Glossary

The accounting closure denotes the duration in which all financial transactions within a specified timeframe in a business are documented, condensed, and disclosed. It stands as a crucial step within the accounting cycle, typically executed at the conclusion of every accounting period—be it monthly, quarterly, or annually.

A payable account represents a responsibility held by a business to settle dues to a third party for goods and/or services obtained on credit. These accounts are documented as liabilities on a company's balance sheet.

Accounts receivable is an asset signifying a company's forthcoming revenue stream. It represents the funds owed to the company by customers for goods or services already delivered. The net accounts receivable is calculated as the value of accounts receivable minus any allowances set aside for doubtful accounts.

The accounts receivable turnover is a metric that gauges the average frequency with which a company collects its accounts receivables within a specific period.

Accrual basis accounting is an accounting method that recognizes and records financial transactions when they occur, regardless of the timing of cash flow. This method contrasts with cash basis accounting, where transactions are only recorded when cash is exchanged.

Arbitrage involves taking advantage of price differences among various markets. In the realm of foreign exchange (FX) trading, this often involves purchasing foreign currency or its derivatives, like options or forwards, in one market, then selling it for a profit in another market.

The term "At the Money" (ATM) is used in finance, particularly in options trading, to describe a situation where the current price of an underlying asset is equal to the strike price of an option.

A balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time.

Barriers represent a characteristic in certain options, determining activation or deactivation based on the underlying asset's price reaching or surpassing a designated level, often referred to as the "barrier."