Category: Finance Dictionary

An individuals ability to manage their disposable income to pay a tax or loan. This is called capacity and is a deciding factor in loan decision. It is also called the five

A company who can stay out of debt and economic trouble. This causes them to have a better credit rating and investors see them as well off. They will also be rewarded

A clear profit or advantage. There are no stipulations placed on them. Vested interest is another term for this.

The trace amounts of materials that are absorbed and retained by the body. This is measured by milligrams per kilogram of the individuals body weight per day. This is commonly called an

Something that is harder to understand for those with only basic knowledge on the topic.

This method of depreciaition helps companies to recover costs faster than through traditional straight line depreciation. Advantages of accelerated depcreiation including quicker recovery of cost and lower taxes.

the voluntary relinquishment of all rights, title, or claim to property that rightfully belongs to the owner of the property. Stocks, bonds or mutual funds held in a brokerage account where the

A principle in economics that those with more wealth should pay higher taxes. This balances those with a lesser income who cannot afford to pay as much.

An account that does not include detailed financial information but records the transactions of a full accounting period. Abbreviated accounts may be a definition of interest.

Liability that is determined to be against the public good or negiligent on behalf of a company or parties action. Any party that is assigned absolute liability may have to pay damages

Applied overhead is a definition that will be helpful here.

1. A misuse of anything. 2. Cruelty that causes harm to another.

Computing depreciation rates faster than the straight line option. The two methods are declining balance or taking the sum of the years digits as the depreciation rate. This results in a larger