Warning Signs Of A Troubled Company
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Learn about some important signals that indicate a company may be in serious trouble.
Current assets are all of the assets a company uses to fund its daily operations. These are the assets the company could convert into cash within a year in the normal course of business.
The cost of equity is the rate of return an investor requires from a stock before exploring other opportunities.
Float is money in the banking system that is briefly counted twice due to delays in processing checks.
Whether a company chooses FIFO or LIFO has important implications for the bottom line and for tax liability.
Selling, general and administrative expenses (SG&A) are a company's total direct and indirect costs from selling its product or service as well as its total general and administrative expenses. The company reports its SG&A on the income statement.
The wealth effect is a psychological phenomenon that causes people to spend more as the value of their assets rises. The premise is that when consumers' homes or investment portfolios increase in value, they feel more financially secure, so they increase their spending.
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