Timing of Tests of Control

A T Account is a visual representation of an account in accounting, shaped like the letter 'T', used to record and track the increases and decreases in a particular financial account.

A takeover refers to the transfer of control of a company from one group of shareholders to another, characterized by a change in the controlling interest of the corporation. This can occur through a friendly acquisition or a hostile bid, where the latter often involves a public tender offer with the intention of replacing the current management.

Assets having a physical existence that can be seen and touched, such as cash, land, buildings, machinery, and other physical properties.

A pricing method that identifies the competitive market price of a product, determines the desired profit, and calculates the target cost by subtracting the desired profit from the market price.

A charge levied by a governmental unit on income, consumption, wealth, or other basis to fund public services and governmental activities.

The original cost of an asset, adjusted for factors such as depreciation, that is used to calculate capital gains or losses for tax purposes.

The U.S. Tax Court is a federal court that specializes in handling disputes between taxpayers and the Internal Revenue Service (IRS) related to the assessment of income, gift, estate, certain excise taxes, and other tax-related issues. It does not have jurisdiction over matters such as employment taxes or certain other types of taxes.

A tax benefit available to taxpayers aged 65 or older, or those under 65 who are retired due to permanent and total disability, designed to reduce their tax liability. The credit amount is determined based on the taxpayer's filing status and is adjusted by subtracting any nontaxable income. The credit phases out for individuals whose adjusted gross income exceeds specified levels.

An encumbrance placed on property as security for unpaid taxes, giving the taxing authority a legal claim against the property until the debt is paid.

A tax shelter is a legal arrangement where certain investments or financial decisions are made to reduce, defer, or eliminate tax liabilities.

The annual accounting period for which a taxpayer calculates their taxable income. This can be a calendar year, a fiscal year, or a fractional part of a year if the return is made for a portion of the year.

The portion of an individual's or entity's income that is subject to taxation, according to the laws and regulations of the tax jurisdiction.

Taxable income is the amount of a taxpayer's income that is subject to taxation, calculated by subtracting allowable exemptions and deductions from the adjusted gross income during the tax year.

A debt obligation issued by state or local government entities that is subject to federal income tax, unlike traditional municipal bonds. These bonds arose from the Tax Reform Act of 1986.

A unique identification number that is required to be used by an individual or entity in any tax-related documents filed with the IRS. For individuals, this is typically their Social Security Number (SSN), while other entities such as businesses may use an Employer Identification Number (EIN) or other federally assigned ID.

A form of co-ownership where each owner holds an undivided interest in property, and upon death, their share passes to their heirs or beneficiaries rather than to the other co-owners.

The period of time during which the conditions of a contract are to be executed or are in effect.

A loan from a bank for a specific amount that has a specified repayment schedule and a fixed or floating interest rate.

In finance, a test refers to a criterion used to measure compliance with financial ratio requirements of indentures and other loan agreements, or an event of a price movement that approaches a support level or a resistance level established earlier by the market. A test is passed if prices do not go below the support or resistance level, and it is failed if prices go on to new lows or highs.

The value of money with respect to the time it is available, reflecting the concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

The principle that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. This core principle of finance holds that, provided money can earn interest, any amount of money is worth more the sooner it is received.

The legal evidence, such as a deed, that establishes one's right to ownership or control of a particular property or asset.

In bond trading jargon, 'ton' refers to $100 million.

The total value of a company's capital structure, including all forms of equity and long-term debt.

The aggregate of all costs, including fixed costs, semi-variable costs, and variable costs, incurred in the production of goods or services.

The difference between the actual labor costs incurred and the standard labor costs for the actual production achieved.

The difference between the actual materials costs incurred and the standard costs of those items, used to assess efficiency in material usage during production.

The excess of the proceeds realized on the sale of assets, including both inventory and noninventory goods, over their original purchase costs.

A lower-of-cost-or-market method of valuing inventory, which requires that inventory be reported at the lower of its historical cost or current market value.

A comprehensive and structured approach to organizational management that seeks to improve the quality of products and services through ongoing refinements in response to continuous feedback.

The activity of buying or selling goods and services among companies, states, or countries, often referred to as commerce.

The date on which a security transaction is agreed upon, to be settled at a later date. It is the date when the obligation to buy or sell a financial instrument is legally established.

A distinctive name, symbol, motto, or emblem that legally identifies a product, service, or company, distinguishing it from others in the marketplace.

An individual or entity that buys and sells goods, services, or financial instruments with the intention of making a profit.

The act of conducting a business agreement or exchange that is recorded as an entry in accounting books.

A transfer agent is an entity, typically a commercial bank, appointed by a corporation to maintain records of investors and account balances, handle issues of lost, stolen, or destroyed certificates, and manage the issuance and cancellation of company stock and bond certificates.

The price charged by individual entities within a multi-entity corporation on transactions among themselves, often used to allocate revenues and expenses among different divisions of the corporation.

A tax imposed by the government on the transfer of ownership of property, including gifts and estates, as transactions occur.

Transferee liability refers to the legal responsibility where an individual or entity may be held liable for another taxpayer's unpaid taxes due to the transfer of assets or property from the delinquent taxpayer to the transferee.

Transferred basis is the carryover of the basis of property from one entity to another, such as from a donor to a recipient, or from one business structure to another. This occurs in various transactions including gifts, transfers in trusts, transfers to controlled corporations, contributions to partnerships, and liquidating distributions from a corporation.

A company officer responsible for the management of the organization's finances, including the receipt, custody, investment, and disbursement of funds. In public companies, the treasurer also oversees the maintenance of a market for its securities and manages corporate borrowings.

A place or department where the funds and revenues of a government, corporation, or institution are managed and safeguarded.

A short-term government debt obligation issued at a discount from its face value, but pays no interest. It matures in a year or less and is used to finance the national debt.

A long-term government debt security issued by the U.S. Treasury, with a maturity period typically exceeding five years, and which pays periodic interest to the holder until maturity.

Direct financial obligations issued by the United States government to finance national debt and other government-related activities.

A government debt security issued by the U.S. Treasury that matures between one and ten years from issuance and earns periodic interest payments until maturity.

Stock that has been issued and subsequently reacquired by the issuing company. It may be held indefinitely, retired, reissued upon the exercise of stock options, or resold.

A long-term direction in which a market, commodity, or security is observed to move, which can be upward, downward, or sideways.

Trend Analysis is a form of horizontal analysis where percentage changes in related financial statement items are calculated over multiple periods to identify patterns of growth, decline, or stability.

A financial statement that lists the balances of all ledgers' debit and credit accounts to ensure that the total debits equal the total credits, indicating that the accounts are accurately balanced.

An agreement between a debtor and creditor that modifies the terms of a debt that is unlikely to be repaid under the original terms. The restructuring may include alterations to payment schedules, interest rates, or the transfer of assets as partial or full settlement of the debt.

A fiduciary relationship in which one party, known as the grantor, transfers the legal title of an asset to another party, called the trustee, who is entrusted with managing and disposing of the asset according to specific instructions for the benefit of a third party, the beneficiary.

A trustee is a person or entity legally appointed to manage and hold title to the assets in a trust on behalf of the beneficiaries, according to the terms of the trust document.

The rate at which inventory or assets of a business are replaced or sold within a given period.