ACH Definition

Bookmark and Share

ACH is Automated Clearing House.

Learn new Accounting Terms

INCOME CAPITALIZATION: First you must determine the capitalization rate - a rate of return required to take on the risk of operating the business (the riskier the business, the higher the required return). Earnings are then divided by that capitalization rate. The earnings figure to be capitalized should be one that reflects the true nature of the business, such as the last three years average, current year or projected year. When determining a capitalization rate you should compare with rates available to similarly risky investments.

LCM is Lower of Cost or Market.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.