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Definition of Double-declining-balance depreciation
Method of accelerated depreciation.
Any depreciation method that produces larger deductions for depreciation in the
(1) The estimated useful life of the fixed asset being depreciated is
Any of several methods that recognize an increased amount
A contra-fixed asset account representing the portion of the cost of a fixed asset that has been previously charged to expense. Each fixed asset account will have its own associated accumulated depreciation account.
A contra, or offset, account that is coupled
The sum total of all deprecation expense recognized to date
The difference between exports and imports of goods.
A statistical compilation formulated by a sovereign nation of all economic transactions
The difference between the demand for and supply of a country's currency on the foreign exchange market.
A statement of a country's transactions with other countries.
Net flow of goods (exports minus imports) between countries.
See balance of merchandise trade.
Also called the statement of financial condition, it is a summary of the assets, liabilities, and
A “snapshot” statement that freezes a company on a particular day, like the last day of the year, and shows the balances in its asset, liability, and stockholders’ equity accounts. It’s governed by the formula:
A financial statement showing the financial position of a business – its assets, liabilities and
One of the basic financial statements; it lists the assets, liabilities, and equity accounts of the company. The balance Sheet is prepared using the balances at the end of a specific day.
A term often used instead of the more formal and correct
A report that summarizes all assets, liabilities, and equity for a company
Financial statement that shows the value of the
A financial report showing the status of a company's assets, liabilities, and owners' equity on a given date.
Balance sheet exposure
Balance sheet identity
Total Assets = Total Liabilities + Total Stockholders' Equity
The multiplier associated with a change in government spending financed by an equal change in taxes.
An investment company that invests in stocks and bonds. The same as a balanced mutual fund.
Balanced mutual fund
This is a fund that buys common stock, preferred stock and bonds. The same as a
A system of non-financial performance measurement that links innovation, customer and process measures to financial performance.
balanced scorecard (BSC)
an approach to performance
In a balance of payments, the basic balance is the net balance of the combination of the current
common-size balance sheet
balance sheet that presents items as a percentage of total assets.
An excess balance that is left in a bank to provide indirect compensation for loans
An accelerated depreciation method that calculates depreciation each year by applying a fixed rate to the asset’s book (cost–accumulated depreciation) value. depreciation stops when the asset’s book value reaches its salvage value.
A method of depreciation.
A non-cash expense that provides a source of free cash flow. Amount allocated during the
A technique by which a company recovers the high cost of its plant-and-equipment assets gradually during the number of years they’ll be used in the business. depreciation can be physical, technological, or both.
An expense that spreads the cost of an asset over its useful life.
Refers to the generally accepted accounting principle of allocating
Reduction in value of fixed or tangible assets over some period
Both the decline in value of an asset over time, as well as the gradual
a) Of capital stock: decline in the value of capital due to its wearing out or becoming obsolete.
The systematic and rational allocation of the cost of property, plant, and equipment
Amortization of fixed assets, such as plant and equipment, so as to allocate the cost over their depreciable life.
Tax deductions that businesses can claim when they spend money on investment goods.
An expense account that represents the portion of the cost of an asset that is being charged to expense during the current period.
Depreciation tax shield
The value of the tax write-off on depreciation of plant and equipment.
depreciation tax shield
Reduction in taxes attributable to the depreciation allowance.
A cross-border lease in which the disparate rules of the lessor's and lessee's countries let
The system of recording business transactions in two accounts.
See accrual-basis accounting.
Agreement between two countries that taxes paid abroad can be offset against
Earnings before interest, taxes, depreciation and amortization (EBITDA)
The operating profit before deducting interest, tax, depreciation and amortization.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
An earningsbased measure that, for many, serves as a surrogate for cash flow. Actually consists of working
EBDDT - Earnings before depreciation and deferred taxes
This measure is used principally by
market-value balance sheet
Financial statement that uses the market value of all assets and liabilities.
Net cash balance
Beginning cash balance plus cash receipts minus cash disbursements.
Financing that is not shown as a liability in a company's balance sheet.
The quantity of inventory currently in stock, based on inventory
Projected available balance
The future planned balance of an inventory item,
Receivables balance fractions
The percentage of a month's sales that remain uncollected (and part of
Remaining principal balance
The amount of principal dollars remaining to be paid under the mortgage as of
Straight line depreciation
An equal dollar amount of depreciation in each accounting period.
A depreciation method that depreciates an asset the same amount for each year of its estimated
This depreciation method allocates a uniform
Constant depreciation for each year of the asset’s accounting life.
Method of accelerated depreciation.
Target cash balance
Optimal amount of cash for a firm to hold, considering the trade-off between the
tax benefit (of depreciation)
the amount of depreciation deductible for tax purposes multiplied by the tax rate;
tax shield (of depreciation)
the amount of depreciation deductible
A listing of all the accounts and their balances on a specified day.
Regional bank account to which just enough funds are transferred daily to pay each day’s bills.
Zero-balance account (ZBA)
A checking account in which zero balance is maintained by transfers of funds
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