Place of Effective Management (POEM)
The jurisdiction in which a company is considered to have its real management and control, impacting tax residency.
Prime Lending Rate
The interest rate offered to a bank's most creditworthy borrowers, often used as a benchmark for lending rates throughout the economy.
Prime Rate
The interest rate offered to a bank's most creditworthy customers, commonly used as a benchmark for various lending rates.
Profit Allocation
The distribution of profits among related entities in accordance with the arm's length principle for transfer pricing.
Profit Split Method
A transfer pricing method for sharing profits between related entities based on their contributions to a transaction.
Pay Stub
A document provided to employees that outlines their earnings & deductions for a specific pay period.
Payroll
The process of calculating and disbursing employee wages and salaries.
Payroll Accounting
The specialized accounting process for recording and managing payroll transactions.
Payroll Records
Documents and records related to employee compensation and payroll processing.
Per Diem
A daily allowance or rate paid to employees or travelers to cover expenses.
Perpetual Inventory System
A method of tracking inventory levels in real-time as items are bought and sold.
Petty Cash
A small amount of cash kept on hand for minor expenses and emergencies.
Phishing Scams
Fraudulent attempts to trick individuals or organizations into revealing sensitive information, often via email.
Pitch Deck
A presentation used by businesses to attract investors or showcase their business ideas.
Positive and Negative Cash Flow
The inflow or outflow of cash into or from a business or investment.
PPP Loan Forgiveness
The process by which Paycheck Protection Program (PPP) loans can be forgiven if specific criteria are met.
Price-To-Cash Flow
A financial ratio that compares a company's market value to its cash flow.
Prior Period Adjustment
A correction made to financial statements to reflect errors from a previous accounting period.
Privity
The legal relationship or connection between parties, often related to contractual obligations.
Profit
The positive financial gain resulting from revenue exceeding expenses.
Profit and Loss Statement
Another term for an income statement, which summarizes a company's financial performance.
Profit Margin
A percentage that represents the proportion of profit relative to total revenue.
Progressive Tax
A tax system in which the tax rate increases as income levels rise.
