1031 exchange (also called a tax-deferred exchange or a Starker exchange) refers to the ability of investors and organizations to replace one investment for a similar one instead of keeping the proceeds. For certain transactions, the exchange allows the investor or organization to defer capital gains taxes until the new investment is actually sold for the proceeds.
401(k) plans (also just called 401k) are types of retirement plans that an employer sponsors which allows employees to defer taxes.
401(k) plans (also just called 401k) are types of retirement plans that an employer sponsors which allows employees to defer taxes.
A/R is the abbreviation for accounts receivable.
[Last reviewed in June of 2022 by the Wex Definitions Team]
AB trust (also called a bypass trust or a credit shelter trust) is a tool often used by well-off married individuals to legally maximize their estate tax exemptions.
Depreciation is the reduced value of something over time. Accelerated depreciation is any loss of value where the business depreciates (i.e., accounts for the value loss of a fixed asset in tax filings) at a greater proportion of an asset’s expected lifetime value loss earlier in its life.
Accord broadly means agreement but has several specific legal uses.
Accounts payable is an accounting term that describes the short-term debt that a company owes to its suppliers or vendors for products or services received before a payment is made, typically less than a year, such as within 30 or 60 days. Accounts payable may be abbreviated to “AP” or “A/P.” Accounts payable may also refer to a business department of a company responsible for organizing payments on such accounts to suppliers.
Accounts receivable (abbreviated AR or A/R) is an accounting term, which refers to the money owed to a business by another business or individual in exchange for property or services that were provided on credit. In other words, accounts receivable stands for the money that have not been paid to a business.
