. Asset/Liability Management: Definition and Strategies. Which is the backbone of ALM process? There is no one-size-fits-all answer to this question, as the backbone of an ALM process will vary depending on the specific needs of the organization. However, some key elements that are typically involved in an ALM process include asset and liability management, … Read more
How To Calculate Production Costs What is the formula to calculate cost? There is no one-size-fits-all answer to this question, as the cost of something can vary depending on a number of factors. However, there are some general formulas that can be used to calculate the cost of something. One common formula is: Cost = … Read more
Positive confirmation is a type of request for confirmation in which the auditor asks the client to affirmatively state that the information provided is correct. This is in contrast to negative confirmation, in which the auditor asks the client to state that the information is not correct. Positive confirmation is generally seen as more reliable, … Read more
CROGI is a metric used to assess the profitability of an investment. It is calculated by dividing the cash return on the investment by the gross investment. The cash return on investment (ROI) is a measure of the profitability of an investment. It is calculated by dividing the cash return on the investment by the … Read more
How Payments Work and Types of Royalties. A royalty is a payment made by one party to another in exchange for the right to use an asset, typically for a specified period of time. The asset may be real property, such as land or mineral rights, or it may be a copyrighted work, such as … Read more
The Statement of Financial Accounting Standards (SFAS) is a set of accounting standards issued by the Financial Accounting Standards Board (FASB). The SFAS contains the accounting principles and guidelines that public companies in the United States must follow when preparing their financial statements. What was the purpose of the FASB Accounting Standards Codification project? The … Read more
A trimmed mean is a statistical measure of central tendency. It is a type of average that is computed by discarding a certain number of extreme values from a data set and then computing the mean of the remaining values. The extreme values that are discarded can be either the highest or lowest values, or … Read more
The term “International Accounting Standards (IAS)” refers to a set of accounting standards that have been promulgated by the International Accounting Standards Board (IASB). IASB is an independent, private-sector body that develops and approves international financial reporting standards (IFRS). The IASB’s objective is to develop, in the public interest, a single set of high-quality, understandable, … Read more
Short-term assets are current assets that are expected to be converted to cash within one year or within an organization’s operating cycle, whichever is longer. Common examples of short-term assets include cash, Accounts Receivable, and Inventory. What is considered short-term? The generally accepted definition of “short-term” is one year or less. This timeframe can be … Read more
An accounting error is a mistake made in the recording, classification, or summarization of financial transactions. Accounting errors can occur in both manual and computerized systems. Some common examples of accounting errors include transposing numbers, recording transactions in the wrong account, and failing to record transactions. While some accounting errors can be corrected easily, others … Read more
