Financial Definitions – Arms’s Length Transaction
An arm’s length transaction is carried out as if the principals are not related in any way. This is a good way to stay away from any appearance of a conflict of interest. A good example of an arm’s length transaction is; the present law states that parents can rent real estate to their kids and still claim business deductions like depreciation. This is only legal if the parents receive the same amount of rent from their kids that they would receive from any other renters.
Other Entries That Might Interest You:More On Credit Scores – 625 and Lower --->A credit score of 625 is very common if you have had some credit problems and no bankruptcy. I bet you are wondering how the Fair Isaac algorithm decided you have a credit score of 625.
The Fair Isaac score....Financial Definitions – Arithmetic Mean --->An average created by dividing the sum of two or more financial items by the number of financial items.
....Income Tax – Keep Good Care Of Your Tax Records And Documentation --->We have a big empty (and dry) Coca-Cola cooler that is empty save for all our tax documentation. We keep every receipt, slip of paper, cancelled checks, check stub, in the hopes we can write much of it off. This....Financial Definitions – Average Available Balance --->Banks will take a 30 day period and they calculate the available balances from each day. They use this number to see the average amount of money a client (whether it's business or personal) has in their account on any....Financial Definitions – Arbitrageur --->A firm, person, or financing company working in arbitrage. Arbitrageurs try to make a profit when the same security or commodity is trading at different prices in more than two markets. Firms, financial houses, and people working with risk arbitrage....
No comments yet
Leave a Reply
You must be logged in to post a comment.