Small and medium-sized businesses (SMEs) in Canada that publish financial statements for general use but are exempt from disclosing their financial results to the public because their shares are not…
Glossary
An organization’s average collection period is the average number of days it takes to collect and turn its accounts receivable into cash. It is one of the six key formulas…
The phrase “assets” refers to all of a company’s possessions. They are the economic resources that the company employs to boost sales, decrease expenses, or otherwise generate value for its…
When investors invest in a company, a “security” is issued to symbolize the amount of money invested. Common securities include stocks, bonds, mutual funds, and exchange-traded funds (ETFs). A security…
The time frame necessary to pay back a loan in full, including interest and principle, is known as the amortization period. The amortization period is the time frame required for…
A group of experts selected to provide a firm with knowledgeable, objective advice is known as an advisory board. Members often receive no compensation.Advisory boards function ad hoc. They serve…
The acid-test ratio contrasts a company’s current obligations with its “quick assets” (cash and accounts receivable). It is one of the six fundamental computations used to assess short-term liquidity, or…
Accountants can create financial statements using either accrual-based accounting or cash-based accounting. Both are suitable under IFRS (International Financial Reporting Standards). When revenues and expenses are recognized is the main…
They serve as a record of the debt you have to your suppliers and are essential for controlling cash flow. Accounts payable are the sums of money owed to suppliers…
Accelerated payment refers to when a borrower pays off a loan more quickly. In order to do this, you can: Accelerated repayments lower the borrower’s interest costs (the total fee…