What is the difference between book value and salvage value

July 9, 2024 No Comments

A: Book value and salvage value are two vastly different measures of value. Book value attempts to approximate the fair market value of a company, while salvage value is an accounting tool used to estimate depreciation amounts of tangible assets and to arrive at deductions

What is the difference between carrying value and fair value?

July 9, 2024 No Comments

A: Carrying value and fair value are two different accounting measures used to determine the value of a company’s assets and liabilities. The carrying value, or book value, is an asset or liability’s value based on a company’s balance sheet, while the fair value of

What is the difference between carrying value and market value?

July 9, 2024 No Comments

A: The difference between carrying value and market value is that the carrying value of an asset is the original cost less the total accumulated depreciation associated with that asset, while the market value of an asset is based on supply and demand and perceived

What is the difference between a Sharpe ratio and a Sortino ratio

July 9, 2024 No Comments

A: The Sharpe ratio and the Sortino ratio are both risk-adjusted evaluations of return on investment. The Sortino ratio is a variation of the Sharpe ratio that only factors in downside risk. A Sharpe ratio is calculated by subtracting the rate of return on an

What is the difference between cash flow and free cash flow?

July 9, 2024 No Comments

A: Cash flow refers to a stream of revenue or expense that alters a cash account over a specified time frame. Free cash flow (FCF) is a measure of a business’s financial performance. It is calculated as the difference between cash flow and capital expenditures.

What is the difference between a Sharpe ratio and a Traynor ratio?

July 9, 2024 No Comments

A: The Sharpe ratio and the Treynor ratio (both named for their creators, William Sharpe and Jack Treynor), are two ratios utilized to measure the risk-adjusted rate of return on either an investment portfolio or an individual stock. They differ in their specific approaches to

What is the difference between cost and price?

July 9, 2024 No Comments

A: Cost is the expense that a business incurs in bringing a product or service to market. Price is the amount a customer pays for that product or service. The difference between the price that is paid and the cost that is incurred is the

What is the difference between a Sharpe ratio and an information ratio?

July 9, 2024 No Comments

A: The Sharpe ratio and the information ratio are both tools used to evaluate the risk-adjusted rate of return of an investment portfolio. They differ in the baseline against which each measures, or compares, the investment return. The Sharpe ratio is perhaps the most widely

What is the difference between deferred revenue and accrued expense?

July 9, 2024 No Comments

A: Deferred revenue is the portion of a company’s revenue that has not been earned, but cash has been collected from customers in the form of a prepayment. Accrued expenses are the expenses of a company that have been incurred but not yet paid. Under

What is the difference between a subsidiary and a sister company?

July 9, 2024 No Comments

A: The difference between a subsidiary and a sister company lies in their relationship to the parent company and to each other. A parent company is the owner of separate corporations known as subsidiaries. The parent company’s control stems from either owning the subsidiary company

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