Accounting Definitions
Accounting definitions are defined by different authors in different ways. Accounting definitions are easy to understand and in easy language. Accounting definitions provides proper guideline & process in the preparation of different accounts of any thing.
Assets under Management Asset under management can be defined as the total market value of the investment of the company that is made by the company in the market and are managed through mutual funds, money management fund, portfolio management firms, hedge fund and
Load fund can be defined as the type of the mutual fund that carries a fee to sell and purchase the shares of the company. This load can be expressed in the form of the percentage of the total amount invested by the company.
Book Value can be defined as the total worth of the company in case of liquefying of its assets in order to pay back its all liabilities. Another definition of the book value is the value of a particular asset on the balance sheet
Back flush costing is a costing method in accounting in which the cost associated with the production of goods is only recorded when the goods are actually produced, finished or sold. In this method of costing the goods or the products that are not
Foreign debt can also be defined as the external debt and it is categorized as a debt or the part of the total debt that is hold for the foreign investors or foreign buyers. The foreign buyers are the buyers that don’t belong to
Floating Interest Floating interest rate can be defined as an interest rate that is not constant and it changes from time to time. How Floating Interest Rate Works Let’s assume that a person ABC wants to start a business and borrows a loan of
What is Capital Expenditure ? Capital expenditure can be defined as the amount of money or the amount of expense that a company uses to purchase, upgrade, improve or extend the life and the performance of its long term assets. Capital expenditure is usually
Net Investment Net investment can be defined as the measure of the company’s ability of investing in capital assets. The examples of the net investment can be exemplified as property, plants, equipment, machines and software. Formula of Net Investment The formula of net investment
Cost of goods sold can be described as a direct expense that associated with the production of the goods with a production plant or a factory. Cost of goods sold of a company is listed in the income statement of the company. Cost of
Future contract is a type of contract that allows or gives an obligation to the buyer to purchase an asset at some future point at a predefined set price. The assets that are traded over a future contract include commodities, stocks and bonds. Natural
Equity Income fund can be defined as an income fund that is a type of mutual fund mostly made up of the dividend paying stock. There are a number of income investments that made up together to form an equity income fund. These income
Earning assets are the assets that earn and generate income for the owner just in the same way as done by interest or dividend. In most of the cases earning assets don’t require any ongoing from the owner of the assets or in certain
The dividend capturing strategy can be defined as a stock capturing strategy in which the stock is purchased before it goes ex-dividend. This process involves capturing a stock that is going ex dividend then, capturing its dividend and then selling this stock and selecting
Annual percentage rate can be defined as an interest rate where all the costs associated with a loan are reflected by the interest rate for a specific time period mostly one year. As the name indicates the average balance shows the balance of an
Annual percentage rate can be defined as an interest rate where all the costs associated with a loan are reflected by the interest rate for a specific time period mostly one year. The working of annual percentage rate can be well understood with the
Accounts receivable financing is also known as factoring is a method of selling the accounts receivable in order to obtain cash to run the operations of the company. As we know accounts receivable are the amount of money of a company owed by the
A tax efficient fund can be defined as a type of mutual fund or any other tax efficient fund that that minimizes of declines the fund holder tax paying ability in some way. In order to understand the concept of tax efficient fund let’s
A fixed income security can be defined as a fixed investment that pays regularly in the form of the coupon payment. There are also different other options regarding the payment of the fixed income security such as interest payment or preferred dividend payment. The
