Below please find a definition of “Promissory Note”

Promissory Note: A promissory note is a written promise made by a party to pay off a certain amount of money at a specified date. This document often contains the deadline of payment and the interest fees as well.

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Below please find a definition of “Risk Contingency”

Risk Contingency: When pre-designed plans are organized to avoid emergency or disaster it is termed as a risk contingency plan. Many disasters can be avoided when a risk contingency plan is in effect.

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Below please find a definition of “Debt Security”

Debt Security: Any security that makes it obligatory for the loaned money to be repaid to the lender is termed as debt security.  Commercial bonds and notes are good examples of debt securities.

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Below please find a definition of “Trial Balance”

Trial Balance: Trial balance is an accounting method of entering all the debits and credits in a double-entry account book. It is common practice for companies to prepare trial balance periodically to make sure that the company’s bookkeeping system is free of errors and mathematically correct. Typically trial balance is prepared at the end of every reporting period.

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Below please find a definition of “Time Value of Money”

Time Value of Money: The time value of money is a concept that addresses the fact that the value of money will change over a period of time. According to this concept, a dollar that a person has today is worth a lot more than a dollar that the person might have in the near future. This explanation stems from the fact that the dollar in receipt today can earn interest up until the time the future dollar is received.

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Below please find a definition of “Tax Benefit”

Tax Benefit: When a break in tax is granted with the intent of encouraging a particular type of commercial activity, it is termed as a tax benefit. This break is granted with the sole purpose of reducing a tax payer’s burden while engaging in the commercial activity. A very common example of a tax benefit is the energy tax credit that homeowners get for installing energy efficient systems in their homes.

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Below please find a definition of “Trademark”

Trademark: An object that has a distinguished characteristic and represents a company or a product after being legally registered is termed as a trademark. In other words, a trademark is a registered symbol that is formally used to identify the manufacturer of a product. A trademark could be represented by a name, a design, a logo, a phrase, an image or a combination of all these elements.

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Below please find a definition of “Special Journals”

Special Journals: As the name suggests, special journals are different from general journals. They are used to recording specific types of transactions that are similar in nature and occur repeatedly in a month. These special journals include the purchases journal, sales journals, cash receipts journals and cash disbursement journals.

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Below please find a definition of “Social Accounting”

Social Accounting: Social accounting process is associated with the collection, classification and extraction of information that are related to the social environment. It is imperative for an organization to create a report with regards to its missions, objectives and activities with the intent of measuring its progress and the social accounting procedures allows the organization to do just that.

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Below please find a definition of “Simple Capital Structure”

Simple Capital Structure: A simple capital structure comprises of only common stocks and nonconvertible preferred stocks. A simple capital structure does not consist of any outstanding securities that could be potentially dilutive.

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