American Accounting Association – Explained

by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting

What is the American Accounting Association?The American Accounting Association refers to an organization that gives support to worldwide excellence in accounting research, education, and practice. In the United States, AAA is the primary professional association for...

American Academy of Financial Management – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is the American Academy Of Financial Management?The American Academy of Financial Management refers to a certifying body with over 151 countries across the world focused on offering exclusive designations to the finance sector and management professionals....

Bad Debt and Doubtful Accounts – Explained

by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting

What is a Bad Debt?A bad debt refers to an account receivable that has been specifically identified as uncollectible and, therefore, it is written off.  Bad debt occurs when a borrower or debtor defaults – fails to repay his or her loan or debt. Such accounts...

Completed Contract Method – Explained

by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting

Update Table of Contents What is the Completed Contract Method (CCM)?How does the Completed Contract Method (CCM) Work?How Completed Contract Method Works (Example)When to use a Completed Contract MethodAdvantages of a Completed Contract MethodDisadvantages of a...

Fiscal Year – Explained

by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting

What is a Fiscal Year?A fiscal year refers to a financial year customized for 12 months within which governments use to account, budget, and prepare financial statements. A fiscal year usually runs for 12 months. However, it is not a must for it to start on January...

Conversion Option (Mortgages) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is a Conversion Option in a Mortgage?How Does a Conversion Option Work?Why a Conversion Option has Higher FeesInsurance Industry vs. Conversion OptionWhat are the Benefits of a Whole Life Policy Conversion Option?Drawbacks of Whole Life...

Bank Guarantee – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is a Bank Guarantee?How Does a Bank Guarantee Work?Example of How A Bank Guarantee Works A Difference Between a Bank Guarantee Differs from a Letter of Credit  Bank of Guarantee FeaturesBank Guarantee TypesImportance of a Bank...

Extrinsic Value – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles

What is Extrinsic Value?The extrinsic value of an item refers to the value of the item outside of its intrinsic value, this can be derived from the amount of money assigned to the asset beyond the actual value. The extrinsic value of an item can be calculated as the...

Export Credit Agency – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is an Export Credit Agency?How Does an Export Credit Agency Work?ECA Financing by the NumbersECA Offerings and ImpactReal World Examples of Credit Export Agencies What is an Export Credit Agency?Firms that deal with exports of goods to...

Expected Utility – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is Expected Utility?Expected utility refers to the usefulness, profitability, or utility that an economy is anticipated to accumulate under given circumstances within a space of time. As a term in economics, the expected utility also describes the anticipated...