Definition

The act of assigning a score, rank, or evaluation to something based on predetermined criteria; the quantification of opinion into a number so we can argue about it online.

Example Usage

The credit agency is rating companies based on their ESG score and debt-to-equity ratio.

Source: Merriam-Webster via Free Dictionary API

Related Terms

Intermediate

Depreciation

The accounting practice of acknowledging that everything you own is slowly becoming worthless, which is depressing when applied to assets and relatable when applied to your car. It's basically writing a slow obituary for office furniture.

💰 Finance / Accounting
Advanced

yield to maturity

The total return anticipated on a bond if held until it matures, accounting for current price, par value, coupon interest, and time to maturity. It's what you'll earn assuming the issuer doesn't default, which is a bigger assumption than bond investors like to admit.

💰 Finance / Accounting
Advanced

stepped-up basis

The readjustment of an asset's value for tax purposes when inherited, eliminating capital gains tax on appreciation that occurred during the deceased's lifetime. It's the tax code's way of saying 'fresh start' while making estate planners very wealthy.

💰 Finance / Accounting
Advanced

Topside Entry

A journal entry made at the corporate level above the normal operational accounting system, often used for adjustments or consolidation. It's headquarters overriding local books, sometimes legitimately, sometimes suspiciously.

💰 Finance / Accounting
Intermediate

ledger

The official book of record where all financial transactions are documented, serving as the single source of truth in accounting—or at least it's supposed to be. Modern ledgers are digital, but the concept remains: every debit and credit gets recorded in this master list. It's where accountants go to verify that yes, that expense really happened, and no, you can't just pretend it didn't.

💰 Finance / Accounting
Advanced

tax shield

The reduction in taxable income from deductible expenses like interest or depreciation, effectively making Uncle Sam subsidize your business decisions. It's why debt isn't always bad—the government pays part of your interest bill through reduced taxes.

💰 Finance / Accounting

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wthdydt

why the hell did you do that...