Glossary Of Accounting & Finance Terms-Alphabet T
[ T ]
Tangible asset
o a physical asset
Times interest earned
o the number of times that loan interest is covered by profits, ie earnings(profits) before tax and interest divided by the interest charge. It indicates how safe creditors interest charges are.
Thin capitalization
- a thinly capitalized company is one where its capital structure consists of very high debt/gearing level.
- many countries have thin capitalization rules restricting the level of debt financing by foreign shareholders to encourage an appropriate level of capital and restrict financing of subsidiaries by inter-companies loans,w hich otherwise enables interest to be deducted as an expense for tax purpose.
Trading on the equity
o whereby a company takes advantage of high gearing, paying a modest fixed interest charge for funds that are employed to earn a higher return for the ordinary shareholders.
Turnover( assets)
o the number of times that total assets are turned over to generate sales revenue ie the ratio of sales to assets
Turnover (sales)
o the total value of sales
- Glossary Of Accounting & Finance Terms-Alphabet D
- Glossary Of Accounting & Finance Terms-Alphabet N
- Glossary Of Accounting & Finance Terms-Alphabet S
- Glossary of Accounting & Finance Terms-Alphabet C
- Glossary Of Accounting&Finance Terms-Alphabet B
- Glossary Of Accounting & Finance Terms-Alphabet L
- Glossary Of Accounting & Finance Terms-Alphabet G
April 16, 2008
Posted in: GLOSSARY
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