Tag: asset

Double-Declining Depreciation Formula

See Also: Double-Declining Method Depreciation Double-Declining Depreciation Formula To implement the double-declining depreciation formula for an Asset you need to know the asset’s purchase price and its useful life. First, Divide “100%” by the number of years in the asset’s useful life, this is your straight-line depreciation rate. Then, multiply that number by 2 and

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Asset Disposal

See Also: Current Assets Fixed Assets Balance Sheet Income Statement Depreciation Asset Disposal Definition Asset disposal is the act of selling an asset usually a long term asset that has been depreciated over its useful life like production equipment. Disposal of Assets Explanation According to its depreciation, many companies contain an asset disposal policy to

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Basis Definition

See Also: Basis Points Make or Buy Business Decision Collateralized Debt Obligations Carried Interests Letter of Credit Basis Explanation In accounting, the basis definition is the value of an asset for tax purposes. The basis of an asset is the cost of the asset reported to the Internal Revenue Service (IRS). It includes the original purchase price of the asset

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Call Option

See Also: Put Option Synthetic Stock Future Value Warrants Intrinsic Value – Stock Options Call Option Definition The call option definition is a right by an investor to buy an asset at a pre-determined price on or before a certain date known as the call option expiration. Call Option Explained The call option gives an

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Arbitrage

See Also: Arbitrage Pricing Theory Market Positioning Capitalization Inventory to Working Capital Analysis Mining the Balance Sheet for Working Capital Arbitrage Definition Arbitrage is the practice of profiting from the mispricing of an asset that trades in multiple markets. For arbitrage to be possible, an asset must trade in at least two different markets. If the same

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Accounting Asset Definition

See Also: Generally Accepted Accounting Principles Financial Accounting Standards Board International Financial Reporting Standards Depreciation Financial Assets Accounting Asset Definition In accounting, an asset has two criteria: a company must own or control it, and it must be expected to generate future benefit for that company. Assets on Balance Sheet A company records the value

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