What is presentment warranty of a negotiable instrument? Presentment warranty applies when a person entitled to payment of an instrument presents it to a maker or drawee for payment. The presenter warrants to a good faith payor the following: Enforceability - She is entitled to enforce the instrument, No Alterations - The terms of the instrument are...

What is a Batch-Level Allocation? Costing refers to the estimation of costs or expenses related to the production of a commodity or the delivery of a service. This might include direct costs and indirect costs. Batch-level costs refer to the costs of producing or manufacturing a set of goods in which the costs cannot be allocated to individual items...

What is Native Advertising? Native Advertising is a type of advertising that is not distinct from the other contents on the platform. Native advertising promotes a product or service, but the promotional message is crafted in a way that it blends with the main content. This type of advertising often appears online, and the advertisement follows the ...

What is Asset Coverage Ratio? The asset coverage ratio is a test that measures the ability of a company to meet financial obligations after all liabilities have been resolved. This ratio also determines whether a company can cover its level of debt with its assets. That is if assets owned by the company are sold, are they sufficient to pay up the co...

What is Organizational Change? Organizational change is when an organization shifts from a strategic, structural, operational, financial, policy-related, procedural, technological, people-related, or cultural norm to another. Organizational change can happen rapidly and succinctly or slowly over an extended period of time. It can happen all at once ...

What is a Certified Fraud Examiner? A Certified Fraud Examiner (CFE) is a professional designation awarded to individuals who investigates fraud and resolve fraud related cases. Fraud examiners are experts who are well-trained in detecting fraudulent activities, investigating frauds and also settling of fraud cases. The Association of Certified Frau...

What are Diluted Earnings Per Share? The basic earnings per share of a company refer to the earnings made on the shares of its stock. This metric takes into account the net earning/income of a company and the total number of outstanding shares the company has.  Diluted Earnings Per Share (Diluted EPS) is a measure of a company's earnings if all its ...

What is the Working Capital Ratio?  The working capital ratio, also called the current ratio, is a liquidity ratio that measures a firm’s ability to pay off its current liabilities with current assets.  Current Ratio = Current Assets / Current Liabilities  When current assets exceed current liabilities, the Company has sufficient capital to run its ...

What is Value-Based Pricing? Value-based pricing is a strategy that companies follow in order to establish prices on the basis of the value of the product or service that a customer perceives. On the other hand, the cost-plus pricing strategy includes manufacturing costs while ascertaining the final price. If a company introduces premium and distinc...

Accounting for Employee Payroll Liabilities? These are obligations that the employer must pay on behalf of (take from employee's paycheck) or as a result of having employees (employer's obligation): Federal, State, and (sometimes) City Income Taxes - Withheld on behalf of the employee.  Federal Income Contributions Act (FICA) Taxes - Covers Medicare...