Glossary of Accounting, Financial & Investing Information - Q & R
You may claim qualifying widow(er) filing status on your tax return if all of the following apply:
See also head of household filing status.
The quick ratio is calculated as (cash + marketable securities + receivables) divided by current liabilities. This ratio is an indicator of the ability of the company to meet current debts. The rule of thumb is that a quick ratio under 1, or 100%, requires further scrutiny. The quick ratio is similar to the current ratio, except that the current ratio includes all current assets. Inventory and prepaid expenses are excluded from the quick ratio calculation. Comparing the current ratio to the quick ratio gives an indication of the impact of inventory on the company's working capital.bid/ask.
An investment vehicle which allows people to invest in a portfolio of real estate holdings by purchasing units of the trust. This gives the holders more diversity and liquidity than investing directly in real estate. REITs pass their cashflow through to unitholders, so that the income is taxed not in the REIT, but in the hands of the unitholders.
When dividends are declared by a corporation, the dividend announcement includes the amount of the dividend and the record date. The dividend is paid to shareholders who hold the stock on the record date. Because it takes 3 days for trades in shares of corporations to be settled, a person must buy the stock at least 3 days prior to the record date (at least the day prior to the ex-dividend date) in order to be entitled to the dividend. See also trade date and settlement date.
The net income, or net profit, generated by a company each year is transferred to Retained Earnings, which is a part of Shareholders' Equity on the balance sheet. Retained Earnings are the accumulated profits of the company, and show as a positive amount on the balance sheet. If the company has accumulated losses instead of profits, this is called Accumulated Deficit, and shows up as a negative amount on the balance sheet.
The return on assets is a measure of the company's profitability and efficiency. It is calculated by dividing the annual operating income (income before interest and taxes) by the average total assets. The average of total assets can be determined by adding the year's beginning and ending balances of total assets, and dividing by two.
This ratio reflects the profitability of the investment to the common shareholders. It is calculated by dividing the annual net income less any preferred stock dividend requirements by the average common shareholders' equity during the year. The average common equity is usually determined by adding the year's beginning and ending balances, and dividing by two.
The amount of sales, rental, interest and other income earned by a business. The revenue of a business is reported on the income statement.
Revised: October 31, 2020
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