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ACCOUNTING FIRM |
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A business that provides professional financial and accounting services.
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ACCRUED INTEREST |
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INTEREST that has accumulated over a period of time and is obligated to be paid but has not yet been paid. Accrued interest can either be income, such as interest from investments, or it can be an expense, such as payment of interest on a debt.
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PERSONAL PROPERTY TAX |
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By law, a payment made to a government (usually state or local) and calculated as a percent of the worth of the personal property asset.
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ADJUSTED BASIS |
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The original COST BASIS of property reduced by depreciation and increased by improvements.
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PAYABLES |
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An amount to be paid. Payables are a list of amounts currently due to be paid. See ACCOUNTS PAYABLE.
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PAYROLL |
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The list of employees in a company, i.e., the employees who are paid by the company. When a person is employed by a company, that person may say he or she is on the payroll.
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PASSIVE INVESTOR |
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A person who provides equity (an investor) for a business but does not participate in the active operation of the business; the opposite of an active owner/manager. In taxing, an IRS classification of income such as real estate in which investors often are not participants in the management of the business.
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PAID INVOICE |
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A bill showing goods and services sold by a seller on which is marked "paid," showing evidence by the seller that the buyer has remitted the total amount due at the time of purchase or in advance of purchase.
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PERSONAL INJURY INSURANCE |
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Coverage by an insurance company for a physical harm to an individual person.
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PAST DUE ACCOUNT |
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An account that has a payment that was not received by the scheduled date.
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PERFECT COMPETITION |
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A market condition where no buyer or seller has the economic power to alter the market price of a good or service; characterized by a large number of buyers, a large number of sellers, all selling similar products or services, an equal awareness of prices and volume, an absence of discrimination in buying or selling, total mobility of productive resources and complete freedom of entry into the market. As opposed to MONOPOLY; OLIGOPOLY. Also called PURE COMPETITION.
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