Forex Glossary

Ability to Pay (Financial Capacity) Definition

Definition The term ability to pay for identifies to the potential for a debtor to successfully produce the interest and principal payments on its trades. A debtor ‘s power to pay for is just one of those essential facets creditors evaluate before writing that financial loan. Explanation Also called financial capacity, a debtor ‘s capacity to pay for could be the most essential variable a creditor should appraise before committing

Average Cost Method Definition

Definition The monetary accounting duration average-cost identifies at least one of the acceptable methods to inventory evaluation. The typical cost method employs a weighted common method of ascertain the worthiness of inventory looking to the corporation ‘s balance sheet. Calculation Average Cost per Unit = Total Cost of Goods Available for Sale / / Number of Units Explanation Also known as this AVCO method, the typical cost method of inventory

Double Entry Accounting Definition

Definition The word double entry accounting identifies to the rules in which events and transactions are listed. Double entry accounting specifies the every single entry appearing on the other hand (banking ) of a free accounts, there has to become a corresponding entrance to the ideal hand (charge ) of a free accounts. Explanation There are just five high profile accounts which appear on both balance sheet or income statement:

Goodwill Definition

Definition The monetary accounting duration good will identifies to this present worth of earnings which are over fertility for a certain industry. Good will is often listed when a business enterprise is acquired as well as the cost is over their book value of the business. Calculation Goodwill = Cost – (Tangible Assets Identifiable Intangible Assets – Liabilities) Explanation Investors are usually inclined to pay for a premium for an

Scrip Dividend Definition

Definition The word scrip dividend denotes the procedure for providing investors with the option of finding a cash dividend, a dividend in the next time, or even shared stock. If a corporation issues a scrip dividendthey’re allowing investors to grow the magnitude of the holdings without incurring any penalties. Explanation At once, it had been standard for a business low on money to offer investors a scrip dividend in place

No-Par Stock Definition

Definition The word no-par stock describes stocks of stock which can be issued without a par value. The level value of common stock does not have any relationship to the marketplace value of their collateral, and also the duration refers to an amount signaled on the stock certification. It is common for businesses to issue capital stock without par value. Explanation At the turn of the 20th Century, not exactly

Intercontinental Exchange (ICE) Definition

Definition The word Intercontinental Exchange identifies market at which sellers and buyers may negotiate and enter into futures contracts. ICE works over twenty regulated markets and market places across the entire world. Explanation Also known as ICE, the Intercontinental Exchange is a business composed of over twenty market places across the entire world. The company has been created by Jeffrey Sprecher in May 2000. Sprecher had a experience from the

Default (Investing) Definition

Definition The word default denotes the failure to fulfill a duty on financing or futures contract. Default occurs when a borrower does not settle the interest or principal owed a creditor. Explanation Default is also said that occurs on a bond once the waiver of the collateral does not create an interest or principal payment within a predetermined period. This normally takes place when the borrower will not need the

Fund of Funds (FOF) Definition

Definition The word finance of capital describes your portfolio of mutual funds accompanied by one mutual fund. The aim of a fund of funds is to provide investors with diversification inside an particular asset allocation frame. Explanation Also called being a multi-manager financial commitment, a fund of funds (FOF) tries to provide people diversification throughout buying mutual funds. These funds may offer investors with a allocation of resources which contrasts

Discounts on Notes Payable Definition

Definition The monetary accounting duration discounts notes payable can be utilized to spell out a contra liability accounts that holds prospective interest rates which are included over the surface price of a promissory note. Explanation A promissory note is an unconditional promise to settle a pre-determined amount of money in the next stage or on demand. The manufacturer of this note (debtor ) has been charged interest for its use