Capital Maintenance- Meaning So, capital maintenance concept suggests that if your company has increased its net assets from the beginning of the year, then capital has been maintained. This means, that even if there are was any cash inflow or…
A capital injection is new funding put into a business or institution. It may support expansion, replace depleted capital or help a business through financial stress. Always specify the instrument: an equity contribution, a loan and an emergency liquidity facility…
Alternative Director So, imagine you had a company and you were ofcourse the director of the company. But what happens to all the legal and regulatory compulsions when you are not there. For example; You are sick, or a parental…
An advance payment guarantee protects a buyer or employer against the specified risk that the applicant fails to repay or apply an advance as the contract requires. For example, a bank or other permitted guarantor issues the undertaking on stated…
Agency by necessity concerns action taken to protect another person’s interests in an emergency when the agent cannot obtain ordinary instructions in time. In India, section 189 of the Indian Contract Act deals specifically with an agent’s emergency authority. It…
So, imagine you are running a business and you have sold your products or services on credit. And the payments are due to come in the coming few months. However, you need funds to manage your working capital expenses like…
The sampling error formula for a sample mean is sample mean minus population mean: x̄ − μ. This is different from standard error, which measures the variability of an estimator across samples, and margin of error, which combines a standard…
Often when you see the balance sheet of a company, you will notice a line item showing “Goodwill”. In this article we will discuss on how to calculate goodwill using Capitalisation of average profit formula. Profit is the heartbeat of…
तो, चलिए मैं एक बहुत ही सरल उदाहरण से शुरुआत करूँ जिससे हम सिर्फ Simple Interest Formula in Hindi को समझ सकें। तो, मान लें कि आपके दोस्त ने आपको $100 दिए और कहा कि एक साल में मुझे $100…
As the name suggests deferred annuity plan means a delayed income for some form of recurring contribution today. Now theoretically this helps in planning for some financial goals like retirement. In this article we will discover and explore details how…
So the equivalent annual cost is an important metric used in corporate finance used by finance managers to make asset purchase decisions. Hence what it entails is to calculate the NPV of the benefits of using the asset of over…
So let’s start with an example straight forward which will make the beyond budgeting CIMA concept very clear. Let’s say you created a company-level budget stating that you will spend $20,000 in marketing, $1000 in transportation of the products, and…
