date of record: The date selected by a corporation's board of directors on which the shareholders of record are identified as those who will receive dividends.

debentures (unsecured bonds): Bonds for which no collateral has been pledged.

debit: An entry on the left side of an account. In accounting, a debit increases the balance of an asset or expense account

debt-equity management ratio: A measurement of the relative utilization of debt and equity; computed by dividing average total assets by average stockholders' equity.

debt financing: Acquiring funds by borrowing money from creditors in the form of long-term notes, mortgages, leases, or bonds.

debt securities: Financial instruments issued by a company that carry with them a promise of interest payments and the repayment of principal.

declaration date: The date on which a corporation's board of directors formally decides to pay a dividend to shareholders.

declining-balance depreciation method: An accelerated depreciation method in which an asset's book value is multiplied by a constant depreciation rate (such as double the straight-line percentage, in the case of double-declining-balance.)

deduction: Business expenses or losses that are subtracted from gross income in computing taxable income.

deed: A legal document signifying ownership in real estate.

deed of trust: A legal document that transfers property to a trustee to secure the payment of a loan. It serves much the same purpose as a mortgage. The title to real estate is placed in the hands of a trustee; it is transferred to the buyer of the property when the debt has been paid in full.

deferred income taxes: An account used to record the difference between income tax expense on the income statement and income taxes payable for the year to federal and state governments.

demand deposit: Any bank deposit that can be taken out without notice or without having to wait until a specified date.

dependent: For income tax purposes, a dependent is someone who qualifies to be claimed as an exemption on your income tax return because of your financial support of that person. There are qualifying restrictions based on age, income, citizenship, and family relationship.

depletion: The process of cost allocation that assigns the original cost of a natural resource to the periods benefited.

depreciable property: Assets such as buildings, furniture, fixtures, equipment, and machinery that have a limited useful life.

depreciation: The process of cost allocation that assigns the original cost of plant and equipment to the periods benefited.

direct cost (expense): Also called variable costs. They vary with the level of sales as opposed to fixed costs which do not go up and down with sales. For example, if you delivery the products you sell, delivery expenses (variable costs) will go up as sales go up. Building rent and insurance (fixed costs) on the other hand, do not fluctuate with sales.

direct method: A method of reporting net cash flow from operations that shows the major classes of cash receipts and payments for a period of time.

direct write-off method: The recording of actual losses from uncollectible accounts as expenses during the period in which accounts receivable are determined to be uncollectible.

disclaimer of opinion: A disclaimer indicating the auditor was unable to satisfy himself or herself that the overall financial statements were fairly presented in accordance with GAAP.

discount: The amount charged by a financial institution when a note receivable is discounted; calculated as maturity value times discount rate times discount period.

discounting a note receivable: The process of the payee's selling notes to financial institution for less than the maturity value.

discount period: The time between the date a note is sold to a financial institution and its maturity date.

discount rate: The interest rate charged by a financial institution for buying a note receivable.

diversified companies: Companies operating in more than one line of business.

dividend payment date: The date on which a corporation pays dividends to its shareholders.

dividend payout ratio: A measure of the percentage of earnings paid out in dividends; computed by dividing cash dividends by the net income available to each class of stock.

dividends: Distributions to owners (stockholders) of a corporation.

dividends account: The account used to reflect periodic distributions of earnings to the owners (stockholders) of a corporation.

dividends in arrears: Missed dividends for past years that preferred stockholders have a right to receive under the cumulative-dividend preference if and when dividends are declared.

domestic corporation: In the case of a particular state, this refers to corporations created under the laws of that state. Foreign corporations would be those created outside that state. In the case of the federal tax law, a domestic corporation is one formed in the United States.

donee: The one who receives a gift.

donor: The one who makes a gift.

double-entry accounting: A system of recording transactions in a way that maintains the equality of the accounting equation. For every debit there must be an equal credit.

drawings: Distribution to the owner(s) of a proprietorship or partnership; similar to dividends for a corporation.

drawings account: The account used to reflect periodic withdrawals of earnings by the owner (proprietor) or owners (partners) of a proprietorship or partnership.

DRIP (dividend reinvestment plan): This is a program used by some publicly traded companies to make it easy for stockholders to reinvest their dividends in more company stock. Instead of sending the investor a dividend check, the company buys more stock on behalf of the investor. Most dividend reinvestment plans do not charge fees or commissions on the transaction.

drop shipment: A shipment of goods directly to the customer from the distributor. This avoids the delay and expense of shipping to the selling company and then having the seller deliver to the customer.

durable power of attorney (DPOA): A power of attorney designed to remain effective even if you become mentally incapacitated. This legal document gives whoever you name the legal right to act on your behalf. The document generally defines the specific things your agent is authorized to do and under what circumstances the "power" takes effect. A document you would want your attorney to draft.