The balanced scorecard and how can it help you meet your objectives

The balanced scorecard is a tool that was first created in 1987 at Analog Devices, by Arthur Schneiderman (source).  The balanced scorecard is a set of four measures that are directly linked to a organization’s strategy.  The four measures are “financial performance”, “customer knowledge”, “internal business processes”, and “learning and growth”.  The “financial performance” measure …

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How long have we had a national debt?

I recently listened to a rather interesting  episode of the NPR podcast, Planet Money.  Through a Freedom of Information Act request, NPR received a report from 2000 entitled Life After Debt.  At the time, it was estimated that with the current budgetary surpluses, the US federal government would have the national deficit paid off in the year …

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What is a suspense account?

Today, I am going to try to define a suspense account.  A suspense account is an account in the general ledger used to temporarily carry receipts, disbursements, or discrepancies until it can be analyzed and classified.  The suspense account allows you to record a payment when you don’t know what the payment is meant for.  An example would …

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What is the difference between a real interest rate and a nominal interest rate?

In our current economic conditions, it is important to understand interest rates.  If you do not understand what the actual cost of borrowing of lending money is, you could be cheating yourself out of profits.  Let’s start by defining nominal interest rates.  The nominal interest rate is the market interest rate before an adjustment for …

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What can men’s underwear tell us about the state of the economy?

In these modern times of electronic trading and credit default swaps, it sometimes feels hard for the average person to figure out where the economy is going.  There are a number of economic indicators that the average person can try to wrap their head around, such as international trade and construction spending.  Well, in Alan …

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What is the London Interbank Offer Rate (LIBOR)?

Today, we are going to be looking into the world of international finance.  The London Interbank Offer Rate (LIBOR) is an interest rate at which banks can borrow funds, in marketable size, from other banks in the London interbank market (source).  The LIBOR is fixed on a daily basis by the British Bankers’ Association.  The BBA polls …

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