Positive Correlation – Explained

by TheBusinessProfessor | Feb 23, 2025 | Research, Quantitative Analysis, & Decision Science

What is Positive Correlation?Positive correlation refers to the relationship formed between two variables where both of them move in a similar direction. When the increase in one variable causes an increase in the second variable, and decrease in one variable causes a...

Weightless Economy – Explained

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

What is a Weightless Economy?Weightless economy includes the products and services that cannot be seen or touched. Some of the examples of products that a weightless economy includes are computer software, intellectual property, music, movies, etc. Firms that...

Accounts Payable Turnover Ratio – Explained

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

What is the Accounts Payable Turnover Ratio?The amounts payable turnover ratio of a company is the rate at which a company pays the debts that it owes its suppliers or vendors. This ratio is a short-term, liquidity ratio that measures the number of times a company...

Adjusted Balance Method – Explained

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

Update Table of Contents What is the Adjusted Balance Method?How is the Adjusted Balance Method Used?Example of the Adjusted Balance MethodAdvantages of Adjusted Balance MethodAcademics Research on Adjusted Balance Method What is the Adjusted Balance Method?The...

Guaranteed Investment Contract – Explained

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

What is a Guaranteed Investment Contract?A guaranteed investment contract (GIC), also referred to as a funding agreement, is an agreement between an investor and an insurance provider whereby the investor is provided with a guaranteed repayment of the principal in...

Accounts Payable Subsidiary Ledger – Explained

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

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...

Accounting Valuation – Explained

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

What is an Accounting Valuation?Accounting valuation is the valuation of a company’s assets and liabilities for the purpose of financial reporting. Assets owned by a company and the liabilities accrued over a certain period of time must be correctly valued and...

Accounting Theory – Explained

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

What is Accounting Theory?An accounting theory is a notion that uses speculations, methodologies, and frameworks in the study of financial reporting (as well as how financial reporting principles are applied in the accounting industry). Basically, accounting theories...

Acceptance Risk (Strategy) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Strategy, Entrepreneurship, & Innovation

What is Acceptance Risk?The major goal of risk management is to identify and analyze risks and devise means to combat the risk. A risk can be accepted, transferred, avoided, minimized, and retained. Acceptance risk is an organizational risk that is identified, and the...

Acceptance Testing – Explained

by TheBusinessProfessor | Feb 23, 2025 | Strategy, Entrepreneurship, & Innovation

What is Acceptance Testing?Acceptance testing, part of a quality assurance program, can be described as a performance testing metric that tests whether a product has acceptable standards before it is put on the market for sale. It is commonly used in engineering and...