Backup Withholding: Definition, How It Works, and Who Is Subject
• Backup withholding is a mandatory tax withholding on certain types of investment and reportable payments when the payee has not provided correct taxpayer…
Back Stop: Definition, How It Works in Offering, and Example
• A backstop (or back stop) is a contractual promise that ensures an issuer will receive a minimum amount of capital from a securities…
Understanding Backorders: Definition, Causes, Examples
• A backorder is an order a customer has placed that the seller cannot ship right away because there is not enough stock on…
Back Office: What It Means in Business, With Examples
• Back office: the teams and systems in a firm that handle internal administration and operational support rather than direct contact with customers. Typical…
Backlog Definition, Implications, and Real-World Examples
A backlog is work that has been ordered or started but not yet finished. In business, it commonly refers to sales orders waiting to…
Backflush Costing: Definition and How System Works for Inventory
Backflush costing is an accounting approach that delays recording manufacturing costs until after goods are finished, shipped, or sold. It’s most often used where…
Backdoor Roth IRA: Advantages and Tax Implications Explained
A backdoor Roth IRA is a legal technique that lets taxpayers whose incomes exceed the Roth IRA contribution limits still get money into a…
Back-to-Back Letters of Credit: Definition in Banking and Example
Definition – Letter of credit (LoC): a bank promise to pay a beneficiary when specified documents and conditions are presented. It shifts payment risk…
Back-End Ratio: Definition, Calculation Formula, Vs. Front End
• Definition: The back-end ratio is a measure of how much of your gross monthly income (income before taxes and payroll deductions) is committed…
Baby Boomer
Definition – Baby boomer: a person born between 1946 and 1964. This cohort was the largest U.S. generation until millennials slightly exceeded its size…