Author: John

Business Drivers: What They Are, Examples, Meaning, Identification

In every business, certain elements guide the company’s direction and growth. These are known as business drivers. They are crucial in shaping the path of all businesses, no matter their size. Each driver has a significant impact on various aspects of the business, such as its strategies, operations, and financials. …

Average Net Receivables: Definition, Formula, Equation, Example, Importance

For companies offering sales on credit, accounts receivable balances are prevalent in the balance sheet. These balances may vary based on several factors. However, it may affect ratios and financial metrics that use accounts receivable balances. Therefore, companies may calculate average net receivables instead. What is Average Net Receivables? Average …

Nonforfeiture Clause: Definition, Example, Meaning, Payout Options

Navigating the world of insurance can often seem like a daunting task. Different policies, premium payments, and various clauses make it a complex field. One such term that frequently comes up in insurance discussions is the ‘Nonforfeiture Clause’. It holds significant importance in life insurance and long-term care policies. This …

Cost-to-Cost Method: Definition, Formula, Accounting, Example, Calculation

Companies undertake projects that span over various periods. When preparing financial statements, they must determine the percentage for the completion of these projects. Companies can use several methods to establish this ratio. One of these methods is called cost-to-cost. What is the Cost-to-Cost Method? The cost-to-cost method, or the percentage …