Accounts Payable
Jennifer edwards Account payable is the accounting account that shows the liability of a company or a business. It shows the obligation of a short term debt a business has to pay…
Mean Variance Analysis
Mean Variance Analysis can be defined as a risk assessment tool mostly used by the investors through which they weigh the risk against the expected return from a given investment.…
LGD: Loss Given Default
In order to maintain their capital and perform their operations almost all the companies borrow loan from banks and other companies. Most of the companies return the borrowed loan however…
The Concept of Accountability in Accounting
Accountability can be defined as the responsibility of accountants or the accounts department of a particular business to keep finances of a business clear and transparent. Each individual or department…
Full Cost Method
Full cost method of accounting is an accounting system that is used by the companies dealing in with the trading of crude oil and natural gas. There are two methods…
Flow of Costs
This is an accounting method that explains the flow of costs among various operations within a business or a company. The flow of cost system is associated with the production…
Price to Earnings Ratio
The price to earnings ratio is the ratio that evaluates the shares produced by the company in the market. The price of earnings ratio is the ratio between the prices…
Dividend Yield Ratio
This the ratio of the dividend calculated per share to that of the share price of each share. The dividend ratio indicates the percentage of amount an investor or a…
Efficiency Ratio
Efficiency ratios are the measure of the degree of the efficiency of a business. Each business runs while utilizing its assets and managing its liabilities. Efficiency ratios of a business…
Book Value Explained
The actual value of an asset that is shown in the balance sheet is called as the book value of that asset. In order to calculate the book value of…
Price to Sale Ratio
The price to sale ratio can be defined as a ratio that compares its stock price to the total revenues of that company. This ratio helps in the valuation…
Depreciation: Straight Line Biases
Straight Line Method of Depreciation is a method of calculating depreciation of an asset where the actual cost of the asset is depreciated over the entire useful life of the…
Depreciation: Straight Line Biases
Straight Line Method of Depreciation is a method of calculating depreciation of an asset where the actual cost of the asset is depreciated over the entire useful life of the…
Inventory Conversion Period
The inventory conversion period is defined as the total time period required converting the entire inventory into sales. In other words it can be defined as a relationship between the…
Net Operating Loss
Net Operating Loss can be defined as a specific period or indication where the company comes to have a negative taxable income. This situation arises when the taxable income…
Liquidity Gap
It is measured as the difference between the assets and the liabilities of a company. This gap is calculated when the assets of the firms have different properties as compared…
Accumulated Fund
It is an accounting term that is used for the official capital fund of a non-profit organization such as charitable organizations and NGOs. The accumulated fund of an organization is…
Accrued Interest
Accrued interest is the form of interest that has be calculated and recognized by the company on various financial documents and records but still it is not paid or received…