Glossary of Terms
Q
An audit report which states that the financial statements give a 'true and fair view' except that or subject to certain qualifying remarks.
Tax. Assets used in the trade of the business from a fixed list of items.
Tax. Expenditure which is eligible for capital allowances.
UK Tax. The qualifying asset must be acquired up to 12 months before or within 36 months after the original disposal.
Economics. A theory formalised by Irving Fisher, which links the level of prices with the amount of money in circulation. It is defined as: P = MV/T, where P = price level, M = amount of money in circulation, V = velocity of circulation and T = volume of transactions. Monetarists believe that it is the amount of money in circulation which has the biggest effect on price levels and inflation rates.
Law. A Latin phrase meaning as much as he has deserved reflecting a reasonable value for services.
Tax. Large UK companies are required to make instalment payments of corporation tax in four payments.
The quarterly rate of interest (or yield) is a quoting convention for the simple interest nominal annual rate for compounding once per quarter (four times per year).
For example, if the quoted quarterly rate is 6.00%, the amount of interest compounded quarterly is 6.00%/4 = 1.50%.
Not to be confused with the related annual effective rate, which in this case is 1.0154 - 1 = 6.14%.
For example, if the quoted quarterly rate is 6.00%, the amount of interest compounded quarterly is 6.00%/4 = 1.50%.
Not to be confused with the related annual effective rate, which in this case is 1.0154 - 1 = 6.14%.
The division of an ordered distribution into four equal parts in terms of the number of items.
Half of the inter quartile range.
A risk management arrangement whereby transfer orders are held pending by the originator/deliverer or by the system until sufficient cover is available on the originator’s/deliverer’s clearing account or under the limits set against the payor; in some cases, cover may include unused credit lines or available collateral.
[Current assets less Stock] ÷ Current liabilities.
The quick ratio gives a very rough indication of the liquidity (or solvency) of the reporting entity.
If the quick ratio were to fall below 1.0, this would indicate that the entity would not be able to meet its current liabilities out of its cash in hand and the proceeds of its other current assets (excluding stock).
Also known as the Acid test or the Acid test ratio.
The quick ratio gives a very rough indication of the liquidity (or solvency) of the reporting entity.
If the quick ratio were to fall below 1.0, this would indicate that the entity would not be able to meet its current liabilities out of its cash in hand and the proceeds of its other current assets (excluding stock).
Also known as the Acid test or the Acid test ratio.
Latin phrase that means what for what or something for something. The concept of getting something of value in return for giving something of value. For example for a contract to be binding, it usually must involve the exchange of something of value.
The minimum number of members/ persons who are required to be present in order to legally transact or conduct business.
A statistical sampling technique whereby the population is divided into sub classes and each sub class is allocated a quota.
The currency which is quoted as the number of units per 1 unit of the base currency.