Loan Amortization
Loan amortization is the systematic repayment of a loan through scheduled installments covering both principal and interest. An amortization schedule outlines how each payment reduces the outstanding balance. Proper accounting separates interest expense from principal repayment to ensure accurate liability reporting.
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LIFO (Last In, First Out)
A US-permitted inventory valuation method where the most recently acquired inventory is assumed to be sold first. LIFO is allowed under US…
Leveraged Buyout
A leveraged buyout is the acquisition of a company using significant borrowed funds, often secured by the target’s assets. Accounting…
Loss Ratio
Loss ratio measures the proportion of claims paid by an insurer relative to premiums earned. It evaluates underwriting performance and…
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