What is Redlining? In the United States and Canada, redlining is the discriminatory and unethical practice of systematic denial of providing services, particularly financial services, to residents of certain neighborhoods or communities associated with a certain racial or ethnic group. The denial of services can be accomplished directly (e.g. prohibiting the granting of loans to…
What are Patents? Patents are documents that grant ownership of intellectual property – the idea of, or concept for, something – to an individual, group, or company. A patent ensures that the owning party can exclusively make, use, sell, import, and export the invention outlined in the document for a certain period of time. While…
What is Negative Assurance? Negative assurance is an accounting term used by auditors to inform external parties that a particular group of facts or financial data is deemed to be accurate since no contradicting evidence has been uncovered to dispute it. In other words, negative assurance confirms what an accountant does not know. Negative assurance…
What are Gilts? Gilts are bonds issued by the UK government. More specifically, the debt securities are issued by the Bank of England, by His or Her Majesty’s treasury, and are listed on the London Stock Exchange (LSE). The term is also used in other Commonwealth nations, such as India or South Africa. However, typically,…
What is Pro Rata? Pro rata is a Latin term – meaning “in proportion” – that is used to assign or allocate value in proportion to something that can accurately and definitively be measured or calculated. In North American countries, pro rata is often referred to or referenced as “prorated.” Usefulness of Pro Rata Pro…
What is Subrogation? Subrogation refers to the practice of substituting one party for another in a legal setting. Essentially, subrogation provides a legal right to a third party to collect a debt or damages on behalf of another party. Application of the Subrogation Principle The insurance sector is considered a primary area of application of…
What is the National Credit Union Administration (NCUA)? The National Credit Union Administration (NCUA) is an independent federal agency in the United States responsible for supervising credit unions. Specifically, the NCUA is tasked with insuring deposits at federal credit unions in the US, protecting members who own credit unions, and chartering credit unions. The NCUA’s…
What is an Annual Report? An annual report is a comprehensive report detailing a company’s activities throughout the preceding year. Its purpose is to provide users, such as shareholders or potential investors, with information about the company’s operations and financial performance. What Does an Annual Report Contain? Annual reports provide a significant amount of information…
What is Cluster Sampling? In statistics, cluster sampling is a sampling method in which the entire population of the study is divided into externally, homogeneous but internally, heterogeneous groups called clusters. Essentially, each cluster is a mini-representation of the entire population. After identifying the clusters, certain clusters are chosen using simple random sampling while the…
What is Empirical Evidence? Empirical evidence is the information obtained through observation and documentation of certain behavior and patterns or through an experiment. Empirical evidence is a quintessential part of the scientific method of research that is applicable in many disciplines. In the scientific method, the pieces of empirical evidence are used to validate or…
