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Definition of Fixed asset
An item with a longevity greater than one year, and which exceeds a company’s
Long-lived property owned by a firm that is used by a firm in the production of its income.
The ratio of sales to fixed assets.
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.
A measure of the utilization of a company's fixed assets to
Non-physical assets, e.g. customer goodwill or intellectual property (patents and trademarks).
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.
Physical assets that can be seen and touched, e.g. buildings, machinery, vehicles, computers etc.
(1) The estimated useful life of the fixed asset being depreciated is
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.
The sum total of all deprecation expense recognized to date
The use of capital to create more money through the addition of fixed assets or through income producing vehicles.
A fixed asset, something that is expected to have long-term usage within
The gain recognized on the sale of a capital item (fixed asset), calculated
Money used to purchase fixed assets for a business, such as land, buildings, or machinery. Also, money invested in a business on the understanding that it will be used to purchase permanent assets rather than to cover day-to-day operating expenses.
In Finance: to find the present value of a stream of cash flows.
Cash flow from operations
A firm's net cash inflow resulting directly from its regular operations
Change in Accounting Estimate
A change in accounting that occurs as the result of new information
Change in Accounting Estimate
A change in the implementation of an existing accounting
Amortization of fixed assets, such as plant and equipment, so as to allocate the cost over their depreciable life.
The excess of the price paid to buy another company over the book value of
One of the three classes of cash flows reported in the
Lease (Credit Insurance)
Contract granting use of real estate, equipment or other fixed assets for a specified period of time in exchange for payment. The owner or a leased property is the lessor and the user the lessee.
This is any upgrade to leased property by a lessee that will be
Contract granting use of real estate, equipment, or other fixed assets for a specified time in exchange for payment, usually in the form of rent. The owner of the leased property is called the lessor, the user the lessee.
A demand for additional funds because of adverse price movement. Maintenance margin
mark to market
Refers to the accounting method that records increases
Monetary / non-monetary method
Under this translation method, monetary items (e.g. cash, accounts
The reduction in utility of an inventory item or fixed asset. If it is an
A cluster of accounts that are listed after fixed assets on the balance sheet,
property, plant, and equipment
This label is generally used in financial
Property, plant, and equipment
This item is comprised of all types of fixed assets
Provisions that place constraints on the operations of borrowers, such as restrictions on
The expected revenue to be garnered from the sale of a fixed asset at the
This depreciation method allocates a uniform
Total Asset Turnover Ratio
A measure of the utilization of all of a company's assets to
The estimated life span of a fixed asset, during which it can be expected to
Acquisition of assets
A merger or consolidation in which an acquirer purchases the selling firm's assets.
Any possession that has value in an exchange.
A resource, recorded through a transaction, that is expected to yield a benefit to a
Something that is owned; a financial claim or a piece of property that is a store of value.
Probable future economic benefit that is obtained or controlled by an entity as a result of
Anything owned by, or owed to, an individual or business which has commercial or exchange value (e.g., cash, property, etc.).
All things of value owned by an individual or organization.
Asset activity ratios
Ratios that measure how effectively the firm is managing its assets.
Asset allocation decision
The decision regarding how an institution's funds should be distributed among the
Bond or note secured by assets of company.
A security that is collateralized by loans, leases, receivables, or installment contracts
Methods of financing in which lenders and equity investors look principally to the
Loans granted usually by a financial institution where the asset being financed constitutes the sole security given to the lender.
Categories of assets, such as stocks, bonds, real estate and foreign securities.
Extent to which a company's net assets cover a particular debt obligation, class of preferred stock, or equity position.
A bond indenture restriction that permits additional borrowing on if the ratio of assets to
The ratio of total assets to stockholder equity.
Asset for asset swap
Creditors exchange the debt of one defaulting borrower for the debt of another
Also called surplus management, the task of managing funds of a financial
The weighting of assets in an investment portfolio among different asset classes (e.g. shares, bonds, property, cash, overseas investments.
Asset pricing model
A model for determining the required rate of return on an asset.
Asset pricing model
A model, such as the Capital asset Pricing Model (CAPM), that determines the required
The amount of total risk that can be eliminated by diversification by
A firm's investing in assets that are riskier than those that the debtholders expected.
Asset substitution problem
Arises when the stockholders substitute riskier assets for the firm's existing
An interest rate swap used to alter the cash flow characteristics of an institution's assets so as to
The ratio of net sales to total assets.
a ratio measuring asset productivity and showing the number of sales dollars generated by each dollar of assets
asset turnover ratio
A broad-gauge ratio computed by dividing annual
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
an asset used to generate revenues or cost savings
Capital asset pricing model (CAPM)
An economic theory that describes the relationship between risk and
Capital Asset Pricing Model (CAPM)
A model for estimating equilibrium rates of return and values of
capital asset pricing model (CAPM)
Theory of the relationship between risk and return which states that the expected risk
Capitalized Cost An expenditure or accrual that is reported as an asset to be amortized against
An offset to an asset account that reduces the balance of the asset account.
Typically the cash, accounts receivable, and inventory accounts on the
Value of cash, accounts receivable, inventories, marketable securities and other assets that
Cash, things that will be converted into cash within a year (such as accounts receivable), and inventory.
Amounts receivable by the business within a period of 12 months, including bank, debtors, inventory and prepayments.
Current refers to cash and those assets that will be turned
Cash and other company assets that can be readily turned into cash within one year.
Deferred Tax Asset
Future tax benefit that results from (1) the origination of a temporary difference
Dynamic asset allocation
An asset allocation strategy in which the asset mix is mechanistically shifted in
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.
Annuity contracts in which the insurance company or issuing financial institution pays a
Fixed-charge coverage ratio
A measure of a firm's ability to meet its fixed-charge obligations: the ratio of
Fixed Charge Coverage Ratio
A measure of how well a company is able to meet its fixed
A cost that is fixed in total for a given period of time and for given production levels.
a cost that remains constant in total within a specified
A cost that does not vary in the short run, irrespective of changes in any
Costs that do not change with increases or decreases in the volume of goods or services
Costs that do not depend on the level of output.
In the Euromarket the standard periods for which Euros are traded (1 month out to a year out) are
Conventional bonds for which the coupon rate is set as a fixed percentage of the par value.
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