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What Does an Entity Relationship Diagram Represent? Why Do Accountants

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What does an entity relationship diagram represent? Why do accountants need to understand them?


Definitions:

Rate of Earnings

Measures the speed at which a company or an investment generates income relative to a certain amount of assets, capital, or equity.

Compound Interest

The process of calculating interest on both the primary amount of a loan or deposit and on the interest that has previously been accrued over time.

Net Present Value

A financial metric that calculates the present value of all future cash flows (both inflows and outflows) of an investment, discounted back at a specific rate.

Rate of Return

The profit or deficit achieved from an investment during a certain timeframe, represented as a proportion of the investment's initial outlay.

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