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An acquisition is a process of acquiring control of a company or a business unit through the purchase of its assets or the acquisition of a majority stake in its capital stock. In this article, we will explore the different types of acquisitions,...
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Knowledge Resources
The acid-test ratio, also known as the quick ratio, is a financial metric that assesses a company's ability to pay off its short-term obligations using its most liquid assets. The ratio is calculated by dividing the sum of a company's cash, accounts...
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Knowledge Resources
Accounting rate of return (ARR) is a financial performance measure that calculates the expected return on an investment based on the company's net income and the initial investment required for the project. You express the accounting rate of return...
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Knowledge Resources
The accounting equation is a fundamental concept in accounting that represents the relationship between a company's assets, liabilities, and equity. It is expressed as Assets = Liabilities + Equity. In other words, the value of a company's assets is...
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Knowledge Resources
What is Absolute Advantage?
Absolute advantage refers to the ability of a person, company, or country to produce a particular good or service more efficiently than any other entity. This means that they can produce the good or service using fewer...
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What is a 12B-1 Fee?
The Securities and Exchange Commission (SEC) allows the imposition of 12B-1 fees on certain mutual funds and other investment products through their Rule 12b-1.
Purpose of 12B-1 Fees
Investment companies use 12B-1 fees to pay...
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The 11th District Cost of Funds Index (COFI) is a widely used benchmark for interest rates in the United States. It is calculated by the Federal Home Loan Bank of San Francisco and reflects the average cost of funds for savings institutions in...
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