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GAAP is a financial term but it doesn't describe earnings. GAAP means Generally Accepted Accounting Principles, and they're the principles, standards and procedures companies use to prepare financial statements. By using GAAP, an investor can read a company's annual report with some confidence the company is counting its money in generally the same way the company across the street from it counts theirs. These go hand in hand with GAAS, the Generally Accepted Auditing Standards Accountants use to ensure a company that's using Generally Accepted Accounting Principles is not exceeding their Generally Accepted Limits.
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What is the term for incompetence of handling money?
The term for incompetence in handling money is "financial illiteracy." This refers to a lack of understanding of basic financial concepts, such as budgeting, investing, and managing debt, which can lead to poor financial decisions. Financial illiteracy can result in difficulties in managing personal finances and achieving financial stability.
How can financial liberalizations lead to financial crisis?
A financial liberalization generally start out with an accelerated financial growth, but in most cases always leads to a less stable financial systems with frequent booms and busts from risky practices in the long term.
What is the term financial capital?
A+ goods that are designed to increase the production potential of the economy
When the term structure of interest rates is downward sloping and interest rates are expected to decline?
financial manager generally borrows short-term
Explain why both short-term and long-term planning are important?
short term is financial asset used to run business at the market level whereas longterm is to invest to get maximum profit.
Difference between Indian gaap and us gaap?
MAJOR DIFFERENCES: 1. Underlying assumptions: Under Indian GAAP, Financial statements are prepared in accordance with the principle of conservatism which basically means "Anticipate no profits and provide for all possible losses". Under US GAAP conservatism is not considered, if it leads to deliberate and consistent understatements---revenue recognized when earned or when it is realized or realizable. 2. Format/ Presentation of financial statements: Under Indian GAAP, financial statements are prepared in accordance with the presentation requirements of Schedule VI to the Companies Act, 1956. On the other hand , financial statements prepared as per US GAAP are not required to be prepared under any specific format as long as they comply with the disclosure requirements of US GAAP. 3. Cash flow statement: Under Indian GAAP (AS 3) , inclusion of Cash Flow statement in financial statements is mandatory only for companies whose share are listed on recognized stock exchanges and Certain enterprises whose turnover for the accounting period exceeds Rs. 50 crore. Thus , unlisted companies escape the burden of providing cash flow statements as part of their financial statements. On the other hand, US GAAP (SFAS 95) mandates furnishing of cash flow statements for 3 years - current year and 2 immediate preceding years irrespective of whether the company is listed or not . 4. Depreciation: Under the Indian GAAP, depreciation is provided based on rates prescribed by the Companies Act, 1956. US GAAP , depreciation has to be provided over the estimated useful life of the asset, 5. Long term Debts: Under US GAAP , the current portion of long term debt is classified as current liability, whereas under the Indian GAAP, there is no such requirement and hence the interest accrued on such long term debt in not taken as current liability. 6. Consolidation of subsidiary accounts: Under the Indian GAAP, consolidation of accounts of subsidiary companies is not mandatory. Under US GAAP (SFAS 94),Consolidation of results of Subsidiary Companies is mandatory. 7. Investments: Under Indian GAAP (AS 13), Investments are classified as current and long term. Investments are required to be segregated in 3 categories i.e. held to Maturity Security ( Primarily Debt Security) , Trading Security and Available for sales Security and should be further segregated as Current or Non current on Individual basis.
What is the term for the earnings an auctioneer makes?
The term for the earnings an auctioneer makes is wages.
What is the XBRL term for sales and for gross profit?
It depends which GAAP you are referring to. The answer would be different for US GAAP, Canadian GAAP or IFRS. If you mean US GAAP, you can look it up at http://xbrl.us/Pages/US-GAAP.aspx - the answer(s) would probably be SalesRevenueNet and GrossProfit, respectively.
Who must use GAAP and why?
Who? US publicly traded companies. Non-publicly traded companies may be required to produce a set of financial statements in accordance with GAAP if applying for a loan. Why? GAAP accounting is nothing more than a common set of principals, terminology, etc. It allows for better communication between organizations, stockholders, individuals, etc. For example, with GAAP the term Revenue means the same thing, no misunderstandings. If you did not have a common set of principals you would not be able to compare on company to another.
What is earnings credit term?
Earnings Credit is a type of credit offered by the financial institution to its customers, based on the average balance maintained in their accounts. Earnings Credit is a Soft Dollar Credit and is used to offset various charges in an invoice. Earnings Credit is never offered directly to the customer, but is always adjusted against the customer's charges.
Difference between Capital Structure and Financial Structure?
Capital Structure vs Financial Structure• Capital structure of a company is long term financing which includes long term debt, common stock and preferred stock and retained earnings.• Financial structure on the other hands also includes short term debt and accounts payable.• Capital structure is thus a subset of financial structure of a company.
Difference between capitalization and capital structure?
Capital Structure vs Financial Structure• Capital structure of a company is long term financing which includes long term debt, common stock and preferred stock and retained earnings.• Financial structure on the other hands also includes short term debt and Accounts Payable.• Capital structure is thus a subset of financial structure of a company.
What is the term for allocating funds for purchasing appropriate forms of insurance while investing part of their earnings to assure steady income?
smart financial decisions. assuming the investment is diversified.
What are undivided profits?
Undivided profits is a term that refers to corporate earnings that have gathered over a period of time. For banks, the term means retained earnings.
What is the term for amount of money earned?
Salery; earnings
What is beat rate in financial term?
In financial terms, the beat rate refers to the frequency at which a company meets or exceeds analysts' earnings expectations. It is often expressed as a percentage, indicating how often a company "beats" the consensus earnings forecast. A high beat rate can signal strong company performance and investor confidence, while a low beat rate may indicate challenges or underperformance relative to market expectations. This metric is closely monitored by investors and analysts as an indicator of a company's financial health.
What is funded debt to ebitda?
Funded debt to EBITDA is a financial metric that compares a company's total funded debt (which includes long-term loans and bonds) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). This ratio helps assess a company's leverage and financial health, indicating how easily it can cover its debt obligations with its operating earnings. A higher ratio may suggest greater financial risk, while a lower ratio typically indicates a more manageable debt load relative to earnings. Investors and analysts often use this metric to evaluate a company's ability to sustain its debt levels.
