A check is really a contract between three parties: maker, payee, and the payer. A check is written and signed by the maker ordering the bank or payer to pay that sum of money to the payee or recipient on the check face. No one else is involved in this contract....
Definition: Risk is a term in accounting and finance used to describe the uncertainty that a future event with a favorable outcome will occur. In other words, risk is the probability that an investment will not perform as expected and the investor will lose the money invested in the project....
Author: Harold Averkamp, CPA, MBA Definition of Debit The term debit is similar to the term used in Italy more than 500 years ago when the double entry accounting system was documented. What you need to know today is that debit means left or left side. For example, every accounting ...
Harold Averkamp, CPA, MBA There are several business definitions forbond. Abondcould be a formal debt instrument issued by a corporation or government and purchased by investors. This is the meaning when we say that a public utility issued or sold bonds to help finance a new power plant. ...
Net 30 Meaning “Net 30” is a pretty standard payment term for many industries that is often used on invoices. It means that businesses should expect payment within 30 days after the invoice date. For example, if an invoice is dated January 1st, then it would be due on January 31st. ...
pay a fixed rate for every one thousand times their ad is displayed to users/for every one thousand impressions received. One of many cost and pricing models, the cost per mille meaning is derived from a simple formula, making it easy for mobile marketers to measure the cost for every on...
An installment agreement is an agreement between a taxpayer and a taxing authority — such as the IRS — that allows the taxpayer to pay off their tax debt over time rather than all at once. Learn what installment agreements are, the different types of installment agreements, and how they wo...
A home equity line of credit (HELOC) is a variable-rate form of financing that allows you to cash in on the equity you have in your home. HELOCs are a revolving line of credit, similar to a credit card — you can borrow what you need, repay it, then borrow again, during a set ...
KPI vs Metrics MeaningWhy Are KPIs Important?Types of KPIsHow to Develop KPIsKPI Examples What is a KPI? KPI stands for key performance indicator, a quantifiable measure of performance over time for a specific objective. KPIs provide targets for teams to shoot for, milestones to gauge progress...
Shareholders’ equity has several components, each with its own value and meaning: Share capital: Share capital is the cash a company raises by issuing stock. In an initial public offering, a set amount of stock is sold for a set price. After that, the stock can be traded freely, but ...