Compound interest is the extra addition to the principal amount of a loan or deposit. Its also named as interest on interest.
Operating expenses are those day to day expenses a business incurs for the smooth functioning of the business.
Brand building is essential for a business. It will help to create a strong customer base with brand awareness.
Profitability ratios relate income statement accounts and categories to show a company’s ability to generate profits from its operations.
Now that you are considering starting a new business on your own, including having a sole business idea, designing a career that has the flexibility to grow with you, working toward financial independence and investing in yourself.
A certificate of deposit is a savings certificate with fixed maturity dates & specified fixed interest rates. Continue reading “Certificate of Deposit”
A balance sheet is an important financial statement prepared by a company at a specific period in regular interval to showcase its financial position.
Accounts payable occurred when a company procured some goods or raw materials from a seller on credit. So, on credit means the company opts for late payment within a stated duration.
Financial statement analysis can be referred to as the analysis of financial reports like balance sheet etc. This analysis can be done quarterly or annually as per the business requirement. It helps to assess the past, current & future financial situations of the business.
Cash flow and revenue are very necessary for a small business as it shows the health status. Cash flow & revenue both are different so never take both of this as equal. Revenue shows how the business performs and sales
An investment center is responsible for the growth in revenue of a business or entity through various investments in capital assets. Continue reading “What is Investment Center?”
Ending inventory estimation is a difficult task to carry out. Ending inventory is the amount of ending units of inventory at the end of a month or fiscal year.
Income tax form 16 is issued by an employer to its employee as a proof of the amount deducted as income tax has been deposited. Income tax form issued on annual basis i.e. every year on or before May 31st.
A pledged asset is can be referred as the loan risk decrease asset. It helps lenders to decrease the debt risk so that he can provide service with minimal risks involved.
Cash Flow forecast is the process of cash income & expense projection. A business must project cash income & expense for smooth business functioning and to be always ready with cash in hand for any unexpected hurdles.
Cash flow statement represents a company’s cash handling capacity. This statement shows how a company manages its cash, where its generating revenues to fund operating expenses like salaries, rent expense, asset purchase expense etc.
Fair market value is the standard or fair market price of a property at the time of selling or auctioning in the open market.
Static Budget can be defined as the budget which never changes irrespective of the actual result. For example: If the operating expense goes above fixed amount then also this budget will not change.
Social Security tax is levied on citizens of United States by United States Govt. Under Federal Insurance Contributions Act.
Memo entry doesn’t have any effect on general ledger, journal or balance sheet as it’s not recorded in these accounts.