What is Fair Market Value? The fair market value (of a good or service being exchanged) refers to the price at which both transacting parties (the buyer and the seller of that good or service) have agreed to independently. If certain conditions are met, the fair market value will represent an accurate valuation of the…
What is Business Banking? Business banking involves activities and offerings that financial institutions engage in to solve the financial challenges of businesses. The specialized suite of financial products and services is designed for companies to compete effectively and for financial institutions to grow their share of wallets. Business banking relies primarily on the business, although…
What are VBA Workbook Events? VBA workbook events are defined as an action performed by a user in Microsoft Excel that can trigger the execution of a specified macro. For example, when a user opens a workbook in Excel, the event “Workbook_Open” is triggered. Similarly, when the user saves the current workbook, the event “Workbook_BeforeSave”…
The Developer tab in Excel provides tools for advanced functions like creating VBA applications, designing forms, recording macros, and importing/exporting XML data. It is disabled by default and must be enabled through the Excel Options menu. The tab is essential for finance professionals to automate tasks, enhance data management, and improve productivity. What is the…
What is a Eurobond? A Eurobond is a fixed-income debt instrument (security) denominated in a different currency than the local one of the country where the bond’s been issued. Hence, it is a unique type of bond. Eurobonds allow corporations to raise funds by issuing bonds in a foreign currency. The bonds are also called…
What is the Capital Adequacy Ratio (CAR)? The Capital Adequacy Ratio set standards for banks by looking at a bank’s ability to pay liabilities, and respond to credit risks and operational risks. A bank that has a good CAR has enough capital to absorb potential losses. Thus, it has less risk of becoming insolvent and…
What is an Automatic Conversion Clause? An automatic conversion clause is a provision that allows for the automatic exchange of preferred stock or convertible debt for common stock in a company. The conversion is considered automatic or mandatory because it does not require a vote of the board of directors for the conversion to take…
What is Budgetary Slack? Budgetary slack is the practice of overestimating the expenses and/or underestimating the projected revenues when preparing a budget statement for the next financial period. It is a cushion created by management or lower-level managers to prepare budget estimates that will not be hard to achieve. In other instances, budgetary slack may…
What is Bottom-up Budgeting? Bottom-up budgeting is a budgeting method that starts at the department level, moving up to the top level. Each department within the organization is required to compile a list of the things it needs, the projects it plans to carry out in the next financial period, and cost estimates. The estimates…
