What is a Disposition? A disposition refers to the disposal of assets or securities through assignment, sale, or another transfer method. It is simply the transfer of an asset’s ownership, where the asset is either given away or sold. Dispositions involving an assignment and/or transfer can also be completed for accounting and tax purposes to…
What is Disposable Income? Disposable Income is the money that is available from an individual’s salary after he/she pays local, state, and federal taxes. It is also known as disposable personal income or net pay. The disposable income of a household includes earnings plus unemployment benefits and capital income. Disposable income is one of the…
What is Digital Currency? Digital currency is a payment system that is not based on fiat currency, but rather an alternative non-tangible currency. In practice, digital currency serves a similar practice to other currencies in terms of acting as payment in transactions. Unlike cash, digital currency lacks a physical form, therefore allowing for instantaneous transactions….
What is an Indifference Curve? An indifference curve is a contour line where utility remains constant across all points on the line. In economics, an indifference curve is a line drawn between different consumption bundles, on a graph charting the quantity of good A consumed versus the quantity of good B consumed. At each of…
What is a Debt Instrument? A debt instrument is a fixed-income asset that legally obligates the debtor to provide the lender interest and principal payments. Accessing debt financing requires the debtor to pay the creditor according to pre-defined contractual terms. The contract should outline the interest payment schedule, collateral if applicable, interest rate, maturity date, covenants,…
What is an Audit Risk Model? An audit risk model is a conceptual tool applied by auditors to evaluate and manage the various risks arising from performing an audit engagement. The tool helps the auditor decide on the types of evidence and how much is needed for each relevant assertion. The audit risk model indicates…
What is a Deductible? A deductible refers to the amount a policyholder is required to pay before an insurance provider assumes an expense. The deductible is intended to prevent policyholders from making insurance claims that they can reasonably bear the cost for. The deductible shares the risk between the policyholder and insurer. Ultimately, insurance companies…
What are Dissenters’ Rights? Dissenters’ rights – part of a state’s business law – enable a company’s shareholders to get cash payments equivalent to the fair value of the shares he/she is holding in the company if the management of the company undergoes a major transaction that the shareholders do not consent or agree with….
What are Distributed Ledgers? Distributed ledgers are the databases shared across a network and spread over various geographical locations. A ledger is a collection of financial accounts and, in such a case, distributed means spread out and controlled globally. Thus, distributed ledgers are held and reorganized by multiple parties in different locations and institutions. Distributed…
