Private equity

Private equity

Industry: Financial services

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Private equity

cash basis

Financial services; Private equity

The accounting practice of recording sales and expenses only when cash is actually received or paid out, as opposed to accrual basis. Generally cash basis accounting is simpler than accrual basis ...

carried interest

Financial services; Private equity

The percentage of a venture capital fund’s profits allocated to the general partner/ sponsors of the fund as compensation for their entrepreneurial efforts in organising and running the fund.

accumulated earnings tax

Financial services; Private equity

An additional tax on earnings that a business retains in an attempt to avoid the higher income taxes the owners would be subject to if the earnings were paid out to them as dividends. Also called ...

accrued market discount

Financial services; Private equity

An increase in the market price of a discounted bond resulting from an approaching maturity date rather than from declining interest rates.

accrued expenses

Financial services; Private equity

Expenses which are incurred, but for which payment is not yet made, as of a given date.

The most commonly used accounting method, which reports income when earned and expenses when incurred, as opposed to cash basis accounting, which reports income when received and expenses when paid. ...