the end of a reporting period. Account executive The brokerage firm employee who handles stockorders for clients. See: Broker. Account Party Party who applies to open a bank for the issuance of a letter of credit. Account reconciliation The reviewing and adjusting of the balance in a personal checkbook to match your bank statement. Account statement In the context of banking, refers to a summary of all balances. In the context of securities, a summary of all transactions and positions (long and short) between a broker/dealer and a client. See also: Option agreement.Accountant's opinion A signed statement from an independent public accountant after examination of a firm's records and accounts. The opinion may be unqualified or qualified. See: Qualified opinion. Accounting earnings Earnings of a firm as reported on its income statement. Accounting exposure The change in the value of a firm's foreign currency-denominated accounts due to a change in exchange rates. Accounting insolvency Total liabilities exceed total assets. A firm with a negative net worth is insolvent on the books. Accounting liquidity The ease and quickness with which assets can be converted to cash. Accounts payable Money owed to suppliers. Accounts receivable Money owed by customers. Accounts receivable financing A short-termfinancing method in which accounts receivable are collateral for cash advances. See: Factoring. Accounts receivable turnover The ratio of netcreditsales to averageaccounts receivable, which is a measure of how quickly customers pay their bills. Accredited investor Refers to an individual whose net worth, or joint net worth with a spouse, exceeds $1,000,000; or whose individual income exceeded $200,000 or whose joint income with a spouse exceeded $300,000 in each of the 2 most recent years and can be expected to meet that income in the current year. More details of the definitions for investors other that individuals are found in Regulation D of the Securities and Exchange Commission. Accreting Swap) An interest rate swap in which the notional principal amount increases over time, for example as with a construction loan provided in tranches as each stage of the project is completed. Accretion (of a discount) In portfolio accounting, a straight-line accumulation of capital gains on a discount bond in anticipation of receipt of par at maturity. Accrual Accounting Convention An accounting system that tries to match the recognition of revenues earned with the expenses incurred in generating those revenues. It ignores the timing of the cash flows associated with revenues and expenses. Accrual basis In the context of accounting, practice in which expenses and income are accounted for as they are earned or incurred, whether or not they have been received or paid. Antithesis of cash basis accounting. Accrual bond A bond on which interest accrues but is not paid to the investor during the time of accrual. The amount of accrued interest is added to the remaining principal of the bond and is paid at maturity. Accrued benefits The pension benefits earned by an employee according to the years of the employee's service. Accrued discount Interest that accumulates on savings bonds from the date of purchase until the date of