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Definition of Account Value
The sum of all the interest options in your policy, including interest.
Same as PV, but usually includes a subtraction for an initial cash outlay.
the value in todayâ€™s dollars of cash flows that occur in different time periods.
The change in the value of a firm's foreign currency denominated accounts due to a
Earnings of a firm as reported on its income statement.
Total liabilities exceed total assets. A firm with a negative net worth is insolvent on
The ease and quickness with which assets can be converted to cash.
Money owed to suppliers.
Money owed by customers.
The ratio of net credit sales to average accounts receivable, a measure of how
The net present value analysis of an asset if financed solely by equity
The average project earnings after taxes and depreciation divided by the average
The weighted-average age of all of the firm's outstanding invoices.
With respect to convertible bonds, the value the security would have if it were not convertible
A company's book value is its total assets minus intangible assets and liabilities, such as debt. A
The ratio of stockholder equity to the average number of common shares. Book value
Net result of public and private international investment and lending activities.
An amount the insurance company will pay if the policyholder ends a whole life
A single centralized account into which funds collected at regional locations
Also called parity value, the value of a convertible security if it is converted immediately.
Cumulative Translation Adjustment (CTA) account
An entry in a translated balance sheet in which gains
Net flow of goods, services, and unilateral transactions (gifts) between countries.
accounts over which an individual or organization, other than the person in whose
The amount of advantage over a current market transaction provided by an in-the-money
The weighted average of a probability distribution.
Expected value of perfect information
The expected value if the future uncertain outcomes could be known
Extraordinary positive value
A positive net present value.
See: Par value.
Firm's net value of debt
Total firm value minus total firm debt.
The amount of cash at a specified date in the future that is equivalent in value to a specified
Generally Accepted Accounting Principals (GAAP)
A technical accounting term that encompasses the
Intrinsic value of an option
The amount by which an option is in-the-money. An option which is not in-themoney
Intrinsic value of a firm
The present value of a firm's expected future net cash flows discounted by the
Special accounts where you can save and invest, and the taxes are deferred until money
An agreement between two or more firms to share risk and financing responsibility in
Net amount that could be realized by selling the assets of a firm after paying the debt.
The amount a policyholder may borrow against a whole life insurance policy at the interest rate
Margin account (Stocks)
A leverageable account in which stocks can be purchased for a combination of
1) The price at which a security is trading and could presumably be purchased or sold.
Market value ratios
Ratios that relate the market price of the firm's common stock to selected financial
Market value-weighted index
An index of a group of securities computed by calculating a weighted average
Related: par value.
Money market demand account
An account that pays interest based on short-term interest rates.
Net adjusted present value
The adjusted present value minus the initial cost of an investment.
Net asset value (NAV)
The value of a fund's investments. For a mutual fund, the net asset value per share
Net book value
The current book value of an asset or liability; that is, its original book value net of any
Net present value (NPV)
The present value of the expected future cash flows minus the cost.
Net present value of growth opportunities
A model valuing a firm in which net present value of new
Net present value of future investments
The present value of the total sum of NPVs expected to result from
Net present value rule
An investment is worth making if it has a positive NPV. Projects with negative NPVs
Net salvage value
The after-tax net cash flow for terminating the project.
An account carried by one futures commission merchant with another futures commission
Arrangement whereby sales are made with no formal debt contract. The buyer signs a receipt,
Original face value
The principal amount of the mortgage as of its issue date.
Also called the maturity value or face value, the amount that the issuer agrees to pay at the maturity date.
The amount of cash today that is equivalent in value to a payment, or to a stream of payments,
Present value factor
Factor used to calculate an estimate of the present value of an amount to be received in
Present value of growth opportunities (NPV)
Net present value of investments the firm is expected to make
Price value of a basis point (PVBP)
Also called the dollar value of a basis point, a measure of the change in
Method of accounting for a merger in which the acquirer is treated as having purchased
Regulatory accounting procedures
accounting principals required by the FHLB that allow S&Ls to elect
The attractiveness measured in terms of risk, liquidity, and return of one instrument relative to
Current cost of replacing the firm's assets.
Usually refers to the value of a lessor's property at the time the lease expires.
Scrap value of plant and equipment.
Also called the normal deviate, the distance of one data point from the mean, divided by
Statement of Financial Accounting Standards No. 8
This is a currency translation standard previously in
Statement of Financial Accounting Standards No. 52
This is the currency translation standard currently
Also called investment value, the value of a convertible security without the con-version option.
account in which the bank takes all of the excess available funds at the close of each business
The value of a bond at maturity, typically its par value, or the value of an asset (or an entire
Time value of an option
The portion of an option's premium that is based on the amount of time remaining
Time value of money
The idea that a dollar today is worth more than a dollar in the future, because the dollar
Treasury tax and loan account at a bank.
The welfare a given investor assigns to an investment with a particular return and risk.
Method of indirect taxation whereby a tax is levied at each stage of production on the value
Value-at-Risk model (VAR)
Procedure for estimating the probability of portfolio losses exceeding some
Value additivity principal
Prevails when the value of a whole group of assets exactly equals the sum of the
In the market for Eurodollar deposits and foreign exchange, value date refers to the delivery date
Refers to when value or credit is given for funds transferred between banks.
A manager who seeks to buy stocks that are at a discount to their "fair value" and sell them at
Zero-balance account (ZBA)
A checking account in which zero balance is maintained by transfers of funds
Amounts a company owes to creditors.
Amounts owed to a company by customers that it sold to on credit. Total accounts receivable are usually reduced by an allowance for doubtful accounts.
An assetâ€™s cost basis minus accumulated depreciation.
BOOK VALUE OF COMMON STOCK
The theoretical amount per share that each stockholder would receive if a companyâ€™s assets were sold on the balance sheetâ€™s date. Book value equals:
CAPITAL IN EXCESS OF PAR VALUE
What a company collected when it sold stock for more than the par value per share.
An arbitrary value that a company may assign to its stock. Par value has no relationship to what the stock is selling for on the open market.
The amount management estimates a piece of equipment will be worth at the end of its useful life, either as a trade-in or if it were sold for scrap.
An explanation or report in financial terms about the transactions of an organization.
The process of satisfying stakeholders in the organization that managers have acted in the best interests of the stakeholders, a result of the stewardship function of managers, which takes place through accounting.
A collection of systems and processes used to record, report and interpret business transactions.
The representation of the double-entry system of accounting such that assets are equal to liabilities plus capital.
The period of time for which financial statements are produced â€“ see also financial year.
Accounting rate of return (ARR)
A method of investment appraisal that measures
A set of accounts that summarize the transactions of a business that have been recorded on source documents.
â€˜Bucketsâ€™ within the ledger, part of the accounting system. Each account contains similar transactions (line items) that are used for the production of financial statements. Or commonly used as an abbreviation for financial statements.
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