A deferred tax asset is an accounting term that refers to a situation where a company has paid more taxes than what is currently required….
Deferred Tax Liability – Definition, Importance, Calculation and Examples
Deferred tax liability is a tax obligation that has been deferred to a future period. This means that the tax liability has not yet been…
Degree of Total Leverage – Definition, Calculation, and Importance
The degree of total leverage is a ratio that compares the rate of change in earnings per share (EPS) to the rate of change in…
Degree of Operating Leverage – Definition, Calculation and Importance
The degree of operating leverage (DOL) is a measurement that indicates the change in a company’s operating income in response to a change in sales….
Discounted Cash Flow – Definition, Formula, Pros and Cons
Discounted cash flow is a financial method used to estimate the future value of an investment. The discounted cash flow (DCF) method discounts all future…
Divestment – Definition, Types and Examples
Divestment is the opposite of investment. It is the act of selling off assets, usually in order to reduce risk. For example, a company might…
Deferred Annuity – Definition, Types, Pros and Cons
A deferred annuity is an insurance product that allows you to save for retirement or other long-term goals. With a deferred annuity, you can make…
Default Risk – Definition, Types and Factors
Default risk is the possibility that a borrower will be unable to meet its financial obligations. This can happen for a variety of reasons, including…
Degree of Combined Leverage – Definition, Formula, Calculation and Examples
The degree of combined leverage is the degree to which a company’s operations are financed by borrowed funds. It is calculated by dividing the sum…
Deferred Interest – Definition, Risks, Pros and Cons
Deferred interest is a type of financing that allows consumers to make large purchases now and pay for them over time, without accruing interest charges…
Direct Tax – Definition, Types, Advantages and Disadvantages
Direct tax is the tax levied on individuals or businesses for which they are directly responsible. The most common direct taxes are income taxes, property…
Demerger: Definition, Types, Pros and Cons
A demerger is a type of corporate restructuring in which a company splits into two or more separate entities. This separates the company’s operations, assets,…
Disinvestment – Definition, Causes, Types and Examples
Disinvestment is a term used to describe the act of withdrawing financial support or investment from something. Disinvestment typically happens when an organization or individual…
Discretionary Income – Definition, Meaning, Calculation
What is Discretionary Income? Discretionary income is the amount of money left over for spending, investing, or saving after taxes and other personal necessities are…
Discretionary Expense – Definition, Types and Examples
What is a Discretionary Expense? A discretionary expense is defined as a non-essential expenditure that is chosen rather than required by a person, household, or…
