All Finance terms definitions starting with the alphabet A

What is Attestation Ledger?

Definition of Attestation Ledger An attestation ledger is a reliable form of distributed ledger which provides evidence or a solid record of an agreement’s commitments and statements. Also, an application can use it to demonstrate that it is running on a genuine ledger device. Brief Explanation of Attestation Ledger This ledger consists of all types of […]

What is Automatic investment plan ?

Definition of Automatic investment plan The automatic investment plan is a program of investment that encourages investors for regular contribution into a fund of nominal amounts such as $30 per month at fixed intervals. Automatic deduction of funds is made from the investor’s paycheck or savings account and invested in a mutual fund or a retirement […]

What is Actual Contribution Percentage ?

Definition of Actual Contribution Percentage Actual Contribution Percentage (ACP) and Actual Deferral Percentage (ADP) tests are two of many nondiscrimination tests which a plan must meet to prove compliance with Internal Revenue Service (IRS) rules. These tests are performed to make sure that undue benefits are not provided in a plan to highly compensated employees […]

What is Activity Based Budgeting ?

Definition of Activity Based Budgeting Activity Based Budgeting is a budgeting method in which organizational operations through which costs are incurred in every functional area of that organization are documented and relationships among them are analyzed and defined. These budgets are not prepared by simply making adjustments in prior period budgets to incorporate impact of […]

What is Accounts Receivable Insurance ?

Definition of Accounts Receivable Insurance Accounts Receivable Insurance is offered to businesses by commercial insurers as a kind of credit insurance. It can also be available in kind of key buyer insurance or multi-buyer insurance i.e., a pool of receivables. This insurance safeguards an organization when its customers become unable to meet their obligations towards organization. […]

What is Accumulation Phase ?

Definition of Accumulation Phase The accumulation phase is a time period, which starts from the annuity investments and ends with the person’s retirement. It period can be defined as the working time of the person’s life period. The more the investor sets aside the funds/valuables and saves them, the higher returns he gets after retirement. […]

What is Acquirer ?

Definition of Acquirer It is a financial organization working as a bridge between the Banks/Financial Companies and the customers/consumers using credit or debit cards. In the recent times when everything has been modernized, merchants or shopping malls/stores have been forced to keep Debit/Credit Card business affiliations just to add other methods of payment along with cash […]

What is Acquisition Financing ?

Definition of Acquisition Financing Acquisition Financing is known for making capital through different means with the purpose of expanding the scope of business entity. Brief Explanation of Acquisition Financing It lets the enterprise to make the dynamics of assets and liabilities over time under conditions of different degrees of uncertainty and risks. Or it is a […]

What is Accumulation Unit ?

Definition of Accumulation Unit An Accumulation unit is a type of investment in which the invested money is not returned in the form of cash, but in the form of further investment and funds within the firm. Brief Explanation of Accumulation Unit In case of a unit trust, the cash or income is not returned […]

What is Adjusted Gross Income ?

Definition of Adjusted Gross Income Adjusted Gross Income is actually the measure of income which is calculated from your gross income. It is basically used to decide the amount of your income is taxable. A significant number of the necessities are certain, and an individual must look deliberately at the federal tax code to ensure […]