Finance

Permanent Fund – Definition, Example, And How does Permanent Fund work?

Definition: Government budgeting and accounting are slightly different from the general accounting practices for private organizations. In this regard, it is rudimentary to realize the fact that there are numerous different categories of funds that are established in this regard. Permanent Fund is one such category of funds that are created by governments. The permanent …

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What is Special Revenue Fund? (Definition, Example, And Journal Entries)

Definition: A Special Revenue Fund account can simply be defined as an account that the government establishes to collect money that is generally used for a specific project. The primary rationale behind special revenue funds is to induce a much-needed level of transparency and accountability that the amount is used in the right manner. In …

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Proprietary Funds: Definition, Explanation, and How do Propitiatory Funds Work?

Definition Governmental planning involves considerable budgeting and planning. In this regard, it is rudimentary to account for all the transactions that take place, so that there are no chances of fraud, or any money being lost. Proprietary Funds are created for the same reason. The main premise behind these funds is to account for the …

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Investments: Portfolio Weights And Portfolio Optimization

Either you are an individual investor, corporate investor, or student of finance, one statement must be agreed upon. Investment is very critical to the long-term profitability of any business. It gives the security that the profit is continuously growing without any sales efforts or sales growth for corporate investors. For an individual investor, investments are …

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What is Debt Beta? – Definition, Formula, Explanation, Advantages, and Disadvantages

Definition Beta can simply be defined as a measure of volatility, or systematic risk of an underlying security, or portfolio. It is used in Capital Asset Pricing Model which mainly describes the existing relationship between systematic risk as well as expected return for assets. There are two main kinds of beta, levered beta, and unlevered …

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What is Conversion Cost? Definition, Formula, Example, And Importance

Overview Costing for any business holds tantamount value because it helps to make significant strategic decisions regarding pricing, as well as profitability. In this regard, it is important to consider the fact that costing for production concerns is even more important in comparison to trading concerns because it provides a baseline on which the company …

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What is Real Exchange Rate? How can Real Exchange Rate be calculated?

Definition The modern day business dynamic has enabled globalization across the world on a number of fronts. Therefore, international trade now takes place more than ever, and this has enabled companies to operate in more than one country. However, when dealing with international trade, the concept of the exchange rate is really important, and it …

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