Category Archives: Bookkeeping

As its name suggests, the discounted cash flow model can only be used to value income-producing assets. If they calculate that a stock is worth $50, they only buy it if it’s under $45. If they calculate a business is …

And firms are free to set their own discount rates when doing these calculations. To find FCF for future years, simply multiply the FCF from the previous year by the expected growth rate. For many industries, growth rates can be …

Unearned revenue sits at an interesting intersection in accounting principles, governed by standards like GAAP (Generally Accepted Accounting Principles) and IFRS (International Financial Reporting Standards). These guidelines dictate how and when unearned revenue should be recorded and recognized in financial …

Our team of reviewers are established professionals with decades of experience in areas of personal finance and hold many advanced degrees and certifications. For information pertaining to the registration status of 11 Financial, please contact the state securities regulators for …

Also, it might not accurately capture the overall performance, especially for assets with high volatility. Net Change helps in knowing the difference between the current closing price and the previous closing price of different items. It is of great importance …