Capital Stockmeans, with respect to any Person, any capital stock , shares, interests, participations or other ownership interests of such Person and any rights , warrants or options to purchase any thereof. Capital Stockmeans, for any entity, any an... Read more
An expense is the cost of operations that a company incurs to generate revenue. Unlike assets and liabilities, expenses are related to revenue, and both are listed on a company's income statement. Current liabilities are often loosely defined as liab... Read more
We won’t be elaborating on market value calculation in this section since will be looking at market value calculation in the sections below. So, we’ll take a simple example to run you through exactly how the value of real estate is assess... Read more
The advantage here is that expenses are recognized, and net income is decreased, in the time period in which the benefit was realized instead of whenever they happened to be paid. A deferred expense is a cost that has already been incurred, but which... Read more
Gain the confidence you need to move up the ladder in a high powered corporate finance career path. Debt capacity refers to the total amount of debt a business can incur and repay according to the terms of the debt agreement. On the flip side, if the... Read more
From the bank's point of view, your credit card account is the bank's asset. Hence, using a debit card or credit card causes a debit to the cardholder's account in either situation when viewed from the bank's perspective. All accounts that normally c... Read more
In accounting and bookkeeping, a debit balance is the ending amount found on the left side of a general ledger account or subsidiary ledger account. When the trial balance does not balance, try re-totaling the two columns. If this step does not locat... Read more
This assumption is based on the premise that today’s dollars could be invested and therefore appreciate in value over time. For example, if you pay a price lower than the DCF value, you’ll generate a positive ROI from your investment. On ... Read more
Don’t dip too low or too high, rather find a sweet spot that provides the necessary cash flow you need to grow. A higher receivables turnover ratio reflects a more efficient A/R department. Many clients may be accustomed to making payments usin... Read more
A low DSI reflects fast sales of inventory stocks and thus would minimize handling costs, as well as increase cash flow. The days sales in inventory calculation, also called days inventory outstanding or simply days in inventory, measures the number ... Read more
