Fair Market Value:
It is also known as FMV. Fair market value is the price at which a willing seller will buy, in an arm's length transaction, when neither is under compulsion to sell or buy and both have reasonable knowledge of relevant facts. For example, a house may have cost you $150,000 but someone is willing to pay you $250,000 for the house today. The $150,000 is it's historical cost (see "historical cost" below) and the $250,000 is the fair market value. Another example would be an individual purchased 100 shares of IBM stock at $100 per share. The closing stock price is now $200. The FMV of the stock is $200 which is the amount that an individual is willing to pay for the stock. Note, however, that accounting transactions are recorded on a historical cost basis and not on a fair market value basis.
FIFO (First in, first out):
A method of inventory valuation in which the first items entered into inventory are considered the first items out.
Financial Accounting Standards Board (FASB):
FASB means the Financial Accounting Standards Board. It is a Board that writes the accounting standards that are used by practicing certified public accountants.
First in First Out (FIFO):
FIFO is an inventory cost flow method whereby the first goods purchased are assumed to be the first goods sold so that the ending inventory is valued as though it is the most recently purchased.
These are also known as Property Plant and Equipment. Fixed assets are those assets of a permanent nature required for the normal conduct of a business. A fixed asset is a tangible item that has a future economic benefit. Fixed assets are higher valued items (such as more than $500) which will not be normally converted into cash during the ensuing fiscal period and have more than a twelve-month life. Fixed assets include furniture, fixtures, equipment, land, and buildings. Accounts receivable and inventory are not fixed assets.
Fixed Assets (Net):
Also called Book Value. Fixed assets net is all property, plant, leasehold improvements, and equipment, net of accumulated depreciation. For example, if the total fixed assets are $500,000 and accumulated depreciation is $100,000, fixed assets net would be $400,000.
Capital invested in fixed assets, such as land, buildings, machinery, etc.
Fixed cost is an operating expense that is incurred to provide facilities and organization which are kept in readiness to do business without regard to actual volumes of production and sales. Fixed costs remain relatively constant until changed by managerial decision; within general limits they do not vary with business volume. Examples are: interest on bonds, rent, property tax, depreciation (sometimes in part). These are operating expenses that are incurred to provide facilities and organizations that are kept in readiness to do business without regard to volumes of production and sales. These fixed costs remain relatively constant until changed by managerial decision. Some examples of fixed costs are rent, property taxes, and interest expense.
Foot means to total the amounts in a column. This would be a column in a journal or a ledger.
An analysis of changes in working capital. Public corporations are required to provide this report.
Kamis, 27 Maret 2008
Fair Market Value: