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Takeover - The
purchase of one firm by another. Also called acquisition..
Tally sheet –
Refers to
is a form used for counting, i.e. a form on which the actual
quantities can be recorded on, especially helpful when conditions make
the likelihood of counting
errors possible such as counting inventory.
Tangible assets
- Assets which are physical in nature. Examples include
buildings, motor vehicles, plant and equipment, fixtures and
fittings. See Intangible assets .
Tangible
book value
–
This is
different from the actual book value as it deducts from the assets
book
value the intangible assets e.g. goodwill and patents etc.
Target –
Refers to
the goal that the entity or individual intendeds to achieve
and which they believed is
attainable, e.g. sales target, profit
target or completeion date.
Target
audience
- People who are potential buyers of a product or service.
Target
costing
– Refers to the method used in the analysis of product
design that involves estimating a target cost, via a desired
profit and sales price, and then designing the
product/service to meet that cost.
Target
income
– Refers
to the
amount of
income an organisation is trying to achieve during a
particular period. The specification of target income may be
based upon a desired rate of return on invested money (for
example, 20% return on investment) or a growth in earnings
per share (EPS).
Target
market
- The group of people for whom a particular product is
designed.
Target
price
– Refers
to the
expected market price for a product, given the company's knowledge of
its customers and competitors.
Tariff
-
A tax
applied on imports..
Tariff escalation
- The system whereby tariff rates increase the closer a
product is to the finished stage of production.
Tax –
Is a
charge imposed by a governmental body on personal
income, corporate income, estates, gifts, or other sources
to obtain revenue for the public good. Tax filing and
payment are legally enforceable.
Taxable -
Is when
goods or funds subject to taxation.
Taxable income
– Is used to refer to that income which has to be reported to the relevant government for the
calculating income taxes payable.
Tax
allowance
- An amount of income that can be earned tax-free. Tax
allowances vary according to a person's circumstances.
Tax
avoidance
– Is the payment of the least tax possible by using legal
tax planning opportunities such as estate planning. Tax
evasion in contrast, utilises illegal methods to achieve
this end.
Tax effect
- 1. the impact on taxes of a taxable revenue or expense
item. For instance, an interest expense itemized deduction
of $2000 will result in tax savings of $560 at the 28% tax
bracket. OR 2. general term describing the consequences of a
specific tax scenario with respect to a particular
tax-paying entity. Many factors are considered such as time
elements, projections and estimates of revenues, expenses,
deductions, acquisitions, disposals, and the like and their
relationship upon present and future tax liability.
Tax evasion
– Refers to the failure to pay taxes legally due a
governmental agency. There is a penalty for tax fraud based
on the underpayment of tax. Criminal prosecution also may
apply.
Tax
expenditures
- Tax provisions, such as exemptions and deductions from
taxable income and tax credits, that are designed to induce
market responses considered to be desirable. They are called
expenditures because they have the same effect as directly
spending money to induce the desired behaviour.
Tax haven
(low tax jurisdiction)
– Refers to a foreign country providing significant,
permanent tax breaks to individuals and companies operating
within it. In a tax haven country, foreigners may receive
income or own assets and pay very low taxes.
Tax incidence
-
The
location of the burden of a tax; that is, the identity of
the ultimate bearer of the tax.
Tax
indexing
– Is a method using a form of Indexation to decrease the
overall impact of the erosion of purchasing power in periods
of inflation and subsequent "bracket creep."
Tax loss
carried forward or backwards
– Is
used to refer to
a tax benefit that allows a firm or individual to subtract
any
losses in order to be able to reduce any tax liability they
have.
Tax
planning
- The systematic analysis of differing tax options aimed at
the minimization of tax liability in current and future tax
periods.
Tax rate
- The percentage rate at which a tax is levied on a
particular activity.
Tax-related incomes policy (TIP)
- Tax incentives for labor and management to encourage them
to conform to wage and price guidelines.
Tax return –
Is the general name of the form used to file taxes
payable to a federal or local government.
Tax
shelter
- Refers to legal
methods that a taxpayer is allowed to use in order to lower
a tax liability. An
example of this the use of amortisation or depreciation of assets.
Tax (financial) year – Is the period that a tax return covers. i.e. In Hong Kong it is from 1st
April to 31st March.
Taylor rule - A rule adopted by a central bank for setting the rate of
interest. It will raise the interest rate if (a) inflation
is above target or (b) real, national income is above the
sustainable level (or unemployment is below the equilibrium
rate). The rule states how much interest rates will be
changed in each case. .
T-Bill
- Treasury bill.
Team building
- The process designed to improve the effectiveness and
motivation of people working together in groups.
Team working
- Employees working in small groups with a common aim.
Technical analysis – refers to a method of predicting stock prices based on historical
price and trading patterns; it is not concerned with the
financial statistics. It uses charts (e.g., head and
shoulders, rising bottoms) to identify trends in the market
or individual securities.
Technological change
- Any change in the available techniques of production.
Technological knowledge
- Society's understanding of the best ways to produce goods
and services.
Technological unemployment
– Unemployment caused by technological changes reducing the
demand for labour in some specific tasks.
Technology
- The method for converting resources into goods and
services. Or 2) A creative process which uses human,
scientific and material resources to solve problems and
improve efficiency.
Technology costs
– Are the category of costs associated with the
development, acquisition, implementation, and maintenance
of technology assets.
Temporary account
– Is an
account that does not appear on the balance sheet; also
called nominal account.
Temporary employment
- Employment for a limited or finite period of
time.
Tender
offer
- A time limited offer to buy some or all of the outstanding
common stock of a corporation from its stockholders at a
specified price per share in an attempt to gain control of
the corporation. Also called takeover bid.
Term bonds -
The principal of the bond is payable at maturity.
Term
loan
–
Usually refers to an
intermediate -to long -term (typically, two- to ten-year)
business loans with provisions for systematic repayments
(amortisation during the life of the loan).
Terms of trade
-
The
ratio of the average price of a country's exports to the
average price of its imports, both averages usually being
measured by index numbers; it is the quantity of imported
goods that can be obtained per unit of goods exported.
Term to
maturity
- The period of time from the present to the redemption date
of a bond. Also called simply the term.
Tertiary
sector
- Industry which provides services to consumers and the
other sectors of industry.
Testimony –
Refers
to evidence that is given by a witness who is under oath.
Test marketing
- Testing a product out on a small section of a market prior
to its full launch
Theory of constraints
– Refers to a management approach or theory that main focuses is on the
identification and subsequent and relaxation of the
constraints that may limit a firm's ability to achieve a
higher level of their goal attainment.
Theory of demand
- Quantity demanded and price are inversely related - more
is brought at a lower price, less at a higher price (other
things being equal).
Theory of liquidity preference
- Keynes's theory that the interest rate adjusts to bring money
supply and money demand into balance.
Theory of the firm
- A theory of how suppliers of commodities behave - how they
make choices - in the face of changing constraints.
Tertiary production
- Activities which involve the provision of
services.
Third-degree price discrimination - When a firm divides consumers into different groups al charges a
different price to consumers in different groups, but the
same price to all the consumers within a group.
Third party
– Refers to someone other than the individual person or entity directly involved in
the transaction or
agreement under consideration.
Third world debt
- The total external deficit of LDCs. This became extremely
large in the 1980s due to events emanating from the oil
price increases of the 1970s.
Till roll (cash register roll) –
Refers to the roll of paper where individual payments of money are
recorded in cash register. It is a source document of cash
receipt.
Time-based-management
- Involves setting strict time limits in which tasks must be
completed.
Time deposits
- Deposits that require notice of withdrawal or where a
penalty is charged for withdrawals on demand.
Time lag
– The difference between when an action is taken and when it
has its effect.
The problem
of time lags. Many economic actions can take a long time to
take effect. This can cause problems of instability and an
inability of the economy to achieve social-efficiency
Time rates
- A payment system that rewards workers for the amount of
time they spend at work.
Time series –
When there
is an ordered sequence of different values of a specific variable
or set of variables, recorded at equally spaced different time
intervals.
Time series analysis
- A method which allows a business to predict future levels
from past figures.
Time
sharing
- In real estate, division of ownership or use of a resort
unit or apartment on the basis of time periods.
Time
standard
(standard time) – Is the amount of time required to
perform a task by a trained operator working at a normal
pace and using a prescribed method.
Times
interest earned (TIE)
– This
ratio measures the amount by which a firm's operating
income can fall before the business is no longer able to meet its annual
interest costs. The TIE ratio is used by banks to help assess an
entity’s ability to meet their liability obligations. TIE is
a measure of how many times during a specific year that the
firm has earned their annual
cost of interest associated with servicing the firms debt.
Time to market (TTM)
– Refers to
the length or period of time it takes to completely develop a new
item or product from the original
initial idea to product to market sales of the product.
Time value of money –
This relates to the
concept that one $ a person has today is worth more than a
$ that a person has tomorrow. It is based on the idea that a dollar can
earn interest by putting it into a savings account or
placing it in an alternative investment.
To
date
– The time period that is before the current date.
Tolerable
- 1. In auditing, degree of acceptable misstatement in
substantive testing without materially misstating the
financial statements. A tolerable rate is the maximum
deviation rate in tests of controls that is acceptable by
the auditor in his or her assessment of control risk. Or 2.
In cost accounting, acceptable variance between actual and
standard cost or revenue.
Top down –
Refers to the practice or method of analysing a subject, such as
costs or revenue, starting from the highest level working
towards the bottom.
Total assets –
Is
calculated as the total of all assets, both fixed and
current.
Total
asset turnover –
This
ratio is used as a
measure of the management's efficiency in the way they
manage the entity’s
total assets - specifically relating to the generation of revenue
flows from the
entity's total investments in its assets.
Total consumer expenditure on a product (TE) (per period of
time)
- The price of the product multiplied by the quantity
purchased: TE
Total consumer surplus - The excess of a persons total utility from the consumption of a
good over the amount that person spends on it.
Total cost
-
The total cost to the firm of producing any given level of
output; it can be divided into total fixed costs and total
variable costs.
Total cost
of ownership (TCO) -
The real
amount an asset will cost. Example: An accounting
application retails at $1000. Support - which is mandatory,
costs a further $200 per annum. Assuming the software will
be in use for 5 years, TCO will be $2000 (1000+5x200=2000).
Total current assets
– Is a measure of
total of cash and cash equivalents, inventory,
trade receivables, and any other
current assets.
Total current liabilities
– Is a measure of
the total of
trade payables,
notes payable-short term,
income taxes payable,
current
maturities-LTD, and any other current liabilities.
Total fixed cost - All costs
of production that do not vary with level of output.
Total physical product - The total output product per period of time that is obtained
from a given amount of inputs.
Total
product (TP)
- Total amount produced by a firm during some time period.
Total quality management (TQM)
- A managerial approach which focuses on quality
and aims to improve the effectiveness, flexibility, and
competitiveness of the business.
Total revenue
- The amount received from the sale of a good or service. It
equals the price of the good or service multiplied by the
quantity.
Total utility
- The total satisfaction resulting from the consumption of
a given product or group of products by
a consumer in a period of time.
Total variable cost
-
Total costs of production that vary directly with level of
output. Also called direct
cost
or
avoidable cost.
Total (private) surplus -Total consumer surplus plus total producer surplus.
Total producer surplus - Total revenue minus total variable cost.
Total revenue (TR) (per period of time)
- The amount received by firms from the sale product, before
the deduction of taxes or any other costs.
Total social surplus - Total benefits to society from consuming a good minus total
costs to society from producing it. In the absence of
externalities, total social surplus is the same a (private)
surplus.
Total utility
- The total satisfaction a consumer from the consumption of
all the units of consumed within a given time period.
TQM
– Total quality management.
Trace
– Refers to the process whereby an auditor tries to
determine if a financial statement item has been handled
according to proper corporate or accounting policy. For
example, if the auditor wants to trace the balance in the
travel expense account, he will trace account post stings
from the ledger to the journal they came from. The auditor
will then trace from the journal transaction to the source
document to assure that proper backup exists.
Traceable –
(accounting) Is to discover by looking backover past
transactions for evidence. It is done step by step establishing
the paper-trail of a transaction. Non-traceable is used to
describe the situation where no paper-trail of a transaction
can be established.
Tragedy of the Commons
- A parable that illustrates why common resources get used
more than is desirable from the standpoint of society as a
whole.
Tradable
emission permits
- Government-granted rights to emit specific amounts of
specified pollutants that private firms may buy and sell
among themselves.
Trade
creation
- A consequence of reduced trade barriers among a set of
countries (typically signatories to a free trade agreement)
whereby trade within the group is increased and trade with
the rest of the world remains roughly constant. Thus the
increase in trade among group members is an increase in
total world trade.
Trade
credit
– Refers
to a
type of
credit extended by one business to another business,
allowing the latter to buy goods from the former without
making immediate full payment by check or with cash.
Trade cycle
- The fluctuation of national income around its long term
trend.
Trade debtors –
Refer to
amounts of money that is owed by customers/clients who have purchased
something (goods&services) from the firm.
Trade
deficit
– Refers
to when there is
excess of imports of goods (raw materials, agricultural and
manufactured products, and capital and consumer products)
over the exports of goods, resulting in a negative balance
of trade.
Trade discount –
The
producer gives a discount to retail trades people to in
order to help them to increase the sales of the firm's product.
Trade diversion
-
A
consequence of reduced trade barriers among a set of
countries whereby trade with the group replaces trade that
used to take place with countries outside the group.
Trade in goods
(balance of trade) - The difference between imports
and exports of physical products.
Trade in services (net invisibles) - The difference between the import and export of services.
Trademark
– Is a legal protection afforded names, symbols, and other
specific identities assigned to a product.
Trade
(brand) name
– Refers
to the
distinctive and identifiable name that is used to identify a
company or product and
build up brand recognition. Many large companies; e.g. Nike, Ford,
Coca Cola, etc. Often a trade name is protected by copyright law.
Trade payable
– This term is more commonly known as an account payable, is an amount owed to a
creditor for goods and services received.
Trade receivables - This
term is more commonly known as an account receivable, is an amount owed from a
debtor for goods and services supplied.
Trade spending –
Is generally used to refer to that marketing expense which is directed towards to
process of brand
building, e.g. slotting, and
advertisements.
Trade union / labour union
- A group of workers organized principally for the purpose
of increasing wages and improving condition:
Trading
account -
An account which shows the gross profit or loss of a
manufacturing or retail business, i.e. sales less the cost
of sales. Or in other words subtracting cost of sales from
turnover.
Trading
blocs
- Countries
that join together to restrict trade
Trading concern -
Means
an firm that derives its business from selling products> The
firm buys from one source and sells to another.
Traditional theory of the firm
- The analysis of pricing and output decisions of the firm
various market conditions, assuming the firm wishes to
maximise profit.
Traits
- Words used in identifying an individual's personality.
Transaction
-
Two or more entries made in a journal which when looked at
together reflect an original document such as a sales
invoice or purchase receipt.
Transactions balances
- Money balances held to finance payments because payments
and receipts are not perfectly synchronized.
Transactions costs
- Costs incurred in effecting market transactions (such as
negotiation costs, billing costs, and bad debts).
Transaction date -
The date on which an specified transaction occurred.
Transfer payments
-
A
payment to a private person or institution that does not
arise out of current productive activity; typically made by
governments, as in welfare payments, but also made by
businesses and private individuals in the form of
charitable contributions.
Transfer
price –
Refers to the
charge made
when one division of a company provides goods or services
to another division of the company.
Transfer
pricing (accounting)
– Is the deciding on the price of goods or services that are
exchanged between various divisions of a decentralized
organisation.
Transfer pricing (economics)
- A system operated by multinationals. It
is an attempt to avoid relatively high tax rates through the
prices which one subsidiary charges another for components
and finished products.
Transmission mechanism
- The channels by which a change in the demand or supply of
money leads to a shift of the aggregate demand curve.
Transmitter
- The sender of a message, the person starting the process
off by sending the message.
Transnational corporation
- Firms that have operations in more than one country.
Also called
multinational corporation
Transparency -
(1) Principle that was adopted in the GATT (General Agreement on Tariffs
and Trade) which said that governments must make their
trading rules,
regulations, and practices open and accessible both to the public
and also to other governments.
Transportation
- a method designed to solve problems where there are a
number of different points of supply and demand, such as a
number of manufacturers distributing their products to a
number of different wholesalers.
Transportation (freight) in –
Refers to the freight costs which must be paid by the buyer of the goods and therefore added to the costs of
the merchandise, i.e. they are part of the inventory cost.
Transportation (freight) out
– Refers to that part of cost of the selling of the product and therefore are included as
a selling expense.
Treasury bills
- Bills of exchange issued by the Central bank on behalf of
the government. They are a means whereby the government
raises short term finance.
Trend –
Normally refers to the general direction in which something
tends to move.
Trend analysis
– Is a forecasting technique that relies primarily on
historical time series data to predict the future.
Trial balance
- A statement which lists all the balances on all the
accounts in the double entry system.
True and fair view –
This accounting principle states that a firm should
provide a true and fair view in regard to financial conditions
and also its operating results. The concept of true and fair view
does not necessarily mean the absolute and total truth about
the firm. Financial
statements are after all the product of different management's judgments and
various
estimates. The principle of true and fair view requires that
the
comparative truth is given about the firms' position.
Trust
– Refers
to an
agreement
in which the trustee takes title to property (called the
corpus) owned by the grantor (donor) to protect or
conserve it for either the grantor or the trust's
beneficiary. The trust is established by the grantor. The
trustee is typically given authority to invest the property
for a return.
Turnaround
– Refers to
the reversal and other possible changes to the unfavourable circumstances
relating to the business where a specific
investment opportunity may possibly exist.
Turnover -
The income of a business over a period of time (usually a
year).
Turnover ratio
– This ratio measure of a particular asset's activity (e.g.,
sales, cost of sales). The average asset balance for the
period is used equal to the beginning balance plus the
ending balance divided by 2. A turnover ratio is an
activity ratio. By looking at the turnover of an asset
in terms of generating revenue, the accountant can properly
appraise a company's ability to manage assets efficiently.
Two-part
tariff
- A method of charging for a good or a service, usually a
utility such as electricity, in which the consumer pays a
flat access fee and a specified amount per unit purchased.
Two-way
communication
- When a receiver gives a response to a message and there is
a discussion about it.
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