U
| Term | Meaning |
|---|---|
| UAA (Uniform Accountancy Act) | The proposal for a new regulatory framework for the public accounting profession, jointly developed by the American Institute of Certified Public Accountants (AICPA) and the National Association of State Boards of Accountancy (NASBA). The framework aims to enhance interstate reciprocity and practice across state lines by CPAs, meet future needs of the profession, respond to the marketplace, and protect the public served by the profession. |
| Unamortized Bond Discount | The difference between the face value of a bond and the proceeds received from the sale of the bond by the issuing company, less the portion that has been periodically amortized and written off to expense on the profit and loss statement. |
| Unamortized Premiums on Investments | The unexpensed portion of the amount by which the price paid for a security exceeded its par value. |
| Unaudited Financial Statements | Financial statements that have not undergone a detailed audit examination by an independent Certified Public Accountant (CPA). |
| Underlying Debt | In municipal bonds, refers to the debt of government entities within the jurisdiction of larger government entities, for which the larger entity has partial credit responsibility. |
| Underlying Security | A security that must be delivered if a put options or call option contract is exercised. |
| Undervalued | A security selling below its liquidation value or the market value that analysts believe it deserves. |
| Underwrite | To assume the risk of buying a new issue of securities from the issuing corporation or government entity and reselling them to the public, either directly or through dealers. |
| Unearned Discount | An account on the books of a lending institution recognizing interest deducted in advance, which will be taken into income as earned over the life of the loan. |
| Unearned Income | Payments received for services that have not yet been performed. |
| Unearned Interest | Interest that has already been collected on a loan by a financial institution, but that cannot yet be counted as part of earnings because the principal of the loan has not been outstanding long enough. |
| Unequal Cash Flows | Cash flow from an asset that may vary from one year to the next. |
| Uniform Accountancy Act (UAA) | See the definition provided earlier. |
| Uniform Capitalization Rules | A set of rules intended to govern the capitalization or inclusion in inventory of direct and indirect costs of producing, acquiring, and holding property. Taxpayers are required to capitalize the direct costs and an allocable portion of the indirect costs attributable to real and tangible personal property produced or acquired for resale. The uniform capitalization rules prevent taxpayers from taking current deductions for these costs, and instead, they must be recovered through depreciation or amortization. |
| Unissued Stock | Shares of a corporation’s stock authorized in its charter but not issued. |
| Unit | Any division of quantity accepted as a standard of measurement or exchange. |
| Unlimited Liability | The responsibility of all the partners in a company for its debt. |
| Unqualified Opinion | An audit opinion not qualified for any material scope restrictions nor departures from generally accepted accounting principles (GAAP). The auditor may issue an unqualified opinion only when there are no identified material weaknesses and when there have been no restrictions on the scope of the auditor’s work. Also known as a clean opinion. |
| Unrealized Loss or Gain on Long-Term Investments | A balance sheet account for entering increases or decreases in the value of long-term investments. |
| Unrealized Profit (or Loss) | Profit or loss that has not become actual. |
| Unrestricted Funds | Resources of a not-for-profit entity that have no restrictions as to use or purpose. |
| Unsecured Bond | A bond issued on the general credit of a company. |
| Use of Professional Skepticism when Evaluating the Results of Testing | The auditor must conduct the audit of internal control over financial reporting and the audit of the financial statements with professional skepticism. This attitude includes a questioning mind and a critical assessment of audit evidence. |