The option of terminating an investment earlier than originally planned.
Absolute priority doctrine
:
The idea that any distribution of a debtor's assets should be according to claim priority.
Accelerated depreciation
:
A depreciation method that permits a firm to claim greater depreciation expense than it could under the straight- line depreciation method during the early years (and lesser in later years) of an asset's life.
Accounting Model of the Firm
:
The Accounting Model of the Firm is characterized by the basic accounting identity:
Assets = Liabilities + Owners Equity
It is a balance sheet view of the firm.
It says that Investment decisions are represented on the asset (i.e. left hand) side of the balance sheet.
Financing decisions are represented on the liabilities and equity (i.e. right hand) side of the balance sheet.
Keyword(s):
Accounts receivable
:
Money owed a firm by its customers.
Acid test ratio
:
The difference between current assets and inventories divided by current liabilities.
Acquiree
:
A firm that is being acquired.
Acquiror
:
A firm or individual who is acquiring something; for example, a firm that is acquiring another firm.
Acquisition
:
See Corporate acquisition.
Acquisition of assets
:
A merger or consolidation in which an acquiror purchases the selling firm's assets.
