tailieunhanh - Dictionary of 1000 Accounting Terms_8

Tham khảo tài liệu 'dictionary of 1000 accounting terms_8', tài chính - ngân hàng, kế toán - kiểm toán phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | http TAXABLE INCOME is that income that is reported to the government for the purposes of calculating income taxes. Taxable income normally is not aligned with the financial income reported within financial statements. See FINANCIAL INCOME. TAX EQUIVALENT YIELD is the yield that must be offered before factoring in taxes so that an investment pays off a certain after-tax yield. This measure is often necessary to compare taxable and tax-free investments since tax-free issues tend to have lower pre-tax yields due to the fact that the investment s proceeds will not be reduced by taxes. Tax equivalent yield is equal to required after-tax yield divided by 1 minus the tax rate . TAX LOSS CARRY FORWARD BACKWARD is a tax benefit that lets a company or individual to deduct losses in order to reduce a tax liability. TAX SHELTER are legal methods taxpayers can use to reduce tax liabilities. An example is the use of depreciation of assets. TERM BONDS are bonds whose principal is payable at maturity. Sometimes referred to as bullet-maturity bonds or bullet bonds. TERM DEBT as in Term Bonds is debt that mature in one lump sum at a specified future date. Term debt is usually carried as one type of long-term debt. TERM ENDOWMENT are endowments with time restrictions required by the donor such as a restriction that the income from the endowment may not be utilized until a future period or a specific date for condition is met. TERMINAL VALUE when used in a discounted cash flow valuation the cash flow is projected for each year into the future for a certain number of years after which unique annual cash flows cannot be forecasted with reasonable accuracy. At that point rather than attempting to forecast the varying cash flow for each individual year one uses a single value representing the discounted value of all subsequent cash flows. This single value is referred to as the terminal a firm s cash flows grow at a constant rate forever the .