What is Total Cost?
Total cost is defined in three ways, depending on whether you are engaged in cost accounting, investments, or capital budgeting. In general, it is the…
Accounting
How to Calculate Net Operating Income?
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…
Explain Profit Formula?
The profit formula is the calculation used to determine the percentage profit generated by a business. The concept is used to judge the ability of…
What is Return on Investment?
Return on investment is a measurement designed to evaluate the ability of an investment to generate income. The ratio is used to compare alternative investment…
Explain Income Statement Template?
An income statement shows the profit or loss generated by a business over a specific period of time. This is usually the most closely examined…
What is DuPont Analysis?
DuPont analysis breaks down the components of the return on equity formula to reveal the different ways in which a business can alter its return…
What is Return on Average Equity?
The return on average equity measures the performance of a company based on its average shareholders’ equity outstanding. The measure is especially useful in situations…
What is Revenue Recognition?
Revenue recognition is the conditions under which an organization can recognize a sale transaction as revenue. The intent of revenue recognition is to do so…
What are Derivative Instruments?
A financial instruments is a document that has monetary value or which establishes an obligation to pay. Examples of financial instruments are cash, foreign currencies,…
What is Goodwill Amortization?
Goodwill amortization refers to the gradual and systematic reduction in the amount of the goodwill asset by recording a periodic amortization charge. The accounting standards…
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