Expenditure Consumption of an asset or payment for an expense. Incurrence of a liability. An independent accountant engaged to determine if the financial statements of an entity represent the economic events that occurred during the period audited. The highest price available in an open and unrestricted market between informed, prudent parties, acting at arm's length and under no compulsion to transact expressed in terms of money or money's worth. A number given to a corporation or other business entity by the federal government for tax purposes.
Banks generally require a tax identification number to open bank accounts.
A period of one year for which financial statements are prepared that may or may not coincide with the calendar year. Any twelve-month period used by a business as its accounting period. Fixed Rate A mortgage with an interest rate which does not increase or decrease during the term of the loan. A Corporation is referred to as a foreign corporation in all states except for the state where it is incorporated. If a corporation conducts business in a state other than where it was incorporated, it must register for a certificate of authority to transact business in the other state or possibly lose access to that state's courts and face fines.