Month: February 2020

Revenue cap regulation seeks to limit the amount of total revenue that can be earned by a firm operating in an industry with no or few other competitors. An industry such as this, where one or a few companies control the entire production and sale of a good or service, is known as a monopoly.

In-house refers to conducting an activity or operation within a company, instead of relying on outsourcing. This occurs when a firm uses its own employees and time to keep a division or business activity, such as financing or brokering, in-house.

A bad debt expense is recognized when a receivable is no longer collectible because a customer is unable to fulfill their obligation to pay an outstanding debt due to bankruptcy or other financial problems. Companies that extend credit to their customers report bad debts as an allowance for doubtful accounts on the balance sheet, which is also known as a provision for credit losses.

A forensic audit is an examination and evaluation of a firm’s or individual’s financial records to derive evidence that can be used in a court of law or legal proceeding. Forensic auditing is a specialization within the field of accounting, and most large accounting firms have a forensic auditing department. Forensic audits require the expertise of accounting and auditing procedures as well as expert knowledge about the legal framework of such an audit.

A Bitcoin wallet is a software program where Bitcoins are stored. To be technically accurate, Bitcoins are not stored anywhere; there is a private key (secret number) for every Bitcoin address that is saved in the Bitcoin wallet of the person who owns the balance. Bitcoin wallets facilitate sending and receiving Bitcoins and give ownership of the Bitcoin balance to the user. The Bitcoin wallet comes in many forms; desktop, mobile, web, and hardware are the four main types of wallets.

Underlying profit is a calculation made internally by a company to show what it believes is a more accurate reflection of how much money it generates. The number focuses on regular accounting cycle events and often excludes one-time charges or infrequent occurrences. Underlying profit differs from the required accounting profit that is recorded on financial statements and other mandatory documents that follow preset practices, rules, and regulations.

A lead bank is a bank that oversees the arrangement of loan syndication. The lead bank receives an additional fee for this service, which involves recruiting the syndicate members and negotiating the financing terms. In the Eurobond market, the lead bank acts in an agent capacity for an underwriting syndicate.

Jitter is an anti-skimming technique that distorts the readout of the magnetic strip by altering the speed or motion of the card as it is swiped or pulled into a card reader or ATM. Jitter is designed to make any information copied by a card skimmer unreadable, and thus unusable.

The new growth theory is an economic concept, positing that humans’ desires and unlimited wants foster ever-increasing productivity and economic growth. The new growth theory argues that real gross domestic product (GDP) per person will perpetually increase because of people’s pursuit of profits.

Quote stuffing is the practice of quickly entering and then withdrawing large orders in an attempt to flood the market with quotes, causing competitors to lose time in processing them.