An abandonment option is a clause in a contract granting parties the right to withdraw from the contract before maturity if it becomes unprofitable. 

An abandonment option is a clause in an investment contract granting parties the right to withdraw from the contract before maturity. Usually, one party may decide to exit from the relationship without penalty if the salvage value of the project completed to date exceeds the present value of the project's expected cash flows over the life of the project's contract. An abandonment option is one of four types of real option (options on tangible assets) that can be added to investing projects such as gold mines, airline planes, cargo ships, heavy equipment, and so forth. The business contract must explicitly state the option as part of a contract's terms and specifies that neither party will incur any penalties should either of them invoke the abandonment clause. An abandonment option is a clause in an investment contract granting parties the right to withdraw from the contract before maturity.

Abandonment Option

An abatement cost is a cost borne by firms when they are required to remove and/or reduce undesirable nuisances or negative byproducts.

An abatement cost is a cost borne by firms when they are required to remove and/or reduce undesirable nuisances or negative byproducts created during production. For example, when an industrial company is required by the U.S. Environmental Protection Agency (EPA) to clean up pollution accumulated by a company’s manufacturing, mining, processing, or waste discharge site, abatement costs will undoubtedly be involved. Depending on the EPA’s review, GE may be required to perform additional dredging that could significantly boost its total pollution abatement costs associated with the Hudson River cleanup. Calculating the marginal abatement cost curve, also known as the MAC curve or MACC, is a process that involves mapping out the cost-effectiveness of greenhouse gas emissions reductions, for example weighing a company's toxic waste against initiatives it may fund in reforestation. During a 30-year period ending in 1977, when the EPA banned the production of polychlorinated biphenyls (PCBs), it is estimated that approximately 1.3 million pounds of PCBs were discharged into the Hudson River from two General Electric (GE) capacitor manufacturing plants located in the towns of Fort Edward and Hudson Falls, New York.

Abatement Cost

Activity-based management focuses on business processes and managerial activities driving organizational business goals.

Activity-based management (ABM) is a system for determining the profitability of every aspect of a business so that its strengths can be enhanced and its weaknesses can either be improved or eliminated altogether. Whereas activity-based management focuses on business processes and managerial activities driving organizational business goals, activity-based costing seeks to identify and reduce cost drivers by optimizing resources. By mapping business costs like supplies, salaries, and leasing activity to business processes, products, customers, and distribution activity, activity-based costing helps improve overall managerial effectiveness and transparency. A lot of the information gathered in activity-based management is derived from information gathered from another management tool, activity-based costing (ABC). Activity-based management (ABM), which was first developed in the 1980s, seeks to highlight the areas where a business is losing money so that those activities can be eliminated or improved to increase profitability.

Activity-Based Management (ABM)

Absolute priority is a rule that stipulates the order of payment in the event of liquidation among creditors and shareholders.

11 U.S. Code § 1129. Confirmation of plan

Absolute priority, also known as "liquidation preference," is a rule governing the order of payment among creditors and shareholders in the event of a corporate liquidation. Senior creditors are paid in full before junior creditors are paid unless the senior creditors consent to subordinate some of their claims to those unsecured creditors. Absolute priority is a rule that's used in corporate bankruptcies to determine the order of payment among creditors and shareholders; it also applies to individuals who are liquidating assets to settle claims. The courts hearing these cases deemed that secured creditors must be paid first, then unsecured creditors, and lastly equity holders, if any assets remain. Courts have affirmed that secured creditors must be paid first, then unsecured creditors, and lastly equity holders, if any assets remain.

Absolute Priority

An accelerated bookbuild is a form of offering in the equity markets. It involves offering shares in a short time period, with little to no marketing.

An accelerated bookbuild is a form of offering in the equity capital markets. In simplified terms, when a company is unable to obtain additional financing for a short-term project or acquisition due to its high debt obligations, it can use an alternative route of obtaining quick financing from the equity market through a process known as accelerated bookbuild. Accelerated bookbuilding is a form of offering in which companies offer shares during a very small time window, generally lasting between 24 hours to 48 hours, to institutional investors. Book building is the security price discovery process that involves generating and recording investor demand for shares during an initial public offering (IPO) or other issuance stages. Hence, lead managers must rely on experience to quickly assess the offering initially and trust the market during the subsequent stage, in which they receive bids from top-tier financial institutions, to determine the accurate price.

Accelerated Bookbuild

Accounts receivable discounted refers to the selling of unpaid outstanding invoices for a cash amount that is less than the face value of those invoices.

What You Need to Know About Revenue Recognition

Accounts receivable discounted refers to the selling of unpaid outstanding invoices for a cash amount that is less than the face value of those invoices. Accounts receivable discounted takes outstanding invoices that represent money owed to a creditor (such as a firm) and seeks to sell those uncollected amounts to a buyer for less than face value, typically to quickly raise capital and improve cash flow. The net of accounts receivable and the allowance for doubtful accounts display the reduced value of accounts receivable that is expected to be collectible. Accounts receivable discounted refers to the selling of unpaid outstanding invoices for a cash amount that is less than the face value of those invoices. Accounts receivable discounted is the selling of unpaid invoices for a cash sum that is less than the face value of those invoices.

Accounts Receivable (AR) Discounted

Accumulated benefit obligation (ABO) is the approximate amount of a pension plan liability, assuming that no more liability accumulates from that point on.

Accumulated benefit obligation (ABO) is the approximate amount of a company's pension plan liability at a single point in time. Accumulated benefit obligation is the present value of the amounts that a pension plan expects to pay employees during retirement based on accumulated work service and current salary levels (i.e., no future salary increases) at the time of the pension liability measurement. If the accumulated benefit obligation (ABO) is above the pension plan's assets, then the plan is underfunded. Accumulated benefit obligation (ABO) is equal to the present value of the future amount that a pension plan expects to pay an individual during their retirement. The assumption for the accumulated benefit obligation (ABO) is that the pension plan will be terminated immediately, meaning that there will be no more future salary increases.

Accumulated Benefit Obligation (ABO)

An accumulated fund is where budgetary surpluses are held by a non-profit organization and is analogous to the profit of a regular corporation.

An accumulated fund is where budgetary surpluses are held by a nonprofit organization (NPO), and it is analogous to the corporate profit earned by a traditional entity based on its retained earnings. An accumulated fund holds excess money received by a non-profit organization (NPO).
Similar to the retained earnings of a for-profit firm, the accumulated fund grows when revenues are greater than expenses and there is a budgetary surplus.
Money can only be directed away from the accumulated fund for purposes that advance the NPO's cause or in its daily operations.
A nonprofit organization is a business that has been granted tax-exempt status by the Internal Revenue Service (IRS) because it furthers a social cause and provides a public benefit. The term accumulated fund can also be used as a generic term to describe any fund that accumulates money over time for a particular purpose, although it is most commonly used in conjunction with a nonprofit organization. An accumulated fund is where budgetary surpluses are held by a nonprofit organization (NPO), and it is analogous to the corporate profit earned by a traditional entity based on its retained earnings. None of the net earnings in the accumulated fund of the organization can be used to benefit any private shareholder or individual; all earnings must be used solely for the advancement of its charitable cause or its day-to-day operations.

Accumulated Fund

The adjusted balance method is a method of accounting for financing costs based on the balance owed at the end of the current period.

§1026.60 Credit and Charge Card Applications and Solicitations.

The adjusted balance method is an accounting method that bases finance charges on the amount(s) owed at the end of the current billing cycle after credits and payments post to the account. When it comes to figuring credit card balances, card issuers use the adjusted balance method far less frequently than either the average daily balance method (the most common) or the previous balance method. There are other balance methods used by credit cards other than the adjusted balance method, like the previous balance method. Here is an example of how the adjusted balance method works: Assume you carried a credit card balance of $10,000 at the end of your card’s previous billing cycle. Finance charges are only calculated on ending balances, which results in lower interest charges versus other methods of calculating finance charges, such as the average daily balance or the previous balance method.

Adjusted Balance Method

A administrative budget is used for planning and focuses on the costs of running an operation that is not tied to producing a product or service.

An administrative budget is an official, detailed financial plan for an upcoming period for a business. A pitfall of administrative budgets it using past budgets or actual results to prepare the future budget—this perpetuates past spending patterns and should be avoided when possible.
An administrative budget is essentially all planned selling, general and administrative (SGA) expenses for a period of time. Expenses in an administrative budget include any non-production expenses, such as marketing, rent, insurance, and payroll for non-manufacturing departments. In an administrative budget, only non-production costs are accounted for, including supervisor payroll, depreciation, amortization, consulting, sales, dues and fees, legal fees and marketing, rent, and insurance. An administrative budget deals with the administrative side of running a business.

Administrative Budget

Advance premium funds exist when insurance companies who receive advance premiums must account for the unearned portion of these premiums.

An advance premium fund exists when insurance companies who receive advance premiums must account for the unearned portion of these premiums as a separate liability item on their balance sheets. The advance premium fund differs from a company's insurance premium trust, which is a separate account that serves to protect customers' premium funds from agency creditors or other claimants. An advance premium fund exists when insurance companies who receive advance premiums must account for the unearned portion of these premiums as a separate liability item on their balance sheets. An advance premium fund exists when insurance companies who receive advance premiums must account for the unearned portion of these premiums as a separate liability item on their balance sheets. Because the advance premiums paid to an insurer are not yet earned (insurance coverage has not yet been written to correspond with those premiums), those funds must be kept in a separate account from the company's operating funds, and cannot be counted as earned income until the insurance coverage has been written.

Advance Premium Fund

An after-acquired clause is a provision included in legal contracts ensuring that future assets will be included in the debtor's liability to the lender. 

An after-acquired clause is a provision included in legal contracts ensuring that subsequent acquisitions of assets will be included in the debtor's liability to the lender. By including this provision in the original contract or loan agreement, the lender avoids the hassle and inconvenience of needing to go through a new and separate process to adjust the terms of the loan each time the debtor may increase their assets or take possession of any additional property. It is sometimes also referred to as the “after-acquired property clause.”
An after-acquired clause is a provision in legal contracts to account for any future assets a debtor might acquire. As a result of this clause, the borrower’s current, existing lenders will automatically have a claim not only to the assets they own at the time they incur that debt, but also any additional assets they may add during the lifespan of the loan. The purpose of such a clause is to avoid the time, effort, and cost of having to go through a new process to adjust the loan terms every time the debtor adds to their assets.

After-Acquired Clause

Aged assets are goods that have outlived their usefulness and require upgrades. Aged assets have nothing to do with the aging of receivables.

Aged assets are goods that have outlived their usefulness and require upgrades. In this last stage, aged assets might rely on cannibalizing parts from other aged assets to stay in operation. However, he also contended that the U.S. rebuilding of infrastructure mostly concentrated on restoring aged assets instead of harnessing new technology and considering what lies beyond the horizon. One firm's aged asset that is no longer worth maintaining can be another firm's bargain-priced alternative to buying newer equipment. One firm's aged asset that is no longer worth maintaining can be another firm's bargain-priced alternative to buying newer equipment.

Aged Assets

An agency problem is a conflict of interest where one party, motivated by self-interest, is expected to act in another's best interests.

ABA Model Code of Professional Responsibility

Regulation Best Interest: The Broker-Dealer Standard of Conduct

Steps to Strengthen Ethics in Organizations: Research Findings, Ethics Placebos, and What Works

Table of Contents
What Is an Agency Problem?
Understanding Agency Problems
How to Minimize Risks
Real-World Example Although Enron's management had the responsibility to care for the shareholder’s best interests, the agency problem resulted in management acting in their own best interest. Although Enron's management had the responsibility to care for the shareholder’s best interests, the agency problem resulted in management acting in their own best interest. The agency problem may also be minimized by incentivizing an agent to act in better accordance with the principal's best interests. An agency problem is a conflict of interest inherent in any relationship where one party is expected to act in the best interest of another.

Agency Problem

Average margin per user is a profitability metric for a subscriber-based business such as a wireless telecommunications or cable company.

Average margin per user (AMPU) is a profitability metric for a subscriber-based business such as a wireless telecommunications or cable company. Sprint:
2017: $24.3 billion in operating revenues minus $21.8 billion in operating expenses, divided by average users of 56 million = $44.64, or $3.72 in AMPU.
2016: $24.8 billion in operating revenues minus $23.5 billion in operating expenses, divided by average users of 58 million = $22.41, or $1.87 in AMPU. These companies generally do not publish AMPU in their reports, instead opting to disclose average revenue per user (ARPU), a standard measure widely used in the telecom and cable industries and other sectors that have quantifiable sets of subscribers, members or users.
AMPU is arguably a better measure of ARPU since increased revenue per user may also come at a greater cost of user acquisition. AMPU \= Operating Revenue − Operating Expenses Average Users for Period \\begin{aligned} &\\text{AMPU} = \\frac{ \\text{Operating Revenue} - \\text{Operating Expenses} }{ \\text{Average Users for Period} } \\\\ \\end{aligned} ​AMPU\=Average Users for PeriodOperating Revenue−Operating Expenses​​
ARPU is an industry-standard measure, but AMPU is arguably more useful in assessing a firm's profitability. AMPU can be considered a better metric than average revenue per user (ARPU) for management as it formulates pricing and marketing strategies and budgets cost items to maximize the bottom line.

Average Margin Per User – AMPU

An annual budget outlines projected items on income, balance sheet and cash flow statements over a 12-month period.

An annual budget lays out a company's projected income and expenses for a 12-month period. For corporations, governments, and other organizations, annual budgets are critical and often mandated for planning purposes with respect to sources of income and necessary expenses—assets, liabilities, and equity required to support operations over the one-year period; and cash flows used for reinvestments, debt management, or discretionary purposes. Budgets can be in balance (expenditures = revenues), in deficit (expenditures exceed revenues), or in surplus (revenues exceed expenditures). For example, if an individual has to dip into a savings reserve at the end of a month to pay a credit card bill, they could look at the annual budget items to find out where an actual expense exceeded a budgeted expense and make appropriate adjustments. It is in deficit if expenditures exceed revenues, and it is in surplus if revenues exceed expenditures.

Annual Budget

Antidilutive describes any type of action that maintains or increases the voting power or earnings per share of a company's existing stockholders. 

Antidilutive is a term that describes the effects of certain actions, such as securities retirement, securities conversion, or other corporate actions (e.g., acquisitions made through the issuance of common stock or other securities) on the earnings per share (EPS) or voting power of existing shareholders. Antidilutive is a term that describes the effects of certain actions, such as securities retirement, securities conversion, or other corporate actions (e.g., acquisitions made through the issuance of common stock or other securities) on the earnings per share (EPS) or voting power of existing shareholders. The ability of existing shareholders to purchase additional shares helps them maintain their proportion of outstanding share ownership, therefore maintaining their share of the voting power or receipt of the company's EPS. A second use of the term antidilutive refers to ownership rights, whereby existing shareholders in a certain class of shares have the right to purchase additional shares when there is a new issuance of securities that would otherwise reduce their ownership percentage. Antidilutive activities maintain or increase the voting power or EPS for existing shareholders by lowering the company's outstanding share count or increasing the company's earnings.

Antidilutive

Appropriated retained earnings are retained earnings that are specified by the board of directors for a particular use. 

Appropriated retained earnings are retained earnings that are specified by the board of directors for a particular use. However, it does effectively create two retained earnings accounts, one for appropriated retained earnings and one for unappropriated retained earnings. There can be multiple accounts, such as appropriated retained earnings, research, and development process, or appropriated retained earnings lawsuit. Funds in appropriated retained earnings account are funneled back to the retained earnings account during bankruptcy. XYZ can then debit their retained earnings of $30 million and credit it to appropriated retained earnings.

Appropriated Retained Earnings

Appropriation is when money is budgeted for a specific, particular purpose or purposes.

Appropriation is when money is set aside money for a specific and particular purpose or purposes. The cash flow of a company is divided into three activities or behavior:
1.  **Operating activities*on the cash flow statement include any sources and uses of cash from business activities such as cash generated from a company's products or services. The cash flow statement (CFS) measures how well a company manages its cash position, meaning how well the company generates cash to pay its debt obligations and fund its operating expenses. By studying how a company allocates its spending and uses its cash, an investor can get a clear picture of how much cash a company generates and gain a solid understanding of the financial well being of a company. Appropriation is the use of cash by a company showing how money is allocated and appropriated retained earnings outlines the specific use of that cash by the board of directors.

Appropriation

An asset acquisition strategy is a means for a company to promote growth by purchasing other companies by buying their assets instead of their stock.

An asset acquisition strategy is when one company buys another company through the process of buying its assets, as opposed to a traditional acquisition strategy, which involves the purchase of stock. The benefit of an asset acquisition strategy, when compared to a stock acquisition strategy, is that the acquiring company gets to pick and choose the parts of a company it likes and feels would benefit their company. An asset acquisition strategy is when one company buys another company through the process of buying its assets, as opposed to a traditional acquisition strategy, which involves the purchase of stock. In an asset acquisition strategy a company chooses the assets, and sometimes liabilities, it wishes to obtain, as opposed to a traditional acquisition where it buys the entire company. Prudent managers will not overpay for an asset (i.e., they will avoid making a dilutive acquisition), and when they do decide to buy another company or a unit of a company they will make sure that the impact to their company's balance sheet is acceptable.

Asset Acquisition Strategy

Asset base refers to the underlying assets giving value to a company, investment or loan. 

An asset base refers to the underlying assets that give value to a company, investment, or loan. Total assets include all kinds of assets, such as cash and short term investments, total accounts receivable, inventories, net property, plant and equipment (PP&E), investments and advances, intangible assets like goodwill, and tangible assets.
Total liabilities include items like short and long term debt obligations, accounts payable, and deferred taxes. Book value of a company \= Total assets − Total liabilities \\text{Book value of a company} = \\text{Total assets} - \\text{Total liabilities} Although it is completely normal for a company to make changes to its asset base periodically by buying and selling assets, large swings in asset base will affect the company's valuation and can be a red flag for analysts. Typically, a company's market value will exceed its asset base since market value also includes intangibles as well as expected future growth from cash flows and profits.

Asset Base

Asset deficiency is a situation where a company's liabilities exceed its assets indicating that a company may soon default and be headed for bankruptcy.

A Retrospective Look at Rescuing and Restructuring General Motors and Chrysler

Asset deficiency is a situation where a company's liabilities exceed its assets. A simple way for investors to research a publicly traded company's financial statements is to go to the company's investor relations (IR) page on its website to access the company's quarterly and annual reports. In a worst-case scenario, asset deficiency may force a company to file for Chapter 7 bankruptcy, which means the company will go out of business entirely, liquidating as a means to pay off its creditors and bondholders. If a company's liabilities exceed its assets, this is a sign of asset deficiency and an indicator the company may default on its obligations and be headed for bankruptcy. While a company may experience a temporary or short-term asset deficiency, there are usually warning signs that indicate the financial distress is much more serious and could lead to the company's failure.

Asset Deficiency

An asset-liability committee is a supervisory group generally comprised of the senior-management levels of a bank or other lending company.

An asset-liability committee (ALCO), also known as surplus management, is a supervisory group that coordinates the management of assets and liabilities with a goal of earning adequate returns. Members also develop and maintain a contingency funding plan, review immediate funding needs and sources, and determine liquidity risk exposures to adverse scenarios with varying probability and severity.
An ALCO's strategies, policies, and procedures should relate to the board’s goals, objectives, and risk tolerances for operating standards. ALCO members without the right to vote are appointed upon presentation to the ALCO chair by order of the bank executive board from among bank specialists and managers for a one-year period. An ALCO at the board or management level provides important management information systems (MIS) and oversight for effectively evaluating on- and off-balance-sheet risk for an institution. An ALCO at the board or management level provides important management information systems (MIS) and oversight for effectively evaluating on- and off-balance-sheet risk for an institution.

Asset-Liability Committee (ALCO)

Asset rationalization is the process of reorganizing a company's assets in order to improve operating efficiencies and boost the bottom line.

Pentanova Energy Corp. Announces Asset Rationalization Mandate, Annual Consolidated Financial Statements and Results and Year End Reserves Highlights

Ruby Tuesday, Inc. Reports Fourth Quarter and Fiscal Year 2017 Financial Results

NRD Capital Completes Acquisition of Ruby Tuesday

Asset rationalization is the process of reorganizing a company's resources of economic value to improve operating efficiencies and boost its bottom line. Asset rationalization can help to bring a company more in line with its core competencies, boost income, and weed out loss-making ventures. An announcement was made that the company’s board of directors, following a review of annual financial statements and ongoing commitments, charged senior management with a mandate to reduce the company's asset portfolio, and introduce significant cost reductions. Asset rationalization is the process of reorganizing a company's resources of economic value to improve operating efficiencies and boost its bottom line. Asset rationalization is the process of reorganizing a company's assets to improve operating efficiencies and boost its bottom line.

Asset Rationalization

An asset sale is when a bank sells its receivables to another party.

Asset Sale vs. Stock Sale: What's The Difference?

An asset sale occurs when a bank or other type of firm sells its receivables to another party. Asset sales involve actual assets of a business—usually, an aggregation of assets—as opposed to shares of stock and can be a complex transaction from an accounting perspective. By allocating a higher value for assets that depreciate quickly (like equipment) and by allocating lower values to assets that amortize slowly (like goodwill, which has a 15-year life), the buyer can achieve considerable tax breaks. Typically, for reasons having to do with tax benefits, buyers prefer asset sales, whereas sellers prefer stock sales. Although some long-held intangible assets, such as goodwill, are taxed at capital gains rates, other assets can be subject to higher ordinary income tax rates.

Asset Sales

Asset-based finance is a loan made to a company that is secured with one of the company's assets, such as equipment, machinery, or inventory.

Asset-based finance is a specialized method of providing companies with working capital and term loans that use accounts receivable, inventory, machinery, equipment, or real estate as collateral. Asset-based finance may also be called asset-based lending or commercial finance.
Asset-based financing is a way for companies to use property, inventory, or accounts receivable as collateral to obtain a loan. Asset-based funding is often used to pay for expenses when there are temporary gaps in a company's cash flows or the usual time lag in the cash collection cycle between buying raw materials until receiving cash for goods or services from customers, but it can also be used for startup company financing, refinancing existing loans, financing growth, mergers and acquisitions, and for management buy-outs (MBOs) and buy-ins (MBIs). Asset-based lending may be a line of credit or a cash-funded loan, but either way, the loan money is secured by some sort of collateral from the borrower's business or properties, such as inventory or accounts receivable. Asset-based finance is a specialized method of providing companies with working capital and term loans that use accounts receivable, inventory, machinery, equipment, or real estate as collateral.

Asset-Based Finance

Asset financing uses a company’s balance sheet assets, including short-term investments, inventory and accounts receivable, to borrow money or get a loan

Asset financing refers to the use of a company’s balance sheet assets, including short-term investments, inventory and accounts receivable, to borrow money or get a loan. Some companies prefer to use asset financing in place of traditional financing as the financing is based on the assets themselves rather than the bank's perception of the company's creditworthiness and future business prospects. Asset financing differs considerably from traditional financing, as the borrowing company offers some of its assets to quickly get a cash loan. Asset financing refers to the use of a company’s balance sheet assets, including short-term investments, inventory and accounts receivable, to borrow money or get a loan. With asset financing, if other assets are used to help the individual qualify for the loan, they are generally not considered direct collateral on the amount of the loan.

Asset Financing

An assignment of proceeds occurs when a beneficiary transfers all or part of the proceeds from a letter of credit to a third-party beneficiary.

An assignment of proceeds occurs when a beneficiary transfers all or part of the proceeds from a letter of credit to a third-party beneficiary. In order to process an assignment of proceeds, the original beneficiary of the letter of credit must submit a request to the bank or other financial institution issuing the letter of credit requesting to assign the funds to a different individual or company. An assignment of proceeds occurs when a beneficiary transfers all or part of the proceeds from a letter of credit to a third-party beneficiary. A benefit of this type of transaction is the ability to redirect only a portion of the proceeds, in which case both the original beneficiary and third party can access the same letter of credit. The main benefit of an assignment of proceeds is that the original beneficiary has the ability to assign all or just a portion of the letter of credit to the third party.

Assignment of Proceeds

An audit committee is the part of a company's board of directors in charge financial reporting and disclosure.

Standards relating to listed company audit committees

An audit committee is one of the major operating committees of a company's board of directors that is in charge of overseeing financial reporting and disclosure. The audit committee's role includes the oversight of financial reporting, the monitoring of accounting policies, the oversight of any external auditors, regulatory compliance and the discussion of risk management policies with management. An audit committee is one of the major operating committees of a company's board of directors that is in charge of overseeing financial reporting and disclosure. An audit committee is made of members of a company's board of directors and oversees its financial statements and reporting. The audit committee works closely with auditors to ensure that company's books are correct and that no conflicts of interest exist between auditors or any outside consulting firms employed by the company.

Audit Committee

An audit department is a unit within a company that is responsible for evaluating business procedures, risk management, control functions and governance.

An audit department is a unit within a company or organization that is responsible for evaluating operational procedures, risk management, control functions, and governance processes. The chief functions of an audit department are to:
Determine compliance with policies and procedures
Assess the quality of internal controls
Evaluate the quality of risk management
Evaluate compliance with rules and guidelines established by regulatory agencies (e.g., Securities and Exchange Commission)
Assess compliance with accounting standards, whether issued by the Financial Accounting Standards Board or Government Accounting Standards Board or other
Review the effectiveness and security of information technology systems
Review the strength of the code of ethics and actions to handle violations
Provide additional oversight to internal accounting practices that external auditors may not focus on
Opine on the quality of work of external auditors
Verify physical assets and inventory
Investigate employee complaints and alleged fraudulent activities Reporting internally to the audit committee of the Board of Directors and to senior management, the audit department is supposed to be completely objective and receive no influence or interference from the areas of the company or organization it examines. The audit department delivers findings from its periodic reviews to management and the audit committee of the Board of Directors. An audit department is a unit within a company or organization that is responsible for evaluating operational procedures, risk management, control functions, and governance processes.

Audit Department

Authorized share capital is the number of stock units a company can issue as stated in its memorandum of association or articles of incorporation.

Main Market: A guide to listing on London Stock Exchange

Authorized share capital is the number of stock units (shares) that a company can issue as stated in its memorandum of association or its articles of incorporation. In order to be fully understood, authorized share capital must be viewed in a context where it relates to paid-up capital, subscribed capital, and issued capital. For example, the London Stock Exchange (LSE) requires that a public limited company (PLC) have at least £700,000 of authorized share capital to be listed.﻿﻿ Authorized share capital may be greater than the shares available for trading. Subscribed capital represents a portion of the authorized capital that potential shareholders have agreed to purchase from the company's treasury, often as part of the company's initial public offering (IPO). A company's shares outstanding will fluctuate as it buys back or issues more shares, but its authorized share capital will not increase without a stock split or some other dilutive measure.

Authorized Share Capital  and Example

An avoidable cost refers to variable costs that can be avoided, unlike most fixed costs, which are typically unavoidable.

An avoidable cost is an expense that will not be incurred if a particular activity is not performed. Avoidable costs refer primarily to variable costs that can be removed from a business operation, unlike most fixed costs, which must be paid regardless of the activity level of a company. In most cases, but not all, avoidable costs apply to variable costs rather than fixed costs. While deciding to sell this business, GE turned all of the costs associated with the division to avoidable costs. Even though fixed cost items, like building rent, utilities, insurance, and certain administrative salaries still had to be paid despite a reduction in the product count, there were significant avoidable costs associated with those products, such as marketing and sales expenses and research and development (R&D) expenses, that P&G was able to remove from its operations.

Avoidable Cost

Bankruptcy risk refers to the likelihood that a company will be unable to meet its debt obligations.

Bankruptcy risk, or insolvency risk, is the likelihood that a company will be unable to meet its debt obligations. Solvency is often measured with a liquidity ratio called the current ratio, which compares current assets (including cash on hand and any assets that could be converted into cash within 12 months, such as inventory, receivables, and supplies) and current liabilities (debts that are due within the next 12 months, such as interest and principal payments on debt serviced, payroll, and payroll taxes). When a public company files for bankruptcy, it can reorganize, close its operations, or sell off its assets and use the proceeds to pay off its debts.
A firm can fail financially because of cash flow problems resulting from inadequate sales and high operating expenses. When a public company is unable to meet its debt obligations and files for protection under bankruptcy, it can reorganize its business in an attempt to become profitable, or it can close its operations, sell off its assets, and use the proceeds to pay off its debts (a process called liquidation). Some, for example, consider a 2:1 current ratio as solvent, showing that the firm's current assets are twice its current liabilities.

Bankruptcy Risk

A bargain purchase option in a lease agreement allows the lessee to purchase the leased asset at the end of the lease period at a lower price.

A bargain purchase option is a clause in a lease agreement that allows the lessee to purchase the leased asset at the end of the lease period at a price substantially below its fair market value. The other three criteria that the FASB requires for a lease to be recorded as a capital lease include a transfer of title/ownership when the lease is over, the lease term being 75% or more of the asset's economic life, and the present value of the minimum lease payments at the beginning of the lease being 90% or more of the asset's fair market value. If a lease has a bargain purchase option, the lessee must record the asset as a capital lease in an amount equal to the present value of all minimum lease payments over the lease term. The bargain purchase option is one of four criteria under the FASB Statement No. 13, any one of which, if satisfied, would require the lease to be classified as a capital or financing lease, as opposed to an operating lease, that must be disclosed on the lessee's balance sheet. Under the Financial Account Standard Board's rules, a bargain purchase option would require the lessee to treat the lease as a capital lease as opposed to an operating lease.

Bargain Purchase Option

The BCG growth-share matrix is a heuristic developed by the Boston Consulting Group used to classify a firm's project outlooks.

BCG Classics Revisited: The Growth Share Matrix

The Boston Consulting Group (BCG) growth-share matrix is a planning tool that uses graphical representations of a company’s products and services in an effort to help the company decide what it should keep, sell, or invest more in. In effect, low-growth, high-share cash cows should be milked for cash to reinvest in high-growth, high-share “stars” with high future potential. Products that are in low-growth areas but for which the company has a relatively large market share are considered “cash cows,” and the company should thus milk the cash cow for as long as it can. The matrix plots a company’s offerings in a four-square matrix, with the y-axis representing the rate of market growth and the x-axis representing market share. The Boston Consulting Group (BCG) growth-share matrix is a planning tool that uses graphical representations of a company’s products and services in an effort to help the company decide what it should keep, sell, or invest more in.

BCG Growth-Share Matrix

A big bath is an accounting term for manipulating a company's income statement to make poor results look even worse to make future results look better.

A big bath is an accounting term that is defined by a company's management team knowingly manipulating its income statement to make poor results look even worse in order to make future results appear better. A big bath accounting maneuver can result in a big rise in apparent future earnings, which might result in a larger bonus for executives, giving them the incentive to pursue a big bath accounting maneuver. A big bath is an accounting term that is defined by a company's management team knowingly manipulating its income statement to make poor results look even worse in order to make future results appear better. If a CEO concludes the minimum earnings targets cannot be made in a given year, he has an incentive to move earnings from the present to the future because the CEO's compensation does not change regardless if he misses the targets by a little or a lot. When earnings are positively affected by the big bath in the future, the stock price can recover and trade even higher than it otherwise would have without the accounting manipulation.

Big Bath

Broad Form Storekeepers' Insurance is coverage provided to store owners in the event of theft or robbery. 

Broad form storekeepers' insurance is coverage provided to store owners in the event of theft or robbery. Broad form storekeepers' insurance may cover circumstances such as:
Loss of valuables, cash, merchandise, securities from a vault
Reparation of damages to the safe or vault
Coverage for burglary or robbery of merchandise on the shop floor, including furniture and fixtures
Reimbursement for stolen or kited checks from the business
Thefts or shortage from bonded employees (e.g., those who handle money or books)
Other times, this coverage is purchased separately or as riders. Broad form storekeepers' insurance is coverage provided to store owners in the event of theft or robbery, found under the burglary and robbery insurance policy. Each policy tends to be tailored to the needs of the individual business, though generally, this form of insurance covers the basics from losses such as theft of merchandise, money, property fixtures, and equipment. It is especially important for small business owners to carefully consider and evaluate their business insurance needs because they may have more personal financial exposure in the event of a loss.

Broad Form Storekeepers' Insurance

A budget committee oversees the budgeting process of an organization such as a firm.

A budget committee is a group of people within an organization that creates and maintains fiscal responsibility for that entity. For example, the budget committee for the hypothetical company Wendell's Widget Makers, Inc. is in charge of overseeing the yearly budget formation for every department within the organization and approving the budgets. A budget committee is a group within an organization that oversees the allocation of financial resources for a company and allocates funds accordingly to parts of the organization. In addition, the budget committee writes and edits the company budget manual and makes sure the departments are adhering to their submitted yearly budgets. A budget committee is an official group that creates and oversees the standards and best practices to implement and update an organization's spending and resource allocation plans while maintaining fiscal responsibility.

Budget Committee

A budget manual is a set of instructions used by large organizations to prepare budgets. 

A budget manual is a set of rules and instructions used by large organizations to prepare their budgets and related reports. The quality assurance department can cover the workload and keep running just fine without her, but to ensure they do not lose part of their budget for maintaining their headcount, they need to hire another person and spend the remaining money that would have gone to Cindy's salary on training for the new person. Financial analysts work closely with each group to collect budget information on a pre-set schedule and then send data up through higher rings of financial controllers until it can be aggregated by the chief financial officer's (CFO's) office. Budget manuals are developed and updated through a budget committee that oversees standards and practices within the organization's financial units. A budget manual is a set of standardized routines and instructions that large organizations follow in budgeting and reporting.

Budget Manual

Budgetary slack is a cushion created in a budget by management to increase the chances of the actual performance beating the budget.

Budgetary slack is a cushion created in a budget by management to increase the chances of the actual performance beating the budget. Budgetary slack can be prevented by having a small group of managers create the budget, and disassociating meeting budget targets with performance. Budgetary slack is a cushion created in a budget by management to increase the chances of the actual performance beating the budget. Budgetary slack is a built-in cushion in a budget that seeks to increase the chances of the actual performance being better than the budget. Budgetary slack is generally frowned upon because the perception is that managers care more about making their numbers to keep their seats and to game the executive compensation system rather than to push the company's performance to its potential.

Budgetary Slack

Business interest expense is the cost of interest that is charged on business loans used to maintain operations.

A business interest expense is the cost of interest that is charged on business loans used to maintain operations. A business interest expense is the cost of interest on a business loan used to maintain business operations or pay for business expenses. A business interest expense is any interest associated with a loan that is used to pay for business operations or associated expenses. For example, any investment interest would not count as a business interest expense and therefore not be deductible under the tax laws for interest expense deductions. The deduction limitation for taxable income does not take into account business interest expenses and income, net operating losses, non-business income (like gains from assets that were held as investments), and depreciation, amortization, or depletion.

Business Interest Expense

Buy-In Management Buyout (BIMBO) is a form of leveraged buyout that incorporates characteristics of both a management buyout and a management buy-in. 

A Buy-In Management BuyOut (BIMBO) is a form of a leveraged buyout (LBO) that incorporates characteristics of both a management buyout (MBO) along with a management buy-in (MBI). A buy-in management buyout (BIMBO) occurs when an outside management team joins a company (buying-in) while also buying out the existing management team. A management buy-in is a corporate action in which an outside manager or management team purchases a controlling ownership stake in an outside company and replaces its existing management team. Like all LBOs, there are still risks of disruption, conflicts, and reduced performance - but these may be minimized as the new managers have bought in as owners as well.
Buy-In Management Buyout (BIMBO) is a term that originated in Europe to describe a type of LBO that combines new external management with internal management to refresh the direction of the company and streamline operations. This management buyout is complemented with management buy-in, which results in the influx of leaders with expertise to fill in areas of need, be it in a new product or service under development, marketing, operations management, or finance.

Buy-In Management Buyout (BIMBO)

A capacity cost is incurred in an attempt to expand operations or scale for a business or organization.

A capacity cost is an expense incurred by a company or organization in order to provide for or increase its ability to conduct business operations at larger scale. Capacity requirements planning weighs the costs of increasing capacity against the company's actual production capabilities to see if the current capacity can successfully meet the existing production schedule and at budget.
Capacity costs include a wide range of cost types. Capacity costs are a given in business if the business wishes to grow beyond its current production capacity and generally can be reduced or avoided only by reducing staff or shutting down business locations, both of which may reduce capacity or outsourcing. These costs may include items such as lease agreements on larger facilities, purchase and depreciation of new equipment, as well as increased costs to operate and maintain those larger or newer assets.
Capacity refers to the maximum level of output that a company can sustain to make a product or provide a service. These increases in personnel are also capacity costs, as they allow the business to increase its production capacity.

Capacity Cost

Capital funding is the money that lenders and equity holders provide to a business so it can run both its day-to-day operations and make longer-term purchases and investments.

Capital funding is the money that lenders and equity holders provide to a business for daily and long-term needs. _Capital funding is the money given to businesses by lenders and equity holders to cover the cost of operations._
_Businesses take two basic routes to access funding: raising capital through stock issuance and/or through debt._
_Companies run extensive analysis on the cost of receiving capital funding, and the costs associated with each type of available funding, before deciding to move forward._ A business may assess its weighted average cost of capital (WACC), which weights each cost of capital funding, to calculate a company’s average cost of capital. There are two key ways a business can access funding: by raising capital through issuing stock and by raising capital through issuing debt. The WACC can be compared to the return on invested capital (ROIC)—that is, the return that a company generates when it converts its capital into capital expenditures.

Capital Funding

Capital investment analysis is a budgeting procedure that companies use to assess the potential profitability of a long-term investment. 

Capital investment analysis is a budgeting procedure that companies and government agencies use to assess the potential profitability of a long-term investment. Businesses may use various techniques to perform capital investment analysis, which involve calculating the expected value of future cash flows from the project, the cost of financing, and the risk-return of the project. One of the most common metrics for capital investment analysis is the net present value (NPV) model, which determines how much the expected revenue from a project–called future cash flows–are worth in today's dollars. Essentially, net present value (NPV) measures the difference between the present value of the project's cash inflows and the present value of any costs or cash outflows. DCF analysis is essentially a component of the NPV calculation since it's the process of using a discount rate or an alternative rate of return to measure whether the future cash flows make the investment worth it or not.

Introduction to Capital Investment Analysis

Capital investment factors are factors affecting the decisions surrounding capital investment projects. 

Capital investment factors are factors affecting the decisions surrounding capital investment projects. Other aspects that affect decision-making can include:
The outlook of a company's management team
How technological changes and advancements may uncover previously unknown opportunities
Interest rates, otherwise known as the cost of borrowing
How competition may affect the market landscape and potentially change previous assumptions
Fiscal incentives, such as tax reductions, grants, and subsidies
The market and changing forecasts — unforeseen changes in local and global markets may render previous assumptions invalid
A variety of other factors that have nothing to do with economics may also factor into capital investment decisions, such as culture, religion, family, tradition, and governmental role.
Typically, the capital investment factors process takes the following steps:
1.  Project identification: Finding an appropriate project for consideration.
2.  Project definition and vetting: Accurately categorizing a project as a means to fully understanding it, as well as ensuring that it is appropriate.
3.  Analyzing and accepting: Setting and checking the parameters for a successful project that meets an organization's goals, as well as formally engaging in a project.
4.  Implementation: Where the work on a project begins, and actions are undertaken to work toward a successful outcome.
5.  Monitoring: Capital investment factors are elements of a project decision, such as cost of capital or the duration of investment, which must be weighed to determine whether an investment should be made, and if so, in what manner it can be best executed to maximize utility for the investor. Capital investment factors are factors affecting the decisions surrounding capital investment projects. Capital investment factors can relate to almost any aspect of an investment decision.

Capital Investment Factors

A capital markets group is a division within a larger company that uses its financial expertise to provide financial services to certain clients.

A capital markets group is a division within a larger company that uses its expertise in financial markets to provide financial services to specific types of clients. _Capital markets groups are units of a company or investment firm that handle financial and banking services for a set of clients or customers._
_These corporate divisions may exist within larger financial institutions to help with specific services such as obtaining leases, acquiring other companies, or issuing debt._
_Capital markets groups are also responsible for investment banking services and the issuance of a company's securities._
The types of services that may be provided by a capital markets group vary widely and depend on the focus of the company as a whole and on its customers' needs. The resulting alliance provides an enhanced ability for a company to navigate the sophisticated economic and business landscape, providing analysis, advice, and high-quality execution that helps propel a company's growth. Capital markets teams focus on building on these types of strategic relationships in order to build a deep understanding of clients' needs that will enable them to deliver advice and solutions that will make a significant difference.
From syndicated loans to import solutions and integrated receivables, capital markets groups offer universal, strategic advice and solutions that make a significant difference in their clients' futures.
Capital markets groups help clients with their most critical and complex business issues, such as mergers and acquisitions. A capital markets group is a division within a larger company that uses its expertise in financial markets to provide financial services to specific types of clients. A capital markets group may provide investment management services, lending services, equity sales and trading, research, consulting services, or any number of other types of financial services.

Capital Markets Group

Capital outflow is the movement of assets out of a country, often because of political or economic instability.

Japan's Economy and the Bank of Japan: Yesterday, Today, and Tomorrow

Capital outflow is the movement of assets out of a country. The flight of assets occurs when foreign and domestic investors sell off their holdings in a particular country because of perceived weakness in the nation's economy and the belief that better opportunities exist abroad. While government officials expected modest amounts of capital outflows, the large amount of capital flight raised both Chinese and global concerns. Reasons for capital flight include political unrest, introduction of restrictive market policies, threats to property ownership and low domestic interest rates. Excessive capital outflows from a nation indicate that political or economic problems exist beyond the flight of the assets themselves.

Capital Outflow  & Examples

A capital project is a big, long-term project meant to build upon or improve or maintain a significant piece of property that is meant to last.

A capital project is a long-term, capital-intensive investment project with a purpose to build upon, add to, or improve a capital asset. A capital project is a long-term, capital-intensive investment project with a purpose to build upon, add to, or improve a capital asset. Corporations allocate large amounts of resources (financial and human capital) to build or maintain capital assets, such as equipment or a new manufacturing project. A capital project is distinct from other company projects as it is large in scale, high in cost, and requires considerable planning relative to other investments. A capital project financed by public funds often seeks to build, renovate, or buy equipment, property, facilities, and parks; infrastructure and information technology systems are to be used as a public asset or to benefit the public.

Capital Project

Capital gearing refers to the amount of debt a company has relative to its equity, known as financial leverage in the United States.

Capital gearing is a British term that refers to the amount of debt a company has relative to its equity. Lenders and investors pay close attention to the gearing ratio because a high ratio suggests that a company may not be able to meet its debt obligations if its business slows down. The gearing ratio is a measure of financial risk and expresses the amount of a company's debt in terms of its equity. Often, lenders for debt structured as senior will disregard a firm's short-term obligations when calculating the gearing ratio, as senior lenders receive priority in the event of a business’s bankruptcy. Gearing ratios are a group of financial metrics that compare shareholders' equity to company debt in various ways to assess the company's amount of leverage and financial stability.

Capital Gearing

Capitalization of profits is the use of corporate earnings to pay a bonus to shareholders in the form of dividends or additional shares.

Capitalization of profits is the use of a corporation's retained earnings (RE) to pay a bonus to shareholders in the form of dividends or additional shares. Large capitalization, medium capitalization, or small capitalization, more commonly called large cap, medium cap, and small cap, is a way to lump companies into categories based on their size or market cap. So, capitalization of profits implies that a company is transforming its cash reserves into assets of value, and transferring those assets to shareholders. Capitalization of profits is the use of corporate reserves to pay a bonus to shareholders in the form of cash or additional shares. Capitalization of profits is the use of a corporation's retained earnings (RE) to pay a bonus to shareholders in the form of dividends or additional shares.

Capitalization Of Profits

A capital lease is a contract entitling a renter the temporary use of an asset and, in accounting terms, has asset ownership characteristics.

FASB Accounting Standards Update No. 2016-02 Leases (Topic 842)

Proposed Accounting Standards Update 840-10-25-43

A capital lease is a contract entitling a renter to the temporary use of an asset and has the economic characteristics of asset ownership for accounting purposes. A capital lease is a contract entitling a renter to the temporary use of an asset
A capital lease is considered a purchase of an asset, while an operating lease is handled as a true lease under generally accepted accounting principles (GAAP). For instance, if a company estimated the present value of its obligation under a capital lease to be $100,000, it then records a $100,000 debit entry to the corresponding fixed asset account and a $100,000 credit entry to the capital lease liability account on its balance sheet. In essence, a capital lease is considered a purchase of an asset, while an operating lease is handled as a true lease under generally accepted accounting principles (GAAP). If a company makes $1,000 in monthly lease payments and its estimated interest is $200, this produces a $1,000 credit entry to the cash account, a $200 debit entry to the interest expense account, and an $800 debit entry to the capital lease liability account.

Capital Lease

Capital markets are venues where savings and investments are channeled between suppliers and those in need of capital.

Capital markets are where savings and investments are channeled between suppliers—people or institutions with capital to lend or invest—and those in need. New capital is raised via stocks and bonds that are issued and sold to investors in the primary capital market, while traders and investors subsequently buy and sell those securities among one another on the secondary capital market but where no new capital is received by the firm. These markets are divided into two different categories: primary markets—where new equity stock and bond issues are sold to investors—and secondary markets, which trade existing securities. Small investors are often unable to buy securities on the primary market because the company and its investment bankers want to sell all of the available securities in a short period of time to meet the required volume, and they must focus on marketing the sale to large investors who can buy more securities at once. When investors purchase securities on the primary capital market, the company that offers the securities hires an underwriting firm to review it and create a prospectus outlining the price and other details of the securities to be issued.

Capital Markets

Capital stock is the number of common and preferred shares that a company is authorized to issue, and is recorded in shareholders' equity.

Capital stock is the amount of common and preferred shares that a company is authorized to issue, according to its corporate charter. The common stock balance is calculated as the nominal or par value of the common stock multiplied by the number of common stock shares outstanding. Issued shares can be bought by investors—who seek price appreciation and dividends—or exchanged for assets, such as equipment needed for operations.
The number of outstanding shares, which are shares issued to investors, is not necessarily equal to the number of available or authorized shares. Authorized shares are those that a company is legally able to issue—the capital stock, while outstanding shares are those that have actually been issued and remain outstanding to shareholders. The amount that a company receives from issuing capital stock is considered to be capital contributions from investors and is reported as paid-in capital and additional paid-in capital in the stockholder's equity section of the balance sheet.

Capital Stock

Capital structure is the particular combination of debt and equity used by a company to funds its ongoing operations and continue to grow.

Capital structure is the particular combination of debt and equity used by a company to finance its overall operations and growth. When analysts refer to capital structure, they are most likely referring to a firm's debt-to-equity (D/E) ratio, which provides insight into how risky a company's borrowing practices are. A company's proportion of short-term debt versus long-term debt is considered when analyzing its capital structure. A company that pays for assets with more equity than debt has a low leverage ratio and a conservative capital structure. Too much equity, however, could mean the company is underutilizing its growth opportunities or paying too much for its cost of capital (as equity tends to be more costly than debt).

Capital Structure

Cash flow financing is a form of financing in which a loan made to a company is backed by the company's expected cash flows. 

Cash flow financing is a form of financing in which a loan made to a company is backed by a company's expected cash flows. Cash flow financing—or a cash flow loan—uses the generated cash flow as a means to pay back the loan. Cash flow financing—or a cash flow loan—uses the generated cash flow as a means to pay back the loan. Cash flow financing is a form of financing in which a loan made to a company is backed by a company's expected cash flows. Cash flow financing is a form of financing in which a loan made to a company is backed by the company's expected cash flows.

Cash Flow Financing

A cash position represents the amount of cash that a company, investment fund or bank has on its books at a specific point in time.

Berkshire Hathaway Market Cap 2006-2020 | BRK.B

A cash position represents the amount of cash that a company, investment fund, or bank has on its books at a specific point in time. Internal stakeholders look at cash position as frequently as daily, while external investors and analysts look at an organization's cash position on its quarterly cash flow statement. While a cash position provides a liquidity reserve and a buffer against losses, cash by itself earns only the risk-free rate of return and too much cash holdings can be an opportunity cost. For traders and investors, the cash position refers to the portion of their investment portfolio assets that reside in cash or cash equivalents. A cash position represents the amount of cash that a trader or investor, company, investment fund, or bank has on its books at a specific point in time.

Cash Position

Cash flow to capital expenditures—CF/CapEX— is a ratio that measures a company's ability to acquire long-term assets using free cash flow.

Cash flow to capital expenditures—CF/CapEX—is a ratio that measures a company's ability to acquire long-term assets using free cash flow. CF to CAPEX is calculated as:
Cash Flow to Capital Expenditures = Cash Flow from Operations / Capital Expenditures
The CF/CapEX ratio is calculated by dividing cash flow from operations by capital expenditures. Cash flow to capital expenditures—CF/CapEX—is a ratio that measures a company's ability to acquire long-term assets using free cash flow. Many analysts view capital expenditures as a driver of earnings growth, so a company with low investments in capital expenditures may not go as far as the company that just filled up on CapEX. Cash flow to capital expenditures (CF/CapEX) looks at a company's ability to purchase long-term assets using free cash flow.

Cash Flow to Capital Expenditures (CF to CAPEX)

A cash flow loan is a type of unsecured borrowing that is used for day-to-day operations of a small business and comes with higher interest rates and fees than a traditional loan.

A cash flow loan is a type of unsecured borrowing that is used for day-to-day operations of a small business. Because of these factors, a lender will command higher interest rates on a cash flow loan to compensate it for greater repayment risk, although in some cases a blanket lien or personal guarantees by the signer(s) of the loan will be required as part of the debt agreement. Instead, a lender makes an assessment of the cash flow generation capacity of the borrower when determining the terms of a cash flow loan. However necessary it may be to take out a cash flow loan, in the case of a small business that lacks financing options, it should be repaid as quickly as possible, as it represents a drain on the finances of the business. A cash flow loan can help a small business finance day-to-day operations in the short term but should be repaid quickly.

Cash Flow Loan

The current cost of supplies (CCS) refers to the net income of a company after adjusting for the increase (or decrease) in expenses over the reporting period.

The current cost of supplies (CCS) refers to the net income of an oil & gas company after adjusting for the increase (or decrease) in actual expenses over the reporting period. The adjusted net income may be substantially different from the net income, also called profit or net earnings, disclosed on the profit and loss statement. The current cost of supplies (CCS) refers to an adjusted net income figure that takes into account the increase or decrease in company expenses over the company's reporting period. The current cost of supplies (CCS) refers to the net income of an oil & gas company after adjusting for the increase (or decrease) in actual expenses over the reporting period. The current cost of supplies (CCS) accounts for the effects of costs of commodities on the net income of an oil & gas company.

Current Cost of Supplies (CCS)

The capital dividend account (CDA) is a special corporate tax account that gives shareholders designated capital dividends, tax-free.

The capital dividend account (CDA) is a special corporate tax account that gives shareholders designated capital dividends, tax-free. The capital dividend account (CDA) is a special corporate tax account that gives shareholders designated capital dividends, tax-free. The capital dividend account (CDA) is a special corporate tax account that gives shareholders designated capital dividends, tax-free. The capital dividend account is part of a tax provision whose goal it is to enable tax-free money received by a company to be given to its shareholders, tax-free. The balance in the CDA increases by 50% of any capital gains a company makes and decreases by 50% of any capital losses incurred by the company.

Corporate Finance

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