Terms with Category Financial Banking

  • Acceleration Clause Bank,
    • A provision within a document that explains how the lender expects payment for a loan, in due haste.
  • Account Agreement Bank,
    • An agreement that you sign and which lists your rights and responsibilities and the bank's rights and responsibilities for the bank account.
  • Accounting Method Bank,
    • The method used by a business or individual to keep records. Most individuals and small businesses use the cash method, although businesses that maintain inventory are required to use the accrual method. See also "Accrual Method" or "Cash Method."
  • Accounting Period (AP) Bank, Important,
    • The time period used in a set of accounting books or financial statements, often 12 months.
  • Accounts Payable (AP, A/P) Bank,
    • Money owed by a business for goods and services received.
  • Accounts Receivable (AR, A/R) Bank, Important,
    • Money owed to a business by purchasers of goods and/or services.
  • Accrual Method Bank,
    • Business accounting in which you report income in the year you earned it and expenses in the year you incur them, rather than reporting income and expenses when you receive payment or when you pay the expenses. Under this method, if you built a deck and billed the client in December 1999, the amount you charged would be reported in 1999 as income even if you didn't get the payment until January 2000. If you own a business that maintains an inventory, you are required to use the accrual method.
  • Accrue Bank,
    • To gather together an amount often over a period of time.
  • Accrued Interest Bank,
    • Interest which has already been earned but has not yet been paid.
  • Accumulation Period (AP) Bank, Important,
    • The period where an investor continues to put money into his or her investment(s).
  • Acid-Test Ratio Bank,
    • A ratio that determines the liquidity of a company without requiring the company to sell assets or inventory.
  • Acquiring Financial Institution Bank,
    • Merchants must maintain an account with an acquiring financial institution to receive credit for credit card transactions. Daily credit card totals are deposited into the merchant's account minus any fees.
  • Acquisition Fee Bank,
    • A fee charged by some leasing companies for originating the loan, just as mortgage lenders charge points as an origination fee. This fee is often not specified in a contract, but rolled into the capitalized cost when calculating monthly payments.
  • Active Income Bank,
    • Active income refers to wages, tips, and profits from your business or employment that you partake in. It also includes portfolio income such as interest and dividends, but you cannot usually offset active income with passive losses.
  • Active Participant Bank,
    • Actively enrolled in an employer's retirement plan.
  • Actuarial Table Bank,
    • A table used in actuarial science that outlines the statistical probability that an individual of a specific age and sex will die within a year.
  • Actuary Bank,
    • An individual who assesses the mechanisms, mathematics and complexities of risk and uncertainty.
  • Add-on Interest Bank,
    • Interest that is computed at the beginning of the loan, then added to the principal, so that all must be repaid, even if the loan is paid off early.
  • Additional Principal Payment Bank,
    • Extra money included with a loan payment to pay off the amount owed faster. Over time, this practice reduces the amount of interest paid.
  • Adjusted Balance Bank,
    • A method used by some card issuers in which they subtract all payments made during the month, then add the finance charges.
  • Adjusted Basis Bank,
    • The amount you use to determine your profit or loss from a sale or exchange of property.
  • Adjusted Cost Basis Bank,
    • The amount paid for an item, plus the amount paid for improvements, minus losses and depreciation. When the owner sells the item, the difference between the sales price and the adjusted cost basis is the profit or loss.
  • Affinity Card Bank,
    • A credit card (usually Visa or MasterCard) that has a promotion arrangement with an affiliated organization (often a charity or non-profit group). The logo of the group appears on the card and the group usually gets a percentage of the sales made on the card.
  • Agency (agcy) Bank,
    • A relationship between two parties -- a client and an agent -- in which the agent represents the client in transactions with a third party.
  • Agency Closing Bank,
    • The use of a title company to supervise the meeting where the property is transferred and mortgage is settled.
  • Agent (agt) Bank,
    • A person who acts on behalf of another. In real estate, an agent is a person who conducts transactions on behalf of sellers and sometimes buyers.
  • Air Miles Bank,
    • One of the most popular rewards issued by airline-affiliated co-branded cards. Air miles are earned with every use of the card, and then transferred monthly to the cardholder's account with that airline.
  • Alimony Bank,
    • Monthly payments received by an ex-spouse. Payments must be received continuously for one year to be counted toward qualifying income for a loan.
  • Alternative Minimum Tax (AMT) Bank,
    • This tax primarily affects high-income taxpayers who shelter some of their income from tax through certain tax preference items or deductions. It is often referred to in tax publications as AMT and, if your income meets the limit, you have to recalculate your tax due based on the separate alternative minimum tax rates and tables.
    Form T691.
  • American Express Company (AMEX, AXP) Bank, Important,
    • A corporation known for its credit card business.
Compare. Calculate. Apply today.
Compare Mortgage RatesMortgage CalculatorsApply for a Mortgage