What Is an Accounts Receivable Subsidiary Ledger? An accounts receivable subsidiary ledger is an accounting ledger that shows the transaction and payment history of each customer to whom the business extends credit. The balance in each customer account is periodically reconciled with the accounts receivable balance in the general ledger to ensure accuracy. The subsidiary
What Is an Account Statement? An account statement is a periodic summary of account activity with a beginning date and an ending date. The most commonly known are checking account statements, usually provided monthly, and brokerage account statements, which are provided monthly or quarterly. Monthly credit card bills are also considered account statements. Key Takeaways
What Are Accounts Uncollectible? Accounts uncollectible are receivables, loans, or other debts that have virtually no chance of being paid. An account may become uncollectible for many reasons, including the debtor’s bankruptcy, an inability to find the debtor, fraud on the part of the debtor, or lack of proper documentation to prove that debt exists.
What Is the ACCRA Cost Of Living Index? The ACCRA Cost of Living Index is a dataset containing key living costs compiled by the Council for Community and Economic Research. Economists can use the index to make an apples-to-apples comparison of the cost of living between two different urban areas in the United States. Understanding
What Is an Accredited Asset Management Specialist (AAMS)? The Accredited Asset Management Specialist (AAMS) is a professional designation awarded by the College for Financial Planning to financial professionals who complete a self-study program, pass an exam, and agree to comply with a code of ethics. Successful applicants earn the right to use the AAMS designation
What Does Accredited in Business Valuation Mean? Accredited in Business Valuation (ABV) is a professional designation awarded to a certified public accountant (CPA), who specializes in calculating businesses’ value. The ABV certification is overseen by the American Institute of Certified Public Accountants (AICPA). It requires candidates to complete an application process, pass an exam, meet
What Is an Accredited Investor? An accredited investor is an individual or a business entity that is allowed to trade securities that may not be registered with financial authorities. They are entitled to this privileged access by satisfying at least one requirement regarding their income, net worth, asset size, governance status, or professional experience. In
What Is an Accreting Principal Swap? An accreting principal swap is a derivative contract in which two counterparties agree to exchange cash flows—usually a fixed rate for a variable rate, as with most other types of interest rate or cross-currency swap contracts. However, in this case, the notional principal amount increases over time on a
What Is Accretion? Accretion is the gradual and incremental growth of assets and earnings due to business expansion, a company’s internal growth, or a merger or acquisition. In finance, accretion is also the accumulation of the additional income an investor expects to receive after purchasing a bond at a discount and holding it until maturity.
What Is an Accretive Acquisition? An accretive acquisition increases the acquiring company’s earnings per share (EPS). Accretive acquisitions tend to be favorable for the company’s market price because the price paid by the acquiring firm is lower than the boost that the new acquisition is expected to provide to the acquiring company’s EPS. As a
