Consolidation

A method of revenue recognition in which profits are recognized only after all costs incurred are completely recovered. This method is typically used when the total amount of collections is highly uncertain.

The process of identifying and reclassifying personal property assets that are grouped with real property assets for depreciation purposes. This process allows the personal property assets to be depreciated over a shorter recovery period than the real property assets.

The interest rate on a debt security that the issuer promises to pay to the holder until maturity, expressed as an annual percentage of the face value.

A bond that is typically not registered with the issuing corporation and carries detachable coupons. These coupons state the amount of interest due and the payment date, which the holder must present to receive interest payments.

A tax-exempt trust exclusively established for the purpose of paying the qualified education expenses of the designated beneficiary, which can include higher education costs as well as elementary and secondary education expenses.

A Certified Public Accountant (CPA) is a professional accountant who has met the educational, experience, and examination requirements of their jurisdiction, thereby earning certification to practice public accounting.

Educational programs designed for Certified Public Accountants (CPAs) to keep them informed about the latest changes and developments within the accounting profession. These programs are mandated by State Boards for Public Accountancy and the American Institute of Certified Public Accountants (AICPA), each setting their own specific CPE requirements.

In double-entry bookkeeping, a credit is an entry on the right side of an account ledger that represents the increase in a liability, revenue, or equity account, or the decrease in an asset or expense account.

A legally binding contract in which one party provides funds or resources to another with the agreement that the receiver will repay the amount on a future date, potentially with additional interest or fees.

A balance remaining after accounting entries that represents a liability or income to the entity, often indicating the amount that the entity owes to others or has in surplus.

A party that loans money or other assets to another party, typically expecting repayment with terms agreed upon by both parties.

An asset that is expected to be converted into cash, sold, or consumed in operations within one operating cycle or within a year if more than one cycle is completed annually.

An obligation whose liquidation is expected to require the use of existing resources classified as current assets, or the creation of other current liabilities, typically due within one year.

A financial metric used to evaluate a company's ability to pay off its short-term liabilities with its short-term assets. The current ratio is calculated by dividing the company's current assets by its current liabilities.

The present worth of an asset, calculated either based on its current market price compared to its historical cost, or by discounting the future revenue stream of the asset using compound interest principles.

The annual interest received from a bond expressed as a percentage of its current market price.