Finance

What is Depreciation? An asset’s value declining over time is referred to as depreciation in accounting. It is the process by which an asset loses its value due to wear and tear, obsolescence, or other factors. There are several different methods of calculating depreciation, but the most used are the straight-line and accelerated methods. Under […]

What is Balance Sheet? A balance sheet is one of the leading financial statements released by a company to show its financial position. It reports the assets, liabilities, and equity within a given time. A balance sheet is called so because it always has to balance. The equation used in the balance sheet is Capital

What is Bill Discounting? Bill discounting is a type of short-term finance through which a company or a firm can fulfill its financial requirements in a less amount of type. Bill discounting is a transaction where there is an advance selling of a bill to a third party (which can be a bank) before it

What is Annuity? An annuity is a cash flow at regular intervals for a specific period. This cash flow is fixed in amount and is bidirectional. It, therefore, involves both sending and receiving. The most defining characteristic of annuity is fixed term since these terms are made for a fixed time. Moreover, the interval of

What is Non-Profit Organization? Ideally, the main aim of a business is to make a profit. However, some businesses are set up with the main goal of offering services for the benefit of a community. Non-profit organizations are an example of such businesses. A non-profit organization is a legal entity that is established to benefit

What is Manual Accounting? Manual accounting is the conventional way of maintaining financial records. The tools of manual accounting are tangible registers and account books. These essentials are found in any office that uses manual accounting to keep a record of its finance. The repository of all information in manual accounting is an entry book.

What is Accounting? Accounting is a process that involves measuring, processing, and keeping a record of the company or corporation’s financial data. It can also be used to save non-financial data. The data relating to the company’s financial dealings are essential to keep track of; therefore, companies use this procedure. In this way, the companies

What is Overdraft? When there isn’t enough money in an account to cover a transaction or withdrawal, but the bank lets it happen anyway, this is called a “overdraft.” Basically, it is a loan from the bank that is given when a person’s account balance reaches $0. The overdraft lets the account holder keep taking

What are Accounting Concepts? Accounting concepts are the fundamental principles, presumptions, and conditions that define the boundaries and constraints within which accounting operates. The accounting concept must be used at each stage of documenting an entity’s financial transaction, demonstrating its importance. Accountants can save time, effort, and energy by using the pre-established framework provided by

What is ADR? American Depository Receipt (ADR), is a negotiable certificate, issued by a US bank, denominated in US$ representing securities of a foreign company trading in the United States stock market. The receipts are a claim against the number of shares underlying. ADR’s are offered for sale to American investors. By way of ADR,

What is Private Equity? It is an investment collaboration that purchases and runs companies and later sells them. They run investment funds for corporate and certified investors. Private equity investment buys private or public companies entirely or invests in such an acquisition as part of a company. They do not involve themselves in companies that

What are Stocks? Stocks are a sort of security that signifies ownership in a business and gives the holder the right to vote on matters affecting the firm and receive dividends. One acquires a portion of the issuing company’s ownership when they purchase stock. The assets and profits of the corporation belong to the stockholders.

What are Subsidized Loans? Subsidized loans are a type of financial aid that is based on need. In order to qualify, students or their families must demonstrate financial need. Then, based on this need, the loan is granted. A subsidized loan is a great alternative for students who might not be able to attend college

What is it to Be Rich?  To be rich is to have enough money to afford the basics of life without struggling. In addition, a rich person also has money left over for a few luxuries. A rich person has more money than his immediate needs and enjoys spending h time and money on the

What is Accounting Profit? We can say that accounting is the process of keeping all types of financial records of an organization or business. Similarly, profit means financial gain that is earned after selling a product and making different strategies. Accounting profit is like a system that is responsible for recording and summarizing business and