T-Account
The basis for journal entry in accounting. T-accounts have three basic elements. A title, a left side (debit side) and a right side (credit side). To make an entry in a t-account, put the currency (dollar, pound, etc.) amount on the appropriate side (debit or credit). There are five basic types of accounts: assets, liabilities, equity, revenue and expenses. Assets, liabilities and equity are the balance sheet accounts.

Takeover
Refers to one company (the acquirer) purchasing another (the target). Such events resemble mergers, but without the formation of a new company.

Tax-Deferred Savings
Tax-free savings that can be put in an individual retirement account (IRA) or other retirement plan. Taxes are not imposed on the interest or principal until funds are withdrawn at age 591/2 or later.

Tax-Exempt Bond
A municipal bond that is free of all taxes.

Tax-Free Rollover
The automatic renewal of a certificate of deposit (CD), tax-free at present rates of interest. Also, the automatic tax-free reinvestment of money market funds.

Taxable Estate
The part of an estate that is subject to taxes. The taxable estate is what is left after all debts, funeral expenses, and taxes are paid.

Taxable Income
The amount on which income less various exemptions and deductions specified by the law and the IRS regulations.

Taxpayer Identification Number (TIN)
For taxation purposes, the number that identifies corporations, nonprofits, associations, and partnerships to the IRS. Individuals are usually identified by their social security numbers.

Tenancy At Will
A lease that the landlord or tenant can terminate whenever he or she so desires.

Tenancy by the Entirety
An estate held by a wife and husband that cannot be terminated without both people’s consent.

Tenancy in Common
An estate held by two or more people. If a partner in the estate dies, his or her share of the estate goes to the heirs.

Term
The time it takes for a loan or deposit to mature. The term is usually expressed in months.

Term Endowment
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.

Testator
A person who dies leaving a will.

Time-Value of Money
A general rule that says a dollar today is worth more than a dollar a year from today because if you have a dollar today you can invest it and earn interest over the next year.

Top Down
A concept of analyzing a subject, such as costs or revenue, starting from the highest level working towards the bottom.

Treasurer
A financial officer of a corporation whose job is, among other duties, to manage cash payments and deposits, procure and budget funds, handle the payroll, and discharge tax liabilities.

Treasury Bill
A short-term bill issued by the U.S. government to cover its debt. Treasury Bills are in $10,000 denominations. They mature in periods of 13, 26, or 52 weeks.

Treasury Bond
A long-term bond issued by the U.S. government to cover its debts. Treasury bonds are sold in denominations of $10,000 or more.

Treasury Stock
A stock that has been repurchased by the issuer.

Trust
Property held by one person or persons for the benefits of others.

Trust Account
A separate bank account, segregated from a broker's own funds, in which the broker is required by state law to deposit all monies collected for clients; in some states called an ESCROW ACCOUNT.

Trust Deed
An instrument of conveyance of title to property wherein the transferee will be holding the title to the property on behalf of another person.

Trustee
The person who administers a trust.

Trustor
The person who establishes a trust.

Turnover
In U.S. accounting, is the number of times an asset is replaced during a financial period; often used in terms of inventory turnover or accounts receivable turnover. In securities, for either a portfolio or exchange, TURNOVER is the number of shares traded for a period as a percentage of the total shares. In Great Britain, TURNOVER means sales.

Unabsorbed Costs
Occurs when the cost structure does not fully reflect all variable and/or fixed costs.

Unallocated Costs
Represents corporate costs not associated either directly or indirectly in providing a product or service for sale. Unallocated costs are not included in the calculation of COST OF GOODS SOLD.

Unaudited Opinion
A qualified opinion by a Certified Public Accountant who has not audited the relevant financial statements.

Underwriter 
a) a banker who deals chiefly in underwriting new securities (investment banker), or b) an agent or financial institution that sells insurance.

Unearned Income
Income earned from investments and interest.

Unearned Revenue/Income
Represents money that you have received in advance of providing the goods or services to your customer. Unearned revenue is a liability of your business until you provide the goods or services you agreed to provide to the customer.

Unsecured 
An obligation backed not by collateral but only by the integrity of the borrower. Opposite of secured.

Useful Life
The expected period of time, in years, during which a depreciating asset will be productive.

Use Tax
A tax on the storing, using, consuming, and sometimes distributing tangible personal property or providing a taxable service, i.e. you will be subject to the use tax in the state where that event occurs.

Validate 
To a) declare or make legally valid; b) mark with an indication of official sanction; or, c) to establish the soundness of; corroborate.

Value Added Tax
A consumption tax where taxes are levied at each step of a manufacturing process where value is added to that product at that point in the manufacturing cycle; as well as at the point where the consumer purchases the end product.

VAR
An acronym for Value-Added Reseller (usually of technology products); or, in finance, Value at Risk.

Venture Capital
Capital available for new enterprises and startup companies.

Vertical Analysis
The calculation of percentages to show the relationship of the component parts of a financial statement to the total in the statement.

Voluntary Trust
A living trust in which the beneficiary has title and possession of a property, but the legal title stays in the hands of the one who set up the trust.

Vostro Account
A local currency account maintained with a bank by another bank. The term is normally applied to the counterparty's account from which funds may be paid into or withdrawn, as a result of a transaction.

Voucher
a) a piece of substantiating evidence; a proof; or, b) a written record of expenditure, disbursement, or completed transaction; or, c) a written authorization or certificate, especially one exchangeable for cash or representing a credit against future expenditures.