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E&O INSURANCE
is an errors and
omissions, or E&O, liability policy (often called malpractice insurance)
covers liability for negligent acts, errors and omissions committed by
professionals, including physicians, accountants, lawyers, etc.
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E&P
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E.C. (EUROPEAN COMMUNITY or EUROPEAN COMMON MARKET)
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EA
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EARNED INCOME
is that income realized by the
provisioning of goods and services.
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EARNED SURPLUS
see RETAINED EARNINGS.
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EARNING ASSET
is an asset which provides
income (e,g, rental property).
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EARNING CAPACITY
is the net average
earnings at a given moment in time: past, current or future.
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EARNING CAPACITY, LOSS OF
“Loss
of earning capacity” means the difference between the worker’s
net average earnings before the incident, and the net average amount
of wages the deciding body determines the worker is capable of earning
after the incident.
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EARNING QUALITY
is best determined
through the inverse relationship between the amount of time elapsed between
revenue recognition and cash collection.
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EARNINGS
is a term that refers to the
financial capacity of a corporation to make distributions to shareholders
other than return of capital, e.g., dividends. See also RETAINED EARNINGS.
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EARNINGS BEFORE TAXES
see PROFIT BEFORE
TAXES.
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EARNINGS FROM OPERATIONS (EFO)
represent
earnings before other operating items less (i) depreciation and amortization
plus (ii) other income less (iii) other expense.
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EARNINGS MANAGEMENT
occurs when managers
use judgment in financial reporting and in structuring transactions to
alter financial reports to either mislead some stakeholders about the
underlying economic performance of the company, or to influence contractual
outcomes that depend on reported accounting numbers.
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EARNINGS RETENTION
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EBIT
is Earnings Before Interest and
Tax. EBIT is an indicator of a company's financial performance calculated
as revenue less expenses excluding tax and interest. It is sometimes
referred to as operating earnings.
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EBITDA
means Earnings Before Interest, Taxes,
Depreciation and Amortization, but after all product / service, sales
and overhead (SG&A) costs are accounted for. Sometimes referred to
as Operational Cash Flow.
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EBITDARM
is an acronym for Earnings
Before Interest, Taxes, Depreciation, Amortization, Rent and Management
fees.
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ECONOMETRICS
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ECONOMIC DEPRECIATION
is the decline in real estate
property value caused by external forces, such as neighborhood blight
or adverse development.
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ECONOMIC EXPOSURE
, in foreign exchange,
is the extent to which the value of the firm, as measured by the present
value of all expected future cash flows, will change when exchange rates
change.
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ECONOMIC INCOME
is the maximum amount
that can be distributed to owners during the accounting period and leave
the business as well off at the end of the accounting period as it was
at the beginning of the period; i.e. cash flow based.
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ECONOMIC ORDER QUANTITY
is the order
quantity that minimizes total inventory costs. A total inventory cost
is the sum of ordering, carrying and stock-out costs.
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ECONOMIC RESOURCES
is the profitable extraction or
production, under defined investment assumptions, of returns that are
analytically demonstrable or can be assumed with reasonable certainty.
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ECONOMIC SUBSTANCE
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ECONOMIC VALUE ADDED (EVA)
measures the difference
between the return on a companies capital and the cost of that capital.
A positive EVA indicates that value has been created for shareholders;
a negative EVA signifies value destruction.
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EEO
is Equal Employment Opportunity or Equal Employment
Office.
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EF&L
is Errors, Fines and Losses.
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EFFECTIVE DATE OF INTEREST
is the market
rate at time of a debt issue.
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EFFECTIVE INTEREST RATE
is the cost
of credit on a yearly basis expressed as a percentage. Includes up-front
costs paid to obtain the loan, and is, therefore, usually a higher amount
than the interest rate stipulated in the note.
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