See Also: Define Leverage (Finance) Operating Leverage Long Term Debt to Total Asset Ratio Analysis Debt Ratio Analysis Equity Multiplier Definition The equity multiplier definition, also referred to as leverage of a company, is the amount of debt and other liabilities a firm has assumed as a percentage of the total assets on average throughout
See Also: How to Turnaround a Company SWOT Analysis How to Run an Effective Meeting How to Train People for Success Action Plan Core Competencies Definition The core competencies definition is a resource or capability that gives a firm competitive advantage. Core competencies are the business functions or operational activities that a company does best.
See Also: Current Liabilities Fixed Assets Chart of Accounts (COA) Working Capital Analysis Financial Ratios Intangible Assets Current Assets Definition Current assets, defined as a category of assets on the balance sheet which are expected to be used within one year or one normal operating cycle of the business (whichever is longer), are commonly part of the
See also: Capital Project Adding Value as a Financial Leader Balance the Balance Sheet Debit versus Credit Does Your Management Team Understand the Financials? When examining the term “contra asset account,” look no further than the root of contra to get a vague grasp of the definition. Because contra means “against,” one could quickly conclude
See Also: Accounting Income vs. Economic Income Accounting Income Definition Economic Income Income Statement Net Income Debt Restructuring Maximizing Your Bottom Line In 3 Simple Steps Net Profit Margin Analysis Define Comprehensive Income Define Comprehensive Income as the overall change in wealth for a company during a period. This includes not only the growth through
See Also: Intrinsic Value – Stock Options Company Valuation Basis Definition Balance Sheet Paid in Capital (APIC) Capital Gains American Depositary Receipts (ADRs) Common Stock Definition The common stock definition is shares of common stock represent ownership of a public or private corporation. Shares of common stock usually give the shareholder voting rights. Therefore, the
See Also: Bankruptcy Information Chapter 12 Bankruptcy Bankruptcy Code Chapter 13 Bankruptcy Bankruptcy Costs Bankruptcy Courts Chapter 11 Bankruptcy Bankruptcy Chapter 7 Bankruptcy Chapter 7 is a type of bankruptcy proceeding outlined in the Bankruptcy Code. More specifically, Chapter 7 is a liquidation procedure. When a financially distressed entity files for Chapter 7 bankruptcy, the
See also: Capitalize Interest Expense Interest Rate Generally Accepted Accounting Principles (GAAP) Financial Accounting Standards Board (FASB) Capitalized Interest Definition The capitalized interest definition is the interest on the cost of construction, or a self constructed asset by a company. Interest capitalization occurs because it is a part of the cost in developing the asset for the
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: Accounting Principles Accounting Concepts Point of Sale (POS) Method Working Capital From Real Estate Which Bank to Choose? Arm’s Length Transaction Definition An arm’s length transaction or the arm’s length principle is a transaction that takes place between two completely unrelated parties. An arm’s length transaction also implies that the final transfer of
Accumulated Amortization of Assets Definition To understand the accumulated amortization of assets, understand that the assets in question are intangible in nature. These assets are usually long-term and are not physical in nature. Achieve accumulated amortization through the reduction of the intangible account lump sum incrementally. Over the life of the asset in question, calculate
See Also: Depreciation Asset Market Value vs Asset Book Value Fixed Asset Turnover Analysis Research and Development Straight-Line Depreciation Accretion Definition Accretion is the increase through time of a natural asset like land or a financial asset. The increases occur through growth and multiplication like through the following: Dividends and interest for financial assets, The
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