Question { Bank Of America, 4681 }

Derivative

Answer

A security whose price is dependent upon or derived from one or more underlying assets. The derivative itself is merely a contract between two or more parties. Its value is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes. Most derivatives are characterized by high leverage.

Question { Bank Of America, 4871 }

journal

Answer

A daily record of events or business; a private journal is usually referred to as a diary.

Question { Bank Of America, 4888 }

Ledger

Answer

A ledger[1] is the principal book or computer file for recording and totaling monetary transactions by account, with debits and credits in separate columns and a beginning balance and ending balance for each account.

Question { Bank Of America, 5216 }

Amortization

Answer

The deduction of capital expenses over a specific period of time (usually over the asset's life). More specifically, this method measures the consumption of the value of intangible assets, such as a patent or a copyright.