loan. It is a means available to a lender to protect his or her rights in a secured loan. You should consult with your
attorney if you need more information about these filings.
Uncollectible Accounts Expense: An account that represents the portion of the current period's receivables that are
estimated to become uncollectible.
underwriter: In insurance, an underwriter is the company that issues the insurance policy and assumes the risk of loss. In
capital stock sales, an underwriter is one who agrees to promote a new issue of stock and agrees to buy any shares not
purchased by the public.
unearned income: In tax, income from sources other than personal services, such as income from investments (interest,
dividends, royalties, etc.)
unearned revenues: Amounts received before they have been earned.
unified tax credit: This is an estate and gift tax term. It is the level of assets that can be transferred either during lifetime
or at death without creating a gift or estate tax.
uniform CPA exam: Even though each of the fifty states issue the license to practice as a certified public accountant
(CPA), the exam given to prospective CPAs by each state is a nationally uniform examination.
units-or-production depreciation method: The depreciation method in which the cost of an asset is allocated to each
period on the basis of the productive output or use of the asset during the period.
unlimited liability: The lack of a ceiling on the amount of liability a proprietor or partner must assume; meaning that if
business assets are not sufficient to settle creditor claims, the personal assets of the proprietor or partners may be used to
settle the claims.
unqualified opinion (audit): An audit term. See also opinion.
unrealized gains and losses: Gains and losses resulting from changes in the value of securities that are still being held.
unrecorded expenses: Expenses incurred during a period that have not been recorded by the end of that period.
unrecorded revenues: Revenues earned during a period that have not been recorded by the end of that period
unrelated business income: In tax law, the income of a charity that is not related to the exempt purposes of the charity
and, therefore, subject to income tax.
unsecured creditor: A creditor who has a claim which is not backed by collateral or a security agreement, sometimes
referred to as a general creditor.
useful life: The term used to describe the life over which an asset is expected to be useful to the company; cost is
assigned to the periods benefited from using the asset.
