Category Archives: Corporate Finance

How much money you can make online?

The amount of money you can make online can vary significantly and depends on several factors. Here are some key considerations that can influence your online earnings: It’s important to note that online earnings can range from small supplemental incomes to substantial full-time incomes or even beyond. However, it’s crucial to approach online earning with… Read More »

Ways to Make Money Online

Ways to Make Money Online Can you really make money online? Yes, it is indeed possible to make money online. Many people around the world are earning a substantial income through various online ventures. The internet has opened up numerous ways to make money online for individuals to generate income, whether through traditional employment, freelancing,… Read More »

Financial Break-even

Financial break-even refers to the level of sales or revenue required for a company to cover all of its costs, including both cash and non-cash expenses, resulting in zero net income or profit. In other words, it is the point at which a company’s total revenue equals its total costs, both fixed and variable, including… Read More »

Cash Break-Even

Cash break-even refers to the level of sales or revenue required for a company to cover its cash expenses, resulting in zero net cash flow. In other words, it is the point at which a company’s cash inflows equal its cash outflows. To calculate the cash break-even point, a company can use the following formula:… Read More »

Accounting Break-Even

Accounting break-even refers to the level of sales or revenue required to cover all of a company’s fixed and variable costs, resulting in zero net income or profit. In other words, it is the point at which a company’s total revenue equals its total costs, both fixed and variable. To calculate the accounting break-even point,… Read More »

Bond Value

The value of a bond is the present value of its future cash flows, which include periodic coupon payments and the repayment of the principal at maturity. The value of a bond can be calculated using the following formula: Bond value = (C / r) x (1 – (1 / (1 + r)^n)) + (F… Read More »

Baumol Allais Tobin model

The Baumol-Tobin model, also known as the Baumol-Allais-Tobin model, is an economic model that helps determine the optimal level of cash or cash equivalents that a firm should hold for transaction purposes. It was first introduced by economists William Baumol, Maurice Allais, and James Tobin in the mid-20th century. The model assumes that a firm… Read More »

Balance Sheet Identity

The balance sheet identity, also known as the accounting equation, is a fundamental principle of accounting that shows the relationship between a company’s assets, liabilities, and equity. It is expressed as follows: Assets = Liabilities + Equity The equation shows that a company’s total assets must always equal the sum of its liabilities and equity.… Read More »

Average Daily Float

Average daily float is a financial metric that measures the average amount of time it takes for checks or other payments to clear the bank after they are deposited. The float is the difference between the balance in a bank account and the balance reported by the bank, and can be caused by delays in… Read More »

Average Accounting Return

The average accounting return (AAR) is a financial metric that measures the average profitability of an investment over a specific period of time. It is calculated by dividing the average annual accounting profit by the initial investment. The formula for AAR is: AAR = Average Annual Accounting Profit / Initial Investment The average annual accounting… Read More »