What is an Adhesion Contract? An adhesion contract, also known as a “boilerplate” contract or a “standard form” contract, is an agreement between parties whereby one party (the one with a higher bargaining power) sets out all or most of the terms of the contract. The other party (the one with a weaker bargaining power)…
What is the Norwegian Krone (NOK)? The Norwegian krone is the primary currency of Norway, and it is regulated by the Norges Bank, the country’s central bank. The term “krone” is a Norwegian term that means “crown” in English. The krone is subdivided into 100 øre, which came into use electronically beginning in 2012. Norwegians…
What is a Notary? A notary, also called a notary public, is a person authorized to witness the signing of legal documents, usually concerned with deeds, estates, licenses, power of attorney, affidavits, and trusts. As a publicly commissioned official, a notary is tasked with verifying the authenticity of documents, and they serve as impartial witnesses…
What is a Notice of Assessment? A Notice of Assessment (NOA) is a statement issued by the Canada Revenue Agency (CRA) to Canadian taxpayers at the end of a tax year. The statement details the amount of income tax that the taxpayer owes the CRA, the amount of tax refund, tax credits, tax deductions, and…
What are Non-Tariff Barriers? Non-tariff barriers are trade barriers that restrict the import or export of goods through means other than tariffs. The World Trade Organization (WTO) identifies various non-tariff barriers to trade, including import licensing, pre-shipment inspections, rules of origin, custom delayers, and other mechanisms that prevent or restrict trade. Developed countries use non-tariff…
What is Normal Profit? Normal profit is an economic term that refers to a situation where the total revenues of a company are equal to the total costs in a perfectly competitive market. It means that the company makes sufficient revenues to cover the overall cost of production and remain competitive in its respective industry….
What is the North American Free Trade Agreement (NAFTA)? The North American Free Trade Agreement (NAFTA) is an agreement that brought together three North American countries, i.e., the United States, Canada, and Mexico, to form a trading bloc in North America. The agreement aimed to reduce trading costs and make North America a competitive trading…
What is the North American Securities Administrators Association (NASAA)? The North American Securities Administrators Association (NASAA) is the oldest investor protection organization in the US, coming into existence more than a century ago in 1919. NASAA’s membership comprises 67 administrators from all states of the United States, territories, and districts. The administrators are tasked…
What is XIRR vs IRR in Excel? In financial modeling and valuation, it’s critical to understand why to use XIRR vs IRR. Using the simple =IRR function in Excel can be misleading, as it assumes all the time periods in a series of cash flows are equal. This is frequently not the case, especially if you…
Projecting Balance Sheet Line Items Projecting balance sheet line items is typically done in conjunction with projecting income statement line items. Both of these skills are necessary when mastering the art of financial modeling. This guide breaks down, step-by-step, how to calculate and then forecast each of the line items necessary to forecast a complete balance…
