Author: Buy Khmer Book

Venture Capital:​ Venture Capital

Vendor:​ Supplier of goods or services of a commercial nature; may be a manufacturer, importer, or wholesale distributor.

Variance:​ Deviation or difference between an estimated value and the actual value.

Variable Rate Loan:​ Loan whose interest rate changes over its life in relation to the level of an index.

Variable Manufacturing Costs:​ Costs that increase or decrease in direct proportion to the number of units produced.

Variable Costs:​ Total costs that change in direct proportion to changes in productive output or any other measure of volume.

Variable Annuity:​ Life insurance ANNUITY CONTRACT whose VALUE fluctuates with that of an underlying securities PORTFOLIO or other INDEXof performance.

Value-Added Tax (VAT):​ Consumption TAX levied on the VALUE added to a product at each stage of its manufacturing cycle as well as at the time of purchase by the ultimate consumer

Value:​ How much money something is worth.

Valuation Allowance:​ Method of lowering or raising an object’s CURRENT VALUE by adjusting its acquisition cost to reflect its market value by use of a CONTRA ACCOUNT.

Valuation:​ The process of determining the PRESENT VALUE of a BOND based on the current MARKET INTEREST RATE.

Use of Professional Skepticism when Evaluating the Results of Testing:​ The AUDITOR must conduct the audit of internal control over financial reporting and the audit of the financial statements with professional skepticism, which is an attitude that includes a questioning mind and a critical assessment of audit evidence.

Unsecured Bond:​ A BOND issued on the general CREDIT of a COMPANY.

Unrestricted Funds:​ Resources of a not-for-profit entity that have no restrictions as to use or purpose.

Unrealized Profit (or Loss):​ PROFIT or LOSS that has not become actual.

Unrealized Loss or Gain on Long-Term Investments:​ A BALANCE sheet ACCOUNT for entering increases or decreases in the value of long-term investments.

Unlimited Liability:​ The responsibility of all the partners in a COMPANY for its DEBT.

Unit:​ Any division of quantity accepted as a standard of measurement or of exchange.

Unissued Stock:​ Shares of a corporation’s stock authorized in its charter but not issued.

Uniform Capitalization Rules:​ These are a set of rules intended to be a single comprehensive set of rules to govern the capitalization, or inclusion in INVENTORY of direct and indirect cost of producing, acquiring and holding property. Under the rules, taxpayers are required to capitalize the direct costs and an allocable portion of the indirect costs attributable to real and tangible personal property produced or acquired for resale. The obvious effect of the uniform capitalization rules is that taxpayers may not take current deductions for these costs but instead must be recovered through DEPRECIATION or AMORTIZATION.

Uniform Accountancy Act (UAA):​ The proposal for a new regulatory framework for the public accounting profession which was developed jointly by the AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS (AICPA) and the NATIONAL ASSOCIATION of STATE BOARDS of ACCOUNTANCY (NASBA). The new framework is intended to enhance interstate reciprocity and practice across state lines by CPAs, meet the future needs of the profession, respond to the marketplace and protect the public that the profession serves.

Unequal Cash Flows:​ Cash flow from an ASSET that may vary from one year to the next.

Unearned Discount:​ ACCOUNT on the books of a lending institution recognizing INTEREST deducted in advance and which will be taken into INCOME as earned over the life of the LOAN.

Underwrite:​ To assume the RISK of buying a new ISSUE of securities from the issuing CORPORATION or government entity and reselling them to the public, either directly or through dealers.

Undervalued:​ SECURITY selling below its LIQUIDATION value or the MARKET VALUE analysts believe it deserves.

Underlying Security:​ SECURITY that must be delivered if a put OPTIONS or call option contract is exercised.

More about Underlying Debt:​ MUNICIPAL BOND term referring to the debt of government entities within the jurisdiction of larger government entities and for which the larger entity has partial CREDIT responsibility.

Unaudited Financial Statements:​ FINANCIAL STATEMENTS which have not undergone a detailed AUDIT examination by an independent CERTIFIED PUBLIC ACCOUNTANT (CPA).

Unamortized Premiums on Investments:​ Unexpensed portion of the amount by which the price paid for a SECURITY exceeded its PAR VALUE.

Unamortized Bond Discount:​ Difference between the FACE VALUE of a BOND and the proceeds received from the sale of the bond by the issuing COMPANY, less whatever portion has been amortized, that is, written off to EXPENSE as recorded periodically on the PROFIT and LOSS statement.

Troubled Debt Restructuring:​ Agreement between DEBTOR and CREDITOR which amends the terms of a DEBT that has little chance of being paid in accordance with its contractual terms. The agreement may involve the transfer of ASSETS in full or partial satisfaction of the debt.

Trend:​ Long-term price or trading volume movements either up, down, or sideways, which characterize a particular MARKET, commodity or SECURITY.

Treasury Note:​ Intermediate-term obligation that matures one to five years from issuance and bears INTEREST.

Treasury Instruments:​ Direct financial obligations of the United States government.

Treasury Bond:​ Long-term obligation that matures more than five years from issuance and bears INTEREST.

Treasury Bill:​ Short-term obligation that bears no INTEREST and is sold at a discount.

Treasury:​ A place where private or public funds are controlled.

Treasurer:​ COMPANY officer responsible for the receipt, custody, INVESTMENT, and DISBURSEMENT of funds, for borrowings, and, if it is a public company, for the maintenance of a MARKET for its securities.

Transferee Liability:​ A person may be held LIABLE for another taxpayer’s delinquent taxes if:

1. The transferee received assets of the transferor-taxpayer; and
2. The transferor was INSOLVENT at the time or was rendered insolvent by that transfer or related series of transfers.

However the insolvency requirement does not apply to GIFT taxes. The transferee is only liable to the extent of the value of the property received from the transferor. Thus, transferee liability merely provides a means for the IRS to recover any assets the transferor-taxpayer attempts to transfer to avoid paying taxes.

Transfer Tax:​ Combined federal TAX on gifts and estates.

Transfer Price:​ Price charged by individual entities in a multi-entity COPORATION on transactions among themselves; also termed transfer cost.

Transfer Agent:​ Agent, usually a commercial bank, appointed by a COPORATION, to maintain records of stock and BOND owners, to cancel and issue certificates, and to resolve problems arising from lost, destroyed, or stolen certificates.

Transaction:​ The act of transacting, especially a business agreement or exchange; event or condition recognized by an entry in the book ACCOUNT.

Trader:​ Anyone who buys and sells goods or services for PROFIT; a DEALER or merchant.

Trademark:​ Distinctive name, symbol, motto, or emblem that identifies a product, service, or firm.

Trade Date:​ Date when a SECURITY transaction is entered into, to be settled on at a later date. Transactions involving financial instruments are generally accounted for on the trade date.

Trade:​ Buying or selling goods and services among companies, states, or countries, called commerce.

Total Quality Management:​ An organizational environment in which all business functions work together to build quality into the firm’s products or services.

Total Gain:​ Excess of the proceeds realized on the sale of either INVENTORY or non-inventory goods.

Total Capitalization:​ Capital structure of a COMPANY, including LONG-TERM DEBT and all forms of EQUITY.

Ton:​ BOND traders’ jargon for $100 million.

Title:​ The written evidence, such as a deed, that proves legal right of possession or control.

Tip:​ Information passed by one person to another as a basis for buy or sell action in a SECURITY.

Timing of Tests of Control:​ The AUDITOR must perform tests of controls over a period of time that is adequate to determine whether, as of the date specified in management’s report, the controls necessary for achieving the objectives of the control criteria are operating effectively.

Term Loan:​ Loan for a specified time period.

Term:​ Period of time during which the conditions of a CONTRACT will be carried out.

Tenancy-in-Common:​ Co-ownership of property. In a valid tenancy-in-common, a deceased co-owner’s title passes to his or her heirs without being included in the estate of the deceased co-owner.

Taxpayer Identification Number (TIN):​ Any individual or other taxable entity that is required to file a return, statement or any other document with the IRSmust indicate his (or its) taxpayer identification number. For an individual, the social security number is used, and if you do not have a social security number, the IRS will assign you a TIN. A federal or employer ID number is assigned to other types of entities and will use that as their TIN.

Taxable Municipal Bond:​ Taxable DEBT obligation of a state or local government entity, an outgrowth of the Tax Reform Act of 1986.

Taxable Earnings:​ The amount of an employee’s earnings subject to a TAX.

Tax Year:​ The period used to compute a taxpayer’s TAXABLE INCOME is tax year. It is an annual period that is either a calendar year , FISCAL YEAR or fractional part of a year for which the return is made.

Tax Shelter:​ Arrangement in which allowable tax deductions or EXCLUSIONS result in the deferral of tax on INCOME that would otherwise be payable currently.

Tax Lien:​ ENCUMBRANCE placed on property as security for unpaid taxes.

Tax Credit for the Elderly and Disabled:​ Taxpayers age 65 or older or those under 65 who are retired with permanent and total disability are eligible to claim a credit to reduce the amount of their tax liability. It is designed primarily to benefit those individuals who receive small amounts of retirement INCOME. Each taxpayer is allocated an initial base amount based on his or her filing status determining the credit. The base amount is then reduced by the amount of nontaxable income, or is phased out for taxpayers whose ADJUSTED GROSS INCOME exceeds certain levels.

Tax Court:​ The U.S. Tax Court is a legislative court functioning to adjudicate controversies between taxpayers and the IRS arising out of deficiencies assessed by the IRS for INCOME, GIFT, ESTATE, windfall profit and certain EXCISE TAXES. It has no jurisdiction over other taxes such as employment taxes. Various sales taxes and certain excise taxes.

Takeover:​ The act or an instance of taking control of something, especially by force.