What Is a Deferred Interest Bond? A deferred interest bond, also called a deferred coupon bond, is a debt instrument that pays all of its interest that has accrued in the form of a single payment made at a later date rather than in periodic increments. Key Takeaways Deferred interest bonds pay their accrued interest
Deferred interest mortgages can offer homebuyers the advantage of lower monthly payments for a set amount of time. However, these loans also carry risks because the monthly payments increase. So, if you can’t afford the higher payments, you would risk defaulting on the loan and potentially losing your home. What Is a Deferred Interest Mortgage?
What Are Deferred Long-Term Liability Charges? The term deferred long-term liability charges refers to previously incurred liabilities that are not due within the current accounting period. These items are commonly shown on a company’s balance sheet as a single line item with other forms of long-term debt obligations. Deferred long-term liability charges are reported as
What Is a Deferred Load? A deferred load is a sales charge or fee associated with a mutual fund that is charged when the investor redeems their shares, rather than when the initial investment is made. The advantage of a deferred load is that the full amount invested is used to buy shares, rather than
What Is a Deferred Month? In the commodities futures market, the deferred month futures contract is the contract whose expiration date is farthest in the future. For example, if a given futures contract has expiration dates in January, February, and March, the deferred month contract would be the one expiring in March. Key Takeaways A
What Is Deferred Revenue? Deferred revenue, also known as unearned revenue, refers to advance payments a company receives for products or services that are to be delivered or performed in the future. The company that receives the prepayment records the amount as deferred revenue, a liability, on its balance sheet. Deferred revenue is a liability because it reflects
What Is a Deficiency? A deficiency is the numerical difference between the amount of tax that a taxpayer, or taxpaying entity, reports on a tax return and the amount that the Internal Revenue Service (IRS) determines is actually owed. The term only applies to shortfalls and not to surpluses. Taxpayers are notified of deficiencies via
What Is a Deficiency Balance? A deficiency balance is the net difference between the amount a borrower owes on a secured loan and the amount the creditor receives after selling the collateral that secures the loan. Typical examples of when a deficiency balance might occur include after a lender repossesses a car because the borrower has
A deficiency judgment is a court ruling against a debtor who is in default on a secured loan, when the sale of the property that secured the loan fails to cover the debt in full. It allows the lender to collect additional money from the debtor to make up the difference. Key Takeaways A deficiency
What Is a Deficit? In financial terms, a deficit occurs when expenses exceed revenues, imports exceed exports, or liabilities exceed assets. A deficit is synonymous with a shortfall or loss and is the opposite of a surplus. A deficit can occur when a government, company, or person spends more than it receives in a given
