The share premium is the difference between the nominal and market values. We do not manage client funds or hold custody of assets, we help users connect with relevant financial advisors. Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise,
One of the most essential facts of business is that companies need capital to grow. For many companies, some of that capital comes from retained earnings—the portion of profits a company keeps instead of paying it out to shareholders. The statement of retained earnings is also known as a statement of owner’s equity, an equity
But first you need to make the right calculations to understand your receivable ratios, including your ARTR and average days-to-pay (also known as day ratio). In some ways the receivables turnover ratio can be viewed as a liquidity ratio as well. Companies are more liquid the faster they can covert their receivables into cash. Of
If you don’t have an account for a specific expense then you may need to create a new one within your chart of accounts. Most accounting systems include suspense account in their account table, but this is something you should avoid using when other choices exist. If there is no account for a specific cost,
It provides criteria that can be used to evaluate and compare the operating performance of executives. Standard costing system may be used in both job order costing and process costing. Standards may be established for materials, labor, and factory overhead. Though not perfect, established standards set the acceptable amount of cost to be spent. Standard
The future value calculation allows investors to predict the amount of profit that can be generated by assets. The future value of an asset depends on the type of investment. If money is placed in a savings account with a guaranteed interest rate, then the future value is easy to determine accurately. However, investments in
However, you might want to consider getting one even if you don’t need to. There’s no cost involved, and it can help you in any number of circumstances where you can use it instead of your Social Security number. Businesses must also apply for a new EIN when they file for Chapter 7 or Chapter