by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is a Leverage Ratio?A leverage ratio is any kind of financial ratio that indicates the level of debt incurred by a business entity against several other accounts in its balance sheet, income statement, or cash flow statement. The most common leverage ratios...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is Times Interest Earned?Times interest earned (TIE) is used to measure if a company can pay up its debts or not. This calculates the number of times a company can pay up its interest charges before the deductions of tax. It is basically calculated by estimating...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What are Principles-based Accounting Standards?Principles-based Accounting Standards refers to a set of rules and guidelines that organizations must follow when making financial reports. Different states and countries have accounting principles that guide them when...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is Asset Coverage Ratio?The asset coverage ratio is a test that measures the ability of a company to meet financial obligations after all liabilities have been resolved. This ratio also determines whether a company can cover its level of debt with its assets....
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is the Institute of Management Accountants?The largest corporate association for accountants and professionals in the finance and business industry is the Institute of Management Accountants (IMA). IMA trains and educates individuals and also exposes them to the...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is the Lower of Cost or Market Method? The lower of cost or market method refers to an inventory costing approach that values a company’s stock on the balance sheet either at its current market cost or historical cost. The term historical cost refers to the...
