Glossary
An amount owed for funds borrowed. Generally, debt is evidenced by a note, bond, mortgage or other instruments that states the repayment and interest provisions.
Change in unrestricted net assets plus interest plus non-cash depreciation divided by current notes payable. Measures an organization's ability to pay its current debt obligations.
The amount of payment due at regular intervals (usually monthly, quarterly, or annually) to meet a mortgage or debt agreement.
Total liabilities divided by total net assets (sometimes total unrestricted net assets). Sometimes the liabilities are restricted to long-term liabilities only. Measures an organization's debt relative to its equity or net asset base.
The equivalent of a mortgage in some jurisdictions. The borrower conveys title to the property to be held as security to a trustee, who holds the title as security for the benefit of the lender. The transfer is accompanied by a trust agreement setting forth the terms of the security arrangement.
Failure to meet the terms of an obligation.
A specific type of term loan that permits the borrower to make several borrowings over a set period of time to utilize the full amount of the loan.
Cash or certificate of deposit in a bank or other financial institution
An agreement outlining the terms of a transaction that transfers funds to another party for safekeeping as security or collateral.
The systematic allocation of the acquisition cost of long-lived or fixed assets to the expense accounts of particular periods that benefit from the use of the assets. Depreciation is a non-cash expense.
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