Have you ever wondered, when you paid someone for a service but there was no actual written document to prove that it exists. Now, that is called as an implied contract, irrespective of the written legal document, which is legally…
What is Trade Credit? Trade credit, in commercial finance, is an agreement between parties in which the customer can purchase goods or services without paying cash upfront. The customer will pay the supplier at a date scheduled in the future.…
Working Capital Cycle Introduction In this article, we will be explaining what the Working Capital cycle means and how you can help your business by having greater control over your affairs and transactions, letting you navigate every business aspect. Find…
Accrued income meaning is the income where that company has recognized and recorded the transaction in its journal when it has been earned, but the cash payment hasn’t been received yet. In simpler terms, it is the money that has…
Author: Sarthak Bhalerao Table of Contents What is Historical Cost? The historical cost of an asset, in accounting terms under the U.S GAAP, is the original price at which it was purchased. The cost of all assets is recorded on…
The Average Collection Period indicates how long, on average, a company needs to collect cash from customers following a credit sale. This metric is crucial for evaluating a company’s efficiency in managing receivables, understanding its cash flow, and assessing its…
So, let me give you some examples to make you understand the social audit meaning. One example of a real-life social audit is the Fair Labor Association (FLA) audit of a factory in China that produced clothing for a number…
This is a straighforward explaination of the economics concept called as substitution effect. And if you have been wondering around with the dilema of what is substitution effect then you search ends here. What is Substitution Effect? The substitution effect…
What is store value? A store of value is an asset or commodity that retains its purchasing power in the future. It maintains its value over a long period. If the item held gets converted into money in the future…
A shutdown point is a level of operation in which the company no longer benefits from continuing its operations and hence decides to shut down temporarily or permanently. The company no longer benefits from continuing production in the short run…
What is Net Book Value? Net Book Value, also known as the net asset value, is the value at which the company reports its assets on their balance sheet. It is calculated by netting against its accumulated depreciation. This is…
A corporate guarantee is a legally binding commitment made by a company on behalf of another party, usually a subsidiary or affiliate company, to assume responsibility for the debt or other financial obligations of that party. You are free to…
