FINANCIAL RISK Definition

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FINANCIAL RISK is the possibility of whether a bond issuer will default, by failing to repay principal and/or interest in a timely manner. Usually bonds issued by the federal government, for the most part, are immune from default (if the government needs money... more is printed). Bonds issued by corporations are more probable to be defaulted on, since companies often go bankrupt. Municipalities occasionally default as well, but it is much less common. Can also be called default risk or credit risk.

Learn new Accounting Terms

ADJUSTMENTS TO INCOME are all tax code allowable increases/(deductions) to income that are not already accounted for.

OTHER NON-CURRENT ASSETS are prepaid items and any other non-current assets.

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