Finance

What is Cash Accounting? Cash accounting is a method of payment where beneficiaries are recorded in the period in which they are received, and expenses that are paid are also recorded in this period. In other words, you can say that revenues and expenses are recorded when cash is received or paid. Cash accounting is […]

What is Accounting? Accounting is defined as the process of collecting, classifying, summarizing, and reporting financial business transactions to establish whether a profit or loss was made. Financial statements are summaries of the day-to-day transactions used by accountants to compile the final accounting reports. Accounting is a backward-looking discipline. It analyzes historical financial information and

Who is a CA? C.A refers to chartered accountant. Chartered accountants are accountants who play a wide range of significant roles. They examine financial records and offer information about them, with particular attention paid to financial reporting, taxation, corporate finance, company recovery, and insolvency. They are frequently in charge of examining financial records and dispensing

What is Credit Report? A Credit report is a detailed record of your employment, bank accounts, and past transactions. It also contains your Credit history from various sources like banks, industries, and the government. The various Credit Bureaus in India prepare the Credit report. This report helps moneylenders know your previous history of credits, their

What is BSE? BSE stands for Bombay Stock Exchange, located along Dalal Street in Mumbai, India. BSE was the first stock exchange to be established in Asia. Initially, during its establishment in 1875, it was known as The Native Share and Stock Brokers Association. In 1986 the BSE adopted SENSEX as its stock index. SENSEX

What is Cost Center? A cost center is a unit within an organization that does not directly increase the profit of the organization but still costs money to run. In most cases, a cost center is established to track company expenses. A cost center also ensures that the company’s costs are within budget. Human resources

What is a 401K Retirement Plan? Generally offered by employers in the US, a 401K Retirement Plan is a savings mechanism during the career of employees to pay them a considerable amount of money for spending post-retirement life. This plan also helps in evading taxes imposed by the government on income.  When an employee signs

What is Bookkeeping? Bookkeeping is an essential process in the field of accounting. The term essentially refers to the process of keeping a record of your business transactions and updating it after fixed intervals of time. By keeping up-to-date records of all transactions, it is easier to generate a comprehensive and reliable financial report. The

So, let’s talk about cash management, specifically about cash books and cash accounts. Think of a cash book as your trusty ledger, where you jot down all the ins and outs of your cash transactions. It’s like your personal diary for cash movements, keeping track of every penny that comes in and goes out. A

Assets are the resources we own that have value and can generate income, such as real estate, stocks, or savings accounts. These are investments that contribute to our wealth and financial stability over time. On the other hand, liabilities represent debts or obligations that we owe to others, such as mortgages, loans, or credit card

When it comes to transferring money electronically, I weigh the pros and cons of using Electronic Funds Transfer (EFT) versus Automated Clearing House (ACH). EFT involves transferring funds between bank accounts within the same financial institution, offering speedy transactions ideal for immediate payments like bill settlements. On the other hand, ACH transactions allow me to

When comparing the balance sheet and cash flow statement, I find that they offer distinct yet complementary perspectives on a company’s financial health. The balance sheet provides a snapshot of my company’s financial position at a specific point in time, detailing its assets, liabilities, and shareholders’ equity. On the other hand, the cash flow statement

In today’s global landscape, a stark contrast exists between developed and developing countries. Developed nations boast advanced infrastructure, robust economies, and high living standards, offering their citizens access to top-notch healthcare, education, and technology. On the flip side, developing countries grapple with limited resources, economic challenges, and face obstacles in providing basic services to their

Amalgamation and absorption are like business relationship statuses – both involve companies getting cozy, but in different ways. Think of amalgamation as a merger of equals, where two entities decide to dance together and create a brand-new groove. On the flip side, absorption is more like a company swallowing another whole, becoming the new boss

Deciding between establishing a branch and creating a subsidiary is like choosing between a bold adventure and a strategic outpost in the business realm. A branch is like a daring explorer, extending the company’s reach without a separate legal identity, sharing its parent’s fate. On the other hand, a subsidiary is akin to a wise