Glossary

Abbreviation for generally accepted accounting principles. GAAP, by definition, have been given formal recognition, or authoritative support.

Abbreviation for generally accepted auditing standards. GAAS, by definition, have been given formal recognition, or authoritative support.

Journal in which transactions are recorded for which specific journals are not provided. For example: adjustments and corrections. In a small operation the general journal may be the only book of original entry.

All the financial accounts and statements of a business, including debits, credits and balances.

An authorized agent of a partnership and of all other partners for all purposes within the scope and objectives of a business.

A voluntary transfer of assets, or property, with no compensation.

A tax levied on assets transferred from one person to another. This tax is paid by the donor.

The offering of financial incentives or benefits to persuade an older employee to retire early.

Benefits given to a valued employee to persuade him or her to remain with the company.

A benefits package given to top executives who are laid off due to a corporate buyout, or takeover.

The difference between going-concern value and tangible asset value. Tangible assets include identifiable intangible assets with values that can be separately determined.

A debt security issued by the U.S. government: two common types are savings bonds and marketable securities.

A period of time after the due date of a payment during which the overdue payment may be made without penalty, or lapse, in contractual obligations.

The total dollar value of a person's assets at the time of death, before taxes and other debts.

Gross income is the total of all receipts and gains minus the inventory cost of the business in a given time period. For example, people who use the barter system are required to include whatever they've bartered for as part of their gross income.

Total monthly income from all sources before taxes and other expenses.

A life insurance policy that insures a group of people. This type of policy is often provided as an employee benefit.

An individual who has legal responsibility for a minor child, or a legally incapacitated adult.