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 – Definition, Classification
A capital asset is anything you have and use for either personal or investment purposes. An example would be a
What is Down Payment?
Down payment is a term that comes in the context of buying expensive assets, or services or when borrowing a
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
A financial instrument known as security is any financial asset that can be traded. Securities are classified as marketable and non-marketable securities.
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-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?
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
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
Technically, cost and expense are the same meaning. However, they have distinct meanings when used in the context of business.
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 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 – 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 present financial information for two or more reporting periods. This can help analyze the company’s financial health
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?
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, Discount, and Premium
Table of Contents Shares are the small dominations of capital that firm issues to the general public, insiders, institutional investors,
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