What Is Cash on Delivery (COD)? Cash on delivery (COD) is a type of transaction where the recipient pays for a good at the time of delivery rather than using credit. The terms and accepted forms of payment vary according to the payment provisions of the purchase agreement. Cash on delivery is also referred to
What Is a Cash or Deferred Arrangement (CODA)? A cash or deferred arrangement (CODA) is a method of funding any type of qualified profit-sharing, stock-bonus, pre-ERISA money-purchase pension plan, or a rural cooperative plan. According to the Internal Revenue Service (IRS), these are the only types of plans that can contain a Cash or Deferred
What Is a Cash-Out Refinance? A cash-out refinance is a mortgage refinancing option that lets you convert home equity into cash. A new mortgage is taken out for more than your previous mortgage balance, and the difference is paid to you in cash. In the real estate world, refinancing in general is a popular process for replacing
What Is the Cash Price? The cash price is the actual amount of money that is exchanged when commodities are bought and sold in the real world. The cash price might include other costs, such as fees incurred for transportation or storage of a commodity. Rather than buying and selling actual commodities, investors often trade
What Are Cash Awards? Cash awards are awards given to employees in the form of money or another asset, such as stock options, that can be turned in for cash. Cash awards are given to employees for meeting or exceeding goals for a special project or their regular job functions, on an anniversary date, or
What Is a Cash Balance Pension Plan? A cash balance pension plan is a defined-benefit pension plan with the option of a lifetime annuity. The employer credits a participant’s account with a set percentage of their yearly compensation plus interest charges for a cash balance plan. The funding limits, funding requirements, and investment risk are based
What Does Cash Basis Mean? Cash basis refers to a major accounting method that recognizes revenues and expenses at the time cash is received or paid out. This contrasts accrual accounting, which recognizes income at the time the revenue is earned and records expenses when liabilities are incurred regardless of when cash is received or
What Is a Cash Basis Loan? A cash basis loan is one in which interest is recorded as earned when payment is collected. Ordinarily, interest income is accrued on loans, as regular payment of both principal and interest is assumed. However, in the case of nonperforming loans (or loans gone bad), continuing payments are doubtful.
What Is a Cash Budget? A cash budget is an estimation of the cash flows of a business over a specific period of time. This could be for a weekly, monthly, quarterly, or annual budget. This budget is used to assess whether the entity has sufficient cash to continue operating over the given time frame. The
What Is a Cash Charge? A cash charge is a charge against a company’s earnings that is accompanied by a cash outflow. Key Takeaways A cash charge is a charge against a company’s earnings that reduces net income and is accompanied by a cash outflow.They are often linked to cash payments facilitating restructuring, downsizing, and general efforts
