Glossary of Terms
Glossary of Terms
1040 Form:
The standard form used by individuals to file their annual income tax return with the IRS.
Alternative Minimum Tax (AMT):
A parallel tax system designed to ensure that wealthy individuals and corporations pay a minimum amount of tax, limiting the use of certain tax deductions.
Accounting:
The systematic process of recording, summarizing, and analyzing financial transactions of an individual or business.
Accrual Accounting:
An accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when the cash is received or paid.
Accounts Payable (AP):
Amounts owed by a business to its suppliers or creditors for goods or services received on credit.
Accounts Receivable (AR):
Accounts Receivable (AR):
Automatic Exchange of Information (AEOI):
A global standard for the automatic exchange of financial account information between tax authorities to combat tax evasion.
Bearer Shares:
Shares of a corporation that are not registered in the owner’s name, providing a degree of financial privacy, but increasingly restricted due to concerns about money laundering and tax evasion.