See Also: 5 Cs of Credit What are the 7 Cs of banking Line of Credit How Important is Personal Credit in Negotiating a Commercial Loan? Improve Your Credit Score Credit Rating Agencies Credit rating agencies rate bonds based on the creditworthiness of the bond issuer. Agencies publish letter grades for bonds to indicate the quality of
See Also: Disaster Planning for IT Modified Accelerated Cost Recovery System (MACRS) Cost Recovery Method Payment Terms Business Drivers Cost Recovery Definition Cost recovery, defined as the method to recovering an expenditure which a business takes on, is both a specific and general term. Generally, cost recovery is simply recovering the costs of any given
See Also: Letter of Credit Investment Banks Double Entry Bookkeeping Current Expenditures Accounts Payable Collateralized Debt Obligations Definition A collateralized debt obligation derivative, or CDO, is an investment grade debt instrument backed by collateral consisting of loans or other debt instruments. The collateral typically consists of bonds with varying degrees of credit quality and risk.
COGS and the Balance Sheets for a Service Based Business If you are running a business with inventory, it’s easy to understand the G in COGS (Cost of Goods Sold). But if your Goods are employee time, how do you note your goods in the P&Ls? How do you list the time on your balance
See Also: Fixed Charge Coverage Ratio Analysis Bank Charge Open Account Accounting Controls Hold Harmless Credit Account Charge Account Definition A charge account, defined as an account in which a company can charge trade credit, is one of the most commonly used methods of financing around the world. Trade credit, when purchasing products from a
See Also: Marginal Tax Rate Prepaid Income Tax Tax Brackets Flat Tax Rates Deferred Income Tax Cash Flow After Tax In finance, analysts calculate after-tax cash flows to determine the cash flows of an investment or corporate project. Basically, the analyst calculates the after tax earnings of the investment or project, and then adds back
See Also: Hedge Funds Venture Capital Current Expenditures How to Compensate Sales Staff Indirect Labor Carried Interests Definition What are carried interests? The carried interests definition is a portion of an investment fund’s annual profit that is given to the fund manager at the end of the year. Carried interests are designed to incentivize to the
See Also: Capitalization Capitalized Interest Operating Capital Lease Agreements Capital Lease Agreement Capitalize Definition The Capitalize Definition is the act of classifying an expense or charge as a long term investment. This usually occurs for the purchase of long term assets like equipment. Capitalize Meaning Look further into the capitalize meaning… If a company capitalizes
Capital Expenditures Definition What are capital expenditures? What is CAPEX? Capital expenditures, or CAPEX, refer to spending used to purchase or improve long-term assets, such as buildings or equipment. CAPEX are in contrast to current expenditures, which refer to spending on short-term assets. Capitalize and amortize capital expenditures over their useful life. Whereas, you expense
See Also: Capital Budgeting Method Direct Method Allocation Double Declining Method Depreciation Internal Rate of Return Method NPV vs Payback Method Bailout Payback Method Definition In accounting, bailout payback method shows the length of time required to repay the total initial investment through investment cash flows combined with salvage value. The shorter the payback period,
See Also: Capital Budgeting Phases Cost of Capital Discount Rates NPV Net Present Value Cost of Capital Funding Capital Budgeting Methods Definition Most small to medium sized companies have no idea how to approach capital investments. They treat it as if it were an operating budget decision rather than a long-term, strategic decision that will
See Also: Top Down Approach How to Prepare an Investor Package Fixed Income Securities Common Stock Definition Finance Beta Definition Bottom Up Approach Definition The bottom up approach definition is when the investing involves picking out certain securities based on how the security is priced. Bottom up approach also involves looking at the potential return
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