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

Category: Finance Dictionary

ACCRUAL BASIS

A general accounting method that reports income when it is earned and expenses when they are incurred. See also CASH BASIS.

ACQUISITION INDIGESTION

The terms of a large scale purchase of a company outlining legal and financial expectations when there will be a downscaling of positions and technologies that will keep the shareholders happy and

ACTIVATED SLUDGE

When sewage mixes with bacteria and portozoa leading to oxidation. It reduces pollution.

ACTUALS

A physical commodity or financial instrument. Physical items are delivered to the buyer before expiration dates. AKA cash commodity or physicals.

ADAPTABILITY

The way a company or entity reacts to change. It requires learning and competition.

ACTIVITIES, INTERESTS, OPINIONS (AIO)

The individuals lifestyle choices used to make a market profile. When added with demographic information buying behavior is determined. AKA attitudes, interests, and opinions. Refer to values adn life styles.

ACCOMPLISHED

A skilled person in a speficic area. Or the past tense of accomplish.

ACCOUNTING CONTROL SYSTEM

The ways a company control their accounting practices. The goal is to follow rules and procedures, protect the company, and provide timely reports.

ACCRUED INTEREST

The interest on a BOND or LOAN that has been earned but not yet paid. Interest payable/receivable accumulates between COUPON payment periods; once a periodic interest payment is made, accrued interest reverts

ACTUARIAL

A term used to describe computations and calculations for mortality rates and pensions.

ADAPTATION

Changing a work to make it meet a certain need. Or changing an idea to make it work for a situation.

ACCESS TIME

The time delay between the request and its completion. AKA data access time.

ACCOUNTING COST

The value of resources that are used to complete an activity. Refer to economic cost.

ACCRUED REVENUE

Profit earned in current period but will be collected in the next period. AKA unrealized revenue.

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