Business owners are often at crossroads when they want to decide the kind of business entity they want to establish. They are faced with several different options, and they primarily choose that on the basis of what suits them better amidst the several different options that they have. In this regard, corporations tend to be …
Advantages and Disadvantages of Corporation – All you need to know Read More »
Overview Internet expense is an expense for the business which is incurred during a financial year. As it is with all the other expenses of the business, the interest expense as well needs to be recorded for the amount of the expense that has been incurred during the year, regardless of the fact if any …
What Is Adjusting Entry for Interest Expense? (Example and Explanation) Read More »
Businesses most times need to purchase materials from suppliers. To determine the rate at which these businesses make payments to their suppliers, you need to understand how to calculate and improve the accounts payable turnover ratio. Accounts payable turnover ratio is one important accounting information every business should keep. With a knowledge of the turnover …
Invoice discounting is when the business uses an unpaid invoice from customers or a balance of the accounts receivables as collateral to obtain the loan from the lenders. It enables the business to remain operational when it does not have sufficient working capital to continue its activities. This type of financing is specifically valuable for …
What is Invoice Discounting? (Advantages and Disadvantage) Read More »
Overview Banks use signature cards to identify the rightful signers of an account. These cards you can use not only for the individual but also for business accounts. The bank uses the signature card to verify the account holder’s signature for all types of communication to and from the bank. A signature card offers legal …
What is a Signature Card for a Bank Account? All You Need To Know Read More »
Introduction A capitalization policy is a guideline or a threshold set by the company itself. Capitalization includes debt and the value of the capital stock of a company. Above the capitalization policy, all the expenses are recorded as fixed assets expenditure, whereas below the capitalization policy, all the expenses are recorded as expenses incurred. The …
What is the Capitalization Policy? Example and Explanation Read More »
A capital partnership is a form of a tie-up where the member partners in the capital partnership share every part of the capital. In its simplest form, capital partnership occurs in a form of a joint account where all the forms of capital transactions are recorded. Some other forms that are shared in a capital …
What is Capital Partnership? (Explanation, Example, and Importance) Read More »
1. Introduction The banking industry, more specifically the retail side of the banking industry is the most complex part of the already highly complex industry to analyze. Because of many different factors involved in the retail industry, it is extremely difficult to measure the performance of the banking industry, especially the retail banking industry. The …
What are the Key Ratios for the Banking Industry? Read More »
Introduction Cash flow as the name suggests is the flow of cash in and out of business. It is a very important metric that is used to measure the viability and thrivability of a company. There are many types of cash flows. One of these is the cash flow from operation. This is defined as …
What is the cash flow from operation ratio (CFO)? Formula, Example, and Calculation Read More »
Non-financial Key Performance Indicators, which are also referred to as the intellectual capital of any company, are an increasing attribute for business drivers. It includes all knowledge, corporate reputation, relationship, information, data, skills, brands, patents, trust, or processes that are at the disposal of businesses. Non-financial KPI refers to other measures that are being used …
What are Non-Financial Key Performance Indicators? (6 Important Indicators Included) Read More »
