Economic Value Added (EVA)
Economic Value Added measures how much value a business generates beyond the cost of its capital. It is calculated as net operating profit after taxes (NOPAT) minus the capital charge. A positive EVA indicates wealth creation for shareholders, while a negative EVA suggests retunrs are below investors expectations, making it a powerful performance metric.
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Encashment
Encashment involves converting negotiable instruments like cheques, bills, or bonds into cash. In accounting, it represents the realisation of funds…
Estimated Useful Life
Estimated useful life refers to the anticipated period an asset will remain productive and contribute to revenue generation before becoming…
Errors and Omissions
Errors and omissions refer to unintentional mistakes or oversights in accounting records, such as misclassifications, arithmetic errors, or missing transactions.…
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