts of a nonprofit entity, such as a government or government agency. It is used to finance regular activities and essential services.
Insurance cover against the occurrence of certain specified events. The most common examples of general insurance relate to the risks of fire, automobile damage or loss, and theft.
The General Journal, often regarded as the book of original entry, is a pivotal element in the accounting process. It is where all financial transactions are initially recorded before they are posted to the ledger accounts. The General Journal includes straightforward and complex entries and serves numerous accounting purposes.
The General Ledger (GL) is a key component of an organization's accounting system, serving as a comprehensive record of all financial transactions made over the life of an organization.
General Liability Insurance provides coverage for an insured when negligent acts and/or omissions result in bodily injury and/or property damage on the premises of a business, when someone is injured as the result of using the product manufactured or distributed by a business, or when someone is injured in the general operation of a business.
A general lien is a legal claim on all the property owned by the debtor, as opposed to a specific property lien, which targets particular assets.
A 'general meeting' is a key event in the corporate calendar, during which the shareholders or members of an organization come together to discuss and vote on various issues concerning the business. It plays a critical role in corporate governance, transparency, and accountability.
A General Obligation Bond (GO Bond) is a type of municipal bond backed by the full faith and credit of the issuing government, which has the authority to levy taxes to repay bondholders.
A general partner is a member of a partnership who has unlimited liability for the partnership's debts and obligations, actively managing and operating the business.
A general partnership is a business arrangement where two or more individuals share ownership and management, and each partner is personally liable for the business's debts and obligations. Income and losses are passed through to the partners.
A general power of appointment allows holders the right to dispose of property in their favor or that of their estate, creditors, or the creditors of their estate. It impacts how a grantor is taxed on the trust income.
A General Power of Attorney grants broad authority to a designated individual, known as the attorney-in-fact or agent, to act on behalf of the principal in all matters.
A power, introduced by the Trustee Act 2000, that allows trustees to make any kind of investment that they could make if they were absolutely entitled to the assets of the trust fund. Previously, trustees were only permitted to make certain authorized investments. There are still some restrictions on investments in land.
The General Price Level is an index that provides a measure of the purchasing power of money. It is used to gauge inflation or deflation in an economy.
General property tax is a levy on property that the owner is required to pay. The tax is based on the value of the property, including land, buildings, and other improvements on the property.
General purpose financial statements are annual accounts and reports prepared by companies to serve the needs of a wide range of users, often regarded as compromise documents.
A comprehensive overview of general retirement systems, including pension and annuity funds established by states or political subdivisions for their employees.
A General Retirement System encompasses all mechanisms and financial arrangements designed to provide individuals with income or benefits during their retirement years. These systems often include pensions, social security, and personal retirement savings plans.
In state and local governments, 'General Revenue' refers to the total revenue received, excluding revenue from utilities, sales of alcoholic beverages, and insurance trusts.
The General Services Administration (GSA) is a federal government agency responsible for purchasing and managing property occupied by other federal government agencies. It plays a crucial role in providing products, services, and facilities to enable federal agencies to efficiently fulfill their missions.
The General Services Administration (GSA) is an independent agency of the United States federal government established in 1949 to help manage and support the basic functioning of federal agencies.
A coordinated national, regional, or municipal work stoppage employed to pressure management or the government into agreeing to contract terms, resolving grievances, or recognizing a union.
A general tax lien is a legal claim by a government entity against a taxpayer's assets for unpaid tax liabilities, affecting all of the taxpayer's property.
