Accumulated Adjustment Account – Explained

by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting

What is an Accumulated Adjustment Account?The Accumulated Adjustments Account (AAA) is a balance sheet account that contains the net (post-tax) retained earnings of a corporation that is taxed under Subsection S of the Internal Revenue Code. Profits of the S...

Average Annual Current Maturities – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What are the Average Annual Current Maturities?Basically, the current maturities of long-term debt tells the period of time that the bond has until its maturity date. Usually, it indicates the part of the long-term debt that will mature or come due in the next 12...

Amortizing Swap – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is an Amortizing Swap?An Amortizing Swap is an instance of interest rate swap in which the notional principal amount decreases during the life cycle of the swap. Usually, two parties are involved in an amortization swap deal, there is also an agreed schedule or...

Advertising Appropriation – Explained

by TheBusinessProfessor | Feb 23, 2025 | Advertising

What is an Advertising Appropriation?Advertising Appropriation refers to the total amount of money that an organization keeps aside strictly for marketing or advertising at a particular period of time. Since appropriation in itself is a sum of money allocated...

Adjusted Book Value – Explained

by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting

What is Adjusted Book Value?Book value, also known as theoretical book value, is a valuation process in which the total assets that a company has are deducted from intangible assets and liabilities. Adjusted Book Value, also known as modified book value, measures the...

Accumulation Option – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is an Accumulation Option?An Accumulation Option is a provision of life insurance policies that enables policyholders enjoy dividends on their policies through the reinvestment of dividends to earn interest. The accumulation option enhance accruing interest or...

Absolute Quota (Imports) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Global Business, International Law & Relations

What is an Absolute Quota?An absolute quota is the maximum amount of imports of commodities that is allowed into a country at a particular period of time. The two divisions of import quotas are absolute quotas and tariff quotas. Absolute quotas can further be divided...

Accelerated Bookbuild – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is Accelerated Bookbuild?An accelerated bookbuild is a method whereby the offering of new shares in the equity or capital market is done within a short period. The bookbuild of the offering is completed quickly, often within 48 hours or less. This method provides...

Annualized Income Installment Method – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is Annualized Income Installment Method?An Annualized Income Installment Method is a tax reporting method that helps taxpayers effectively and accurately estimate their taxes. This method calculates an employee’s (taxpayer’s) estimated tax and helps...

Acceleration Principle (Economics) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is the Acceleration Principle?An acceleration principle is an economic theory that explains the connection between a change in production rate and a change in capital investment. This economic concept explains investment behavior, how a change in investment...