7 Types of Long-term Debt: Definition, and Explanation

Definition: Long-term debts are non-current liabilities with obligations beyond one year. Long-term debt can be viewed from two perspectives: financial statement reporting by issuer and financial investing. The balance sheet must record long-term debts and the related payment obligations in the non-current section of the balance sheet. On the other hand, investing in long-term debt …

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What are the Stock Splits? Reasons and They are Matter?

Overview Companies can decide to increase the number of outstanding shares while at the same time decreasing the nominal share price proportionately. A stock split is a corporate procedure that increases or decreases a corporate’s total number of shares outstanding without changing the firm’s market value or the proportionate ownership interest of existing shareholders. The …

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7 Best Internal Source of Fund That Company Could Benefit From (Example and Explanation)

Internal sources of finance are generated internally by the business-like retained earnings, sale of assets, debt collection, and discounted selling. Internal sources of finance are easily accessible, simple, and save a lot of effort. Internal financing is the preferred means of raising finance for companies that want to remain debt-free. 1) Retained Earnings Retained earnings …

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How to Calculate Variable Overhead Efficiency Variance?

Variable overhead efficiency variance is the difference between actual hours worked at standard rate/price and standard hours allowed on standard rate/price. The standard hours are the total number of hours required by the company’s standard hours of the specific product to complete the production target during a particular period. For example, the standard labor hours …

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