A deductible is a specified amount of money that must be paid out-of-pocket by an individual or an organization before an insurance policy or benefit plan begins to pay for the covered expenses. In other words, it is the amount that the policyholder must pay before the insurance coverage takes effect. Deductibles are a common…
Debt load refers to the amount of debt that an individual or organization is carrying at a particular point in time. It is a measure of the total outstanding debt that must be repaid, either through regular payments or in the future. For individuals, debt load may include mortgages, car loans, student loans, credit card…
A customer list is a record of individuals or companies who have purchased goods or services from a business. This list typically include the names, contact information, and purchase history of each customer. Customer lists are important for businesses because they represent a valuable asset that can be used for marketing and sales purposes. By…
Current liabilities are financial obligations or debts that a company is required to pay within a short period, typically within the next 12 months. These obligations are expected to be settled using current assets, such as cash or accounts receivable. Current liabilities are important for a company to manage because they represent the company’s financial…
Equity is a term used in finance and accounting that refers to the ownership interest that an individual or entity has in an asset or business. It represents the residual value of an asset or business after all liabilities are paid off. In the context of a company, equity represents the portion of the company…
A credit limit is the maximum amount of credit that a financial institution, such as a bank or credit card issuer, is willing to extend to a borrower or account holder. The credit limit is typically determined by the financial institution based on a variety of factors, including the borrower’s creditworthiness, income, and debt-to-income ratio.…
Crowdfunding is a financing method that involves raising small amounts of money from a large number of people, typically through online platforms. The funds raised can be used to support a variety of projects, including creative endeavors, charitable causes, and entrepreneurial ventures. Crowdfunding is typically divided into three main categories: donation-based crowdfunding, reward-based crowdfunding, and…
Cost-plus pricing is a pricing strategy that involves adding a markup to the total cost of producing a product or service to determine its selling price. In other words, the price of the product or service is set by adding a percentage or fixed amount to the cost of producing it. The formula for cost-plus…
Cost of goods sold (COGS) is a financial metric that represents the direct cost incurred by a company to produce and sell its products or services. It includes all the expenses directly associated with the production of goods or services, such as materials, labor, and overhead costs. The cost of goods sold is a critical…
Compound interest is a type of interest calculation that involves earning interest not only on the original principal amount but also on the accumulated interest from previous periods. In other words, the interest earned in each period is added to the principal, and the subsequent interest calculation is based on the new, higher balance. This…
