Examlex
The direct method of reporting cash flows from operating activities provides clearer information about the sources and uses of cash than does the indirect method.
Earnings
The profit a company generates during a particular period, often used as a measure of its financial performance.
Effective Rate
The effective rate is the actual interest rate that a borrower pays on a loan or receives on a deposit account, after the compounding of interest is taken into account.
Contract Rate
The interest rate specified in a financial contract, notably in loans or leases, that must be paid over the duration of the agreement.
Effective Interest Method
A way of amortizing the bond premium or discount over the life of the bond in a manner that reflects a constant rate of interest.
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