Net Amount at Risk.

The net amount at risk is the portion of an insurance policy’s limit that would be payable to the insured in the event of a covered loss. The net amount at risk is calculated by subtracting the policy’s deductible from the policy’s limit. What is meant by net premium? Net premium is the amount of … Read more

How a Negative Confirmation Is Used in Business.

A negative confirmation is an accounting method used to reconcile accounts receivable. In a negative confirmation, the recipient of the invoice (the customer) is asked to respond to the creditor (the company that sent the invoice) to verify that the invoice is correct and that the customer does not dispute the charges. Negative confirmations are … Read more

Operating Cash Flow Margin.

Operating Cash Flow Margin is a ratio that measures the percentage of a company’s operating cash flow that is available to service its debt obligations. The operating cash flow margin is calculated by dividing a company’s operating cash flow by its total debt. A company with a higher operating cash flow margin is considered to … Read more