What is a Prepaid-Variable Forward? A prepaid variable forward contract (PVFC) is a strategy employed by investors who have large stocks and want to generate liquidity. Under a PVFC, an investors agrees to sell certain amount of shares at a discount, usually between 75-90% of the prevailing market value, but the buyer doesn't take ownership of the s...

What is a Contribution Margin Income Statement? The traditional income statement format used for external financial reporting simply breaks costs down by functional area: cost of goods sold and selling and administrative costs.   It does not show fixed and variable costs.  Another income statement format, called the contribution margin income statem...

What is an Accounts Payable Subsidiary Ledger? An accounts payable subsidiary ledger is an account book that tracks all expenses of a business and the number of suppliers that the business owes. This ledger shows the transaction history of a particular business and the amount of owes its suppliers, as well as current and outstanding accounts payable...

What is a Consumer Surplus? A consumer surplus occurs when a consumer is willing and able to offer more for a particular product that is readily available at a given cost. This economic measurement of consumer benefits occurs when a consumer is paying less than he or she is willing to offer for a particular product at a given period. It implies the ...

How to Acquire Ownership of Property Through Possession? Rule of First Possession - The first person to reduce previously un-owned things to her possession becomes its owner. In reality, there are few things that have never been previously possessed or owned. Example: An individual may obtain ownership of real property through original entry or titl...

What is the Academy of Accounting Historians? The Academy of Accounting Historians is an organization created for scholars who have devoted themselves to accounting history. The organization was established in 1973, it was birthed as a result of an initiative of Gary John Previts. The American Accounting Association is a not-for-profit organization....

How to get  a business license? Local government controls the issuance of a business license within its territory. The business license has several purposes, including regulation, accountability, and taxation.  This article gives a brief overview of what to expect when filing for a business license. Business License Overview Nearly all cities and co...

What are Bases of Social Power? The Bases of Social Power, proposed by French and Raven, is a theory that identifies five (six) bases or sources of social (organizational) power. The Five Bases of Social Power theory starts from the assumption that power and influence involve relations between at least two agents.  The theory argues that the reactio...

What is an Earnout? An Earnout applies in situations where one company is purchased by another. Generally, it is an agreement where the buyer of the company agrees to pay the seller additional funds (above the purchase price) if the firm performs at a given level over a specified period following the sale.  An Earnout agreement is generally used whe...

What is a Schedule 13D? Schedule 13D is a filing that individuals or a group of people must file with the Securities and Exchange Commission (SEC) when acquiring the beneficial ownership of a public company over 5%. Schedule 13D is otherwise called a beneficial ownership report, this report tells investors who has the highest ownership in a company....