Admin

Definition: Money that is owed, which is usually because it was previously borrowed.

Definition: A plastic, wallet-sized card you can use to pay for purchases at many stores. When you swipe it through the card reader at the checkout counter, the amount of your purchase is taken out of the bank account whose number is magnetically encoded on it. To confirm your identity, you will either be asked

See: Bond.

Definition: The average number of days’ sales that are owed to a company at any time. The calculation: 1. Compute Sales Per Day: Sales / 365 2. Compute Days’ Sales Outstanding: Ending Accounts Receivable / Sales Per Day If in the process of doing ratio analysis Accounts Receivable Turnover is calculated, it can be used

Definition: A feature of some preferred stock that entitles holders to receive dividends for all quarters that have been skipped. These dividends must be caught up before any dividends can be paid to holders of common stock.

Definition: The annual rate of interest that the company or government which issued the bond will pay on the amount it has borrowed (ie: the bond’s face value). The rate for an ordinary bond is printed on the bond and does not change for the life of the bond.

Definition: The total cost of buying and putting a piece of equipment or other asset into service. This cost is the initial value that a company records at the time the asset is purchased. If the asset is a type that loses value over time, this basis is reduced as depreciation is recorded.

Definition: The type of stock that corporations most often sell to raise money, which gives them several rights.

Definition: An asset a borrower promises that a lender may take if the borrower doesn’t pay back the loan.

Discussed under: Check.