What Is Appraisal Capital? In accounting, appraisal capital is an entry on a company’s balance sheet. Appraisal capital is created when the appraised value of a company’s net assets exceeds its book value. When this situation occurs, the company’s book value is listed as its actual value. The difference between the two values is then
What Are Appraisal Costs? Appraisal costs are a specific category of quality control costs. Companies pay appraisal costs as part of the quality control process to ensure that their products and services meet customer expectations and regulatory requirements. These costs could include expenses for field tests and inspections. Key Takeaways Appraisal costs are fees a
What Is Appraisal Fraud? Appraisal fraud is a form of mortgage fraud, whereby the value of a home is deliberately appraised at an inflated amount, well above its fair market value (FMV). Appraisal fraud can occur when an appraiser is in on the scam, and dishonestly overstates the value of the property. It can also
What Is the Appraisal Method of Depreciation? The appraisal method of depreciation is a simplified method used to evaluate the economic loss in value of an asset from the beginning to the end of a reporting period. The difference between the appraised values constitutes the amount of depreciation that can be recorded. It is most
What Is the Appraisal Ratio? An appraisal ratio is a ratio used to measure the quality of a fund manager’s investment-picking ability. The ratio shows how many units of active return the manager is producing per unit of risk. This is achieved by comparing the fund’s alpha, the amount of excess return the manager has earned
What Is an Appraisal Right? An appraisal right is the statutory right of a corporation’s shareholders to have a judicial proceeding or independent valuator determine a fair stock price and oblige the acquiring corporation to purchase shares at that price. An appraisal right is a protection policy for shareholders, preventing corporations involved in a merger
What Is an Appraiser? The term appraiser refers to a professional who determines the market value of an asset, notably in the real estate industry. An appraiser is expected to act independently of the buying and selling parties in a transaction. Their opinion about the real and fair value of an appraised asset must be
What Is an Appropriation? Appropriation is when money is set aside for a specific purpose. A company or a government appropriates funds in order to delegate cash for the necessities of its operations. Appropriations for the U.S. federal government are decided by Congress through various committees. A company might appropriate money for short-term or long-term
What Is Annual Percentage Rate (APR)? Annual percentage rate (APR) refers to the yearly interest generated by a sum that’s charged to borrowers or paid to investors. APR is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan or income earned on an investment. This includes
What Is an Aptitude Test? An aptitude test is an exam used to determine an individual’s skill or propensity to succeed in a given activity. Aptitude tests assume that individuals have inherent strengths and weaknesses and have a natural inclination toward success or failure in specific areas based on their innate characteristics. Aptitude tests are
