The term “tax credit” refers to an amount of money that taxpayers can subtract directly from the taxes they owe. This is different from tax deductions, which lower the amount of an individual’staxable income. The value of a tax credit depends on the nature of the credit. Certain types...
Purchasing a whole life insurance policy could be another tool in your financial planning toolkit. “Life insurance is considered a cornerstone of financial planning,” saysScott Holeman, media relations director for the Insurance Information Institute (III). “It can be an important tool in providin...
If the calculated costs of holding the asset exceed the calculated fair market value, the asset is considered to be impaired. Under GAAP, assets considered impaired must be recognized as a loss on anincome statement. The technical definition of impairment loss is a decrease in net carrying value...
Classifieds team before leaving to serve as Director of Production at Epinions.com. He is a graduate of Princeton University. Noah devotes most of his free time to his three young sons. In the winter you'll find him giving them lessons on the ski slopes, and in summer they're usually in...
Michael Hammer and James Champy’s BPR methodology is considered a cornerstone in this field. They argue for fundamental rethinking and radical redesign of business processes to achieve dramatic improvements. This approach calls for discarding old systems and starting afresh, focusing squarely on the pr...
In that post, we remarked that whenever one receives a new piece of information , the prior odds between an alternative hypothesis and a null hypothesis is updated to a posterior odds , which can be computed via Bayes’ theorem by the formula where is the likelihood of this information ...
What is speculation? Speculation is the act of investing in opportunities with a high risk of loss, but also with the potential for significant financial gain. Like other investors, speculators invest with the hopes that they’ll be able to sell an asset for more than they bought it. But ...
Ending inventory is the total value of products you have for sale at the end of an accounting period. Here’s how to calculate it and when to use it.
This is especially important in regions where it is not possible to further expand water supply (“closed” basins) and where the implementation of demand-side measures is, thus, considered a priority. Such measures include economic instruments, such as water pricing, water caps, water markets, ...
Fitch. Fitch could be considered the new kid on the block, as it was founded in 1913. Similar to S&P, ratings range from AAA (the highest rating) to D (default). All three companies use plus and minus signs to indicate whether a rating is closer to the higher or lower end of the ...