What Is a Carryover Basis? A carryover basis is a method for determining the tax basis of an asset when it is transferred from one individual to another. A carryover basis is often used when one party leaves assets or property to another person as a gift. In this situation, the basis often remains the
What Is a Carryover Provision? A carryover provision—also known as a fourth-quarter deductible carryover—is a clause commonly found in health insurance contracts. The purpose of carryover provisions is to enable policyholders to reduce their out-of-pocket expenses in the following year by applying a portion of the current year’s claims against the next year’s deductible. Typically
What Is Carte Blanche? “Carte blanche” is a French term that means “blank document.” Carte blanche is commonly used in English to refer to a check that has been signed but does not have a dollar amount written in. The recipient of such a check then writes in whatever dollar amount he wants or needs.
A cartel is an organization created from a formal agreement between a group of producers of a good or service to control supply or to regulate or manipulate prices. A collection of independent businesses or countries that act together like a single producer, cartel members may agree on prices, total industry output, market shares, allocation
What Is a Carve-Out? A carve-out is the partial divestiture of a business unit in which a parent company sells a minority interest of a subsidiary to outside investors. A company undertaking a carve-out is not selling a business unit outright but, instead, is selling an equity stake in that business or relinquishing control of
What Is the Cost Accounting Standards Board (CASB)? The Cost Accounting Standards Board (CASB) is a U.S. federal government body that mandates consistency and uniformity in cost accounting activities for government grants and contracts. Established by Congress in 1970, the CASB was dissolved in 1980 but was permanently re-established in 1988. The CASB is a
What Is a Cascade Tax? A cascade tax or cascading tax refers to a system that imposes sales taxes on products at each successive stage in the supply chain from raw material to consumer purchase. Each buyer in the supply chain pays a price based on its cost, including the previous tax or taxes that
What Is Cash? Cash is legal tender—currency or coins—that can be used to exchange goods, debt, or services. Sometimes it also includes the value of assets that can be easily converted into cash immediately, as reported by a company. Understanding Cash Cash is also known as money, in physical form. Cash, in a corporate setting
What Is a Cash Account? A cash account with a brokerage firm requires that any securities transactions be payable in full from funds in the account at the time of the settlement. Short selling and buying on margin are thus prohibited in this type of account. The Federal Reserve’s Regulation T governs cash accounts and
What Is Cash Accounting? Cash accounting is an accounting method where payment receipts are recorded during the period in which they are received, and expenses are recorded in the period in which they are actually paid. In other words, revenues and expenses are recorded when cash is received and paid, respectively. Cash accounting is also
