What is a Capitalized Cost? A capitalized cost is a cost that is incurred from the purchase of a fixed asset that is expected to directly produce an economic benefit beyond one year or a company’s normal operating cycle. Types of Costs In accrual-based accounting, there are two ways of classifying costs: 1. Capitalized costs…
What is Voluntary Life Insurance? Voluntary life insurance is a financial security and protection policy that provides a cash payout to a beneficiary or beneficiaries upon the death of the policyholder who is insured. It represents an optional benefit that is offered by employers to their employees as part of a comprehensive group life and…
What is a Multilateral Development Bank (MDB)? A multilateral development bank (MDB) is a financial institution established by multiple member countries and falls under international law. The owners of multilateral development banks are a national government and other international institutions and organizations. The purpose of MDBs is to facilitate financing and provide advisory services for…
What is a Multiple Listing Service (MLS)? A multiple listing service (MLS) is a combination of services that real estate brokers use to exchange data and information regarding properties and appraisals. A modern MLS consists of software that allows real estate agents and brokers who are selling properties to find brokers of potential buyers and…
What is the Modified Dietz Method (MDM)? The Modified Dietz Method (MDM) is a method that is used to measure a portfolio’s historical returns based on a weighted calculation of its cash flows. MDM takes into account the timing of the cash flows and assumes that a constant rate of return is achieved over a…
What is the Mill Levy/Rate? The mill levy/rate is a form of a property tax that is based on a property’s assessed value. The mill levy’s traditionally been, and continues to be, expressed in “mills.” A mill is equal to $1 for each $1,000 in assessed property value (derived from the Latin word “mil,” meaning…
What is Idiosyncratic Risk? Idiosyncratic risk, also sometimes referred to as unsystematic risk, is the inherent risk involved in investing in a specific asset, such as a stock. Idiosyncratic risk is the risk that is particular to a specific investment – as opposed to risk that affects the entire market or an entire investment portfolio….
What is EFTPS®? EFTPS® stands for the Electronic Federal Tax Payment System, which is an online tax payment system operated by the Internal Revenue Service (IRS) in the United States. The website enables both businesses and individuals to make tax payments directly from their bank accounts using a secure payment system. Learn more about EFTPS®…
What are War Bonds? War Bonds are debt instruments (bonds) that are issued by governments to finance military operations and production in wartime. War bonds tend to appeal to the sense of patriotism in individuals, who even see their purchase as a civic duty. Whilst there have been a variety of different structures for war…
