Recognizes profit on a long-term construction contract as it is earned gradually during the construction period. This approach is preferred over the completed contract method because it does a better job of matching revenue and expense in the period of benefit. It should be used when reliable estima...

Special type of charitable remainder trust (CRT) under which a designated beneficiary (cannot be a charitable beneficiary) receives an annual fixed income. The grantor of the trust is allowed an income tax deduction of the amount of the present value of the charity's remainder interest as of the dat...

Addition to a life insurance policy stating that when an insured becomes disabled for at least six months, premiums due are waived. Depending on the rider, the insured may begin to receive a monthly income (usually 1 % of the face value of the policy), or only the premium may be waived. The length o...

Percentage of income required by a retiree to maintain a desired standard of living during the retirement years....