What Is an APB Opinion? An APB opinion is an authoritative pronouncement issued by the Accounting Principles Board (APB). The board gave official opinions on various accounting issues that required clarification or interpretation. The APB listed 31 separate opinions during its existence. The American Institute of Certified Public Accountants (AICPA) created the APB in 1959
What Is an Appeal Bond? An appeal bond is an amount of money placed in holding while an appeal is being decided. An appeal bond is supplied by the appellant who is appealing the lower court’s judgment and is usually in the amount of the original judgment (though it could be more). An appeal bond
What Are Appellate Courts? Appellate courts, also known as the court of appeals, are the part of the American judicial system that is responsible for hearing and reviewing appeals from legal cases that have already been heard in a trial-level or other lower court. Persons or entities such as corporations that experience an unsuccessful outcome
What Is the Apple App Store? The Apple App Store is a digital distribution platform where individuals can buy and download digital software and applications. Apps—an abbreviation of the word “applications”—are software tools that provide additional functionality to an operating system. Apps purchased from the Apple App Store are stored in the iCloud—a cloud storage and
What Is an Annual Budget? An annual budget lays out a company’s projected income and expenses for a 12-month period. The process of creating an annual budget involves balancing out a business’ sources of income against its expenses. In many instances, particularly for non-individuals, an annual budget is expanded to include a balance sheet and cash flow
What Is an Annual ARM Cap? An annual ARM cap is a clause in the contract of an adjustable-rate mortgage (ARM), limiting the possible increase in the loan’s interest rate during each year. The cap, or limit, is usually defined in terms of rate, but the dollar amount of the principal and interest payment may
What Is an Annual Dividend (Insurance)? In the insurance industry, an annual dividend is a yearly payment paid out by an insurance company to its policyholders. Annual dividends are most commonly distributed in conjunction with permanent life insurance and long-term disability income insurance policies. Insurance companies may pay their customers an annual dividend when the company’s
What Is an Annual Exclusion? An annual exclusion is the amount of money that one person may transfer to another as a gift without incurring a gift tax or affecting the unified credit. This annual gift exclusion can be transferred in the form of cash or other assets. The Internal Revenue Service (IRS) announced the annual exclusion
What Is the Annual Investment Allowance (AIA)? The Annual Investment Allowance (AIA) is a form of tax relief for British businesses that is designated for the purchase of business equipment. The AIA allows a business to deduct the total amount of qualifying capital expenditure up to a certain limit from its taxable profits in a
What Is Annualization? To annualize a number means to convert a short-term calculation or rate into an annual rate. Typically, an investment that yields a short-term rate of return is annualized to determine an annual rate of return, which may also include compounding or reinvestment of interest and dividends. It helps to annualize a rate
