by Action Tax | Glossary
GAAP Abbreviation for generally accepted accounting principles. GAAP, by definition, have been given formal recognition, or authoritative support. GAAS Abbreviation for generally accepted auditing standards. GAAS, by definition, have been given formal recognition, or...
by Action Tax | Glossary
F.O.B. Shipping term meaning “free on board” to inform the purchasers of the location at which they become responsible for the shipping charges. For example, F.O.B. Toronto means the vendor pays the charges to Toronto’s freight yard and the purchaser...
by Action Tax | Glossary
Early Withdrawal The removal of funds from a fixed-rate investment before the maturity date or from a tax-deferred investment account before a predetermined time. Earned Income The sum of income pertaining to wages, salaries, tips, self-employed net earnings and any...
by Action Tax | Glossary
Debit An entry recording an increase to an asset or expense or a reduction to a liability, revenue or owner’s equity. Debits are recorded in the left-hand column of an account or a two-column book. Opposite of credit. Debit Card A card issued by a bank that can...
by Action Tax | Glossary
CAPS A limit on how much the interest rate can change either at each adjustment or during the life of the mortgage, e.g., “2/6” equates to 2% per year and 6% over life of loan. Cafeteria Employee Benefit Plan A plan offering a variety of benefit options...
by Action Tax | Glossary
Bad Debts Accounts receivable that are uncollectible used in accrual method accounting. Balance Amount arrived at by adding all debits and subtracting all credits to ensure total debits equal the total credits. Balance Sheet Statement, at a particular point in time,...
