# Jennifer Archive

## Dividend Yield Ratio

This the ratio of the dividend calculated per share to that of the share price of each share. The dividend ratio indicates the percentage of amount an investor or a shareholder is earning per share of a company. The formula of dividend yield ratio

## Efficiency Ratio

Efficiency ratios are the measure of the degree of the efficiency of a business. Each business runs while utilizing its assets and managing its liabilities. Efficiency ratios of a business are calculated to show how well a business is using its assets and how

## Book Value Explained

The actual value of an asset that is shown in the balance sheet is called as the book value of that asset. In order to calculate the book value of the asset the total cost of the asset is determined and then depreciation or

## Price to Sale Ratio

The price to sale ratio can be defined as a ratio that compares its stock price to the total revenues of that company. This ratio helps in the valuation of the stock of a company and shows the amount of value placed on

## Depreciation: Straight Line Biases

Straight Line Method of Depreciation is a method of calculating depreciation of an asset where the actual cost of the asset is depreciated over the entire useful life of the asset. In order to calculate depreciation by this method the difference between the cost

## Depreciation: Straight Line Biases

Straight Line Method of Depreciation is a method of calculating depreciation of an asset where the actual cost of the asset is depreciated over the entire useful life of the asset. In order to calculate depreciation by this method the difference between the cost

## Inventory Conversion Period

The inventory conversion period is defined as the total time period required converting the entire inventory into sales. In other words it can be defined as a relationship between the total number of days in financial period and the inventory turnover ratio. This is

## Net Operating Loss

Net Operating Loss can be defined as a specific period or indication where the company comes to have a negative taxable income. This situation arises when the taxable income of the company is less than the actual tax deductions of the company as

## Liquidity Gap

It is measured as the difference between the assets and the liabilities of a company. This gap is calculated when the assets of the firms have different properties as compared to the liabilities of the firm. Liquidity Gap can be calculated as positive or

## Accumulated Fund

It is an accounting term that is used for the official capital fund of a non-profit organization such as charitable organizations and NGOs. The accumulated fund of an organization is the reserve of the funds and is maintained when revenue of the organization are

## Accrued Interest

Accrued interest is the form of interest that has be calculated and recognized by the company on various financial documents and records but still it is not paid or received by the company. Interest that is recognized by the company is either payable interest

## Accounting Earnings

Accounting earnings is the actual amount of money that is earned by a company in a specific financial year. These earnings are the earnings that is actually reported on an accounting document and actually made public by the organization showing the public the actual

## API Accountants for Public Interest

As the name indicates Accountants for Public Interest work free of cost just for the benefits of the public. API is an organization with a large number of accountants that work in the field of accounting to provide free services to the organizations such

## Interest Coverage Ratio

It is the ratio between the EBIT and the total interest paid by the company. The ratio shows the total interest expense of the company that is subtracted from its total earnings before interest and taxes. It is a financial tool that helps in

## Deferred Billing

Deferred billing is a method of billing in which buyers are do not charged with the interest even if they pay later than the due date of the purchase. The major advantage of deferred billing is that it helps in promoting the sales and

## Controlled Disbursement

Controlled disbursement is a cash management technique usually employed in corporate businesses. With the help of this technique the flow of checks between the bank and the business are controlled properly. This is done in daily bases to avoid any confusion in the flow

## Long Term Debt to Total Assets Ratio

It is a tool to analyze the financial condition of a company. This is a ratio of that calculates the percentage of the assets of the business that are financed directly from the loans.  Sometimes a company has to finance its assets from loans

## LIFO Liquidation

The term LIFO liquidation is associated with the accounting of the inventory of a business. As we know LIFO is a method of managing inventory that stands for Last In First Out. In this method of inventory management last purchased item is sold first.