Finance

What are Interest Expenses? Long-term financing is highly common across almost all businesses in the modern-day and age. The greatest advantage of companies taking on long-term loans is the fact that they are able to generate funds and finance without having to worry much regarding ownership dilution. In the same manner, they are not liable …

Is Interest Expense an Operating Expense? How Is It Present in Financial Statements? Read More »

Definition A deferred tax asset is created when there is a temporary difference between accounting profits, and the taxable income of the company. However, the company expects this difference to be reversed in the future with the income they have earned. In the case where there is no sufficient income earned, the deferred tax asset …

Valuation of Allowance Account: Definition, Purpose, Example, And More Read More »

Current Portion of Long-Term Debt is defined as the long-term liability that is due within a time frame of 12 months. When the company takes on a long-term loan, it is classified as a Non-Current Liability because it is due for more than one year. However, in the year when this long-term debt needs to …

What is the Current Portion of Long-Term Debt? – How to Calculate? Read More »

Overview and Definition Equity Financing is considered to be a top notch external financing avenue for almost all companies that are large enough to undergo and IPO. In this regard, there are a couple of things that need to be undertaken by organizations in order to make their offer attractive to potential customers. These procedures …

What is a Prospectus? Definition, Types, and Feature Read More »

Overview In any economy, there are always consumers of goods, and producers of good. They together formulate the market, in a particular economy. Both producers of goods, as well as consumers combine together in order to operate in the market. The producers are ‘suppliers’ of goods and services, whereas the consumers require those goods and …

What is Supply and Demand Market Equilibrium? Read More »

What is an Offer for Sale? During the normal course of the business, there are often scenarios where businesses have to raise finance. In this case, they can either go for internal or external financing. It can be seen that internal sources of raising finance are often limited and hence, are not very dependable. Consequently, …

What is an Offer for Sale? And How does an Offer for Sale work? Read More »

Definition During the normal operation cycle, there are several costs that businesses normally incur. Classification of these costs tends to be important because it helps organizations make important decisions regarding pricing and product strategy. Costs within an organization are mainly divided into fixed and variable costs. As far as fixed costs are concerned, it cannot …

What is a Mixed Cost? Definition, Formula, Example, and Importance Read More »