Prepaid interest

Remuneration paid on capital that has been borrowed. Normally refers to monetary capital, but can also be used in the case of physical capital (rent). See also interest rate, ...

interest

Economy; Economics

The cost of borrowing, which compensates lenders for the risk they take in making their money available to borrowers. Without interest there would be little lending and thus a lot ...

interest

Computer; Software; Software engineering

Literally, a fee for renting money. Someone who borrows money from another is usually obligated to return the original amount borrowed plus some additional money. That additional ...

accelerated cost recovery system (ACRS)

Financial services; Real estate investment

Before 1981, assets used for the production of income were depreciable if they were subject to wear and tear or decline due to natural causes or obsolescence. Assets that did not ...

accelerated depreciation

Financial services; Real estate investment

Accelerated depreciation is a method of depreciation in which larger deductions are taken earlier in the life of the asset than with the straight-line method. Examples include the ...

account

Financial services; Real estate investment

An account is a written record of a business transaction expressed in money and kept in a ledger.

accounting principles

Financial services; Real estate investment

Accounting principles refer to an accounting doctrine that explains current practices and is a guide for the selection of accounting conventions or procedures when alternatives ...

accrued depreciation

Financial services; Real estate investment

Accrued depreciation is the difference between the cost of replacing new property and the present market value of the property.

active income

Financial services; Real estate investment

Active income is all taxable income of a taxpayer except income from a passive activity and portfolio income. Passive activity is something in which the taxpayer does not actively ...