## Joint Probability

Joint probability can be defined as the occurring of more than one event at the same time. It can also be defined as the likelihood of occurring of multiple events at one time. Example of Joint Probability In order to understand the concept

## Multiple

A multiple is a relative measuring instrument or measuring criteria that is used to measure the value of stock. How Multiple Works In order to understand the concept of the multiple let’s take the following example:- Assume that the stocks a well known shopping

## Net Interest Margin

Net interest margin can be defined as the ratio that is calculated between net interest income and invested assets. Example of Net Interest Margin Net interest margin can be also defined as a net yield on interest earning assets. Formula of Net Interest Margin

## Production Budget

Production budget can be defined as the estimation or calculation of total number of units of products that must be manufactured in that budgeting period in order to achieve estimated sales. The derivation of production budget is done through forecasted sales and the inventory

## What is a Dividend Policy?

Dividend policy is a form of document that is designed by the management and decision makers of the company to decide the amount of dividend that must be paid to the investors. When a Dividend is offered to the Share Holders When a

## Inventory Audit Method

Inventory audit methods are common in those businesses or firms where inventory is treated as a form of asset and an annual auditing of inventory is done every year. The audit of the inventory is conducted by the auditors that are specialized in inventory

## Above the Line Deduction

The above the line deduction is a kind of tax deduction that reduce the adjusted gross income of an individual or a business entity. Example of Above the Line Deduction Let’s assume that an individual A has an income of almost \$100,000 per annum.

## Ability to Pay Taxation

Ability to pay taxation is a kind of tax that is often assessed on the ability to pay the tax of the tax payer. Example of Ability to Pay Taxation In order to fully understand the concept the ability to pay taxation we will

## Abatement

Abatement can be defined as a reduction in the tax rate or tax liability that is applied to an individual or a business entity. Example of Abatement The major and most profound examples of abatement come in the case of property taxes however in

## Accounting of Dollar Value LIFO Method

The dollar value of LIFO method is an inventory method that is a minor variation of the Last In and First Out method of inventory costing. With the help of this method a business can aggregate the cost of large bundle of inventories. In

## Concept of Stake Holder Value

Stake Holder value is an accounting concept that is based on the idea of creating maximum returns for all the stake holders involved in a business. Concept of Stake Holder Value The concept of stake holder value is different than that of share holder

## Calculation of Bond Yield

Bond Yield can be defined as the amount of the return that an investor or a bond holder is going to enjoy on its bonds. Types of Bond Yields There are a number of different types of bond yields depending upon the types of

## Average Accounts Payable

Accounts payable is one of the most important financial figure in a firm’s accounting and is used to calculate a number of other financial figures such as current ratio, working capital and many other financial figures. In order to calculate the above mentioned figures

## Financial Gearing

Financial Gearing can be defined as a financial figure that is actually a relative proportion of debt and equity that is used by the business for performing its operations. If the high ratio of debt to the equity id calculated a business is said

Overhead ratio is the ratio that is directly related to the operating expense of the business. Operating expenses are the expenses that occur during the day to day routine of the business. We cannot compare operating expense directly to the operating income of the

## Why Revenue Forecasting is Important

Revenue Forecasting is very important in order to see the future growth and expansion of the company related to the revenue and expenses of the firm. With the help of revenue forecasting a firm can make important decisions regarding the operations and staffing of

## How to Calculate Activity Based Costing

Activity based costing is a costing technique that is based on the cost calculations of all the activities that happen while running a business operation. The activity based costing use an approach of costing where cost of all the activities is assigned to all

## What is a Financial Leverage?

Financial leverage is the type of debt that a business entity or a firm utilizes to purchase more assets in order to run business operations. A business entity utilizes financial leverage in the case when it is hesitant to invest equity capital into business
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