A company makes a cash payment, but the rent expense has not yet been incurred so the company has prepaid rent to record. Prepaid rent is an asset – the…

A distribution of part of a corporation’s past profits to its stockholders. Nonetheless, we are including an introduction to the topic here because the calculation for earnings per share involves…

This means that each share of stock would be worth $1 if the company got liquidated. BVPS relies on the historical costs of assets rather than their current market values.…