Related Words

Bad Debt: A debt that is not collectible and is therefore worthless to the creditor.

Bad Debts Account: An account in the nominal ledger to record the value of un-recoverable debts from customers. Real bad debts or those that are likely to happen can be deducted as expenses against tax liabili . . . View Full Definition

Bad Debts Reserve Account: An account used to record an estimate of bad debts for the year (usually as a percentage of sales). This cannot be deducted as an expense against tax liability.

Long-Term Debt As A Percent Of Total Capital: Long-term debt including capitalized leases expressed as a percentage of total capital (common and preferred stock plus long term debt). It reflects the use of leverage by the company.

Long-Term Debt: Total of all debt due after one year including bonds at face value.

Long Term Debt: Financing used to purchase or improve assets such as plant, facilities, large equipment and real estate.

Level Debt Service: A municipal charter provision that debt payments must be relatively equal from year to year so that required revenue projections are easier.

Long-Term Debt Ratio: The ratio of long-term debt to total capitalization.

Monbadon: (See Burger above).

National Debt: The total debt accumulated by a government through the issue of government bonds, Treasury bills and Treasury notes. The government has to pay interest on its borrowings, and this obligation . . . View Full Definition