What is Days Sales Outstanding (DSO)? Days Sales Outstanding (DSO) represents the average number of days it takes credit sales to be converted into cash or how long it takes a company to collect its account receivables. DSO can be calculated by dividing the total accounts receivable during a certain time frame by the total…
What is Inventory Valuation? Inventory valuation refers to the practice of accounting for the value of a business’ inventory. Business inventories refer to all the supplies that a business requires to operate, and that are either utilized in the production process or sold off to customers. For example, a bakery would consider inputs such as…
What is Inventory? Inventory is a current asset account found on the balance sheet, consisting of all raw materials, work-in-progress, and finished goods that a company has accumulated. It is often deemed the most illiquid of all current assets and, thus, it is excluded from the numerator in the quick ratio calculation. There is an interplay between…
What is FFO or Funds from Operations? Funds from operations (FFO) is the actual amount of cash flow generated from a company’s business operations. To calculate the net FFO, one must add the non-cash expenses or losses that are not actually incurred from the operations, such as depreciation, amortization, and any losses on the sale…
What are IFRS Standards? IFRS standards are International Financial Reporting Standards (IFRS) that consist of a set of accounting rules that determine how transactions and other accounting events are required to be reported in financial statements. They are designed to maintain credibility and transparency in the financial world, which enables investors and business operators to…
What are T-Shaped Skills? T-shaped skills refer to a special type of qualities that make an employee valuable. A T-shaped individual possesses excellent knowledge of and skills in specific areas and is good at working with others in a collaborative way. There are different types of employees, referred to as “I’s”, “T’s”, and “X’s.” The…
What are Banking Courses? Students seeking a career in banking can opt to either attend traditional schools or take online courses from reputable institutions. Traditional institutions offer banking courses as part of a business degree program. Online courses are preferred by students seeking flexibility, where they can enroll in a banking course and still continue…
What are Banking Certifications? When considering a career in banking, having appropriate banking certifications can enhance your reputation. For existing banking professionals, working toward a banking certification can help with quicker career progression and greater earning power. Although banking certifications are not mandatory, clients and prospects tend to perceive accreditations as valuable, as the long…
