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Home Dictionary F Financial Distress Financial hardship occurs when earnings or income no longer meet or cover the financial obligations of an individual or organization. Financial difficulties are often precursors to bankruptcy and can cause long-term damage to creditworthiness. To remedy the situation, the company or individual may consider options such as debt restructuring or spending cuts. Quasi-Reorganization
September 25, 2022 Quasi-reorganization allows the company to eliminate the deficit of retained earnings by recalculating assets, liabilities and equity in the manner characteristic of bankruptcy. Zombie Debt
September 25, 2022 Zombie debt is debt that has expired for collection.
“Despite that, the collection agencies may try to collect the debt from him, in a sense, bring him back from the dead. Absolute Return
September 25, 2022 Absolute return is the return that an asset receives over a certain period. Accretion
September 25, 2022 Accretion refers to the gradual and gradual growth of assets. Activity-Based Management (ABM)
September 25, 2022 Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses. Advance Payment
September 25, 2022 Advance payments are made before the goods or services are received. After-Tax Real Rate of Return
September 25, 2022 The after-tax real rate of return takes inflation and taxes into account to determine the true profit or loss on an investment. Agency Problem
September 25, 2022 An agency problem is a conflict of interest inherent in any relationship where one party is expected to act in the interests of the other. Allowance for Credit Losses
September 25, 2022 A credit loss allowance is an estimate of debt that a company is unlikely to be able to recover. Appropriation
September 25, 2022 Appropriation is the act of allocating money for a particular purpose. Asset Financing
September 25, 2022 Asset financing allows a company to obtain a loan by pledging its balance sheet assets. Asset-Liability Committee (ALCO)
September 25, 2022 Asset and Liability Management Committees (ALMCs) are responsible for overseeing the asset and liability management of a company or bank. Audit Committee
September 25, 2022 The Audit Committee consists of members of the company’s board of directors and oversees its financial reporting and reporting. Average Inventory
September 25, 2022 Average inventory is a calculation that estimates the cost or quantity of a particular item or set of items over two or more specific time periods. BCG Growth-Share Matrix
September 25, 2022 The BCG Growth Share Matrix is an internal tool used by management to assess the current state of the value of a firm’s divisions or product lines. Bad Debt
September 25, 2022 Bad debt refers to loans or outstanding debt balances that are no longer considered recoverable and must be written off. Bail-In
September 25, 2022 A guarantee helps a financial institution that is on the verge of bankruptcy by demanding the cancellation of debts to creditors and depositors. Ballpark Figure
September 25, 2022 A ballpark figure is a rough estimate of what something might mean in numerical terms when a more precise number is estimated, such as the cost of a product. Banker's Acceptance
September 25, 2022 Banker’s acceptance is a form of payment that is guaranteed by a bank and not by an individual account holder. Baye's Theorem
September 25, 2022 Bayes’ theorem allows you to update the predicted probabilities of an event by incorporating new information. Binomial Distribution
September 25, 2022 The binomial distribution is a probability distribution that generalizes the probability that a value will take on one of two independent values given a set of parameters or assumptions. Bridge Financing
September 25, 2022 Interim financing can take the form of debt or equity and can be used at the time of the IPO. Business Valuations
September 25, 2022 Business valuation determines the economic value of a business or business unit. Buy-In Management Buyout (BIMBO)
September 25, 2022 Management buyout (BIMBO) occurs when an external management team joins the company (buy-in) and also buys out the existing management team. Capital Employed
September 25, 2022 Capital employed is obtained by subtracting current liabilities from total assets; or, alternatively, by adding long-term liabilities to equity.