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Definition of fixed assets
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.
Things that the business owns and are part of the business infrastructure – fixed assets may be
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.
The use of capital to create more money through the addition of fixed assets or through income producing vehicles.
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.
A firm's net cash inflow resulting directly from its regular operations
A change in accounting that occurs as the result of new information
Amortization of fixed assets, such as plant and equipment, so as to allocate the cost over their depreciable life.
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.
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
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.
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
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
This depreciation method allocates a uniform
Total Asset Turnover Ratio
A measure of the utilization of all of a company's assets to
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
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.
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
An item with a longevity greater than one year, and which exceeds a company’s
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.
A nonnegotiable debt security that can be redeemed at some fixed price or according to
A country's decision to tie the value of its currency to another country's currency, gold
Fixed Exchange Rate
An exchange rate held constant by a government promise to buy or sell dollars at the fixed rate on the foreign exchange market.
Cost of doing business which does not change with the volume of business. Examples might be rent for business premises, insurance payments, heat and light.
fixed expenses (costs)
Expenses or costs that remain the same in amount,
Also called a busted convertible, a convertible security that is trading like a straight
assets that pay a fixed-dollar amount, such as bonds and preferred stock.
The market for trading bonds and preferred stock.
A security that pays a specified cash flow over a
Fixed Interest Rate
A rate that does not fluctuate with general market conditions.
An inventory storage technique under which permanent
That portion of total overhead costs which remains constant in size
fixed overhead spending variance
the difference between the total actual fixed overhead and budgeted fixed overhead;
fixed overhead volume variance
see volume variance
Fixed price basis
An offering of securities at a fixed price.
Fixed-price tender offer
A one-time offer to purchase a stated number of shares at a stated fixed price,
A loan on which the rate paid by the borrower is fixed for the life of the loan.
Fixed Rate Loan
Loan for a fixed period of time with a fixed interest rate for the life of the loan.
In an interest rate swap the counterparty who pays a fixed rate, usually in exchange for a
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.
Value of property, equipment and other capital assets minus the depreciation. This is an
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
Other current assets
Value of non-cash assets, including prepaid expenses and accounts receivable, due
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.
Current assets minus inventories.
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
Costs that are constant within a defined level of activity but that can increase or decrease when
Total Debt to Total Assets Ratio
See debt ratio
Reduction in value of an asset over some period for accounting
The combination of debt, preferred stock, and common stock used
Cash-flow break-even point
The point below which the firm will need either to obtain additional financing
Are equity instruments that take no security against assets, have no fixed terms of repayment and pay no fixed dividends.
Are debt instruments that are convertible into common or preferred shares, take secondary or no security against assets, have flexible terms of repayment and charge fixed or floating interest rates.
Refers to the generally accepted accounting principle of allocating
Reduction in value of fixed or tangible assets over some period
A pool of fixed-income securities backed by a package of assets (i.e. mortgages)
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