What Is Present Value Table? Definition: A present value table is a chart used to calculate the current value of a stream of money to be received in the future. The table multiplies coefficients by the future cash flows to calculate the present value of the cash flow stream. Present value measures the current value
What is Price Level? Definition: Price level denotes the cost of goods and services in an economy. It is the average of all prices of an entire spectrum of products and services. Economists pay close watch to price level as it helps shed more light on consumers’ purchasing power. The analysis also helps in the
What is Objective Function? Definition: Objective function in commerce refers to a mathematical concept that seems to demonstrate the relationship between different factors that generate value. The objective function concept is particularly used in production processes to define production inputs with the goal of optimizing the production output. The objective function is therefore used to
What is Business Operations? Definition: Business operations are the activities that a business or firm engages in with the goal of converting raw materials into finished goods or services which are then made available to consumers. Every business or company has a series of activities through which it develops its products or services. For example,
What are Preferred Dividends? Definition: Preferred dividends are a type of dividends that are paid out to the shareholders who are owners of a company since a share is a unit of ownership. Shares are usually categorized as ordinary shares and preferred shares. The latter is the option that provides preferred dividends to shareholders owning
What are Plant Assets? Definition: A plant asset is any type of property, mostly equipment, or any other type of asset that a company owns and uses as part of its regular or day-to-day business operations. Plant assets are usually long-term assets or, in other words, assets that last more than a year. Some of
What are Investing Activities? Definition: Investing activities refer to the part of the cash flow statement where the accountant records the inflow and outflow of cash related to acquisition or disposal of long-term assets. Oftentimes, businesses buy and sell assets to ensure that the core activities run smoothly. Usually, the cash flow statement has three
What is a Horizontal Merger? Definition: A horizontal merger is the combining of two companies in the same industry to increase efficiencies and marketshare. If you follow business news, chances are that you have heard of two companies coming together to form one entity so that they can operate more efficiently. If the two companies
What is a Land Flip? Definition: Land flip is a fraudulent real estate convention that occurs when several buyers are interested in a piece of land that is undeveloped. In this case, the property owner can collude with one of the buyer’s and sell him or her piece of land at an inflated price. In
What Is Incurred In Accounting? Definition: Incurred is a term used by accountants to indicate that an expense has occurred or a transaction has taken place and needs recording. The acknowledgment paves the way for the crediting of the expense in the liability account. Incurred is an accepted accounting principle under the accrual basis of