glossary Please select a letter below and then vertically scroll to find the word you are looking for  A  |  B  |  C  |  D  |  E  |  F  |  G  |  H  |  I  |  J  |  K  |  L  |  M   N  |  O  |  P  |  Q  |  R  |  S  |  T  |  U  |  V  |  W  |  X  |  Y  |  Z  Accounting Standards Board (ASB) Sets accounting standards in the UK. A subsidiary of the Financial Reporting Council. accounts receivable days A company liquidity ratio. It provides an indication of how long on average a business takes to collect its accounts receivable. acid test A liquidity measure that compares a business's most liquid current assets to total current liabilities (cash & equivalents + receivables / total current liabilities). It is also known as the quick ratio because cash and debtors are regarded as 'quick assets', ie, they are cash or near cash. administrative receiver Insolvency practitioner appointed in the UK when a company goes into receivership. If a company is unsalvageable, it may go straight to administrative receivership, presided over by an administrative receiver, usually known simply as the receiver. advance corporation tax (ACT) Early instalment of UK corporation tax. It forms a minimum tax on companies that earn most of their profit overseas. American Depositary Receipt (ADR) Certificate issued by US banks to facilitate trading in the US of overseas stocks and shares. American Stock Exchange The second largest floor-based securities exchange in the US, specialising in equity derivative products, particularly options. Known as the (New York) Curb Exchange until 1953 - its roots go back to 1849 - the Amex merged with the Nasdaq Stock Market in 1998 to form the Nasdaq-Amex Market Group. analysts’ estimates Forecasts by investment analysts at securities companies and banks of the future financial performance of companies, in particular forthcoming earnings reports. FT.com provides consensus estimates compiled by Multex Global Estimates. annual percentage rate (APR) The true rate of paying interest on a loan. annuity The provision of a guaranteed income for life in return for a lump sum payment. Often bought with a pension fund on retirement. Annuity rates are linked to yields on gilt-edge securities. antitrust laws US legislation to prevent monopolies and restraint of trade. arbitrage Taking advantage of small price differences (of securities or goods) in different markets to make a profit. It involves buying something to sell in another market or at another time. arbitrageur Traditionally someone who indulges in arbitrage of any sort; now a Wall Street term for a professional investor who specialises in issues during takeovers. asset stripping Buying a business and then realising a profit by selling off the assets separately. assets Fixed assets are land, machines and buildings; current assets consist of cash, money owed, stock, investments and work in progress; intangible assets are goodwill, trade marks, patents, etc; liquid assets are funds kept in cash or in a form that can be quickly and easily turned into cash. auditor’s name & opinion The name of the firm that has audited a company's financial statements and whether its published report gave a 'qualified' or 'unqualified' opinion of the accounts. A qualification to the accounts draws attention to some aspect of the accounts that contravenes company law or accounting standards, or which the auditor has been unable to verify. back to top