LCM RULE Definition

Bookmark and Share

LCM RULE is an abbreviation for lower-of-cost-or-market rule. LCM requires that an asset be reported on the financial statements at the lower of purchase cost or market value.

Learn new Accounting Terms

CONVERTIBLE DEBENTURE is any type of debenture that can be converted into some other security, e.g. conversion of a convertible bond into stock.

TOTAL ASSET TURNOVER measures managements efficiency in managing all of a firm's assets - specifically the generation of revenues from the firms total investments in assets. This ratio is extremely important in high asset firms such as manufactures and telecommunications companies. Generally, the higher this ratio as compared to like companies or the industry (Formula: Net Revenue / Total Assets):

  •  the smaller the investment required to generate sales, thus the more profitable the firm.
  •  indicates the firm has less money tied up in fixed assets for each dollar of sales revenue.

Suggest a Term

Enter Search Term

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