Dictionary of Accounting Terms

 DEFERRED ANNUITY CONTRACT  agreement in which payments to the annuitant are postponed until a specified number of periods have elapsed. An example is when annuity payments begin at the age of 6 0. DEFERRED ANNUITY annuity whose first payment or receipt does not begin until sometime after the first period; for example, an annuity of $1000 that is not paid for the first three years, then commences payments at the end of each year from the fourth and continues through the end of that annuity. DEFERRED CHARGE cost already incurred that is deferred to the future. The deferral is made because of anticipated future benefit or because the charge constitutes an appropriate allocation of costs to future operations. The basic accounting convention applicable is the matching of costs and revenues. Deferred charges are classified as noncurrent assets because their life extends beyond one year. Deferred charges have no physical substance. Examples of deferred charges are: (1) start-up cost...

DEFERRED ANNUITY  annuity whose first payment or receipt does not begin until sometime after the first period; for example, an annuity of $1000 that is not paid for the first three years, then commences payments at the end of each year from the fourth and continues through the end of that annuity. DEFERRED ANNUITY CONTRACT agreement in which payments to the annuitant are postponed until a specified number of periods have elapsed. An example is when annuity payments begin at the age of 60. DEFERRED CHARGE cost already incurred that is deferred to the future. The deferral is made because of anticipated future benefit or because the charge constitutes an appropriate allocation of costs to future operations. The basic accounting convention applicable is the matching of costs and revenues. Deferred charges are classified as noncurrent assets because their life extends beyond one year. Deferred charges have no physical substance. Examples of deferred charges are: (1) start-up costs in pu...

DEEP DISCOUNT BOND  bond that has a coupon rate far below rates currently available on investments and which consequently can be traded only at a significant discount from par value- usually more than about 20%. It may offer an opportunity for capital appreciati on.  DECLARATION DATE:  date on which the dividend is voted and announced (declared) by the board of directors. At the declaration date, the dividend is a legal liability of the company. See also DATE RECORD.  DEDUCTIONS 1. itemized deductions, which are deductions from ADJUSTED GROSS INCOME (AGI). Certain personal expenditures are allowed by the Tax Code as deductions from adjusted gross income if they exceed the STANDARD DEDUCTION (formerly the ZERO BRACKET AMOUNT). Examples include medical expenses in excess of 7.5% of AGI, interest on home mortgages, real estate taxes, and charitable contributions. Itemized deductions are reported on Schedule A of Form 1040. 2. deductions for adjusted gross income, such a...

 DEDUCTIONS 1. itemized deductions, which are deductions from ADJUSTED GROSS INCOME (AGI). Certain personal expenditures are allowed by the Tax Code as deductions from adjusted gross income if they exceed the STANDARD DEDUCTION (formerly the ZERO BRACKET AMOUNT). Examples include medical expenses in excess of 7.5% of AGI, interest on home mortgages, real estate taxes, and charitable contributions. Itemized deductions are reported on Schedule A of Form 1040. 2. deductions for adjusted gross income, such as employee business expenses and contributions to an IRA pension plan. 3. adjustment to an invoice. DECLARATION DATE:  date on which the dividend is voted and announced (declared) by the board of directors. At the declaration date, the dividend is a legal liability of the company. See also DATE RECORD DEED OF TRUST see BOND INDENTURE; INDENTURE. DEEP DISCOUNT BOND bond that has a coupon rate far below rates currently available on investments and which consequently can be traded...

DECLARATION DATE:  date on which the dividend is voted and announced (declared) by the board of directors. At the declaration date, the dividend is a legal liability of the company. See also DATE RECORD.  DEDUCTIONS 1. itemized deductions, which are deductions from ADJUSTED GROSS INCOME (AGI). Certain personal expenditures are allowed by the Tax Code as deductions from adjusted gross income if they exceed the STANDARD DEDUCTION (formerly the ZERO BRACKET AMOUNT). Examples include medical expenses in excess of 7.5% of AGI, interest on home mortgages, real estate taxes, and charitable contributions. Itemized deductions are reported on Schedule A of Form 1040. 2. deductions for adjusted gross income, such as employee business expenses and contributions to an IRA pension plan. 3. adjustment to an invoice. DEED OF TRUST see BOND INDENTURE; INDENTURE. DEEP DISCOUNT BOND bond that has a coupon rate far below rates currently available on investments and which consequently can be trade...