What Is an Arm’s Length Transaction? An arm’s length transaction refers to a business deal in which buyers and sellers act independently without one party influencing the other. These types of dealings occur when both parties act in their own self-interest and are not subject to pressure from the other […]
What is the SEC Yield? The SEC yield is a standard yield calculation developed by the U.S. Securities and Exchange Commission (SEC). It allows for fairer comparisons of bond funds. It is based on the most recent 30-day period covered by the fund’s filings with the SEC. The yield figure reflects […]
What Is Economic Value Added (EVA)? Economic value added (EVA) is a measure of a company’s financial performance. It is based on the residual wealth calculated by deducting its cost of capital from its operating profit. The measure is adjusted for taxes on a cash basis. EVA can also be referred […]
What Is a Chief Financial Officer (CFO)? CFO Meaning: A chief financial officer (CFO) is the senior executive responsible for managing the financial actions of a company. The CFO’s duties include tracking cash flow and financial planning as well as analyzing the company’s financial strengths and weaknesses and proposing corrective actions. The role […]
What Is a Goodwill Impairment? Goodwill impairment occurs when a company decides to pay more than book value to acquire an asset – then the value of that asset declines. The difference between the amount that the company paid for the asset and the book value of the asset is […]
What Is a Proforma Invoice? A proforma invoice is a preliminary bill of sale. It is sent to buyers in advance of a shipment or delivery of goods. The invoice will typically describe the purchased items and other important information. This includes items like the shipping weight and transport charges. […]