What Is a Sales and Purchase Agreement (SPA)? A sales and purchase agreement (SPA) is a binding legal contract between two parties that obligates a transaction to occur between a buyer and seller. SPAs are typically used for real estate transactions, but they are found in other areas of business. The agreement finalizes the terms
What Is a Sales Charge? A sales charge is a commission paid by investors on an investment in a mutual fund to the financial intermediary, such as a broker, financial planner, or investment advisor, responsible for effecting the transaction. This additional fee serves as compensation to the salesperson and is expressed as a percentage of
What Is Sales Mix Variance? Sales mix variance is the difference between a company’s budgeted sales mix and the actual sales mix. Sales mix is the proportion of each product sold relative to total sales. Sales mix affects total company profits because some products generate higher profit margins than others. Sales mix variance includes each
What Is Sales Per Share? Sales per share is a ratio that computes the total revenue earned per share over a designated period, whether quarterly, semi-annually, annually, or trailing twelve months (TTM). It is calculated by dividing total revenue by average total shares outstanding. It is also known as “revenue per share.” Key Takeaways Sales
What Are Sales per Square Foot? The dollar value of sales per square foot has, for many years, been a measure of success in the brick-and-mortar retailing industry. It is simply the average revenue earned for every square foot of sales space. In the age of “omnichannel” marketing, this number may be less relevant, at
What Was Salomon Brothers? Salomon Brothers was an American investment bank. It was founded in 1910 and was one of the largest investment banks on Wall Street, providing a range of financial services. It was best-known for its fixed-income trading department. The company went through a series of acquisitions and mergers between 1981 and 1997.
What Is Salvage Value? Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important component in the calculation of a depreciation
What Is SAMA Foreign Holdings? SAMA Foreign Holdings is a sovereign wealth fund (SWF) controlled by the Saudi Arabian Monetary Agency (SAMA), which is a part of the Central Bank of Saudi Arabia. The functions of the SAMA include issuing national currency, the Saudi Riyal, supervising commercial banks, managing foreign exchange reserves, promoting price and
What Is a Sample? A sample refers to a smaller, manageable version of a larger group. It is a subset containing the characteristics of a larger population. Samples are used in statistical testing when population sizes are too large for the test to include all possible members or observations. A sample should represent the population
What Is Sampling? Sampling is a process in statistical analysis where researchers take a predetermined number of observations from a larger population. The method of sampling depends on the type of analysis being performed, but it may include simple random sampling or systematic sampling. Key Takeaways Certified Public Accountants use sampling during audits to determine
