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Deficit
DeficitAn excess of liabilities over assets, of losses over profits, or of expenditure over income. RELATED TERMS-------------------------------------- Liabilities Money that a company will have to pay to someone else - bills, taxes, debts, interest and mortgage payments, etc. Income Money received by an individual as a salary, or from investments. Cash deposits and bonds will provide income in the form of interest. Shares will, in most but not all cases, provide income in the form of twice-yearly dividends. SIMILAR TERMS-------------------------------------- Deficiency The amount by which a project's cash flow is not adequate to meet debt service. Deficiency agreement An agreement that calls on the sponsor or another party to provide the shortfall when cash flow, working capital, or revenues are below agreed levels or are insufficient to meet debt service. Deficiency letter Notification from the SEC to a prospective issuer of securities that revisions or additions need to be made to the preliminary prospectus. Deficit spending When government spending overwhelms government revenue resulting in government borrowing. Defined asset fund A unit investment trust consisting of a fixed portfolio of securities, including blue chips, REITs, or high-yielding stocks on a major exchange such as the NYSE or FTSE. Defined benefit plan A pension plan obliging the sponsor to make specified dollar payments to qualifying employees at retirement. Defined contribution plan A pension plan whose sponsor is responsible only for making specified contributions into the plan on behalf of qualifying participants. Defined event The definition applicable to the trigger of a loss in an insurance policy, particularly political risk insurance. PREVIOUS AND NEXT TERMS-------------------------------------- Deferred payment annuity An annuity that stipulates payments be made to the annuitant at a later date, such as when the annuitant reaches a certain age. Deferred tax expense A non-cash expense that provides a source of free cash flow. Amount allocated during the period to cover tax liabilities that have not yet been paid. Deficiency The amount by which a project's cash flow is not adequate to meet debt service. Deficiency agreement An agreement that calls on the sponsor or another party to provide the shortfall when cash flow, working capital, or revenues are below agreed levels or are insufficient to meet debt service. Deficiency letter Notification from the SEC to a prospective issuer of securities that revisions or additions need to be made to the preliminary prospectus. Deficit Deficit spending When government spending overwhelms government revenue resulting in government borrowing. Defined asset fund A unit investment trust consisting of a fixed portfolio of securities, including blue chips, REITs, or high-yielding stocks on a major exchange such as the NYSE or FTSE. Defined benefit plan A pension plan obliging the sponsor to make specified dollar payments to qualifying employees at retirement. Defined contribution plan A pension plan whose sponsor is responsible only for making specified contributions into the plan on behalf of qualifying participants. Defined event The definition applicable to the trigger of a loss in an insurance policy, particularly political risk insurance. We thank you for using the Financial Dictionary to search for Deficit. If you have a better definition for Deficit than the one presented here, please let us know by making use of the suggest a term option. This definition of Deficit may be disputed by other professionals. Our attempt is to provide easy definitions on Deficit and any other medical topic for the public at large.
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