Search results
Results from the WOW.Com Content Network
Accounts may be added to the chart of accounts as needed; they would not generally be removed, especially if any transaction had been posted to the account or if there is a non-zero balance. International aspects and accounting information interchange – Charts of accounts and tax harmonisation issues
Ke is the risk-adjusted, theoretical rate of return on a Company's invested excess capital obtained through external investments. Among other things, the value of Ke and the Cost of Debt (COD) [ 6 ] enables management to arbitrate different forms of short and long term financing for various types of expenditures.
Some accounting entries are normally always represented as a flow (e.g. profit or income), while others may be represented both as a stock or as a flow (e.g. capital). A person or country might have stocks of money, financial assets, liabilities, wealth, real means of production, capital, inventories, and human capital (or labor power).
But in fact, in national accounts, the concept of gross capital formation refers only to the accounting value of the "additions of non-financial produced assets to the capital stock less the disposals of these assets". "Investment" is a broader concept that includes investment in all kinds of capital assets, whether physical property or ...
A non-financial asset is an asset that cannot be traded on the financial markets and whose value is derived by its physical net worth rather than from a contractual claim, as opposed to a financial asset (e.g., stock, bonds). Non-financial assets may be tangible (also known as real assets, e.g., land, buildings, equipment, and vehicles) but ...
In financial economics, a distinction is made between capital and other assets. Capital refers to any asset used to make money as opposed to other assets used purely for personal enjoyment or consumption. The goal of the distinction is to ensure personal taste does not play a role in valuation of capital.
Practical issues include inaccuracies from differences between economic and accounting methodologies, lack of controlled experiments on quality of data from diverse sources, and measurement of intangibles and services of the banking and financial sectors. [13] Two developments relevant to the national accounts since the 1980s include the following.
c = cost of capital, or the weighted average cost of capital (WACC). NOPAT is profits derived from a company's operations after cash taxes but before financing costs and non-cash bookkeeping entries. It is the total pool of profits available to provide a cash return to those who provide capital to the firm.