Glossary

• Acquirer
  A firm or individual that is acquiring something.
  
  
• Acquisition
  When a firm buys another firm.
  
  
• Acquisition cost
  Refers to the price (including the closing costs) to purchase another company or property.
  
  
• Acquisition of assets
  A merger or consolidation in which an acquirer purchases the selling firm's assets.
  
  
• Acquisition of stock
  A merger or consolidation in which an acquirer purchases te acquiree's stock.
  
  
• Accountant's opinion
  A signed statement from an independent public accountant after examination of a firm's records and accounts. The opinion may be unqualified or qualified. See: Qualified opinion.
  
  
• Accounting earnings
  Earnings of a firm as reported on its income statement.
  
  
• Accounting exposure
  The change in the value of a firm's foreign currency-denominated accounts due to a change in exchange rates.
  
  
• Accounting insolvency
  Total liabilities exceed total assets. A firm with a negative net worth is insolvent on the books.
  
  
• Accounting liquidity
  The ease and quickness with which assets can be converted to cash.
  
  
• Accounts payable
  Money owed to suppliers.
  
  
• Accounts receivable
  Money owed by customers.
  
  
• Accounts receivable financing
  A short-termfinancing method in which accounts receivable are collateral for cash advances. See: Factoring.
  
  
• Accounts receivable turnover
  The ratio of netcreditsales to averageaccounts receivable, which is a measure of how quickly customers pay their bills.
  
  
• Accounts receivable turnover
  The ratio of netcreditsales to averageaccounts receivable, which is a measure of how quickly customers pay their bills.