Terms starting with
Nominal Interest Rate
Nominal interest rate is the stated rate of interest on a loan or investment without adjusting for inflation. It determines the actual interest payment obligation…
READ MORENon-Adjusting Event
A non-adjusting event is an event occurring after the reporting period that does not require changes to financial statement amounts. However, it may require disclosure…
READ MORENet Sales
Net sales represent total revenue from goods or services sold after deducting returns, allowances, and discounts. It reflects the actual income generated from business operations…
READ MORENatural Account
A natural account refers to the specific classification assigned to transactions within the general ledger, such as salaries, utilities, or advertising expenses. It helps organize…
READ MORENegotiable Instrument
A negotiable instrument is a written financial document guaranteeing the payment of a specific amount either on demand or at a future date. Common examples…
READ MORENet Assets
Net assets represent the difference between total assets and total liabilities. This figure indicates the residual interest in the company after settling all obligations and…
READ MORENon-Recurring Expense
A non-recurring expense is a one-time cost that does not regularly occur in normal business operations. Examples include restructuring charges, legal settlements, or asset write-downs.…
READ MORENiche Market Revenue
Niche market revenue refers to income generated from a highly targeted segment of customers with specific needs or preferences. Businesses often track this separately to…
READ MORENet Present Value (NPV)
NPV is a financial metric that calculates the present value of future cash flows, discounted at a specific rate, minus the initial investment. A positive…
READ MORENon-monetary Asset
A non-monetary asset is an item that cannot be readily converted to a fixed amount of cash, such as inventory, property, or equipment. These assets…
READ MORENormal Balance
A normal balance is the expected debit or credit side where increases in an account are recorded. For example, assets and expenses have a normal…
READ MORENegative Cash Flow
Negative cash flow occurs when a company’s cash outflows exceed its inflows during a period. It signals liquidity pressure, possible overinvestment, or poor cash management.…
READ MORENon-controlling Interest
Non-controlling interest refers to the portion of equity in a subsidiary not owned by the parent company. It represents minority shareholders’ ownership and is reported…
READ MORENet Working Capital
Net working capital represents the difference between a company’s current assets and current liabilities. It measures short-term liquidity and operational efficiency, showing how well a…
READ MORENon-current Liabilities
Non-current liabilities are long-term financial obligations not due within the current fiscal year. These include bonds payable, long-term loans, deferred tax liabilities, and pension obligations.…
READ MORENet Realizable Value
NRV is the estimated selling price of an asset, less any costs required to complete or sell it. It’s commonly used for valuing inventory and…
READ MORENominal Account
Nominal accounts are temporary accounts used to record income, expenses, gains, and losses during a period. They are closed at the end of each accounting…
READ MORENon-cash Expense
Non-cash expenses are costs that don’t involve actual cash outflows during the period. Common examples include depreciation, amortization, and stock-based compensation. These are recorded to…
READ MORENon-operating Income
Non-operating income includes revenue earned from activities unrelated to a company’s core operations, such as interest income, investment gains, or asset sales. It's reported separately…
READ MORENet Book Value
Net book value is the value of an asset after deducting accumulated depreciation from its original cost. It reflects the current accounting value on the…
READ MORENotes Receivable
Notes receivable refers to written promises from customers or borrowers to pay a fixed amount at a future date. These are considered assets and often…
READ MORENotes Payable
Notes payable is a liability account representing written promises to pay a specific amount on a future date. These can include loans or promissory notes…
READ MORENet Profit Margin
Net profit margin is a financial ratio that shows the percentage of net income earned from total revenue. It’s calculated as (Net Income ÷ Revenue)…
READ MORENet Income
Net income is the profit remaining after all expenses, taxes, and interest have been deducted from total revenue. It’s the bottom line of the income…
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