A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z

lapping: A procedure used to conceal the theft of cash by crediting the payment from one customer to another customer's account on a delayed basis.

LCM (lower cost or market): A basis for valuing certain assets at the lower of original cost or current market value.

lease: A contract that specifies the terms under which the owner of an asset (the lessor) agrees to transfer the right to use the asset to another party (the lessee).

ledger: A book of accounts in which data from transactions recorded in journals are posted and thereby classified and summarized.

legal capital: The amount of contributed capital not available for dividends; usually equal to the par or stated value of outstanding capital stock.

lessee: The party that is granted the right to use property under the terms of a lease.

lessor: The owner of property that is rented (leased) to another party.

liabilities: Obligations measurable in monetary terms that represent amounts owed to creditors, governments, employees, and other parties.

license: The right to perform certain activities, generally granted by a governmental agency.

LIFO (last-in, first-out): An inventory cost flow whereby the last goods purchased are assumed to be the first goods sold so that the ending inventory consists of the first goods purchased.

limited liability: The legal protection given stockholders whereby they are responsible for the debts and obligations of a corporation only to the extent of their capital contributions.

liquidation: The process of dissolving a business by selling the assets, paying the debts, and distributing the remaining equity to the owners.

liquidity: A company's ability to meet current obligations with cash or other assets that can be quickly converted to cash.

long-term investment: An expenditure to acquire a non-operating asset that is expected to increase in value or generate income for longer than 1 year.

long-term liabilities: Debts or toher obligations that will not be paid within one year.

losses: Costs that provide no benefit to an organization.

loss per share: The amount of net loss related to each share of stock; computed by dividing net loss by a number of shares of common stock outstanding during the period.

lower cost or market (LCM): A basis for valuing certain assets at the lower of original cost or current market value.

Back to Top