Characteristics of Accounting Assets

The following is by defintion the characteristics of accounting assets

•          Probable future economics benefits
  
•          Obtained or controlled by an entity
  
•          Result of past transactions or events.
  

Assets are controlled by the company with the intent to gain future economic benefit.

Nonoperating Revenues and Gains

The following are some examples of Non- Operating Revenues and Gains:

• Interest revenue (or interest income
  
• Gain on sale of securities
• Gain on sale of equipment
  
• Gain on sale of buildings           
  
• Gain on sale of machinery

Four Significant Dividend Dates

The four following dates are important terms to understand in the distribution of a dividend by a corporation.

1. Date of Declaration is the day that the dividend is declared by the board of directors of a corporation. At this time, a liability is created on the balance sheet to make the payment come into existence.
2. Ex- Dividend Date is a date that indicates who is able to receive the dividend. An investor who buys the stock before the ex-dividend date is entitled to receive a dividend from the corporation. On the other hand, an investor who sells their stock before the date will not receive a dividend.
   
3. Date of record usually follows the date of declaration by three to four weeks. In order to receive payment of the dividend an investor must be listed as the owner of a stock on this date.
4. Date of payment is the date on which an investor will be paid a dividend. It usually comes two to three weeks after the date of record
   

What are Dead Assets?

In accounting, dead assets are a type of asset that do not have any life beyond their immeadiate use.

Multi-Domestic Strategy and Transnational Strategy

What is the difference between at multi-domestic strategy and transnational strategy?

A multi-domestic strategy gives a top priority to quick local responsiveness and commitment. It can be considered a differentiation strategy because the firm attempts to deliver different products and services to different local customers.

On the other hand, a transnational strategy looks at the bigger worldwide picture and tries to take advantage of overall global factors. For example, they will seek location advantage and search to gain economic operating efficiencies worldwide.

What is Residual Income?

In accounting and finance, residual income is defined as the net operating income an investment center generates above a company’s minimum required rate of return on its operating assets.

Additional Accounting Links:
Calculate Average Accounting Return

Calculate Basic Earnings per Share

Earnings per share calculation (EPS) are required by the SEC to be included on the income statements of publicly owned companies. Basic earnings per share is based on the weighted-average number of common shares outstanding for the year.

The number used will ignore dilution caused by the convertible preferred stock.

What is Cost Center Manager?

A cost center manager is an employee who has control over cost, but not revenue or investment funds of a company. For example, a profit center manager will control cost and revenue. On the other hand, an investment center manager has control over cost, revenue, and investment funds of a company.