What Is a Current Account Surplus? A current account surplus is a positive current account balance, indicating that a nation is a net lender to the rest of the world. A current account surplus can be contrasted with a current account deficit. Key Takeaways Current account surpluses refer to positive current account balances, meaning that a
What Are Current Assets? The Current Assets account is a balance sheet line item listed under the Assets section, which accounts for all company-owned assets that can be converted to cash within one year. Assets whose value is recorded in the Current Assets account are considered current assets. Current assets include cash, cash equivalents, accounts
What Is Current Delivery? In the commodity futures markets, “current delivery” refers to the futures contracts for which the physical delivery of the underlying commodities will occur in the current month. If no futures contracts provide delivery in the current month, then the term “current delivery” would refer to the contract that offers the nearest
What is Current Dividend Preference? Current dividend preference is a safety feature of preferred shares, whereby holders of such shares are entitled to receive dividends before common shareholders. Current dividend preference means that preferred shareholders have priority or preference over common shareholders when it comes to dividend distributions. This feature implies that under no circumstances
What Is the Current Exposure Method (CEM)? The current exposure method (CEM) is a system used by financial institutions to measure the risks around losing anticipated cash flows from their derivatives portfolios due to counterparty default. CEM highlights the replacement cost of a derivative contract and suggests a capital buffer that should be maintained against
What Is Current Maturity? In fixed-income investing, the current maturity is the time interval between today and the maturity date of the issued bond and is an important metric in valuing that bond. In corporate finance, the current maturity of a firm’s long-term debt includes those obligations that will come due in less than a
What Is the Current Ratio? The current ratio is a liquidity ratio that measures a company’s ability to pay short-term obligations or those due within one year. It tells investors and analysts how a company can maximize the current assets on its balance sheet to satisfy its current debt and other payables. A current ratio
What Is Current Service Benefit? A current service benefit represents the amount of pension benefit accrued by an employee who actively worked during a given time period. The current service benefit, when added to the prior or earned service benefit, represents the total value of an individual’s pension at any given time. Key Takeaways A
What Is the Current Yield? Current yield is an investment’s annual income (interest or dividends) divided by the current price of the security. This measure examines the current price of a bond, rather than looking at its face value. Current yield represents the return an investor would expect to earn, if the owner purchased the
What Is Curtesy? Curtesy is a common law right of a husband to the estate and property of his deceased wife. Also known as statutory share, the rights apply to the man if a child was born during the marriage. Key Takeaways Curtesy is a husband’s right to the estate and property of his deceased wife
