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<strong>Promissory note</strong> – A legally binding agreement the borrower signs, or e-signs, to obtain a loan under the FFEL Program. The current promissory note format in place is referred to as an MPN, which allows the borrower to obtain multiple loans for multiple years of school using the same promissory note.
creative accounting (M4)<br />The manipulation of the accounts of a firm or other enterprise to produce a more favourable picture of its financial state. Profits are made to appear higher to induce a rise in the company's share price; costs are inflated to justify product price increases. A variety of methods can be used, e.g. changing the method of allocating expenses, changing the valuation of assets and using more convenient exchange rates than those ruling at the time of the transaction. Some of these practices are within the rules of company law; others are so questionable as to amount to deception. UK local authorities in the 1980s used many devices to increase their spending, including selling their principal buildings and leasing them back, barter (e.g. exchanging council land for a new building), rescheduling debts and capitalizing current expenditure (e.g. including ing of entrepreneurs employing new products and new processes to supplant the old.<br /> <br /><em>Reference</em><br />Schumpeter, J.A. (1976) Capitalism, Socialism and Democracy, 5th edn, New York: Harper; London: Allen & Unwin.
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<strong>FFY</strong> – Federal Fiscal Year, the period of October 1st through September 30th.
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