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| 72 | The number 72 is used to approximatley calculate your money's doubling time in years. Ex. You have $10 000 and recieve %6 interest a year, using the rule of 72 it will take roughly twelve years at 6 percent interest for you to accumulate $20 000. All you need to do to calculate the doubling time is divide 72 by the compound interest rate you receive annually. |
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| Above the line accounting | pertains to costs and revenues that affect the income statement for a designated period of time. |
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| Absolute Return | the return a stock yeilds, as a percentage, over a given period of time. |
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| Accounts receivable | Is money owed to a company for product or services. It is described as a current asset on the balance sheet. Its is considered a recieveable only after the customer is sent an innvoice. |
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| Accrued assets | as assets that have been earned but not yet collected. |
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| Acid Test Ratio | is a test if a company can cover its short term liabilities with its short term assets
without liquidating any of its inventory. |
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| Across the board | Applies to a group of securities that are generally behaving in the same way. Ex. when all stocks in a group raise in price. |
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| Actual cost | an accounting term that refers to the price paid for something not the value of it if liquidated etc... |
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| Adjusted Cost Base | In Canada your adjusted cost base is used to arrive at the amount of money earned in a capital gain, or the amount of money lost in a capital loss. It includes such things as Sale price of investment - Purchase price- any commissions or transaction fees included in your purchase and sale of an investment. |
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| Administration Fee | Sometimes these fees are charged by companies to pay for costs associated with initiating a new account. |
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