What Is a Purchase Money Mortgage? A purchase money mortgage is seller or owner financing granted by the seller of a home to the borrower as part of the purchase transaction. This type of financing is typically used when a buyer cannot qualify for a mortgage through standard banking methods. […]
Finance
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What Is Quality of Earnings? Quality of earnings refers to the portion of income realized from a company’s core operations that generate sustainable free cash flow. The quality of a corporation’s earnings is revealed by excluding data that may affect the true bottom-line performance. For example, abnormalities, accounting deception, or […]
What Is Other Comprehensive Income? Net income and other comprehensive income (OCI) are both included in comprehensive income on the Income Statement. However, OCI is made up of revenues, expenses, profits, and losses that are to be included in comprehensive income but not in net income. In business accounting, other […]
PIPE Investors – Private Investment in Public Equity (PIPE) Private investment in public equity (PIPE) refers to PIPE investors buying a block of newly issued stock from a publicly-traded company. Usually, at a price below the current market value. This purchasing strategy is used by investment firms, mutual funds, and […]
What Are Nonparametric Statistics? Nonparametric statistics is a statistical inference method focusing on rankings rather than numbers or underlying distribution assumptions. With nonparametric statistics, data are not expected to come from specified models determined by a small number of parameters. Examples of such models include the normal distribution model and […]
What Is Absorption Costing? Absorption costing is an accounting method and reporting standard that tracks and allocates expenses associated with a manufacturing process to distinct products. It is sometimes called full costing. As an accounting method, it captures all fixed and variable costs associated with manufacturing a particular product. The […]