Accounting Tools

JUNE 7, 2023

Net Present Value Analysis Under net present value analysis , identify the net change in cash flows associated with a fixed asset purchase, and discount them to their present value. The result can be projected cash flows that have been adjusted to ensure that a project will be approved.

Budgeting 75

Budgeting 75

Accounting Tools

OCTOBER 11, 2023

Related Courses Financial Analysis The Interpretation of Financial Statements What is Cash Flow? Cash flow is the net amount of cash that an entity receives and disburses during a period of time. What is Free Cash Flow?

Financial Analysis 40

Financial Analysis Financial Statements 40

Accounting Tools

OCTOBER 28, 2023

Related Courses Capital Budgeting Excel Formulas and Functions Financial Analysis What is Net Present Value? Net present value is an analysis tool used to decide whether to invest in a capital asset. The discounted cash flow methodology is used to derive present value , using a discount rate as the basis for the discounting.

Financial Analysis 40

Financial Analysis Budgeting Accounting Accounting 40

Accounting Tools

MAY 9, 2024

What is a Cost-Benefit Analysis? Cost-benefit analysis involves weighing the costs associated with a decision against the benefits arising from that decision. The analysis is used to decide whether to proceed with a course of action or not. Cost-benefit analysis can include both quantitative factors and qualitative factors.

Financial Analysis 40

Financial Analysis Tax 40

Accounting Tools

AUGUST 30, 2023

Related Courses Capital Budgeting Financial Analysis What is Differential Revenue? The fallacy in using the differential revenue concept is that it pays no attention to the differential profit or cash flows generated by the various decisions. Related Articles Cost of Revenue Incremental Revenue Marginal Revenue

Financial Analysis 40

Financial Analysis Budgeting 40

Accounting Tools

JUNE 12, 2023

Related Courses Capital Budgeting Financial Analysis Real Estate Investing What is the Average Rate of Return? The average rate of return is the average annual amount of cash flow generated over the life of an investment. Cash flows in later periods are worth less than cash flows in more recent periods.

Financial Analysis 40

Financial Analysis Budgeting Accounting Accounting 40

Accounting Tools

SEPTEMBER 7, 2023

Related Courses Corporate Finance Financial Analysis Treasurer's Guidebook What is the Risk-Adjusted Discount Rate? The risk premium is derived from the perceived level of risk associated with a stream of cash flows for which the discount rate will be used to arrive at a net present value.

Financial Analysis 40

Financial Analysis Corporate Finance 40

Accounting Tools

JUNE 18, 2023

Related Courses Budgeting Financial Analysis Fixed Asset Accounting Depreciation does not directly impact the amount of cash flow generated by a business, but it is tax-deductible , and so will reduce the cash outflows related to income taxes. Nonetheless, depreciation does have an indirect effect on cash flow.

Financial Analysis 40

Financial Analysis Budgeting Tax Accounting 40

Accounting Tools

OCTOBER 28, 2023

Related Courses Capital Budgeting Financial Analysis Net present value (NPV) analysis is a way to determine the current value of a stream of future cash flows. It is not that difficult to estimate the amount of cash received per period, as well as the number of periods over which cash will be received.

Financial Analysis 40

Financial Analysis Budgeting Tax Accounting 40

Accounting Tools

JUNE 16, 2023

Related Courses Business Ratios Guidebook Financial Analysis The Interpretation of Financial Statements What is Cash Flow from Assets? Cash flow from assets is the aggregate total of all cash flows related to the assets of a business. Changes in working capital. Changes in fixed assets.

Financial Analysis 40

Financial Analysis Accounts Payable Accounts Payable Accounts Receivable 40

Accounting Tools

SEPTEMBER 2, 2023

There are a number of methods available for doing so; most are based on the concept of changes in cash flows related to the specific asset in question. Instead, an analysis based on incremental changes in throughput is the best approach. Adjust the discounted cash flows based on the perceived risk of each project.

Budgeting 40

Budgeting 40

Accounting Tools

JULY 12, 2023

Related Courses Capital Budgeting Financial Analysis What is the Hurdle Rate? It sets a threshold level for whether or not to invest cash in a project or investment. More specifically, the hurdle rate is the discount rate for which the cash flows of a proposed capital purchase must generate zero or positive discounted cash flows.

Financial Analysis 40

Financial Analysis Budgeting 40

Accounting Tools

JULY 21, 2023

Related Courses Business Ratios Guidebook Financial Analysis The Interpretation of Financial Statements What is Segment Margin? The analysis is also useful for determining where to invest additional funds in a business. Segment margin is the amount of net profit or net loss generated by a portion of a business.

Financial Analysis 40

Financial Analysis Financial Statements 40

Accounting Tools

AUGUST 7, 2023

Related Courses Capital Budgeting Financial Analysis What is the Formula for the Cost of Equity? Related Articles Cost of Debt Cost of Preferred Stock How to Calculate Beta Incremental Cost of Capital Weighted Average Cost of Capital Based on this information, the company's cost of equity is calculated as follows: ($2.00

Financial Analysis 75

Financial Analysis Budgeting 75

Accounting Tools

OCTOBER 12, 2023

More specifically, it refers to a lender’s risk of having its cash flows interrupted when a borrower does not pay principal or interest to it. Credit risk is considered to be higher when the borrower does not have sufficient cash flows to pay the creditor , or it does not have sufficient assets to liquidate make a payment.

Collections 75

Collections Accounts Receivable Accounts Receivable Account Receivables 75

Accounting Tools

MAY 19, 2023

The shareholders of a publicly held company are particularly interested in a system of cost control, for they realize that tight control gives a company considerable influence over its cash flows and reported profits.

Budgeting 40

Budgeting Financial Analysis Cost Accounting Accounting 40

Accounting Tools

JULY 20, 2023

Related Courses Capital Budgeting Financial Analysis What is the Accounting Rate of Return? In essence, then, profit is calculated using the accrual basis of accounting , not the cash basis. Possible replacement measurements are net present value , the internal rate of return , and constraint analysis.

Accruals 40

Accruals Accounting Accounting Financial Analysis 40

IMA's Count Me

NOVEMBER 5, 2023

Dan: Yes, we've all read the articles about the lawyer who tried to use it for briefs and got in huge trouble, and the hallucinations are still rampant. And as you're talking about things like analysis and looking at it from that higher level. Machines are going to do a lot of the analysis and it'll find pattern.

Accounting 63

Accounting Accounting Payroll Budgeting 63