The Law Dictionary for Everyone
Residual income is income that a person continues to make after the work he has put into a project has been completed. Residual income is different from linear income in that linear income refers to someone’s salary. Salaries are paid based on the number of hours someone works in the present, rather than the royalties someone can earn on work […]
Read moreAn “EIN” is an Employer Identification Number, also known as a “Federal Employer Identification Number,” (“FEIN”), or a “Tax Identification Number” (“TIN”). In the United States, an EIN is the business and corporate equivalent to the Social Security number. EINs are issued to any person, business, or other entity that pays employee withholding taxes. To explore this concept, consider the […]
Read moreLiquid assets are any assets that can quickly be converted into cash with a minimal impact on the asset’s value. In general, liquid assets are viewed in the same manner as cash, as their value remains largely the same when sold. In order for an asset to be considered liquid, it must be in an established market, with a large […]
Read moreReconciliation is an accounting term that refers to keeping financial or other records in balance, in agreement, and accurate. The reconciliation method is often used in maintaining business records to ensure that the amount of money going out matches what is recorded as spent. Reconciliation also applies to personal financial records, as it is used to balance the family checkbook. […]
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