|Posted on 17 October, 2016 at 12:27||comments (0)|
Term of the Day...minimum wage
The smallest hourly wage that an employee may be paid as mandated by federal law. Inflation and other factors necessitate periodic adjustments to the actual number.
Many people work at companies that only pay the minimum wage, which is generally not a living wage for most families in the United States.Usage Example
|Posted on 14 October, 2016 at 12:17||comments (0)|
Term of the Day...surety bond
After recent financial losses, the father began looking into surety bond investments to secure his financial future due to less market fluctuation.Usage Example
|Posted on 13 October, 2016 at 12:33||comments (0)|
Term of the Day...pure competition
A market characterized by a large number of independent sellers of standardized products, free flow of information, and free entry and exit. Each seller is a "price taker" rather than a "price maker".
The pure competition of the free market resulted in a happy customer base that was thriving with the price competition.Usage Example
|Posted on 12 October, 2016 at 12:41||comments (0)|
Term of the Day...royalty
A payment made for the use of property, especially a patent, copyrighted work, franchise, or natural resource. The amount is usually a percentage of revenues obtained through its use.
Everytime one of his songs is played or used in a movie, he receives aroyalty. Since it's such a famous song, money keeps flowing in.Usage Example
|Posted on 11 October, 2016 at 13:08||comments (0)|
Term of the Day...charge off
Accounts receivable that will likely remain uncollectable and will be written off. Charge offs appear as an expense on the company's income statement, thus reducing net income. In general, companies make an estimate of charge off expenses that might be incurred in the current time period based on past records as part of the process of estimating earnings.
Our accounts receivable department has utilized both written and oral communications to our customers resulting in an overall decrease in charge offs since the prior year.
|Posted on 10 October, 2016 at 12:22||comments (0)|
Term of the Day...interest income
The term that companies use on their income statement for reporting the interest earned on cash temporarily held in savings accounts, certificates of deposits, or other investments. Because the interest wasn't part of the original investment, they record it separately, as interest income.
On the monthly deposit statement they noticed they earned 4 dollars in interest income. It was only one percent, but it was still extra money.Usage Example
|Posted on 7 October, 2016 at 12:26||comments (0)|
Term of the Day...abatement
A reduction in or reprieve from a tax, debt or any other payment obligation. An abatement is sometimes included in a contract, for example abatement of rent in the event that a building is destroyed by fire, flood or other accident.
The city of Warrensburg offered a property tax abatement to entice new homebuyers and to boost the resale value of existing homes.Usage Example
|Posted on 6 October, 2016 at 12:23||comments (0)|
Term of the Day...buying on margin
A risky technique involving the purchase of securities with borrowed money, using the shares themselves as collateral. Usually done using a margin account at a brokerage, and subject to fairly strict SEC regulations.
You need to be very careful when you are buying on margin and make sure that you know what you are getting.Usage Example