Dividend Yield Ratio
Jennifer edwards 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…
Accounting Earnings
Accounting earnings is the actual amount of money that is earned by a company in a specific financial year. These earnings are the earnings that is actually reported on an…
API Accountants for Public Interest
As the name indicates Accountants for Public Interest work free of cost just for the benefits of the public. API is an organization with a large number of accountants that…
Interest Coverage Ratio
It is the ratio between the EBIT and the total interest paid by the company. The ratio shows the total interest expense of the company that is subtracted from its…
Deferred Billing
Deferred billing is a method of billing in which buyers are do not charged with the interest even if they pay later than the due date of the purchase. The…
Controlled Disbursement
Controlled disbursement is a cash management technique usually employed in corporate businesses. With the help of this technique the flow of checks between the bank and the business are controlled…
Long Term Debt to Total Assets Ratio
It is a tool to analyze the financial condition of a company. This is a ratio of that calculates the percentage of the assets of the business that are financed…
LIFO Liquidation
The term LIFO liquidation is associated with the accounting of the inventory of a business. As we know LIFO is a method of managing inventory that stands for Last In…