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Capital employed definition

Accounting Tools

Related Courses Business Ratios Guidebook The Interpretation of Financial Statements What is Capital Employed? Capital employed is the total amount of equity invested in a business. The amount of capital employed can be derived in several ways, some of which yield differing results.

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Expense definition

Accounting Tools

An alternative definition is that an expense is the reduction in value of an asset as it is used to generate revenue. The purchase of an asset may be recorded as an expense if the amount paid is less than the capitalization limit used by a company. What is an Expense?

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Replacement cost definition

Accounting Tools

Replacement cost is the price that an entity would pay to replace an existing asset at current market prices with a similar asset. The definition is critical, since the insurer is committing to pay the insured entity for the replacement cost of covered assets, if those assets are damaged or destroyed.

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Ep. 241: Dan DeGolier - Adapting to AI in Accounting

IMA's Count Me

And, so, a lot of this stuff we're just starting to figure out right now. Definitely, in the accounting side, we're starting to see some use cases for coding transactions and things like that. I think it's going to definitely change the accounting side, the day-to-day transactional stuff. Adam: Exactly.

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Cost-benefit analysis definition

Accounting Tools

This involves creating a tightly-defined definition of the decision. A present value requires the use of a discount rate , which may be either the current market rate or a firm’s weighted average cost of capital. Determine what is and is not included in the decision.

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QuickBooks Connect: Everything You Need to Know

Future Firm

In this article, you’ll get: An overview of what this conference is all about. Second, QuickBooks Connect also offers sessions on other business topics, such as marketing and sales. In addition, they also introduced QuickBooks Capital, a loan program designed to offer loans to Quickbook customers. … and more!

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Acid-test ratio definition

Accounting Tools

How to Calculate the Acid-Test Ratio To calculate an organization’s acid test ratio, add together its cash, marketable securities and accounts receivable , and then divide by the total amount of current liabilities. For example, if cash or marketable securities are restricted from use, then do not include them in the calculation.