Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: C

CITIZENSHIP TEST

An IRS test ensuring that a person listed as a dependent on a tax filer’s return is also a citizen. The person must meet certain criteria including being a natural-born or naturalized

CLASS OF ACCOUNTS

There are five major categories of accounts: (1) Assets, (2) Liabilities, (3) Net assets, (4) monies, and (5) Expenditure. These of these categories of accounts are divided into account groups and subgroups.

CLASSIFIED BALANCE SHEET

Similar assets and liabilities grouping together on one balance sheet by combining the total number of assets and liabilities.

CLEAN SURPLUS CONCEPT

Concept accepted that a firm’s income statement will exclude all gains or losses related directly to equity, and only show all other non-equity-based gains and losses.

CLEARING CYCLE

A period of two to five days, used for presenting local checks or drafts that a payee bank’s customer deposits for payment at the drawn-upon bank. The proceeds are then credited to

CLIQUET OPTION

An OVERTHECOUNTER COMPLEX OPTION that allows the buyer to lock in gains at prespecified evaluation intervals if the option is INTHEMONEY at such points; gains are not relinquished if the market subsequently

CLOSELY HELD ACCOUNT

A method for investments and securities used by a business or corporation owned by specific set of people.

CLOSING QUESTION

A final question asked by a salesperson to determine the willingness of the prospect to discuss making a definitive purchase.

COAL

Combustible mineral substance found in large deposits. It is considered to be a fossil fuel, being formed from plants that have been fossilized through oxidation. The end result is a black, hard

CODING

1. Converting text as an encoded or unreadable form from one symbolic form into another. Refer also to encryption. 2. Converting into a numerical form for reporting and statistical use. Typically involves

COLIFORM BACTERIA

Group of gram-negative bacteria that grow at elevated temperatures, found in the intestinal tract and, therefore, in the feces of humans and other animals. The most common is escherichia coli or E.

COLLATERALIZED LOAN OBLIGATION (CLO)

Asset backed security (ABS), structured like a collateralized bond obligation (CBO). Instead of its bonds, it is based on a bank’s portfolio of personal loans.

COLUMN

1. Vertically-scoped area, block or section of printed text; separated from other blocks or sections by either a blank space or a fine-ruled line. A construct in a publication such as a

COMMERCIAL AND INDUSTRIAL LOAN

When a business gets a loan. They are created to help with working capital or expansion. It is short term and must have collateral.

COMMISSIONER’S VALUES

A graph of the value securities that the national association of insurance commissioners puts out annually. It shows security values for the company on its balance sheet.

COMMON COST

A firms expense over the whole process that can’t be placed in one department.

COMMONALITY

The difference between machines that allows interchangeablility. They must be used either together or seperate.

COMPANION ROOM

Complimentary rooms to guests based on the rooms bought by a group. AKA comp room.

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