Is intellectual property considered a form of capital asset within a company?

July 9, 2024 No Comments

A: Some kinds of intellectual property are considered capital assets and may be recorded on a company’s balance sheet as intangible assets. Intellectual property is a fairly broad term and can take many different forms. Examples of intellectual property include patents, trademarks, copyrights, trade secrets

Is it possible for a company to have a positive cash flow and a negative net income?

July 9, 2024 No Comments

A: This situation may seem a bit counter-intuitive at first, but it is actually quite common and not too difficult to understand. Let’s break down the factors at play to examine more closely how a company can have a negative net income and a positive

Is it possible to beat the market?

July 9, 2024 No Comments

A: “Beating the market” means trying to earn an investment return greater than that of the S&P 500 index, one of the most popular benchmarks of U.S. stock market performance. Investment fees are one major barrier to beating the market. If you take the popular

How should a change in accounting principle be recorded and reported?

July 9, 2024 No Comments

A: A change in accounting principle is the term used when a business selects between different generally accepted accounting principles or changes the method with which a principle is applied. Changes can occur within accounting frameworks for either generally accepted accounting principles, or GAAP, or

Is return on sales (ROS) the same as profit margin?

July 9, 2024 No Comments

A: In accounting and finance, return on sales, or ROS, is almost always the same as profit margin. Each term refers to a financial profitability ratio that shows the average profit earned on the average dollar of revenue. While there could be small differences based

How should a company budget for capital expenditures?

July 9, 2024 No Comments

A: The process of budgeting for capital expenditures is essential for a business to operate and grow from a sound financial position. Capital expenditures are expenses a business makes to generate financial benefits over a period of years. Thus, a capital expense is the cost

Is there a downside to having a high liquidity ratio?

July 9, 2024 No Comments

A: In terms of corporate financing, liquidity ratios describe the ability of a firm to pay off short-term debt obligations with cash on hand or short-term assets. Common liquidity ratios include the current ratio and the acid test ratio, also known as the quick ratio.

I have lost my original Bills of Lading. Can I obtain a new set?

July 9, 2024 No Comments

A: If an original bill of lading is lost, destroyed or stolen, a new bill generally cannot be obtained unless the original has been found. Instead, the shipper must obtain an order by the court that directs the transport line or carrier to make delivery

Is there an easy way to do financial forecasting in Excel?

July 9, 2024 No Comments

A: There is no easy way to conduct financial forecasting. All forecasting involves the technically impossible act of predicting the future. Nonetheless, forecasting is essential for equity valuation and internal budgeting. The best financial forecasts are educated quantitative guesses founded on a very nuanced understanding

I lost my share certificate. Do I still own the stock?

July 9, 2024 No Comments

A: Regardless of whether a shareholder loses his or her stock certificate, that person still owns the shares. However, in order to replace the physical certificate, the shareholder must contact the company’s stock transfer agent. The corporation should be able to provide the shareholder with

All Rights Reserved