Tangible and Intangible
Tangible and intangible are terms with several different meanings. A lot of well educated folks have a difficult time providing an all inclusive definition.
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Phase II – Financial Analysis
This phase of the lesson sets explains intrinsic value and financial analysis. There is no single formula that is universal; there are at least six common formulas to calculate intrinsic value. The various formulas require the user to understand the five different financial statements and how to properly interpret them.
Syndication
Syndication refers to a group of individuals or business entities working together to achieve a set goal(s).
Gross Domestic Product (Lesson 21)
Gross Domestic Product is defined as the total production for the country. It is measured by including all the dollars spent to purchase products/services from all the various sellers of goods.
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Book Value – Definition and Usage
There are several definitions associated with the term ‘Book Value’ and depending on the context of its use, determines the correct definition and proper use.
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The Federal Reserve System (Lesson 20)
No other federal government creation is more misunderstood than the Federal Reserve System. The Federal Reserve’s primary purpose is to act as the central banking system for the United States. Formed in 1913, the Federal Reserve was tasked by Congress with three primary functions. One – maximize employment in the United States. Two – stabilize prices (control the inflation rate) and three – influence the interest rates for long-term notes. Since 1913 the Federal Reserve has expanded its role to include setting the monetary policy and regulating the entire US banking system.
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Insolvency and Bankruptcy – Know the Difference
Every business owner needs to know the difference between insolvency and bankruptcy. Often these two terms are misunderstood and improperly used in conversation.
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Common Stock – Definition
A document indicating ownership in a corporation is often referred to as common stock. It identifies an equity position in a business. The document or certificate is commonly referred to as a security and provides certain rights to the holder (owner). These rights include voting and residual value upon liquidation of the company.
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Current Liabilities Section of the Balance Sheet
The current liabilities section of the balance sheet identifies those amounts due to third parties within the current year. These include accounts payable, credit card accounts, accrued payroll, taxes, unearned revenue, deposits and those amounts due within one year related to debt instruments.
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The Fixed Assets Section of the Balance Sheet
The fixed assets section of the balance sheet is one of the easiest sections to read and understand. This article is written to describe and illustrate some simple examples of the fixed assets section.
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Definition of Contribution Margin
Contribution margin is a core business concept and is often used in cost accounting to identify the amount of financial contribution a sold product provides to the company. Simply put, contribution margin is the sales price less the direct costs (sometimes referred to as variable costs).
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