Related Words

Counterpart Items: Stocks whose price tends to rise when the economy is in recession or the market is bearish, and vice versa.

Counterparties: In the balance of payments, counterpart items are analogous to unrequited transfers in the current account. They arise through the double-entry system in balance of payments accounting and r . . . View Full Definition

Noncash Items: Items included in the determination of net income on an accrual basis that do not affect cash: examples are depreciation and amortization.

Extraordinary Items: Nonoperating gains and losses that are unusual in nature, infrequent in occurrence, and material in amount.

Prepaid Items: On a closing statement, items that have been paid in advance by the seller, such as insurance premiums and some real estate taxes, for which he or she must be reimbursed by the buyer.

Counterparty: In any financial contract, the persons or institutions entering the contract on the opposite sides of the transaction are called the counterparties. For example, if you sign a contract to se . . . View Full Definition

Cash-Equivalent Items: An accounting book that is composed of cash receipts plus disbursements. This balance is posted to the cash account in the ledger.

Accrued Items: In a closing statement, items of expense that are incurred but not yet payable, such as interest on a mortgage loan or taxes on real property.

Counterparty Risk: Counterparty risk is the risk that the person or institution with whom you have entered a financial contract — who is a counterparty to the contract — will default on the obligation and fail . . . View Full Definition