Sinking Fund
Jennifer edwards Sinking fund is a tool or a mean of reimbursing those funds that were borrowed from another party by issuing bonds, preferred stocks or debentures. The issuer of the bond…
Profit and Loss Statement
The summary that shows the financial performance of a business during a specific accounting period is called profit and loss statement. A profit and loss statement can be issued at…
Turn Over Rate Calculation
Turnover Rate is a kind of ratio that helps in evaluating the degree of employee involvement within a business. The turnover rate shows the number of employees that are leaving…
Venture Capital Funding
Venture capital funding is a kind of financing in small and medium enterprises where investors invest their money in the venture having a chance of potential growth and seeks equity…
Zero Based Budgeting
Zero based budgeting is a budgeting approach where each and every line of budget is started and planned from the scratch. Unlike common budgeting methods in this method every expenditure…
Difference between Bookkeeping and Accounting
There is certainly a difference between bookkeeping and accounting as the bookkeeping is the subset of accounting. Bookkeeping refers to recording all the transactions that are made within a business.…
How to Forecast Bad Debt
A number of variable figures are involved in forecasting bad debt as it is always not certain. It is difficult to calculate bad debt as the figures involved in the…
The Bill of Exchange
The bill of exchange is the binding document that exists between the two companies and usually done when two parties are conducting international trade. In this bill there are two…
Payroll Expense
The expense that occurs within a company due to the salaries and wages of staff and labor is called payroll expense. The salaries are granted to the staff in return…
Asset Conversion Loan
Asset conversion loan is a type of loan that is reimbursed by liquidating an asset. These types of loans are kind of short term loans and are paid by liquidation…
Accounting Period
Accounting period is the time span or time period in which certain financial activities and transactions take place is called an accounting period. Most commonly a year of 365 days…
Profitability Index (PI)
Profitability index is a ratio that identify and compares the relationship between the total costs involved in the project and the profit returned from that project. The ratio of profitability…
Capital Investment Appraisal Technique
Capital investment appraisal is a branch of budgeting and planning of a firm long term and short term investment for a specific period of time. There are a various components…
Appraisal Capital Explained
Appraisal capital is a process of accounting assets. As the name indicates it is the capital that is appraised when it occurs within a business. Appraisal capital is gathered or…
Outbound Cash Flow
The money that moves out of a company’s or an individual account as a result of a transaction is called as outbound cash flow. The examples of outbound cash flow…
Limitations of Trial Balance
A trail balance is a complete list of all the accounts of revenue and capitals that are listed in the general ledger. This list contains the headings or the name…
Preferred Stock
Preferred stock is also called as the hybrid stock as it is different from the common stock in the sense of having different combination of the features. Preferred stock contains…
Job Costing
Job costing is the measurement or estimation of the cost that is involve in completion of a particular job such as production of goods, manufacturing or cost involved in some…