T – Z
Tangible Asset - ASSETS having a physical existence, such as cash, land, buildings, machinery, or claims on property, INVESTMENTS, or goods in process.
Tax - Charge levied by a governmental unit on income, consumption, wealth, or other basis.
Tax Year – The period used to compute a taxpayer’s TAXABLE INCOME is known as a tax year. It’s an annual period that is either a calendar year, FISCAL YEAR, or fractional part of a year for which the return is made.
Taxable Income – Taxable income is generally equal to a taxpayer’s adjusted GROSS INCOME during the TAX YEAR less any allowable EXEMPTIONS and deductions.
Term Loan - Loan for a specified time period.
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.
Total Gain - Excess of the proceeds realised on the sale of either STOCK or non-stock goods.
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.
Transferred Basis – A transferred basis is the basis of property in the hands of a transferor, donor or GRANTOR. In this sense a prior owner’s basis in the property is transferred to the taxpayer. Transferred basis occurs in the following transactions: GIFTS, transfers in TRUSTS, certain transfers to controlled companies, contributions to PARTNERSHIPS and LIQUIDATING distributions from a company.
Treasury Stock - STOCK reacquired by the issuing company. It may be held indefinitely, retired, issued upon exercise of STOCK OPTIONS, or resold.
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.
Trust - Ancient legal practice where one person (the GRANTOR) transfers the legal title to an ASSET, called the principle or corpus, to another person (the TRUSTEE), with specific instructions about how the corpus is to be managed and disposed.
Trustee - Person who is given legal title to, and management authority over, the property placed in a TRUST.
Unaudited Financial Statements - FINANCIAL STATEMENTS which have not undergone a detailed AUDIT examination by an independent ACCOUNTANT.
Unearned Income - Payments received for services which have not yet been performed.
Unrestricted Funds - Resources of a not-for-profit entity that have no restrictions as to use or purpose
Valuation Allowance - Method of lowering or raising an object’s CURRENT VALUE by adjusting its acquisition cost to reflect its market value.
Variable Rate Loan - Loan whose INTEREST rate changes over its life in relation to the level of an index.
Variance - Deviation or difference between an estimated value and the actual value.
Venture Capital - Investment company whose primary objective is capital growth. New ASSETS invested largely in companies that are developing new ideas, products, or processes.
Vesting - Point at which certain benefits available to an employee are no longer contingent on the employee continuing to work for the employer.
Warrant - Option to purchase additional SECURITIES from the issuer.
Wash Sale – A wash sale occurs if STOCK or SECURITIES are sold at a LOSS and the seller acquires substantially identical STOCK or SECURITIES 30 days before or after the sale. STOCK or SECURITIES for this purpose includes contracts or operations to acquire or sell STOCK or SECURITIES. Losses incurred in a wash sale cannot be deducted. It does not matter if the total 60 day period begins in one tax year and ends in another. However, the disallowed loss is not permanently lost. Instead, the basis in the newly acquired STOCK or SECURITIES is the same basis as of the STOCK or SECURITIES sold, adjusted by the difference in price of the STOCK or SECURITIES.
Withholding - Amount withheld or deducted from employee salaries by the employer and paid by the employer, for the employee, to the proper authority.
Withholding Allowance – Each taxpayer is allowed to claim a withholding allowance, which exempts a certain amount of wages from being subject to WITHHOLDING. The allowance is designed to prevent too much taxes being withheld from a taxpayers wages.
Working Capital - Excess of CURRENT ASSETS over CURRENT LIABILITIES.
Work in Progress - STOCK ACCOUNT consisting of partially completed goods awaiting completion and transfer to finished STOCK.
Yield - Return on an INVESTMENT an investor receives from DIVIDENDS or INTEREST expressed as a percentage of the cost of the SECURITY.
Yield to Maturity - Rate of return on a SECURITY to its maturity, giving effect to the stated INTEREST rate, accrual of discount, or AMORTISATION of PREMIUM.
