instruction stringlengths 5 1.05k | output stringlengths 6 22.3k | input stringclasses 1
value |
|---|---|---|
how long does it take to study for aams | once you receive access to the online material you have 120 days to pass your final exam how long it takes depends on your study habits and knowledge retention the bottom linean aams is a financial advisor certified by the college of financial planning to advise clients about personal finances asset management and inve... | |
what does accredited in business valuation mean | accredited in business valuation abv is a professional designation awarded to a certified public accountant cpa who specializes in calculating businesses value the abv certification is overseen by the american institute of certified public accountants aicpa it requires candidates to complete an application process pass... | |
how accredited in business valuation works | the accredited in business valuation credential is awarded to cpas who demonstrate considerable knowledge skill and business valuation experience the study program to become an abv covers the basic business valuation process professional standards qualitative and quantitative analysis valuation analysis and other relat... | |
what is an accredited investor | an accredited investor is an individual or a business that is allowed to buy and sell securities that are not registered with financial authorities such as shares in new businesses that have not yet gone public accredited investors get this designation by satisfying at least one requirement regarding income net worth a... | |
how to become an accredited investor | people who want to be accredited investors don t apply to the sec for the designation rather it is the responsibility of the company offering a private placement to make sure that all of those approached are accredited investors individuals or parties who want to be accredited investors can approach the issuer of the u... | |
are there any other ways of becoming an accredited investor | under certain circumstances an accredited investor designation may be assigned to a firm s directors executive officers or general partners if that firm is the issuer of the securities being offered or sold 3 in some instances a financial professional holding a finra series 7 65 or 82 can act as an accredited investor ... | |
what privileges do accredited investors receive that others don t | under federal securities laws only those who are accredited investors may participate in certain securities offerings these may include shares in private placements structured products and private equity or hedge funds among others 1 | |
why do you need to be accredited to invest in complex financial products | accredited investors hear pitches for investments that are not regulated by the government and are not subject to the same disclosure rules that public companies are required to follow the regulators want to be certain that participants in these highly risky and complex investments can fend for themselves and judge the... | |
what is accretion | accretion is the gradual and incremental growth of assets and earnings due to business expansion a company s internal growth or a merger or acquisition in finance accretion is also the accumulation of the additional income an investor expects to receive after purchasing a bond at a discount and holding it until maturit... | |
what is accretion of discount | accretion of discount is the increase in the value of a discounted instrument as time passes and the maturity date looms closer the value of the instrument will accrete grow at the interest rate implied by the discounted issuance price the value at maturity and the term to maturity | |
how accretion of discount works | a bond can be purchased at par at a premium or at a discount regardless of the purchase price of the bond however all bonds mature at par value the par value is the amount of money that a bond investor will be repaid at maturity a bond that is purchased at a premium has a value above par as the bond gets closer to matu... | |
what is accretive | in both finance and in general lexicon the term accretive is the adjective form of the word accretion which refers to gradual or incremental growth for example an acquisition deal may be deemed accretive for the absorbing company if that deal contributes to an increase in earnings per share by definition in corporate f... | |
what is accrual accounting | accrual accounting is a financial accounting method that allows a company to record revenue before receiving payment for goods or services sold and record expenses as they are incurred in other words the revenue earned and expenses incurred are entered into the company s journal regardless of when money exchanges hands... | |
how accrual accounting works | the general concept of accrual accounting is that accounting journal entries are made when a good or service is provided rather than when payment is made or received entries are also made for debts and payments due this method allows the current and future cash inflows or outflows to be combined to give a more accurate... | |
how do you explain accrual to non accountants | accrual accounting uses the double entry accounting method where payments or reciepts are recorded in two accounts at the time the transaction is initiated not when they are made | |
what is the difference between cash accounting and accrual accounting | cash accounting records payments and receipts when they are received accrual records payments and receipts when services or good are provided or debt is incurred | |
what is accrual journal entry | the accounting journal is the first entry in the accounting process where transactions are recorded as they occur an accrual or journal entry is made when a transaction occurs | |
what are the 3 accounting methods | the three accounting methods are cash basis of accounting accrual basis of accounting and a hybrid of the two called modified cash basis of accounting the bottom lineaccrual accounting is an accounting method in which payments and expenses are credited and debited when earned or incurred accrual accounting differs from... | |
what are accruals | accruals are revenues earned or expenses incurred that impact a company s net income on the income statement but cash related to the transaction hasn t yet changed hands accruals also affect the balance sheet because they involve non cash assets and liabilities the revenue from a service would be recorded as an accrual... | |
what is the purpose of accruals | the purpose of accruals is to ensure that a company s financial statements accurately reflect its true financial position this is important because financial statements are used by a wide range of stakeholders to evaluate the financial health and performance of a company including investors creditors and regulators a c... | |
what are the types of accruals | some types of accruals include accrued revenues these refer to the recognition of revenues that have been earned but not yet recorded in the company s financial statements the revenue received for a service would be recorded as an accrual in december when it was earned if a company provides a service to a customer in d... | |
is an accrual a credit or a debit | it depends on the type of accrual and the effect it has on the company s financial statements the journal entry would involve a credit to the revenue account and a debit to the accounts receivable account for accrued revenues this has the effect of increasing the company s revenue and accounts receivable on its financi... | |
what is the journal entry for accruals | the rules for recording accruals are generally the same as the rules for recording other transactions in double entry accounting the specific journal entries will depend on the individual circumstances of each transaction the bottom lineaccruals impact a company s bottom line even though cash has not yet changed hands ... | |
what is accrue | to accrue means to accumulate over time most commonly used when referring to the interest income or expenses of an individual or business interest in a savings account for example accrues over time such that the total amount in that account grows the term accrue is often related to accrual accounting which has become t... | |
when something financial accrues it essentially builds up to be paid or received in a future period both assets and liabilities can accrue over time the term accrue when related to finance is synonymous with an accrual under the accounting method outlined by generally accepted accounting principles gaap and internation... | an accrual is an accounting adjustment used to track and record revenues that have been earned but not received or expenses that have been incurred but not paid think of accrued entries as the opposite of unearned entries with accrued entries the corresponding financial event has already taken place but payment has not... | |
what are accrued expenses | accrued expenses also known as accrued liabilities are those expenses recognized on the books before they have been paid the expenses are recorded in the accounting period in which they are incurred accrual accounting is the preferred accounting method of generally accepted accounting principles gaap understanding accr... | |
when a company accrues accumulates expenses its portion of unpaid bills also accumulates this increases both its expenses and liabilities | accrual vs cash basis accountingaccrual accounting differs from cash basis accounting which records financial events and transactions only when cash is exchanged often resulting in the overstatement and understatement of income and account balances although the accrual method of accounting is labor intensive because it... | |
how are accrued expenses accounted for | an accrued expense also known as an accrued liability is an accounting term that refers to an expense that is recognized on the books before it is paid the expense is recorded in the accounting period in which it is incurred since accrued expenses represent a company s obligation to make future cash payments they are s... | |
what are some examples of accrued expenses | an example of an accrued expense is when a company purchases supplies from a vendor but has not yet received an invoice for the purchase other forms of accrued expenses include interest payments on loans warranties on products or services received and taxes all of which have been incurred or obtained but for which no i... | |
how does accrual accounting differ from cash basis accounting | accrual accounting measures a company s performance and position by recognizing economic events regardless of when cash transactions occur whereas cash accounting only records transactions when payment occurs accrual accounting presents a more accurate measure of a company s transactions and events for each period cash... | |
what is a prepaid expense | a prepaid expense is a type of asset on the balance sheet that results from a business making advanced payments for goods or services to be received in the future prepaid expenses are initially recorded as assets but their value is expensed over time onto the income statement unlike conventional expenses the business w... | |
what is the journal entry for accrued expenses | accrued expenses are recognized by debiting the appropriate expense account and crediting an accrued liability account a second journal entry must then be prepared in the following period to reverse the entry for example a company wants to accrue a 10 000 utility invoice to have the expense hit in june the company s ju... | |
what is accrued income | accrued income is the money a company has earned in the ordinary course of business but has yet to be received and for which the invoice is yet to be billed to the customer mutual funds or other pooled assets that accumulate income over a period of time but only pay shareholders once a year are by definition accruing t... | |
when cash is received for the service at the end of six months a 300 credit in the amount of the full payment is made to accrued income and a 300 debit is made to cash the balance in accrued income returns to zero for that customer | accrued income also applies to individuals and their paychecks the income that a worker earns usually accrues over a period of time for example many salaried employees are paid by their company every two weeks they do not get paid at the end of each workday at the end of the pay cycle the employee is paid and the accru... | |
is accrued income an expense or a liability | accrued income is recorded as an asset on a company s balance sheet while accrued expenses are recorded as liabilities | |
what is an example of accrued revenue | if a company performed a service in may and charged 1 000 for it but was not paid till august it would record that sale in may accrued and recognize it when it was received in august | |
is accrued income a debit or a credit | accrued income will be recorded as a credit to an income account and as a debit to accounts receivable on the balance sheet after the service has been provided but before payment has been received the bottom lineaccrued income is a method of recording income under the accrual method of accounting income is recorded as ... | |
what is accrued interest | in accounting accrued interest refers to the amount of interest that has been incurred as of a specific date on a loan or other financial obligation but has not yet been paid out accrued interest can either be in the form of accrued interest revenue for the lender or accrued interest expense for the borrower the term a... | |
what is accrued liability | the term accrued liability refers to an expense incurred but not yet paid for by a business these are costs for goods and services already delivered to a company for which it must pay in the future a company can accrue liabilities for any number of obligations which are recorded on the company s balance sheet they are ... | |
when do accrued liabilities occur | accrued liabilities arise for a number of reasons or when events occur during the normal course of business for instance at the end of a calendar year employee salaries and benefits must be recorded in the appropriate year regardless of when the pay period ends and when paychecks are distributed for example a two week ... | |
why does a company accrue liabilities | a company can accrue liabilities for any number of obligations they are recorded on the company s balance sheet and are normally listed on the balance sheet as current liabilities and they re adjusted at the end of an accounting period | |
how do accrued liabilities work for a company | an accrued liability is a financial obligation that a company incurs during a given accounting period for goods and services already delivered the company has not yet paid for them in that period and they are not recorded in the company s general ledger the cash flow has yet to occur but the company must still pay for ... | |
how many types of accrued liabilities are there | companies must account for two types of accrued liabilities the bottom lineaccrued liability is an expense that a business has incurred but not yet paid for these are goods and services already delivered to a company costs for which it must pay in the future | |
what is accrued revenue | accrued revenue is revenue that has been earned by providing a good or service but for which no cash has been received accrued revenues are recorded as receivables on the balance sheet to reflect the amount of money that customers owe the business for the goods or services they purchased accrued revenue may be contrast... | |
when a customer makes a payment for the goods or services received the accountant makes a journal entry for the amount of cash received by debiting the cash account on the balance sheet and then crediting the same amount to the accrued revenue account or accounts receivable account | examples of accrued revenueaccrued revenue is often recorded by companies engaged in long term projects like construction or large engineering projects similar to the example of the construction company above companies in the aerospace and defense sectors might accrue revenue as each piece of military hardware is deliv... | |
what is accumulated depreciation | accumulated depreciation is a method of accounting for the annual reduction of an asset s value up to a single point in its usable life this type of depreciation can be calculated using one of six methods the straight line declining balance double declining balance sum of the years digits units of production and half y... | |
when you purchase an asset for your business it has a market value as that asset ages or is used it loses some of that value this is called depreciation the opposite of appreciation which is an increase in value | businesses can expense this value reduction over the item s lifetime some assets which accumulate depreciation are the figure for accumulated depreciation can be located on a company s balance sheet below the line for related capitalized assets investopedia mira norianmethods to calculate accumulated depreciationthere ... | |
what is accumulated other comprehensive income | accumulated other comprehensive income oci includes all unrealized gains and losses reported in the equity section of the balance sheet that are netted below retained earnings other comprehensive income can consist of gains and losses on certain types of investments pension plans and hedging transactions it is excluded... | |
what is the accumulation phase | accumulation phase has two meanings for investors and those saving for retirement it refers to the period when an individual is working and planning and ultimately building up the value of their investment through savings the accumulation phase is then followed by the distribution phase in which retirees begin accessin... | |
how the accumulation phase works | the accumulation phase is also a specific period when an annuity investor is in the early stages of building up the cash value of the annuity this building phase is followed by the annuitization phase where payments are paid out to the annuitant the accumulation phase essentially begins when a person starts saving mone... | |
what is the accumulation distribution indicator a d | the accumulation distribution indicator a d is a cumulative indicator that uses volume and price to assess whether a stock is being accumulated or distributed the a d measure seeks to identify divergences between the stock price and the volume flow this provides insight into how strong a trend is if the price is rising... | |
what does the accumulation distribution indicator a d tell you | the a d line helps to show how supply and demand factors are influencing price a d can move in the same direction as price changes or in the opposite direction the multiplier in the calculation provides a gauge for how strong the buying or selling was during a particular period it does this by determining whether the p... | |
what is the acid test ratio | the acid test ratio commonly known as the quick ratio uses data from a firm s balance sheet to indicate whether it has the means to cover its short term liabilities generally a ratio of 1 0 or more indicates a company can pay its short term obligations while a ratio of less than 1 0 indicates it might struggle to pay t... | |
what s the difference between current and acid test ratios | both the current ratio also known as the working capital ratio and the acid test ratio measure a company s short term ability to generate enough cash to pay off all debts should they become due at once however the acid test ratio is considered more conservative than the current ratio because its calculation ignores ite... | |
what does the acid test ratio tell you | the acid test or quick ratio shows if a company has or can get enough cash to pay its immediate liabilities such as short term debt for most industries the acid test ratio should exceed 1 0 if it s less than 1 0 then companies do not have enough liquid assets to pay their current liabilities and should be treated with ... | |
how do you calculate the acid test ratio | to calculate the acid test ratio of a company divide a company s current cash marketable securities and total accounts receivable by its current liabilities this information can be found on the company s balance sheet | |
what is an acquisition | an acquisition is a transaction in which one company purchases most or all of another company s shares to gain control of that company acquisitions are common in business and may occur with or without the target company s approval there s often a no shop clause during the process of approval most people commonly hear a... | |
what are the types of acquisition | a business combination like an acquisition or merger can often be categorized in one of four ways | |
what is the purpose of an acquisition | acquiring other companies can serve many purposes for the parent company it can allow the company to expand its product lines or offerings and it can cut down on costs by acquiring businesses that feed into its supply chain it can also acquire competitors to maintain market share and reduce competition | |
what is the difference between a merger and an acquisition | the parent company fully takes over the target company and integrates it into the parent entity in an acquisition the two companies combine in a merger but create a brand new entity such as with a new company name and an identity that combines aspects of both | |
what was the 1990s acquisitions frenzy | the 1990s will be remembered in corporate america as the decade of the internet bubble and the megadeal the late 1990s in particular spawned a series of multibillion dollar acquisitions not seen on wall street since the junk bond fests of the roaring 1980s from yahoo s 1999 5 7 billion purchase of broadcast com to atho... | |
what is acquisition accounting | acquisition accounting is a set of formal guidelines describing how assets liabilities non controlling interest nci and goodwill of a purchased company must be reported by the buyer on its consolidated statement of financial position the fair market value fmv of the acquired company is allocated between the net tangibl... | |
how acquisition accounting works | international financial reporting standards ifrs and international accounting standards ias require all business combinations to be treated as acquisitions for accounting purposes meaning that one company must be identified as an acquirer and one company must be identified as an acquiree even if the transaction creates... | |
what is an acquisition cost | an acquisition cost also referred to as the cost of acquisition is the total cost that a company recognizes on its books for property or equipment after adjusting for discounts incentives closing costs and other necessary expenditures but before sales taxes an acquisition cost may also entail the amount needed to take ... | |
how are acquisition costs differentiated from other types of costs | acquisition costs are distinct from other types of costs such as operating expenses or production costs while operating expenses represent ongoing costs incurred to maintain day to day operations acquisition costs specifically pertain to the initial acquisition of assets or goods | |
what are the main components of acquisition costs | the main components of acquisition costs typically include the purchase price of the asset any transportation or shipping costs associated with acquiring the asset installation or setup fees legal and administrative expenses and any additional costs necessary to bring the asset into use | |
how do acquisition costs impact financial statements | acquisition costs have a direct impact on a company s financial statements particularly the balance sheet and income statement on the balance sheet acquisition costs may be capitalized as assets increasing the value of the company s asset base this also means the cost of these goods will hit the income statement as an ... | |
what role do acquisition costs play in pricing strategies | acquisition costs play an important role in pricing strategies as they directly impact the cost structure of products or services a company may wish to recoup these acquisition costs quickly therefore they may price their goods higher companies with more patience may try to recover these costs over a longer period of t... | |
what is an acquisition premium | an acquisition premium is a figure that s the difference between the estimated real value of a company and the actual price paid to acquire it an acquisition premium represents the increased cost of buying a target company during a merger and acquisition m a transaction there is no requirement that a company pay a prem... | |
when a company decides that it wants to acquire another firm it will first attempt to estimate the real value of the target company for example the enterprise value of macy s using data from its 2017 10 k report is estimated at 11 81 billion after the acquiring company determines the real value of its target it decides... | in the example above an acquirer may decide to pay a 20 premium to buy macy s thus the total cost it will propose would be 11 81 billion x 1 2 14 17 billion if this premium offer is accepted then the acquisition premium value will be 14 17 billion 11 81 billion 2 36 billion or in percentage form 20 you also may use a t... | |
what is active management | the term active management means that an investor a professional money manager or a team of professionals is tracking the performance of an investment portfolio and making buy hold and sell decisions about the assets in it the goal of any investment manager is to outperform a designated benchmark while simultaneously a... | |
what is an activist investor | an activist investor typically a specialized hedge fund buys a significant minority stake in a publicly traded company in order to change how it is run the activist investor s goals may be as modest as advising company management or as ambitious as forcing the sale of the company divestitures or restructuring or replac... | |
how activist investors make their case | investor activists often announce their campaigns by filing a schedule 13d form with the u s securities and exchange commission sec which must be filed within 10 calendar days of acquiring 5 or more of a company s voting class shares qualified institutional investors and passive investors meaning those not trying to ac... | |
do activist investors ever settle with companies | yes because activist investing is not a zero sum game since activist investors and incumbent managers share an interest in the company s success they may sometimes agree to a mutually acceptable compromise such agreements typically grant the activist investor representation on the company board in exchange for a pledge... | |
is shareholder activism dying | while some fear recently proposed sec rule changes may put a damper on activist investing it has not yet seemed to slow down after taking a dip in 2020 and 2021 due to covid19 restrictions activist investors were seen back above 2019 levels in fact shareholder activism activity hit a record high in 2022 16 some predict... | |
do activist investors create value | activist investors have been effective at times in addressing the agency problem faced by shareholders whose interests don t always coincide with those of entrenched management teams they ve certainly created value for themselves and other shareholders activist investing can t easily be pigeonholed as good or bad howev... | |
which activist investor generates the largest share price gains at the outset | it is difficult to know for sure which activist investors have been the more successful dollar for dollar and what other factors may cause particular stocks to rise in addition to an activist taking on a stake but we can look to sec disclosures and public statements made by these investors elliott investment management... | |
what is activity based budgeting abb | activity based budgeting abb is a system that records researches and analyzes activities that lead to costs for a company every activity in an organization that incurs a cost is scrutinized for potential ways to create efficiencies budgets are then developed based on these results activity based budgeting abb is more r... | |
how activity based budgeting abb works | keeping costs to a minimum is a crucial part of business management when done effectively and not too excessively companies should be able to maintain and keep growing their revenues while squeezing out higher profits from them using activity based budgeting abb can help companies to reduce the activity levels required... | |
what is activity based costing abc | activity based costing abc is a costing method that assigns overhead and indirect costs to related products and services this accounting method of costing recognizes the relationship between costs overhead activities and manufactured products assigning indirect costs to products less arbitrarily than traditional costin... | |
how activity based costing abc works | activity based costing abc is mostly used in the manufacturing industry since it enhances the reliability of cost data hence producing nearly true costs and better classifying the costs incurred by the company during its production process this costing system is used in target costing product costing product line profi... | |
what is activity based management | activity based management abm is a system for determining the profitability of every aspect of a business so that its strengths can be enhanced and its weaknesses can either be improved or eliminated altogether activity based management abm which was first developed in the 1980s seeks to highlight the areas where a bus... | |
what is an activity cost driver | an activity cost driver is an action that triggers higher or lower variable costs for a business sometimes referred to as a causal factor it is associated with the managerial accounting concept of activity based costing abc keeping tabs on activity cost drivers is important as doing so can help boost efficiency and com... | |
how activity cost drivers work | a cost driver affects the cost of specific business activities in abc an activity cost driver influences the costs of labor maintenance or other variable costs cost drivers are essential in abc a branch of managerial accounting that allocates the indirect costs or overheads of an activity multiple cost drivers may be a... | |
when a factory machine requires periodic maintenance the maintenance cost is allocated to the products produced by the machine for example the cost driver selected is machinery hours after every 1 000 machine hours there is a maintenance expense of 500 therefore every machine hour results in a 50 cent 500 1 000 mainten... | using cost drivers simplifies the allocation of manufacturing overhead the correct allocation of manufacturing overhead is important to determine the true cost of a product internal management uses the cost of a product to determine the prices of the products they produce for this reason the selection of accurate cost ... | |
what are some examples of activity cost drivers | activity cost drivers include direct labor hours the cost of warehousing order frequency and product returns | |
what do you mean by cost driver | cost drivers are the activities that trigger business expenses | |
what is the activity based costing method | activity based costing abc is a method of assigning overhead and indirect costs such as salaries and utilities to products and services doing this helps to get a better grasp on costs allowing companies to form a more appropriate pricing strategy and churn out higher profits the bottom lineexamining activity cost drive... | |
what is an activity ratio | an activity ratio is a type of financial metric that indicates how efficiently a company is leveraging the assets on its balance sheet to generate revenues and cash commonly referred to as efficiency ratios activity ratios help analysts gauge how a company handles inventory management which is key to its operational fl... | |
when are activity ratios most useful | activity ratios are most useful when they compare two competing businesses within the same industry to determine how a particular company stacks up among its peers | |
what are activity ratio subcategories | activity ratio subcategories described earlier in this article are | |
how does an activity ratio differ from a profitability ratio | an activity ratio measures how well a company utilizes its resources to generate those profits while a profitability ratio depicts a company s profit generation the bottom linean activity ratio commonly called an efficiency ratio indicates how efficiently a company is leveraging the assets on its balance sheet to gener... | |
what are the actual deferral percentage adp actual contribution percentage acp tests | the actual deferral percentage adp and actual contribution percentage acp tests are two tests that companies must conduct to ensure that their 401 k plans don t unfairly benefit highly paid employees at the expense of others companies that offer 401 k plans must conduct the tests in order to retain the qualified status... | |
how adp and acp tests work | the adp test compares the average salary deferral percentages of highly compensated employees hce to that of non highly compensated employees nhce an hce is any employee who owns more than 5 interest in the company at any time during the current or previous plan year or earned more than 130 000 during the 2020 tax year... | |
when employers fail the adp acp tests they can remedy the failure by refunding excess contributions back to hces in the amount necessary to pass the test however these refunds will be liable for income tax for the hce individuals | some companies set buffer zones within their plan documents to steer plans away from potentially failing the adp acp test in the first place one option is setting a cap on contributions by hces another option is to place a contribution limit on hces at the point where the plan would fail an adp acp test setting plan bu... | |
what is a safe harbor plan | safe harbor 401 k plans allow sponsors to bypass adp acp and other non discrimination testing in exchange for providing eligible matching or nonelective contributions on behalf of their employees to qualify for safe harbor a company must provide a basic match such as a 100 match on the first 3 of deferred compensation ... | |
what is an actuarial gain or loss | actuarial gain or loss refers to an increase or a decrease in the projections used to value a corporation s defined benefit pension plan obligations the actuarial assumptions of a pension plan are directly affected by the discount rate used to calculate the present value of benefit payments and the expected rate of ret... | |
what s an actuarial life table | an actuarial life table is a table or spreadsheet that shows the probability of a person at a certain age dying before their next birthday it s often used by life insurance companies to calculate the remaining life expectancy for people at different ages and stages and the probability of surviving a particular year of ... | |
how an actuarial life table works | insurance companies utilize actuarial life tables to help price products and project future insured events mathematically and statistically based actuarial life tables assist life insurance companies by showing event probabilities such as death sickness and disability an actuarial life table can also include factors to... | |
how are actuarial tables used | typically they re used by life insurance companies to calculate the remaining life expectancy for people at different ages and stages and the probability of surviving a particular year of age |
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.