Search results
Results From The WOW.Com Content Network
In financial accounting, a liability is a quantity of value that a financial entity owes. More technically, it is value that an entity is expected to deliver in the future to satisfy a present obligation arising from past events. [1] The value delivered to settle a liability may be in the form of assets transferred or services performed.
A chart of accounts (COA) is a list of financial accounts and reference numbers, grouped into categories, such as assets, liabilities, equity, revenue and expenses, and used for recording transactions in the organization's general ledger. Accounts may be associated with an identifier (account number) and a caption or header and are coded by ...
It sometimes refers more specifically to the practice of managing financial risks that arise due to mismatches - "duration gaps" - between the assets and liabilities, on the firm's balance sheet or as part of an investment strategy. ALM sits between risk management and strategic planning.
Liabilities are considered the debt or financial obligations owed to other parties. Equity is the owner’s interest in the company. As a general rule, assets should equal liabilities plus equity.
Business firms use a financial analysis technique called asset vs. liability management (ALM) to mitigate risk due to a mismatch in their assets and liabilities. A mismatch occurs when assets and ...
Corporate finance is an area of finance that deals with the sources of funding, and the capital structure of businesses, the actions that managers take to increase the value of the firm to the shareholders, and the tools and analysis used to allocate financial resources.
Treasury is then responsible for managing financial assets and liabilities, ensuring sufficient liquidity, and "capitalizing on market opportunities" [2] to maximize profitability. Most large banks thus maintain dedicated Treasury Management departments. These will, in turn, operate the following areas or desks:
In financial accounting, a balance sheet (also known as statement of financial position or statement of financial condition) is a summary of the financial balances of an individual or organization, whether it be a sole proprietorship, a business partnership, a corporation, private limited company or other organization such as government or not-for-profit entity.