What Is an Intentionally Defective Grantor Trust (IDGT)? An intentionally defective grantor (IDGT) trust is an estate-planning strategy used to freeze an individual’s assets for estate tax purposes but not for income tax purposes. The intentionally defective grantor trust is set up as a standard grantor trust, but with a […]
POS Meaning in Finance and Commerce – Point of Sale POS meaning in finance is the physical point of sale location where a customer payment occurs and transaction data is captured for products or services. The point of sale refers to the location where a customer makes the payment for […]
What Is an Allowance for Doubtful Accounts? An allowance for doubtful accounts is a contra asset account used to reduce receivables in an amount estimated by management to be uncollectible. It is a contra asset account because it decreases the amount of an asset, in this case, accounts receivable. The […]
What Is Free Cash Flow Yield (FCFY)? The free cash flow yield (FCFY) is a financial solvency metric that compares a company’s predicted free cash flow per share to its market value per share. The ratio is computed by dividing free cash flow per share by the current share price. […]
What Are Accrued Expenses? Accrued expenses are liabilities a company needs to account for, but for which no invoice has yet been received and no payment has been made. An accrued expense, also known as an accrued liability, is an accounting concept. It refers to an expense that is recognized […]
What Is Deadweight Loss? A deadweight loss is a societal cost caused by market inefficiency. It arises when supply and demand are out of balance. A deadweight loss is a term most commonly used in economics. However, it may be applied to any shortcoming created by poor resource allocation. Ultimately, […]