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Paid in Capital - Portion of the stockholders" EQUITY which was paid in by the stockholders, as opposed to CAPITAL arising from profitable operations.
Parent Company - Company that has a controlling interest in the COMMON STOCK of another.
Partnership - Relationship between two or more persons based on a written, oral, or implied agreement whereby they agree to carry on a trade or business for profit and share the resulting profits. Unlike a CORPORATION"S shareholders, the partnership"s general partners are liable for the DEBTS of the partnership. (See GENERAL PARTNERSHIP, LIMITED LIABILITY PARTNERSHIP, LIMITED PARTNERSHIP.)
Par Value - Amount per share set in the ARTICLES OF INCORPORATION of a CORPORATION to be entered in the CAPITAL STOCKS account where it is left permanently and signifies a cushion of EQUITY capital for the protection of CREDITORS.
Passive Activity Loss - LOSS generated from activities involved in the conduct of a trade or business in which the taxpayer does not materially participate.
Passive Income - Includes income derived from such sources as dividends, interest, royalties, rents, amounts received from personal service contracts, and income received as a beneficiary of an estate or trust.
Patronage Dividends - These dividends are amounts paid by a cooperative to its members and customers based on the quantity or value of business conducted with or for the members during the tax year.
PCAOB - Public Corporation Accounting Oversight Board, a private-sector, non-profit corporation, created by the Sarbanes-Oxley Act of 2002, to oversee the AUDITORs of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, fair, and independent audit reports.
Peer Review - Process by which an accounting firm"s practice is evaluated for compliance with professional standards. The ive is achieved through the performance of an independent review by one"s peers.
Penalty - The various government codes contain numerous provisions which impose penalties on a taxpayer (any type of taxpayer) for failure to perform a specific act or omitting vital information on a return.
Pension - Retirement plan offered by an employer for the benefit of an employee, usually at retirement, through a TRUSTEE who controls the plan ASSETS. (See EMPLOYEE BENEFIT PLAN.)
Perpetual Inventory - System that requires a continuous record of all receipts and withdrawals of each item of INVENTORY.
Personal Financial Planning - Process for arriving at a comprehensive plan to solve an individual"s personal, business, and financial problems and concerns.
Personal Financial Specialist (PFS) - CERTIFIED PUBLIC ACCOUNTANT who specializes in PERSONAL FINANCIAL PLANNING and completes a series of requirements that include education, experience, ethics and an exam.
Personal Financial Statements - FINANCIAL STATEMENTS prepared for an individual or family to show financial status.
