What is Asset Disposal? Asset disposal is the removal of a long-term asset from the company’s accounting records. It is an important concept because capital assets are essential to successful business operations. Moreover, proper accounting of the disposal of an asset is critical to maintaining updated and clean accounting records. The asset disposal may be…
What is an Accountant? An accountant plays a very crucial role in an organization, regardless of whether it is a multinational company or a small, domestic one. The inflow and outflow of the company’s money are closely monitored by the accountant, who also makes sure that all financial transactions are legal, correct, and that they…
What is a Non-Recurring Item? In accounting, a non-recurring item is an infrequent or abnormal gain or loss that is reported in the company’s financial statements. Unlike other items reported by a company, non-recurring items do not arise from the normal company’s operations. The items are generally caused by unusual and infrequent events that are…
What is the Book Value Per Share (BVPS)? The book value per share (BVPS) is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. When compared to the current market value per share, the book value per share can provide information on how a company’s stock is…
What is Cap Rate (REIT)? Cap rate is a financial metric that is used by real estate investors to analyze real estate investments, and determine their potential rate of return based on annual returns. It is calculated based on the net income that a real estate investment is expected to generate over a one-year time…
What are Excel Dashboards? Excel dashboards make it easy to perform quick overviews of data reports rather than going through large volumes of data. Overviews help in making quick and urgent decisions since one can skim through a lot of information at once and within a short time. The dashboards help in tracking Key Performance…
What is FMAN (February, May, August, and November)? FMAN is one of the three options cycles, and it comprises multiple options contracts that share the same terms and expire in the months of February, May, August, and November. The Chicago Board Options Exchange requires that commodities, indexes, and common stocks should be assigned to a…
What is a Benchmark? A benchmark is a measure used by individual and institutional investors to analyze the risk and return of a portfolio to understand how it is performing vis-à-vis other market segments. Some of the established benchmarks for standard analysis include the S&P 500, Barclays US Aggregate Bond Index, Russell 2000, and the…
What is the Active Return of a Portfolio? Active return refers to the gains or losses from a portfolio that are directly related to the decisions made by the portfolio manager. The active return can be positive or negative, depending on whether it overperforms or underperforms the market. For example, if the benchmark is 5%…
What is Farmland? In arable regions worldwide, farms are constructed in a variety of ways. Farmland is a real estate asset class that combines cropland (to grow crops), pastureland (to house and raise livestock), and timberland (for logging). Farmland is a productive asset critical to many crop and livestock operations. It may appear on the…
