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Preferred Stock
Preferred stock is a class of stock that has preference over common stock in respect to dividends and liquidation proceeds. Preferred stock generally pays a […]
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Paid-In Capital
Paid-in capital refers to the amount of monetary capital that shareholders have contributed to the company. Paid-in capital is one of the two main sources […]
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Other Revenue
Other revenue is a classification for revenue produced from sources outside of the company’s normal operations. Other revenue is disclosed as a separate line item […]
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Owners’ Equity
Owners’ equity is the portion of a company’s balance sheet which represents the shareholders’ claim on the assets of the business. Owner’s equity is calculated […]
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Outstanding Stock
Outstanding stock refers to the number of common stock shares that are in the hands of shareholders. When a corporation is formed, one of the […]
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Notes Receivable
A note receivable is a loan which a company has extended via a formal written agreement. Because a note receivable represents funds owed to the […]
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Operating Income
Operating income refers to the income derived from the firm’s normal business activities. Operating income excludes interest expense, since interest expense is a financing cost […]
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Operating Cycle
A company’s operating cycle is the number of days, on average, between the acquisition (or production) of inventory and the eventual sale of that inventory. […]
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Net Income
Net income refers to a company’s revenues less all expenses. Net income is also called net profit. A company generates a net profit when its […]
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Liquidity
Liquidity refers to the ability to convert assets to cash without significant impairment. An asset which can be sold quickly without impairment is said to […]