What Is Capital Gains Yield (CGY)? A capital gains yield is the rise in the price of a security, like common stock, over a given period of time. It does not include any dividends and the yield is based only on stock price appreciation (or depreciation). The capitals gain yield can provide useful information to … Continue reading Capital Gains Yield
What is Compound Annual Growth Rate (CAGR)? Compound annual growth rate (CAGR) is a business and investing specific term for the geometric progression ratio that provides a constant rate of return over the time period. CAGR is not an accounting term, but it is often used to describe some element of the business, for example … Continue reading Compound Annual Growth Rate (CAGR)
The business entity assumption is an accounting principle that makes a legal distinction between the transactions carried out by a business and the transactions of the owner. It might also sometimes refer to the separation of different divisions in a company. Each unit maintains records of its operations and is responsible for its own transactions. … Continue reading Business Entity Concept
What Is the Bond Equivalent Yield? In financial terms, the bond equivalent yield (BEY) is a metric that lets investors calculate the annual percentage yield for fixed-come securities, even if they are discounted short-term plays that only pay out on a monthly, quarterly, or semi-annual basis. However, by having BEY figures at their fingertips, investors … Continue reading Bond Equivalent Yield
Whether you are currently an accounting professional or an accounting student, you should consider the impact that a professional certification can have on your career. A professional certification can help you to advance in your current position, increase your earning potential, and expand your job prospects. Obtaining a certification can separate you from competing professionals. … Continue reading Best Accounting Certifications
This Basic Financial Statements overview serves as an introduction to financial statements and financial statement concepts. Some of the concepts covered are the accounting equation, double entry accounting, and debits and credits. Also, two basic financial statements—the balance sheet and the income statement—are introduced. Overview and Objectives Financial statements are necessary sources of information about … Continue reading Basic Financial Statements
What is the Average Payment Period? Businesses and organizations rely on credit for some of the key processes and operations that support revenue generation. Companies may purchase necessary assets on credit and depend on investors for funding key business aspects. The average payment period is an essential financial metric that allows businesses to understand how … Continue reading Average Payment Period
What is Average Inventory Period? The average inventory period is a usage ratio that calculates the average number of days, over a given time period, goods are held in inventory before they are sold. In other words, it shows how long it takes a company to sell its current inventory. Conversely, it shows how long … Continue reading Average Inventory Period Ratio
Asset purchase refers to the process involved in the buying of a company’s assets. Assets are resources owned by an individual, company, or corporation, both tangible and intangible, for the purpose of yielding profit. Simply put, assets are things, either physical or not, that provide or are expected to provide benefit for the owner in the … Continue reading Asset Purchase Agreement
What is an Asset Purchase? When a business undertakes an asset purchase, in reality, it just taking this approach to structure the acquisition of a company. Other ways to do this is through a share exchange or statutory merger and purchasing the shares of current shareholders of another company. The one buying assets might purchase only … Continue reading Asset Purchase