A procedure for determining an asset's value. The appraisal approach values assets based on a number of factors, such as its cost, the income it generates or its fair market value as compared to similar assets. A different dollar value will be assigned to an asset depending on which of these...
An annual publication that public corporations must provide to shareholders to describe their operations and financial conditions. The front part of the report often contains an impressive combination of graphics, photos and an accompanying narrative, all of which chronicle the company's...
The deduction of capital expenses over a specific period of time (usually over the asset's life). More specifically, this method measures the consumption of the value of intangible assets, such as a patent or a copyright.
Suppose XYZ Biotech spent $30 million dollars on a piece of medical...
Alpha is one of five technical risk ratios; the others are beta, standard deviation, R-squared, and the Sharpe ratio. These are all statistical measurements used in modern portfolio theory (MPT). All of these indicators are intended to help investors determine the risk-reward profile of a mutual...
A supposition that explains the relationship between principals and agents in business. Agency theory is concerned with resolving problems that can exist in agency relationships; that is, between principals (such as shareholders) and agents of the principals (for example, company executives)...
Business valuation is a processed set of procedures used to estimate the economic value of an owner’s interest in a business. Valuation is used by financial market participants to determine the price they are willing to pay or receive to perfect a sale of a business. In addition to estimating...
A measure of a company's ability to meet its short-term obligations using its most liquid assets. It is calculated by subtracting inventories from current assets and dividing the quantity by its current liabilities. A higher acid-test ratio indicates greater short-term financial health. The...
Receivable Turnover Ratio is one of the accounting activity ratios, a financial ratio.
This ratio measures the Sources:-
a) Receivables Turnover Ratio = Net receivable sales/ Average net receivables
b) Average Collection Period = 365 / Receivables Turnover Ratio
c)Average Debtor collection...
Accounting
Introduction of Accounting.
Accounting refers to the practice of systematically recording the financial transactions of a business, analyzing the information for internal development by the management, summarizing and interpreting them for the sake of reporting to the concerned...
Agile software development is a group of software development methods based on iterative and incremental development, where requirements and solutions evolve through collaboration between self-organizing, cross-functional teams. It promotes adaptive planning, evolutionary development and...
Not always does a company make upfront payments for the material (raw material etc.) it buys, accounts payable is essentially the amount owed by an organization for the purchase of raw materials etc.
Accounts Payable can be found under the “Current Liabilities” heading of the Liabilities...
Description
According to the U.S. Department of Education, operations management is the field concerned with managing and directing the physical and/or technical functions of a firm or organization, particularly those relating to development, production, and manufacturing.
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