Ability To Repay
What is 'Ability To Repay' An individual's financial capacity to make good on a debt. Specifically, the phrase "ability to repay" was used in the Explaining 'Ability To Repay' The purpose of this legislation and the "ability to repay" standard was to prevent lenders from employing the same loose lending criteria used during the...
Abandonment
What is 'Abandonment' Abandonment is the act of surrendering a claim to, or interest in, a particular asset. In securities, abandonment is the permitted withdrawal from a forward contract that is made for the purchase of deliverable securities. In many instances, an option may not be worthwhile or profitable to exercise, so the purchaser of the option...
Absorbed Account
What is 'Absorbed Account' An account that has been combined or that has merged with another related account. Accounts are often absorbed into existing accounts as a way of simplifying the accounting process. Once an account has been absorbed the original account will cease to exist, although a paper trail will remain to show how funds have...
Assets under Management
DefinitionIn finance, assets under management, sometimes called funds under management, measures the total market value of all the financial assets which a financial institution such as a mutual fund, venture capital firm, or brokerage house manages on behalf of its clients and themselves. Assets under Management By definition, asset under management (AUM) is the aggregated market value of the...
Academy of Accounting Historians
DefinitionThe Academy of Accounting Historians, established in 1973, is a non-profit organization of scholars of accounting history. Academy of Accounting Historians What is 'Academy of Accounting Historians' A nonprofit organization that researches how accounting principles and rules have changed over time. The Academy of Accounting Historians was created in 1973 and publishes journal and research papers throughout...
Abstract Of Title
DefinitionA property abstract is a collection of legal documents that chronicle transactions associated with a particular parcel of land. Generally included are references to deeds, mortgages, wills, probate records, court litigations, and tax sales—basically, any legal document that affects the property. Abstract Of Title What is 'Abstract Of Title' A brief history of the titles for a...
Absolute Value
What is an 'Absolute Value' An absolute value is a business valuation method that uses discounted cash flow analysis to determine a company's financial worth. The absolute value method differs from the relative value models that examine what a company is worth compared to its competitors. Absolute value models try to determine a company's intrinsic worth based...
Abandoned Property
What is 'Abandoned Property' Assets such as cash, stocks, bonds, mutual funds, uncashed checks, land, life insurance policies and the contents of safe deposit boxes that have been turned over to the state after several years of inactivity. Some states hold onto such property and allow the original owners and heirs to claim it indefinitely. In other...
Abandonment And Salvage
Abandonment and salvage are two ways to deal with property. Abandonment is the process of giving up a property, while salvage is the process of taking control of a property. Both have benefits and drawbacks that must be considered before making a decision. This guide will explore both options in greater detail, as well as offer some tips on...
Above Water
What is 'Above Water' 1. Refers to the condition of a company's asset when its actual value is higher than the book value used in its financials. Explaining 'Above Water' 1. Generally, the book value of an asset listed in a company's balance sheet cannot be adjusted according to Generally Accepted Accounting Principles (GAAP). Should...