A draft upon a particular account in a bank, in which the drawer or maker (the person who has the account and signs the check) directs the bank to pay a certain amount to the payee. (See also: negotiable instrument)
A list of all the ledger accounts used by a business and serves as an index to locate any particular account within the ledger.
A consumer liquidation bankruptcy proceeding in which the trustee sells any nonexempt property the debtor owns and distributes the proceeds to the debtor's creditors. At the end of a Chapter 7 case, many or all of the debtor's debts are discharged.
A group of independent corporations or other entities that join together to fix prices, control distribution, or reduce competition. For example, OPEC (Organization of Petroleum Exporting Countries) is an intergovernmental organization that represents 13 oil producing countries. Many private (nongovernmental) cartels operate behind a veil of secrecy, particularly because they are illegal under United States antitrust laws (the Sherman and Clayton Acts).
A routine and continuous involvement in an activity undertaken for the purpose of making profit. This can be accomplished with or without a physical or visible business entity.
Any business that transports property or people by any means of conveyance (truck, auto, taxi, bus, airplane, railroad, ship) for a charge. There are two types of carriers: common carrier (in the regular business of providing transport) and a private carrier (a party not in the business, but agrees to make a delivery or carry a passenger in a specific instance).
The current value of an asset, based on the total income expected to be realized over its economic life span. The anticipated earnings are discounted (given a lower value) so they take into account the time value of money.
1) Interest on a loan that is added to the principal balance. For example, interest may accrue on a student loan while the debtor is in school, which is then added to the principal on the loan. This results in the debtor having to pay interest on interest. 2) In accounting, interest that is not immediately expensed, but is instead considered an asset and amortized over time.
An expenditure for a capital asset that must be deducted from business income over more than one year, as opposed to an ordinary expense.
1) In the accounting context, it is where a cost is recorded as a a price of the asset rather than as an expenditure.
2) In the corporate context, it is a firm's "invested capital," meaning the business' corporate stock plus long-term debt plus retained earnings.
3) The total dollar value of a company's outstanding shares - better known as market capitalization. It is calculated by multiplying the total number of outstanding shares by the market value of one share.