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Building block model

From Wikipedia, the free encyclopedia


The building block model is a form of public utility regulation that is common in Australia. Variants of the building block
model are currently used in Australia in the regulation of electricity transmission[1] and distribution,[2] gas transmission
and distribution,[3] railways,[4] postal services,[5] urban water and sewerage services,[6] irrigation infrastructure,[7] and
port access.[8] The Australian Competition and Consumer Commission has stated that it intends to use a version of
the building block model to determine indicative access prices for fixed-line telecommunications services.[9] The
building block model is so-called because the allowed revenue of the regulated firm is equal to the sum of underlying
components or building blocks consisting of the return on capital, the return of capital (also known as depreciation),
the operating expenditure, and various other components such as taxes and incentive mechanisms.
Dual-purpose is a noun and adjective referring to things serving two purposes. It can specifically refer to:
Dual-use technology
Dual purpose gun, naval artillery mounting designed to engage both surface and air targets
Dual-Purpose Improved Conventional Munition
Dual-purpose motorcycle, designed for both on- and off-road use
Dual-purpose pump ladder, standard type of firefighting vehicle used by the London Fire Brigade
Fighting knife
Viaduct, road bridge-aqueduct
Dual-purpose breed, an animal or plant breed such as chickens, beef/dairy
cattle, sheep, goats, ducks, geese, pigs,hops, etc. that provide at least 2 kinds of resources (food such as meat,
eggs, and milk; wool, hide) or skills (such as with some hunting dogs and pigeons)
evise
rvz/
verb
gerund or present participle: revising
reconsider and alter (something) in the light of further evidence.
"he had cause to revise his opinion a moment after expressing it"
synonyms:
reconsider, review, re-examine, reassess, re-evaluate, reappraise,rethink; More
BRITISH
reread work done previously to improve one's knowledge of a subject, typically to prepare for an examination.
"students frantically revising for exams"
This article is about the detection and correction of errors in written work. For proofreading in DNA replication,
seeProofreading (biology).
Proofreading is the reading of a galley proof or an electronic copy of a publication to detect and correct production
errors of text or art. Proofreaders are expected to be consistently accurate by default because they occupy the last
stage of typographic production before publication.
Abstract of title[edit]
An abstract of title is the condensed history of title to a particular parcel of real estate, consisting of a summary of
the original grant and all subsequent conveyances and encumbrances affecting the property and
a certification by theabstractor that the history is complete and accurate. In the United States, the abstract of title
furnishes the raw data for the preparation of a policy of title insurance for the parcel of land in question, except for in
Iowa, where a Title Guaranty policy is issued instead of title insurance.
An abstract of title should be distinguished from an opinion of title. While an abstract states that all of the public
record documents concerning the property in question are contained therein, an opinion states the professional
judgment of the person giving the opinion as to the vesting of the title and other matters concerning the status of
the chain of title. Many jurisdictions define the giving of an opinion of title as the practice of law, thus making it
unlawful for a non-attorney to do so.
Accounts payable is money owed by a business to its suppliers shown as a liability on a company's balance sheet. It
is distinct from notes payable liabilities, which are debts created by formal legal instrument documents.[1]
An accounts payable is recorded in the Account Payable sub-ledger at the time an invoice is vouched for payment.
Vouchered, or vouched, means that an invoice is approved for payment and has been recorded in the General
Ledger or AP subledger as an outstanding, or open, liability because it has not been paid. Payables are often
categorized as Trade Payables, payables for the purchase of physical goods that are recorded in Inventory, and
Expense Payables, payables for the purchase of goods or services that are expensed. Common examples of
Expense Payables are advertising, travel, entertainment, office supplies and utilities. A/P is a form of credit that
suppliers offer to their customers by allowing them to pay for a product or service after it has already been received.
Suppliers offer various payment terms for an invoice. Payment terms may include the offer of a cash discount for
paying an invoice within a defined number of days. For example, 2%, Net 30 terms mean that the payer will deduct
2% from the invoice if payment is made within 30 days. If the payment is made on Day 31 then the full amount is
paid.
In households, accounts payable are ordinarily bills from the electric company, telephone company, cable
television orsatellite dish service, newspaper subscription, and other such regular services. Householders usually
track and pay on a monthly basis by hand using checks, credit cards or internet banking. In a business, there is
usually a much broader range of services in the A/P file, and accountants or bookkeepers usually use accounting
software to track the flow of money into this liability account when they receive invoices and out of it when they
make payments. Increasingly, large firms are using specialized Accounts Payable automation solutions (commonly
called ePayables) to automate the paper and manual elements of processing an organization's invoices.
Commonly, a supplier will ship a product, issue an invoice, and collect payment later, which describes a cash
conversion cycle, a period of time during which the supplier has already paid for raw materials but hasn't been paid
in return by the final customer.
When the invoice is received by the purchaser, it is matched to the packing slip and purchase order, and if all is in
order, the invoice is paid. This is referred to as the three-way match.[2] The three-way match can slow down the
payment process, so the method may be modified. For example, three-way matching may be limited solely to largevalue invoices, or the matching is automatically approved if the received quantity is within a certain percentage of the
amount authorized in the purchase order.[3]
Accounts receivable is a legally enforceable claim for payment held by a business against its customer/clients for
goods supplied and/or services rendered in execution of the customer's order. These are generally in the form
ofinvoices raised by a business and delivered to the customer for payment within an agreed time frame. Accounts
receivable is shown in a balance sheet as anasset. It is one of a series of accounting transactions dealing with the
billing of acustomer for goods and services that the customer has ordered. These may be distinguished from notes

receivable, which are debts created through formal legal instruments called promissory notes.[1] DEFINITION OF
'AMORTIZATION'
1. The paying off of debt with a fixed repayment schedule in regular installments over a period of time. Consumers
are most likely to encounter amortization with a mortgage or car loan.
2. The spreading out of capital expenses for intangible assets over a specific period of time (usually over the asset's
useful life) for accounting and tax purposes. Amortization is similar to depreciation, which is used for tangible assets,
and to depletion, which is used with natural resources. Amortization roughly matches an assets expense with the
revenue it generates.
In financial accounting, a balance sheet or statement of financial position is a summary of the financial balances of
a sole proprietorship, a business partnership, a corporation or other business organization, such as an LLC or
anLLP. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial
year. A balance sheet is often described as a "snapshot of a company's financial condition".[1] Of the three
basic financial statements, the balance sheet is the only statement which applies to a single point in time of a
business' calendar year.
A standard company balance sheet has three parts: assets, liabilities and ownership equity. The main categories of
assets are usually listed first, and typically in order of liquidity.[2] Assets are followed by the liabilities. The difference
between the assets and the liabilities is known as equity or the net assets or thenet worth or capital of the company
and according to the accounting equation, net worth must equal assets minus liabilities.[3]
Another way to look at the balance sheet equation is that total assets equals liabilities plus owner's equity. Looking at
the equation in this way shows how assets were financed: either by borrowing money (liability) or by using the
owner's money (owner's or shareholders' equity). Balance sheets are usually presented with assets in one section
and liabilities and net worth in the other section with the two sections "balancing".
A business operating entirely in cash can measure its profits by withdrawing the entire bank balance at the end of the
period, plus any cash in hand. However, many businesses are not paid immediately; they build up inventories of
goods and they acquire buildings and equipment. In other words: businesses have assets and so they cannot, even
if they want to, immediately turn these into cash at the end of each period. Often, these businesses owe money to
suppliers and to tax authorities, and the proprietors do not withdraw all their original capital and profits at the end of
each period. In other words businesses also have liabilities.
The consumer is the one who pays to consume goods and services produced. As such, consumers play a vital role in
theeconomic system of a nation. Without consumer demand, producers would lack one of the key motivations to
produce: to sellto consumers. The consumer also forms part of the chain of distribution.
Recently in marketing instead of marketers generating broad demographic profiles and psycho-graphic
profiles of market segments, marketers have started to engage in personalized marketing, permission
marketing, and mass customization.[2]
An annuity is any continuing payment with a fixed total annual amount. Annuity may refer to:
Annuity (finance theory): any terminating stream of fixed payments over a specified period of time
Life annuity: a financial contract providing payments for a person's lifetime. Payments can be level or increased at a
fixed percentage each year.
An annuity that has no definite end is called a perpetuity.
DEFINITION OF 'BILL OF LADING'
A legal document between the shipper of a particular good and the carrier detailing the type, quantity and destination
of the good being carried. The bill of lading also serves as a receipt of shipment when the good is delivered to the
predetermined destination. This document must accompany the shipped goods, no matter the form of transportation,
and must be signed by an authorized representative from the carrier, shipper and receiver.
A fiduciary is a person who holds a legal or ethical relationship of trustbetween himself or herself and one or more
other parties (person or group of persons). Typically, a fiduciary prudently takes care of money for another person.
One party, for example a corporate trust company or the trust department of a bank, acts in a fiduciary capacity to the
other one, who for example has entrusted funds to the fiduciary for safekeeping or investment. Likewise, asset
managersincluding managers of pension plans, endowments and other tax-exempt assetsare considered
fiduciaries under applicable statutes and laws.[1] In a fiduciary relationship, one person, in a position of vulnerability,
justifiably vests confidence, good faith, reliance, and trust in another whose aid, advice or protection is sought in
some matter.[2] In such a relation good conscience requires the fiduciary to act at all times for the sole benefit and
interest of the one who trusts. A power of attorney (POA) or letter of attorney is a written authorization to represent or
act on another's behalf in private affairs, business, or some other legal matter, sometimes against the wishes of the
other. The person authorizing the other to act is the principal, grantor, or donor (of the power). The one authorized to
act is the agent[1] or, in some common lawjurisdictions, the attorney-in-fact (attorney for short). Formerly, a power
referred to an instrument under seal while a letter was an instrument under hand, but today both are signed by the
grantor, and therefore there is nIn accounting and economics, fair value is a rational and unbiased estimate of the
potential market price of a good, service, or asset. It takes into account such objective factors as:
acquisition/production/distribution costs, replacement costs, or costs of close substitutes
actual utility at a given level of development of social productive capability
supply vs. demand
risk characteristics
individually perceived utility
and subjective factors such as
cost of and return on capital

In accounting, fair value is used as a certainty of the market value of an asset (or liability) for which a market price
cannot be determined (usually because there is no established market for the asset). Under US GAAP (FAS 157), fair
value is the amount at which the asset could be bought or sold in a current transaction between willing parties, or
transferred to an equivalent party, other than in a liquidation sale. This is used for assets whosecarrying value is
based on mark-to-market valuations; for assets carried at historical cost, the fair value of the asset is not used. One
example of where fair value is an issue is a college kitchen with a cost of $2 million which was built five years ago. If
the owners wanted to put a fair value measurement on the kitchen it would be a subjective estimate because there is
no active market for such items or items similar to this one. In another example, if ABC Corporation purchased a twoacre tract of land in 1980 for $1 million, then a historical-cost financial statement would still record the land at $1
million on ABCs balance sheet. If XYZ purchased a similar two-acre tract of land in 2005 for $2 million, then XYZ
would report an asset of $2 million on its balance sheet. Even if the two pieces of land were virtually identical, ABC
would report an asset with one-half the value of XYZs land; historical cost is unable to identify that the two items are
similar. This problem is compounded when numerous assets and liabilities are reported at historical cost, leading to a
balance sheet that may be greatly undervalued. If, however, ABC and XYZ reported financial information using fairvalue accounting, then both would report an asset of $2 million. The fair-value balance sheet provides information for
investors who are interested in the current value of assets and liabilities, not the historical cost.
o difference between the two.

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