GAAP stands for generally accepted
accounting principles. The financial
statements of a business must be prepared
according to GAAP. The Financial
Accounting Standards Board (FASB) is the organization that
establishes financial accounting and reporting standards in the US.
A GIC is a guaranteed investment
certificate. GICs are interest-bearing
investments which can be short or long term.
Funds are normally locked in until the maturity
date, although some GICs have the option of
cashing in early.
When one corporation acquires
another, goodwill (an intangible asset)
will be shown on the purchaser's consolidated balance sheet if the
purchaser pays more than the agreed-upon value of the fixed assets
Goodwill is calculated as the total
cost of the acquired corporation minus the agreed-upon value of the
assets acquired minus liabilities assumed. Prior to 2002, a
portion of goodwill was required to be amortized, or written off, by
the corporation on their income statement every year. Beginning
in 2002, the value of goodwill on the balance sheet need not be
written down unless it is determined that there has been an impairment
in the value of the goodwill.
Gross margin, also called
gross profit, is determined by deducting cost of goods sold
from total revenue.
Gross margin %
The gross margin percentage is
gross margin divided by total revenue.
A growth investor purchases shares
in companies which are expect to grow their
revenues and earnings at above-average rates.
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