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  2. Recoverable depreciation in home insurance: What it is and ...

    www.aol.com/finance/recoverable-depreciation...

    Recoverable depreciation is only applicable for replacement cost value (RCV) policies and allows policyholders to recoup the difference between the actual cash value (ACV) and RCV, after providing ...

  3. Actual cash value - Wikipedia

    en.wikipedia.org/wiki/Actual_cash_value

    In the property and casualty insurance industry, actual cash value (ACV) is a method of valuing insured property, or the value computed by that method. Actual cash value (ACV) is not equal to replacement cost value (RCV). Actual cash value is computed by subtracting depreciation from replacement cost. [1]

  4. Valuation using multiples - Wikipedia

    en.wikipedia.org/wiki/Valuation_using_multiples

    Share price / earnings per share plus depreciation amortization and changes in non-cash provisions: Cash earnings are a rough measure of cash flow; Unaffected by differences in accounting for depreciation; Incomplete treatment of cash flow; Usually used as a supplement to other measures if accounting differences are material; Price / book ratio

  5. Replacement value - Wikipedia

    en.wikipedia.org/wiki/Replacement_value

    This may not be the "market value" of the item, and is typically distinguished from the "actual cash value" payment which includes a deduction for depreciation. For insurance policies for property insurance , a contractual stipulation that the lost asset must be actually repaired or replaced before the replacement cost can be paid is common.

  6. What Is Depreciation? Importance and Calculation Methods ...

    www.aol.com/finance/depreciation-importance...

    Depreciation vs. Amortization: Key Differences Depreciation and amortization both allocate the cost of assets over time. However, they apply to different types of assets:

  7. Operating cash flow - Wikipedia

    en.wikipedia.org/wiki/Operating_cash_flow

    Interest is a financing flow. [4] It takes into consideration how the operations are financed or taxed.Since it adjusts for liabilities, receivables, and depreciation, operating cash flow is a more accurate measure of how much cash a company has generated (or used) than traditional measures of profitability such as net income or EBIT.

  8. Cash flow - Wikipedia

    en.wikipedia.org/wiki/Cash_flow

    Depreciation*(tax rate) which locates at the end of the formula is called depreciation shield through which we can see that there is a negative relation between depreciation and cash flow. Changing in net working capital: it is the cost or revenue related to the company's short-term asset like inventory.

  9. Deferral - Wikipedia

    en.wikipedia.org/wiki/Deferral

    A deferred expense is similar to accrued revenue, where proceeds from goods or services delivered are recognized as revenue in the period earned, while the cash for them is received later. For example, if insurance is paid annually, 11/12 of the cost would be recorded as a prepaid expense, decreasing by 1/12 each month as the expense is ...

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    homeowners insurance depreciationacv insurance depreciation