Home Depot reports net receivables and net property and equipment, implying that both are reduced by contra assets. We’ll need to dig into the footnotes to find out what the contra accounts are. Accumulated depreciation is the most prevalent type of contra-asset account. It represents all the depreciation related to
For example, high performance athletes tend have a lot of muscle and little body fat. They can have a high BMI because they have more muscle mass, but this does not mean they weigh too much for their height. Tools to calculate a moderate weight range rely on factors such
Preferred stock represents a class of shares that holds a higher claim on company assets and earnings compared to common stock but ranks below bonds in terms of priority. Unlike common stock, preferred stockholders usually do not have voting rights in most circumstances. In addition to preferred and common shares,
For a call option, the breakeven price is the sum of the strike price and the premium paid. In simpler terms, it is the level that the underlying asset must exceed for the call option buyer to cover the cost of the premium. The break-even point (BEP) in economics, business—and