What is a Foreign Exchange Gain/Loss? A foreign exchange gain/loss occurs when a company buys and/or sells goods and services in a foreign currency, and that currency fluctuates relative to their home currency. It can create differences in value in the monetary assets and liabilities, which must be recognized periodically until they are ultimately settled….
What is the Accounts Receivable Turnover Ratio? The accounts receivable turnover ratio, also known as the debtor’s turnover ratio, is an efficiency ratio that measures how efficiently a company is collecting revenue – and by extension, how efficiently it is using its assets. The accounts receivable turnover ratio measures the number of times over a…
What are T Accounts? If you want a career in accounting, T Accounts may be your new best friend. The T Account is a visual representation of individual accounts in the form of a “T,” making it so that all additions and subtractions (debits and credits) to the account can be easily tracked and represented…
What is a Bought Deal? A bought deal is a type of securities offering in which the underwriter commits to buying the entire offering from the issuer company before a preliminary prospectus is filed. A bought deal eliminates the financing risk faced by the issuer company. How It Works In a bought deal, the underwriter purchases…
What is the Advance-Decline Line? The advance-decline line (ADL) is a technical indicator that plots the difference between the number of advancing stocks to declining stocks on a daily basis. Understanding the Advance-Decline Line The advance-decline line is used to show stock participation in a market risk or fall. Due to the number of capitalization-weighted…
What is the Advance Decline Ratio? The advance decline ratio (ADR) is a technical indicator used to assess stock market sentiment. The ratio compares the number of stocks that increased in value to the number of stocks that decreased in value. In other words, the ADR compares the number of stocks that rose in price…
What are Excel Array Formulas? Excel array formulas allow us to use standard Excel formulas on multiple cells at the same time. Unlike standard formulas, which take individual cells as inputs, array formulas take entire arrays as inputs. Types of Array Formulas Array formulas can be broadly categorized into two groups: single output array formulas…
What is Managerial Accounting? Managerial accounting (also known as cost accounting or management accounting) is a branch of accounting concerned with the identification, measurement, analysis, and interpretation of accounting information. Managerial accounting helps company management make informed operational and business decisions. What is the Main Focus of Managerial Accounting? Managerial accounting focuses on internal reporting…
What are Accounts Expenses? An expense in accounting is the money spent, or costs incurred, by a business in their effort to generate revenues. Essentially, accounts expenses represent the cost of doing business; they are the sum of all the activities that hopefully generate a profit. It is important to understand the difference between “cost”…
What is Operating Cash Flow? Operating Cash Flow (OCF) is the amount of cash generated by the regular operating activities of a business within a specific time period. The formula for each company will be a little different, but the basic structure always consists of the same three elements: 1) OCF begins with net income, 2)…
