Loss

Definition

• The money a business losses when their earnings or revenues are less than their expenses.

Synonyms
financial loss, lose money

Related Terms and Acronyms

• Accounting Period (AP) — Acronym, Important,
  • The time period used in a set of accounting books or financial statements, often 12 months.
• Cash Flow — Definition,
  • The money an investment produces after subtracting cash expenses from income.
• Cash Flow Forecast — Definition,
  • An estimate of when and how much money will be received and paid out of a business. It usually records cash flow on a month-by-month basis for a period of two years.
• Deficit — Definition,
  • When expenses surpass income or liabilities surpass assets.
• Economic Growth — Definition,
  • The rate of change in output from one year to the next.
• Expense — Definition,
  • Costs incurred through a business's operations.
• Fixed Expenses (FE) — Acronym,
  • Fixed business costs that do not change regardless of business volume, such as property rental, insurance payments, utilities, etc.
• Fixed-Return Investments — Definition,
  • Investments that provide a stable return.
• Income — Definition,
  • The money earned in a specific time period.
• Insurance Cycle — Definition,
  • A cycle of soft and hard market conditions observed in the insurance and underwriting industry.
• Loss Control — Definition,
  • The combined efforts undertaken by both the insurer and the insured to lower the risk, frequency and extent of potential losses.
• Loss Ratio — Definition,
  • A method of comparing an insurer's losses to premiums earned in a specific period of time.
• Loss Reserve — Definition,
  • A reserve of money and liquid assets set aside by an insurer for the payment of claims that have been submitted but have yet to be paid out.
• Loss Settlement Amount — Definition,
  • The percentage of damages an insurer is contractually obligated to pay for after a claim.
• Losses Incurred — Definition,
  • The total net losses of an entity in a year.
• Net Operating Loss (NOL) — Acronym, Very Important,
  • A net loss for the tax year because of business or casualty losses. Taxpayers may use an excess loss of one year as a deduction for certain past or future years.
• Operating Cash Flow (OCF) — Acronym,
  • The money a company generates from its business operations. This revenue excludes costs from certain investments.
• Other Income/Expenses — Definition,
  • Any income or expenses earned or disbursed by a business that are not clearly associated to its core operations.
• Profit — Definition,
  • When revenues exceed expenses.
• Protected Cell Company (SPC) — Acronym,
  • A company that separates its assets and liabilities into a number of 'cells' to shield itself and each 'cell' from losses.
• Provision for Credit Losses (PCL) — Acronym, Canada,
  • The amount deducted from income equal to the amount by which a bank adjusts its loan balances to reflect anticipated losses on them.
  • A margin set by companies to compensate for losses due to unpaid credit.
• Recognized Gain or Loss — Definition,
  • The amount of gain or loss reported for income tax purposes. You may be able to defer recognizing gain or loss on certain property exchanges, such as like-kind exchanges.
• Revenue — Definition,
  • Money earned by a company from its business activities.
• Solvency — Definition,
  • To be able to meet one's financial liabilities in the short or long term.
• Stock Insurance Company — Definition,
  • An insurance company with multiple stockholders each owning shares in the corporation.
• Sub Account — Definition,
  • A separate financial account used to keep track of a department's finances.
• Surplus — Definition,
  • When an entity's income exceeds its expenses.
• Swap — Definition,
  • An agreement between two businesses to exchange commodities, payments or other financial products to reduce the risk of volatile market conditions or to obtain a better price or rate. For example, interest rate swaps, where floating rate interest is exchanged for fixed rate interest, protects a corporation against rises in rates or allows it to take advantage of a better rate. A cross-currency swap enables two parties to enter into an agreement in which one exchanges its currency for the other's to meet their separate requirements.