accounts receivable
Understanding Accounts Receivable

When getting goods or services from a company, customers often do not immediately pay the full amount of their purchases.

capital gain
Capital Gain – Definition, Classification

A capital asset is anything you have and use for either personal or investment purposes. An example would be a

down payment
What is Down Payment?

Down payment is a term that comes in the context of buying expensive assets, or services or when borrowing a

bad debt
What is a Bad Debt in Accounting?

When companies sale their goods and services to customers, account receivables created as a result but  there is always a

non-marketable securities
Non-Marketable Securities

A financial instrument known as security is any financial asset that can be traded. Securities are classified as marketable and non-marketable securities.

return on investment (ROI)
Understanding Return on Investment (ROI)

ROI is a key metric for measuring a company’s success. It indicates how much profit a company makes in relation

Financial markets
Financial Markets-Meaning, Types, and Functions

A financial market is a marketplace where financial securities are sell and purchase. In other words, the marketplace where buyers

What is a debt instrument?
What is a debt instrument?

A debt instrument is a tool used by a government, business, and individual entity to raise capital for long-term growth,

difference between cost and price
Difference between Cost and Price

Cost and price have a distinct meanings in terms of accounting. Both terms are used in the context of sales, but

difference between cost and expenses
Difference Between Cost and Expenses

Technically, cost and expense are the same meaning. However, they have distinct meanings when used in the context of business.

2/10 net 30
2/10 net 30 – Definition, Calculation, Pros and C...

2/10 net 30 is one of the most popular payment terms on the market today. It’s also a reliable way

Difference between capital reserve & revenue reserve
Difference between capital reserve & revenue reserv...

Capital reserve and revenue reserve are two types of reserves that companies create. A capital reserve is the funds designated

Traditional approach to accounting - Classification of account
Traditional approach to accounting – Classificati...

Various approaches have been applied to financial accounts over time. Some of these approaches are traditional and modern approaches. The

comparative financial statements
Comparative Financial Statements

Comparative financial statements present financial information for two or more reporting periods. This can help analyze the company’s financial health

Double-entry system in accounting
Double-Entry system of accounting

Two methods of accounting and bookkeeping are the single entry system and the Double entry system used by businesses to record their financial transaction.

What are Cash and Cash Equivalents?
What are Cash and Cash Equivalents?

A business that generates enough cash can meet its daily needs while staying out of debt. However, a company will

issuance of shares at par, premium and discount
Issuance of shares at Par, Discount, and Premium

Table of Contents Shares are the small dominations of capital that firm issues to the general public, insiders,  institutional investors,