tangible personal business property: Depreciable operating assets of a business, other than real property, including machinery, furniture and fixtures, automobiles and trucks, and equipment.

tax-deferred exchange: See Section 1031.

tax-free exchange (like-kind exchange): See Section 1031.

tax lien: A recorded claim by the government for taxes levied but not yet paid.

T-bill: A security issued by the U.S. Government with a maturity of one year or less. T-bills are sold at a discount from par,and therefore, do not bear a fixed interest rate. Treasury bonds mature in more than ten years from their issue date. Treasury notes mature in more than a year, but not more than ten years from their issue date.

tenant in common: A form of holding title to property with others. If you own property as tenants in common with others, upon your death, your interest in the property is transferred by the terms of your will. Your interest does not go automatically to the other joint owners. See also joint tenancy.

term bonds: Bonds that mature in one lump sum at a specified future date.

term insurance: A form of life insurance having no cash surrender value and no investment component (no loan value). Term insurance provides insurance protection for a specified period of time and can often be purchased with a renewal provision.

testamentary trust: A trust established by your will that goes into effect at the time of your death.

testator (testatrix): The person who makes a will, a testament.

time period (or periodicity) concept: The idea that the life of a business is divided into distinct and relatively short time periods so that accounting information can be timely.

times interest earned ratio: Ratio that indicates the company's margin above the fixed interest charged to be paid to creditors; calculated by dividing income before interest and income taxes by interest expense.

title insurance: An insurance policy that protects the buyer and/or mortgage lender against loss caused by a defect in the title to real estate.

trading securities: Debt and equity securities purchased with the intent of selling them should the need for cash arise or to realize short-term gains.

transactions: Exchange of goods or services between entities (whether individuals, businesses, or other organizations), as well as other events having an economic impact on a business.

transfer agent: A company that issues the stock certificates for a corporation. They maintain the records of shareholders and may issue the dividend checks.

transportation costs: Costs of transferring merchandise into or out of a firm.

treasury bill, bond, note: A security issued by the U.S. Government with a maturity of one year or less. T-bills are sold at a discount from par, and therefore, do not bear a fixed interest rate. Treasury bonds mature in more than ten years from their issue date. Treasury notes mature in more than a year, but not more than ten years from their issue date.

treasury stock: Issued stock that has subsequently been reacquired by the corporation.

trial balance: A listing of all account balances; provides a means of testing whether total debits equal total credits for all accounts.

trust: A legal entity set up by a person to hold assets generally for the benefit of another person or persons. A trust is administered by an appointed trustee.

trustee: A person or institution that administers a trust according to the terms of the trust agreement.

trust deed: 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.