ACCOUNTING Help Me!

What is the denominator in the rate of return on total assets??

- Anonymous

The denominator in the rate of return on total assets is average total assets (begining+Ending/2)

What is the formula for PV? Is this what is time value of money!?

- se | aasf

PV = FV/(1+r)^t

How do i use it

- Anonymous

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Can you please give me the full form of FASB?

- Phil Ion

FASB stands for ‘Financial Accounting Standards Board’. It is the authority that is tasked with establishing the generally accepted accounting principles for organizations. FASB primarily governs the US organizations and although is popular outside, overseas entities have to adhere to their respective country organizations too.

NPV is Net present value! It is the sum of the future cash flows valued in today’s worth.

Can you tell me the difference between NPV and cashflow?

- Sam | Chicago

Cashflow is the amount of cash you expect to make in the current of future period(s). NPV is what that cash flow is worth today. ie if you were to make $10 5 years from now, it would not be worth $10 today. If we say it is worth only $7 today, $10 is the cash flow and $7 is the NPV.

Is it true that when a stock dividend is issued, it would be reported in the financing section of the balance sheet?

- PV

No, it does not form part of the cashflow statement as no cash went in or out of the company.

What is IRR?

- Anonymous

IRR stands for ‘internal rate of return’.  It stands for the rate of return you can expect if the dividends/returns are reinvested into the project at the same rate of return the project yields. For Bonds it is the yeild to maturity too.

What does it mean?

- Phil Ion

Stock Beta is used more in finance than in accounting. The beta represented by the Greek alphabet β which represents a stock or portfolio statistic is a number that describes the relation of its returns with that of the financial market.