Net Realizable Value (NRV) represents the estimated selling price of an asset in the ordinary course of business, minus any predictable costs associated with the completion and sale of the asset. It is a critical metric in inventory valuation and accounting practices, ensuring realistic asset values are reflected in financial statements.
Net Realizable Value (NRV) is the estimated selling price of goods, services, or assets minus any costs associated with making the sale, including completion and disposal costs.
Net Realizable Value (NRV) is a key metric in inventory accounting that measures the estimated amount a business expects to receive from the sale of inventory, minus any estimated costs to complete the sale.
Net Realizable Value (NRV) is the net amount that an entity expects to realize from the sale of an asset after deducting any costs involved in its sale or disposal.
Net residual value is an important assessment in accounting, business valuation, and asset management, representing the final estimated value of an asset after accounting for depreciation and other expenses.
Net Sales refers to the revenue that remains after deducting returns and allowances, freight out, and cash discounts allowed from the gross sales.
Net surfing, commonly known as web browsing, refers to the act of navigating and exploring the internet by searching for information, reading content, and visiting different websites.
A net transaction in the securities market refers to a transaction where the buyer and seller do not incur any fees or commissions. This typically occurs when an investor buys a new issue of stock.
Net Working Capital (NWC) is a financial metric that represents the difference between a company's current assets and its current liabilities. It highlights a firm's short-term financial health and operational efficiency.
Net worth represents the total value of an organization after deducting its liabilities from its assets. This financial metric is crucial for assessing the financial health and stability of an entity.
Net yield is the return on an investment after all expenses, taxes, and costs have been subtracted. It provides a more accurate measure of an investment's profitability than gross yield.
The net-investment method, often used in international accounting, is a technique applied to translate a foreign subsidiary's financial statements into the parent company's currency. This method helps in adjusting for fluctuating exchange rates and provides a consistent basis for valuation of the subsidiary’s net assets.
A small, lightweight, and inexpensive computing device designed for Internet access and light-duty computing tasks. Netbooks are characterized by their physical size, processing power, and storage capacity, which falls between that of a notebook computer and a smartphone.
Netiquette, or network etiquette, refers to the informal code of conduct governing polite, respectful, and proper behavior in the realms of cyberspace, including the Internet and online services.
Netting is the process of offsetting matching sales and purchases against each other, particularly in the context of futures, options, and forward foreign exchange. It helps firms manage risks such as exchange-rate exposure and is often facilitated by a clearing house.
An accounting method where one amount is deducted from another. It helps to reflect a more accurate financial position by deducting provisions or allowances from gross figures.
A network is a system that allows different computers to be linked together, facilitating data sharing, communication, and shared access to hardware devices. Networks can range from local to global scales.
Network analysis is a method used in project management to plan and control complex projects. It helps in identifying optimum workflows, minimizing bottlenecks, and ensuring timely project delivery.
Networking refers to the act of establishing and utilizing professional or social contacts for fulfilling various personal or business needs. This can involve electronic communication, broadcasting, or computer systems.
The principle that financial information provided by a company should be free from bias, ensuring objectivity and reliability in financial reporting as defined by the International Accounting Standards Board (IASB).
The collection of political and economic policies and programs promulgated by the first two administrations of the presidency of Franklin D. Roosevelt. The New Deal policies were aimed at combating the economic miseries of the Great Depression.
New Economics refers to revisions of Keynesian Economics that emerged in the 1970s, aimed at addressing economic issues inadequately managed by traditional Keynesian approaches.
Stock prices that have reached their highest or lowest levels within the past year. This data is often published in newspapers and financial websites to indicate companies experiencing significant price changes.
A new issue refers to a stock or bond being offered to the public for the first time, the distribution of which is covered by Securities and Exchange Commission (SEC) rules. It usually pertains to initial public offerings (IPOs) by previously private companies but can also include additional stock or bond issues by companies that are already public.
A 'New Listing' refers to a security that has just begun to trade on a stock or bond exchange. This type of security is typically scrutinized for having met all listing requirements and may be an initial public offering (IPO) or a security that was previously traded on another exchange such as NASDAQ.
The landmark U.S. Supreme Court decision in Kelo et al. v. City of New London et al. expanded the concept of constitutionally allowable takings of private property for public use under eminent domain to include takings for commercial developments that benefit the community.
New money refers to the additional long-term financing provided to a company or government through new issues or issues exceeding the amount of a maturing issue or by issues that are being refunded.
A new town is a large mixed-use development designed to provide residences, general shopping, services, and employment. Structured under a central plan, new towns aim to create a balanced community in previously undeveloped areas, preventing unplanned development.
New UK Generally Accepted Accounting Practice (UK GAAP) refers to the financial reporting standards that replace previous UK GAAP standards and align more closely with International Financial Reporting Standards (IFRS) while considering the specifics of UK companies.
The New York Board of Trade (NYBOT) was a physical commodity futures exchange located in New York City, known for its origin in 1870 as the New York Cotton Exchange (NYCE). It became part of the Intercontinental Exchange (ICE) in 2007.
A leading commodities exchange, specializing in cotton, which has been a subsidiary of the New York Board of Trade (NYBOT) since 1998.
The New York Mercantile Exchange (NYMEX) is a commodity futures exchange operated by CME Group. It is one of the world's largest and most influential commodity exchanges, facilitating the trading of energy, metal, and other physical commodity futures and options.
A prominent futures exchange in New York dealing in oil products, metals, and other commodities. Acquired COMEX in 1994, and was later purchased by the Chicago Mercantile Exchange in 2008.
The New York Stock Exchange (NYSE) is one of the largest and most well-known securities exchanges in the world. Established in 1792, the NYSE is located on Wall Street in New York City and is a symbol of global finance and capital markets.
The premier U.S. stock exchange, established in 1792 and recognized for its significant influence on global financial markets.
The New York Stock Exchange Composite Index is a market-value-weighted price index for all stocks listed on the New York Stock Exchange, reflecting the performance of the equities listed on this iconic exchange.
A slang term referring to a first-time user or beginner in a particular service, platform, or environment, such as the Internet or a newsgroup.
A news release, also known as a press release, is a brief written statement or video released to the mass media to announce new products, changes in management, sales and earnings information, and other items of interest.
A newsgroup is a public forum or discussion area on the Internet where messages are posted for public consumption and response. The most famous newsgroups are part of the Usenet system and cover thousands of topics.
NIFO cost is a method of valuing units of raw material or finished goods issued from stock by using the next unit price at which a consignment will be received for pricing the issues.
Nexus refers to a sufficient presence within the jurisdiction of a taxing authority, which allows the jurisdiction to tax the entity. Nexus can apply to both state sales taxes and state income taxes.
A niche represents a particular specialty in which a firm or person finds that they prosper. In marketing, a niche strategy involves targeting a small but lucrative portion of the market, ensuring efficient marketing efforts and minimal direct competition.
An accounting method where the most recently acquired or produced items are used first for financial measurement and inventory management.
In the context of the stock market, the term 'Nifty Fifty' refers to 50 stocks that were once highly favored by institutional investors, achieving immense popularity particularly during the bull markets of the 1960s and early 1970s. These stocks were considered premium holdings due to their strong growth potential and favorable market performance.
The Nikkei Stock Average, also known as the Nikkei Index, is a price-weighted index of 225 prominent companies listed on the Tokyo Stock Exchange, first restructured in 1991 by the Nihon Keizai Shimbun financial newspaper group.
A foundation used to calculate a company's earnings per share (EPS) focusing only on the constant elements in the company's tax charge; often contrasted with net basis.
Shares issued without any payment, typically as a result of a rights issue, often used by companies as a means to raise capital.
The first portion of a chargeable transfer or the estate on death that is subject to a nil rate of inheritance tax. For 2016-17, the nil-rate band is £325,000. From April 2008, it became possible for spouses and civil partners to transfer their nil-rate band to the surviving partner on death, thereby effectively raising the threshold at which tax becomes payable to £650,000.
A code of best practice, issued by the Bank of England, for traders and brokers in the wholesale markets in Non-Investment Products (NIPs), specifically the sterling, foreign exchange, and bullion markets.
No Fault Insurance is a system where all individuals insured in an automobile accident can receive compensation for injuries without determining who was at fault.
In the USA and Canada, stock (shares) that have no par value or assigned value printed on the stock certificate, thus avoiding contingent liabilities and simplifying accounting entries.
In slang, a no-brainer refers to a decision-making scenario where the correct choice is so obvious it requires no thought.
A no-documentation loan (often referred to as a 'no doc' loan) is a mortgage loan for which the borrower is not required to provide proof of income, employment, or assets.
A type of coverage in which an insured's own policy indemnifies them for bodily injury and/or property damage without regard to fault. This system is designed to simplify claims and reduce litigation in auto accidents.
No-growth describes a condition of little or no economic expansion as measured by changes in the Gross Domestic Product (GDP).
A no-load fund is a type of mutual fund offered by an open-end investment company that does not impose any sales charge (load) on its shareholders. Investors can buy shares in no-load funds directly from the fund companies, rather than through a broker, as is typical in load funds.
No-par stock is issued without a par value stated in the corporate charter or on the stock certificate. It is also known as no-par-value stock.
A no-strike clause is an agreement between a labor union and management, wherein the union pledges not to strike over grievances in return for management's agreement to accept binding arbitration of unresolved grievances.
Nodes, or individual workstations, in Local Area Networks (LANs) or Wide Area Networks (WANs), interconnected through various types of cabling or telecommunications systems.
Nolo Contendere, or 'no contest,' is a legal term indicating that a defendant will not contest a charge made by the government. The defendant loses the case, but this cannot be used as an admission of guilt in any other legal proceedings.
The nominal interest rate is the rate of return on an investment that is unadjusted for the effect of inflation. It is distinguished from the real rate, which is the nominal rate less the rate of inflation.
A nominal account is a type of ledger account that records expenses, losses, incomes, or gains, rather than transactions involving tangible or intangible assets.
Nominal capital, also referred to as authorized share capital, represents the maximum amount of share capital that a company is authorized to issue to shareholders as per its corporate charter.
Nominal damages are a trivial sum awarded as recognition that a legal injury has been sustained, even if slight. They are often awarded in breach of contract or intentional tort cases to vindicate the plaintiff's claim where no recoverable loss can be established.
Nominal dollars are monetary amounts that have not been adjusted for inflation, representing value in the original terms of the transaction or accounting period.
The nominal ledger, also known as the general ledger, contains the nominal accounts and real accounts necessary to prepare the financial statements of an organization. It differs from personal ledgers, such as debtors' and creditors' ledgers, which contain the accounts of customers and suppliers respectively.
The nominal loan rate, also known as the face interest rate, is the interest rate stated on a loan agreement or financial instrument without adjusting for inflation or other factors that could affect the real cost of borrowing.
Nominal price refers to a minimal or face value of a security at issuance, often not reflective of the current market value.
The nominal scale is a level of measurement where observations are distinguished by name alone. Examples include types of housing such as single-family, patio home, condominium, or townhouse. It is considered the weakest form of measurement.
Nominal share capital, also known as authorized share capital, is the maximum value of shares that a company can legally issue as stated in its corporate charter.
Nominal value refers to the face value of a security as stated by the issuer, often used interchangeably with 'par value.' It represents the value printed on the instrument, such as a bond or share certificate.
Nominal wage refers to the amount of money earned by workers in current dollar terms, without adjusting for inflation or changes in purchasing power.
The annual dollar amount of income received from a fixed-income security divided by the par value of the security and stated as a percentage.
A nominee is a person named by another (the nominator) to act on his or her behalf, often to conceal the identity of the nominator. This concept is frequently used in various financial and legal contexts, particularly in nominee shareholding.
A shareholding practice where shares are held in the name of a bank, stockbroker, company, or individual, rather than the beneficial owner, primarily to facilitate dealing or conceal the owner's identity.
Non-adjusting events are occurrences that take place between the balance-sheet date and the approval of financial statements by the board of directors. These events do not relate to conditions that existed at the balance-sheet date but necessitate disclosure if they are material to the financial statements.
Additional services provided by audit firms to their clients beyond the traditional audit engagement, such as tax advice and consultancy. Debate exists regarding the impact of these services on auditor independence.
A non-contributory pension scheme is an occupational pension scheme in which all the contributions are made by the employer, enabling employees to receive retirement benefits without having to make any contributions themselves.
Non-controllable costs, also known as uncontrollable costs, refer to expenses that cannot be influenced or managed by individual managers or departments within an organization.
Non-Controlling Interest (NCI) is a term in International Financial Reporting Standards (IFRS) used to describe the portion of equity in a subsidiary not attributable, directly or indirectly, to a parent company.
A type of preference share that does not entitle shareholders to receive omitted dividends from previous years.
A Non-Disclosure Agreement (NDA) is a legally binding contract that establishes a confidential relationship and ensures that sensitive information shared between parties is protected and not disclosed to unauthorized parties. NDAs are widely used in various sectors, including the computer industry, to safeguard unreleased products and proprietary information.
A non-divisive reorganization is a corporate restructuring process that involves changes to the structure, operations, or ownership of a company without a divisive impact, typically executed to enhance organizational efficiency and shareholder value.
Non-domiciled status refers to the tax classification of a person whose country of domicile is different from their country of residence, impacting their tax liabilities.
Under former UK accounting rules, a 'non-equity share' referred to shares in a company that had limited rights or redeemable terms. This concept was defined by Financial Reporting Standard (FRS) 4 but was later replaced by FRS 25.
A Non-Executive Director (NED) is a member of a company's board of directors who does not engage in the day-to-day operations of the business but contributes strategic oversight and independent judgment.
A non-participating preference share refers to a type of preference share that does not entitle the shareholder to participate in the excess profits of a company beyond a predetermined fixed rate of dividend.
Non-production overhead costs refer to the indirect costs that are not classified as manufacturing overheads, such as administration, selling, distribution overheads, and sometimes research and development costs.
Non-purchased goodwill, also known as inherent goodwill, is the value of a company's brand, customer base, employee relations, and other intangible elements that are not acquired through purchase.
A non-ratio covenant is a form of covenant in a loan agreement that includes conditions relating to the payment of dividends, the granting of guarantees, disposal of assets, change of ownership, and a negative pledge.
Non-recourse finance is a type of bank loan where the lender can only claim repayments from the project's profits, not from other borrower assets.
The status of an individual who does not reside in a specific country for fiscal purposes, potentially affecting their tax obligations within that country.
A Non-Revolving Bank Facility is a type of loan issued by a bank to a company that allows for specific drawdowns over a defined period. Once funds are drawn, they function like a term loan.
Non-statistical sampling or judgmental sampling is a method used in auditing where the samples are selected based on the auditor's judgment rather than random selection methods. This technique can be employed when statistical methods are impractical or when a quick assessment is needed.
Non-statutory accounts are financial statements issued by a company that do not form part of the statutory annual accounts required by law. These accounts are often reported in the media and are accompanied by a statement clarifying their non-statutory nature.
Non-taxable income refers to types of income specifically exempted from taxation by government regulations. Understanding which types of income are non-taxable can significantly affect an individual’s or business’s tax obligations.
Nonacquiescence refers to a situation where a court or administrative agency formally announces that it will not follow a precedent set by another court decision.
A nonbank bank is an institution that provides most of the services of a traditional bank but is not a member of the Federal Reserve System and does not have a charter from a state banking agency.
Nonbusiness income refers to earnings derived from passive sources such as interest, dividends, and nonbusiness capital gains, primarily used in taxation to calculate the net operating loss deduction. It includes income from investment assets separate from apportionment in multistate corporations.
Noncallable refers to a type of preferred stock or bond that cannot be redeemed at the option of the issuer. These financial instruments provide call protection for a certain period, ensuring stability for the investor.
