Abandonment: Abandonment is defined as the voluntary surrender of property which may

either be owned or leased, without naming a successor as owner or tenant. The property
may, in such a case, be reverted to a person holding prior interest. In cases, where no owner
is apparent, the property will thereon be reverted to the state.

ABC analysis: A term used in materials management, ABC analysis is used to defines an
inventory categorization technique. It classifies inventory items in terms of importance.
This allows the business to place greater emphasis on higher dollar value items or the "A"
items than on lesser dollar value items also known as the "Bs". The "Cs" are considered
the least important items and thus receive the least amount of time and attention.

Ability to pay: The explanation for this term, depends upon its field of use, let's look at the
different definitions it holds in the following:

Banking: The ability to pay or the ability to service in the banking terminology refers to
the borrower's ability to meet principal and interest payments out of earnings on the
long term basis.

Industrial relations: The ability of an employer, to meet a union's financial demands from
the operating income of the business.

Securities: This refers to the municipal bonds and takes into account the issuer's present
and future ability to generate enough tax revenue to meet its contractual obligations.
This is done after taking into account all factors concerned with municipal income
and property values.

Taxation: In taxation, ability to pay is a terminology which defines the concept that tax
rates should vary with levels of wealth or income.

Above-the-line: A marketing terminology, the term above-the-line refers to marketing expenditure

on advertising in media such as press, radio, television, cinema, and the Internet, on which
a commission is usually paid to an agency.

Absolute advantage: This is an economic terminology that refers to the advantage of a nation or
economic region that is able to produce a good or service more efficiently using the same
amount of resources than a second nation or region.

Absorbed account: An account that been combined with related accounts in the preparation of a
financial statement and has, therefore, lost its separate identity.

Absorbed business: A business or a company that has been merged into any other.

Absorbed costs: Absorbed costs are the indirect costs associated with the manufacturing of a
product.
Abstract: The notes or a concise summary of the transactions affecting the property. This is made
by a title examiner based on his examination of the land records. A binder is produced by
the title agency from the information in the abstract.

Abusive tax shelter: An abusive tax shelter is a term used to denote a tax shelter where a business
organization or an individual illegally claim to avoid paying taxes.

Access bond: Access bond is a type of mortgage that permits borrowers to take out loans against
extra capital paid into the account

Accessory goods: These are goods which are required in the day-to-day commercial operations
required to conduct a business. They include things like office copiers, automobile wheel
balancers, air compressors etc.

Account
Definition #1: A record of the business transactions is referred to as accounts.

Definition #2: An account is a contract written or unwritten arrangement, to purchase and

take delivery with payment to be made later.

Accounting cost: In business, accounting cost or cost accounting is the cost of maintaining and
checking the business records of a person or organization and the preparation of forms and
reports for financial purposes. It is also used to refer to the aggregation of material, labor
and overhead costs to allocate them to individual products.

Accounting exposure: A change in an accounting statement entry values of a business as a result

of a change in currency exchange rates is known as accounting exposure.

Accounting insolvency: Accounting insolvency occurs when total liabilities exceed total assets in
the balance sheet of a business. This, however, does not equate to bankruptcy as the
individual or organization may still be able to make monthly payments. In certain
situations, the creditors may force the business with accounting insolvency to restructure
payments or declare bankruptcy.

Accounts payable: This standard accounting term used across all businesses refers to the liabilities
or the bills to be paid as part of the normal course of business. When businesses receive
goods or services from a vendor, they usually receive an invoice. Until they pay off the
amount specified in the invoice, it is recorded as part of "Accounts Payable" in the balance
sheet.

Accounts receivable: Accounts receivable is a business asset and refers to the debts owed to the
business.

Acknowledgment: The confirmation by a party to the authorized officer of the court or notary
public, when executing a legal document signifying that this is the signature and it is a
voluntary act.