V
| Term | Meaning |
|---|---|
| Valuation | The process of determining the present value of a bond based on the current market interest rate. |
| Valuation Allowance | A method of lowering or raising an object’s current value by adjusting its acquisition cost to reflect its market value using a contra account. |
| Value | The monetary worth of something. |
| Variable Annuity | A life insurance annuity contract whose value fluctuates with that of an underlying securities portfolio or other index of performance. |
| Variable Costs | Total costs that change in direct proportion to changes in productive output or any other measure of volume. |
| Variable Manufacturing Costs | Costs that increase or decrease in direct proportion to the number of units produced. |
| Variable Overhead | The portion of mixed or semi-variable overhead costs that changes proportionately with some measure of activity or output. |
| Variable Rate Loan | A loan whose interest rate changes over its life in relation to the level of an index. |
| Variance | Deviation or difference between an estimated value and the actual value. |
| VAT (Value Added Tax) | A consumption tax levied on the value added to a product at each stage of its manufacturing cycle, as well as at the time of purchase by the ultimate consumer. |
| Velocity | Rate of spending, or turnover of money—in other words, how many times a dollar is spent in a given period of time. |
| Vendor | A supplier of goods or services of a commercial nature; may be a manufacturer, importer, or wholesale distributor. |
| Venture Capital | An investment company whose primary objective is capital growth. New assets are invested largely in companies that are developing new ideas, products, or processes. |
| Vertical Analysis | A technique for analyzing financial statements that uses percentages to show the relationships of each stated item to the total, which is 100 percent of the figure in a single statement. |
| Vesting | The point at which certain benefits available to an employee are no longer contingent on the employee continuing to work for the employer. |
| Voidable | A contract that can be annulled by either party after it is signed because fraud, incompetence, or another illegality exists, or because a right of rescission applies. |
| Volatile | Tending to rapid and extreme fluctuations. |
| Volatility | A characteristic of a security, commodity, or market to rise or fall sharply in price within a short-term period. |