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Definition of Current assets
Amounts receivable by the business within a period of 12 months, including bank, debtors, inventory and prepayments.
Cash and other company assets that can be readily turned into cash within one year.
Cash, things that will be converted into cash within a year (such as accounts receivable), and inventory.
current refers to cash and those assets that will be turned
Value of cash, accounts receivable, inventories, marketable securities and other assets that
Value of non-cash assets, including prepaid expenses and accounts receivable, due
Also called the quick ratio, the ratio of current assets minus inventories, accruals, and prepaid
A ratio that shows how well a company could pay its current debts using only its most liquid or “quick” assets. It’s a more pessimistic—but also realistic—measure of safety than the current ratio, because it ignores sluggish, hard-toliquidate current assets like inventory and notes receivable. Here’s the formula:
Costs that increase with increases in the level of investment in current assets.
Costs of maintaining current assets, including opportunity cost of capital.
current time to maturity on an outstanding debt instrument.
Indicator of short-term debt paying ability. Determined by dividing current assets by current
A ratio that shows how many times a company could pay its current debts if it used its current assets to pay them. The formula:
Calculated to assess the short-term solvency, or debt-paying
A measure of the ability of a company to use its current assets to
current assets divided by current liabilities. This ratio indicates the extent to which the claims of short-term creditors are covered by assets expected to be converted to cash in the near future.
A method of preparing the operating section of the Statement of Cash Flows that does not use the company’s actual cash inflows and cash outflows, but instead arrives at the net cash flow by taking net income and adjusting it for noncash expenses and the changes from last year in the current assets and current liabilities.
A demand for additional funds because of adverse price movement. Maintenance margin
current assets minus current liabilities. Often simply referred to as working capital.
current assets minus current liabilities.
Notes receivable are promissory notes that the company has accepted from its debtors. Most promissory notes pay interest. Those that are due within a year are shown under “current assets.” Those that mature in more than a year would be listed under “Long-term assets.” If a note is being
current assets minus inventories.
Indicator of a company's financial strength (or weakness). Calculated by taking current assets
A measure of how easily a company can use its most liquid current
Loan to finance current assets, The sale of the current assets provides the cash to repay
Costs that fall with increases in the level of investment in current assets.
Costs incurred from shortages in current assets.
Defined as the difference in current assets and current liabilities (excluding short-term
current assets less current liabilities. Money that revolves in the business as part of the process of buying, making and selling goods and services, particularly in relation to debtors, creditors, inventory and bank.
total current assets minus total current liabilities
The amount of a company’s current assets minus its current liabilities;
current assets minus current liabilities
Funds invested in a company's cash, accounts receivable and inventory. Net working capital is current assets minus current liabilities.
Working capital management
The management of current assets and current liabilities to maximize shortterm liquidity.
Acquisition of assets
A merger or consolidation in which an acquirer purchases the selling firm's assets.
A firm's productive resources.
Anything of value that a company owns.
Things that the business owns.
Items owned by the company or expenses that have been paid for but have not been used up.
A common element of a financial plan that describes projected capital spending and the
see simultaneous engineering
Net flow of goods, services, and unilateral transactions (gifts) between countries.
That part of the balance of payments accounts that records demands for and supplies of a currency arising from activities that affect current income, namely imports, exports, investment income payments such as interest and dividends, and transfers such as gifts, pensions, and foreign aid.
Typically the cash, accounts receivable, and inventory accounts on the
Under target costing concepts, this is the cost that would be applied to a
A bond selling at or close to par, that is, a bond with a coupon close to the yields currently
Related: Benchmark issues
A variable like GDP is measured in current dollars if each year's value is measured in prices prevailing during that year. In contrast, when measured in real or constant dollars, each year's value is measured in a base year's prices.
Current Income Tax Expense
That portion of the total income tax provision that is based on
In Treasury securities, the most recently auctioned issue. Trading is more active in current
Amount owed for salaries, interest, accounts payable and other debts due within 1 year.
Bills a company must pay within the next twelve months.
Amounts due and payable by the business within a period of 12 months, e.g. bank overdraft, creditors and accruals.
current means that these liabilities require payment in
Debts or other obligations coming due within a year.
This is typically the accounts payable, short-term notes payable, and
Current rate method
Under this currency translation method, all foreign currency balance-sheet and income
Current Tax Payment Act of 1943
A federal Act requiring employers to withhold income taxes from employee pay.
For bonds or notes, the coupon rate divided by the market price of the bond.
Annual coupon payments divided by bond price.
The percentage return on a financial asset based on the current price of the asset, without reference to any expected change in the price of the asset. This contrasts with yield-to-maturity, for which the calculation includes expected price changes. See also yield.
Exchange of assets
Acquisition of another company by purchase of its assets in exchange for cash or stock.
Claims on real assets.
Claims to the income generated by real assets. Also called securities.
Things that the business owns and are part of the business infrastructure – fixed assets may be
An informal term that refers to the variety of long-term operating
Land, buildings, plant, equipment, and other assets acquired for carrying on the business of a company with a life exceeding one year. Normally expressed in financial accounts at cost, less accumulated depreciation.
Fixed Assets Turnover Ratio
A measure of the utilization of a company's fixed assets to
assets owned by the company that do not possess physical substance; they usually take the form of rights and privileges such as patents, copyrights, and franchises.
Intangible fixed assets
Non-physical assets, e.g. customer goodwill or intellectual property (patents and trademarks).
Value of property, equipment and other capital assets minus the depreciation. This is an
Longer-Term Fixed Assets
assets having a useful life greater than one year but the duration of the 'long term' will vary with the context in which the term is applied.
The difference between total assets on the one hand and current liabilities and noncapitalized longterm
A tangible asset with unique physical properties, like a parcel of land, a mine, or a
A cluster of accounts that are listed after fixed assets on the balance sheet,
assets, the title of which are held personally rather than in the name of some other legal entity.
Preferred Stock Stock that has a claim on assets and dividends of a corporation that are prior
to that of common stock. Preferred stock typically does not carry the right to vote.
Publicly traded assets
assets that can be traded in a public market, such as the stock market.
RATE OF RETURN ON TOTAL ASSETS
The percentage return or profit that management made on each dollar of assets. The formula is:
Identifiable assets, such as buildings, equipment, patents, and trademarks, as distinguished from a
assets used to produce goods and services.
Realizable Revenue A revenue transaction where assets received in exchange for goods and
services are readily convertible into known amounts of cash or claims to cash.
A tangible asset with physical properties that can be reproduced, such as a building or
assets that remain after sufficient assets are dedicated to meet all senior debtholder's claims in full.
Return on assets (ROA)
Indicator of profitability. Determined by dividing net income for the past 12 months
return on assets (ROA)
Although there is no single uniform practice for
Return on total assets
The ratio of earnings available to common stockholders to total assets.
Return on Total Assets Ratio
A measure of the percentage return earned on the value of the
Tangible fixed assets
Physical assets that can be seen and touched, e.g. buildings, machinery, vehicles, computers etc.
Total Debt to Total Assets Ratio
See debt ratio
acid test ratio (also called the quick ratio)
The sum of cash, accounts receivable, and short-term marketable
This is the person who benefits from the terms of a trust, a will, an RRSP, a RRIF, a LIF, an annuity or a life insurance policy. In relation to RRSP's, RRIF's, LIF's, Annuities and of course life insurance, if the beneficiary is a spouse, parent, offspring or grand-child, they are considered to be a preferred beneficiary. If the insured has named a preferred beneficiary, the death benefit is invariably protected from creditors. There have been some court challenges of this right of protection but so far they have been unsuccessful. See "Creditor Protection" below. A beneficiary under the age of 18 must be represented by an individual guardian over the age of 18 or a public official who represents minors generally. A policy owner may, in the designation of a beneficiary, appoint someone to act as trustee for a minor. Death benefits are not subject to income taxes. If you make your beneficiary your estate, the death benefit will be included in your assets for probate. Probate filing fees are currently $14 per thousand of estate value in British Columbia and $15 per thousand of estate value in Ontario.
Expenditures that are accounted for as assets to be amortized
Change in Accounting Estimate
A change in accounting that occurs as the result of new information
For companies: Raw materials, items available for sale or in the process of being made ready for
Monetary / non-monetary method
Under this translation method, monetary items (e.g. cash, accounts
Compares a stock's market value to the value of total assets less total liabilities (book
The simple ratio of a company's liquid assets to current liabilities. Such assets include cash, marketable securities, and accounts receivable.
current cost of replacing the firm's assets.
The amount necessary to duplicate a company's assets at current
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