Liabilities and Return: Difference between pages

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imported>Doug Williamson
(Expand first definition.)
 
imported>Doug Williamson
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1. ''Financial reporting''.  
The surplus of the amount received back from an investment, compared with the initial amount invested.  


In financial reporting, liabilities are amounts or obligations of a reporting entity arising from past transactions or events, the settlement of which may result in the transfer or use of assets, the provision of services or other yielding of economic benefits in the future.
To facilitate comparisons, return is usually expressed as a percentage of the initial amount invested, often as an effective annual rate of return.


Examples include overdrafts, trade payables, accruals and provisions.
When expressed on this basis, the rate of return is also known as 'yield'.


Liabilities are represented in the balance sheet by credit balances.


Returns can be negative.


2.  
Negative returns mean that the amounts received back from an investment are less than the amounts initially invested.


More generally, liabilities are any obligations or amounts owed to others (whether or not they are obligations of a financial reporting entity).


== See also ==
*[[Effective annual rate]]
*[[Holding period return]]
*[[Performance spread]]
*[[Portfolio investment]]
*[[Rate of return]]
*[[Rewarded risk]]
*[[Risk]]
*[[Total return]]
*[[Yield]]


== See also ==
[[Category:Corporate_finance]]
* [[Assets]]
* [[Balance sheet]]
* [[Capital]]
* [[Compound instrument]]
* [[Credit balance]]
* [[Disaggregation]]
* [[Equity]]
* [[Exemption clause]]
* [[Fair value]]
* [[Financial liability]]
* [[Financial reporting]]
* [[Indemnity clause]]
* [[Interest gap]]
* [[Liabilities and equity]]
* [[Mismatch]]
* [[Net assets]]
* [[Off balance sheet finance]]
* [[Offset]]
* [[Overdraft]]
* [[Provision]]

Revision as of 13:44, 25 June 2016

The surplus of the amount received back from an investment, compared with the initial amount invested.

To facilitate comparisons, return is usually expressed as a percentage of the initial amount invested, often as an effective annual rate of return.

When expressed on this basis, the rate of return is also known as 'yield'.


Returns can be negative.

Negative returns mean that the amounts received back from an investment are less than the amounts initially invested.


See also

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