Sat.Sep 09, 2023

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How to calculate the market value of equity

Accounting Tools

Related Courses Business Valuation The market value of a company's equity is the total value given by the investment community to a business. To calculate this market value, multiply the current market price of a company's stock by the total number of shares outstanding. The number of shares outstanding is listed in the equity section of a company's balance sheet.

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Examples of fixed costs

Accounting Tools

Related Courses Cost Accounting Fundamentals A fixed cost is a cost that does not change over the short-term, even if a business experiences changes in its sales volume or other activity levels. This type of cost tends to instead be associated with a period of time, such as a rent payment in exchange for a month of occupancy, or a salary payment in exchange for two weeks of services by an employee.

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How to calculate net operating income

Accounting Tools

Related Courses Property Management Accounting Real Estate Accounting Real Estate Investing Net operating income is a measure of the profitability of a real estate investment. It is used to examine the underlying cash flows of an investment before the effects of taxes and financing costs are considered. A net operating income analysis is developed by prospective investors as part of their formulation of the value to place on a property.

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Work-in-process inventory definition

Accounting Tools

Related Courses Accounting for Inventory How to Audit Inventory What is Work-in-Process Inventory? Work-in-process inventory is materials that have been partially completed through the production process. These items are typically located in the production area, though they could also be held to one side in a buffer storage area. The cost of work-in-process typically includes all of the raw material cost related to the final product, since raw materials are usually added at the beginning of the

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Elevating Accounting Practices: The Power of Outsourcing and Automation in the Digital Age

Speaker: Nancy Wu, Head of Sales and Customer Success at SkyStem

Join us for an enlightening webinar as we delve into the transformative realm of modern accounting practices. In today's digital age, the convergence of outsourcing and automation has revolutionized how businesses manage their financial operations. In this webinar we will explore the synergistic potential of these two strategies to streamline processes, enhance accuracy, save cost and drive strategic decision-making.

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Golden handshake definition

Accounting Tools

Related Courses Human Resources Guidebook Payroll Management What is a Golden Handshake? A golden handshake is a clause in an employment agreement, promising that an employer will pay an employee a significant amount if the person's employment is terminated. Golden handshakes are usually provided to senior managers or key employees as an inducement for them to either start or continue working for an organization.

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Franchisor definition

Accounting Tools

Related Courses Franchise Accounting What is a Franchisor? A franchisor is a party that grants the use of its business model, products, and trademarked name to franchisees. The franchisor owns the underlying business model and the legal rights to its trademark and products. The franchisor is paid an up-front fee as well as a percentage of franchisee sales.

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Obsolete inventory percentage

Accounting Tools

Related Courses Accounting for Inventory Inventory Management What is the Obsolete Inventory Percentage? The obsolete inventory percentage is used to derive that portion of inventory that is no longer usable. The percentage should be tracked on a trend line and compared to the results of similar businesses, to see if a company is experiencing an unusually large proportion of inventory problems.

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Sales backlog ratio

Accounting Tools

Related Courses Business Ratios Guidebook CFO Guidebook Effective Sales Management What is the Sales Backlog Ratio? The sales backlog ratio compares the confirmed order backlog of a business to its sales. When measured on a trend line , the measurement clearly indicates changes that will likely translate into future variations in sales volume. For example, if the sales backlog ratio exhibits an ongoing trend of declines, this is a strong indicator that a business is rapidly working through its b

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Annualize definition

Accounting Tools

What is Annualization? To annualize means to extend a result to a full-year basis. The concept is frequently used to better compare the results of different types of investments. Annualization Best Practices The annualization concept works best when the baseline period is already a large fraction of a year (such as nine months), since there is little remaining time over which the result can differ from historical results.

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Accounting control definition

Accounting Tools

Related Courses Accounting Controls Guidebook Accounting Procedures Guidebook What is Accounting Control? Accounting control is the manner in which processes are configured to manage risk within an organization. The targets of accounting control are as follows: To guard against the loss of assets To ensure that financial statements represent fairly the financial results, position, and cash flows of a business To ensure that objectives are met in an effective and efficient manner To ensure that l

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Predictions You Can Rely On: How Data Drives Successful Financial Forecasting

Speaker: Robbie Bhathal, Founder & CEO, and Matthew Acalin, Head of Credit Intelligence

In today's volatile financial environment, how confident are you in your company’s financial forecasting? To get the most accurate cash predictions that will lead to long-term financial survival, real-time data is critical. Innovative cash management strategies can lead to better credit opportunities, more sustainable growth, and long-term financial prosperity.

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Adjusted present value definition

Accounting Tools

Related Courses Capital Budgeting What is Adjusted Present Value? Adjusted present value is the net present value of a proposed project as though it were to be solely financed with equity , and incorporating the present value of any effects associated with debt financing. This adjustment is intended to improve the present value of the project by incorporating any tax shield associated with the deductibility of interest payments for income tax purposes.

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Annuity in advance definition

Accounting Tools

Related Courses Financial Analysis What is an Annuity in Advance? An annuity in advance is a series of payments that are due at the beginning of each successive time period. An example is a monthly rental payment on a property, which is usually due at the start of the period for which the rent is intended. As the example indicates, payment is due prior to consumption of what was purchased.

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Cash reinvestment ratio

Accounting Tools

Related Courses Business Ratios Guidebook The Interpretation of Financial Statements What is the Cash Reinvestment Ratio? The cash reinvestment ratio is used to estimate the amount of cash flow that management reinvests in a business. While a high cash reinvestment ratio might initially appear to indicate that management is committed to improving the business, it could also mean that an excessive amount of investment in fixed assets and working capital is required to run the operation.

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Accounting postulate definition

Accounting Tools

Related Courses GAAP Guidebook International Accounting What is an Accounting Postulate? An accounting postulate is a key assumption that underlies the practice of accounting. A postulate is derived from common historical practice, and is incorporated into the more formal accounting standards that govern how accounting transactions are recorded and presented.

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Your New & Improved Month-End Close Process Is Not So Far Out of Reach!

All accounting teams know what it is like to dread the inevitable month-end scaries. If there was a way to feel less burdened and maybe even a little enthusiastic to work on your month-end close and reconciliation process, would you do it? No, don't answer that, of course you would! Automate your month-end close process by up to 40% with SkyStem's ART and see how much more alive you feel!