Author: Anfisa Dmitrieva

Return on investment (ROI) is a ratio between net profit (over a period) and cost of investment (resulting from an investment of some resources at a point in time). A high ROI means the investment’s gains compare favorably to its cost….

Return of capital (and here I differ with some definitions) is when an investor receives a portion of his original investment back – including dividends or income – from the investment. The ROIC formula is calculated by assessing the value in the den…

To illustrate this, let’s assume that a machine with a cost of $100,000 was expected to have a useful life of five years and no salvage value. The company depreciated the asset at the rate of $20,000 per year for five years….

MGP had previously used a combination of cash flow generation and borrowings under its bank credit line (‘revolver’) to fund a warehouse expansion project and to build up aged whiskey inventory. In 2017, MGP elected to borrow long-term, fixed-rate se…

This statement of retained earnings can appear as a separate statement or as an inclusion on either a balance sheet or an income statement. The statement is a financial document that includes information regarding a firm’s retained earnings, along wi…

A restriction is an official rule that limits what you can do or that limits the amount or size of something. the lifting of restrictions on political parties and the news media. [ + on] The relaxation of travel restrictions means they are free to tr…

Restricted retained earnings refers to that amount of a company’s retained earnings that are not available for distribution to shareholders as dividends. The restriction will then decline as the dividends are paid off….

A company with higher liquidity ratios is considered healthier and poses less of a risk. This company will also receive a lower interest rate, which translates into higher profitability. A compensating balance is a minimum balance that a company must…

Your friends on except, restricted list won’t be able to view your posts again. A restricted friend will see your past posts if their audience was set to Publicbut if they were set toFriends,they won’t be able to see them again. We have written a ver…

You need to determine a suitable way to allocate cost of the asset over the periods during which the asset is used. Generally, the method of depreciation to be used depends upon the patterns of expected benefits obtainable from a given asset….