Category: CORPORATE FINANCE

Account Payable vs. Note Payable

A liability is obligation companies accumulate from past transactions and events. This obligation creates an economic outflow of benefits in the future. Practically, liabilities may come in various forms for a company. Two of the two common ones include account and note payable. Both are similar in many aspects. However, …

Rule 407 Letter: What It Is, Sample, Example

Every firm that is a FINRA member must provide its executives, employees, and other associated persons with a notice about their obligation to adhere to Rule 407 of the FINRA. This rule restricts how and when these individuals are allowed to buy or sell securities in their personal accounts. According …

Monetary Assets: Definition, Types, Examples, Importance

An asset is a financial resource that results in an inflow of economic benefits in the future. It has a value coming from its cost or other valuation models. In accounting, assets may classify as monetary or non-monetary. It is among many classifications of resources. Due to this difference, these …

Operating Margin: Definition, Formula, Calculation, Example, Meaning

Every cost-effective business operation must have a healthy operating margin. It not only allows the company to remain financially solvent, but it also permits owners to reinvest in the business. Operating margins are an important financial metric used to measure the profitability of a company relative to its total revenue. …