Investment and Finance

An independent auditor's opinion expressing that a firm's financial statements (balance sheet, income statement, cash flow statement)do not reflect the company's position accurately.

The Advance Computerized Execution System is a system run by Nasdaq. The Advance Computerized Execution System automates trades between order entry and market maker firms that have established trading relationships with each other. Securities are designated as specified for automatic execution

Interest that has accumulated between the most recent payment and the sale of a bond or other fixed income security.
At the time of a sale, the buyer pays the seller the bonds price plus any "accrued interest".
The accrued interest is calculated by multiplying the coupon rate by the fraction of the coupon period that has elapsed since the last payment.

The costs to set up or administer an IRA are deductible as a miscellaneous itemized deduction subject to the 2% AGI limitation on IRS Schedule A. The fees must be billed and paid separately from your regular IRA contribution.

The disclosure principle requires that the financial statements inclusive of the income statement, balance sheet and cash flow statements present the most useful material amount of relevant information. Notes may be included to the financial statements for additional disclosure. All information that is necessary in order not to be misleading and for investors to make informed decisions if applicable.

Forecasting is a projection of the anticipated financial performance of a company. Forecasts typically include a projected income statement, a pro-forma balance sheet and a cash flow statement. In order to arrive at projected figures, extensive research should be done to including statistical information on the competition, product trends and client demographics. This information will help you obtain reasonable estimated sales amounts. You should also get quotes from suppliers and realtors to obtain estimated expense amounts. Projections are not a picture of what you would like to see happen to your company, but carefully calculated, realistic numbers. Speak to your local CPA to assist you in this process.

US Treasuries are bonds that their value is increased yearly to keep up with inflation. They are thus designed to cut out the inflation risk of an investment. Inflation-indexed bonds pay a periodic coupon that is equal to the product of the inflation index and the nominal coupon rate. The relationship between coupon payments, breakeven inflation and real interest rates is given by the Fisher equation. A rise in coupon payments is a result of an increase in inflation expectations, real rates, or both.

To figure the basis of property you get as a gift, you must know its adjusted basis to the donor just before it was given to you. You also must know it’s fair market value (FMV) at the time it was given to you and any gift tax paid on it.
Generally, the basis to the done is the same as in the hands of the donor at the date of the gift.
The basis to determine if there is a loss on the sale of a gift is the value as in the hands of the donor at the date of the gift or the fair market value Whichever is lower.
There is no gain or loss on a sale of a gift when the selling price is less than the basis for the gain and more than the basis for the loss calculation.
The basis of property received is increased by the amount of gift tax attributable to the net appreciation in value of the gift. The net appreciation is the amount by which the fair market value of the gift exceeds the donor's adjusted basis immediately before the date of the gift.
Speak to your local CPA to determine the gain or loss calculation on the sale of an asset that was received as a gift.

You must complete the rollover by the 60th day following the day on which you receive the distribution. This 60 day period is extended for the period during which the distribution is in a frozen deposit in a financial institution. A written explanation of rollover must be given to you by the issuer making the distribution.