Economy Pricing Strategy
What Is Economy Pricing Strategy? Economy pricing strategy is one of the four pricing strategies that a company might choose depending on its needs, goals, … Read more
Finance
Why Financial Independence Is Important
Freedom comes with financial Independence. You must declare your financial Independence. In a nutshell, it would mean earning enough money to live a comfortable lifestyle … Read more
What Is Pari-Passu?
The term Pari-Passu is a Latin word that means “on an equal footing”. The Pari-passu charge gives an equal right to its lenders over the … Read more
What Is Variance Analysis
Differences between actual behavior and planned behavior are analyzed quantitatively in variance analysis. By investigating areas in which unexpected failures have occurred, this analysis serves … Read more
What is a term loan? (Explained)
Banks issue term loans to the public in exchange for specific borrowing terms and conditions. The repayment schedule of term loans is usually long term … Read more
Users of financial statements
There are multiple users of financial statement that range from internal employees to potential investors. Although, the use of financial statements differ for different stakeholders. … Read more
Manufacturing cycle efficiency – (MCE)
Manufacturing cycle efficiency- MCE aims to measure the efficiency of the production function. As we understand, higher production time leads to higher costs of manufacturing … Read more
Goods received a note – GRN
Goods received note is an internal document prepared by the business to control and track receipt of the goods in the business warehouse. This document … Read more
What is the liquidity ratio?
The liquidity ratio helps to assess the cash flow position of the business. It’s a valuable tool in assessing if the business has sufficient liquid … Read more
Bull and bearish market
Bull and bearish are the terms used in the stock market to reflect market conditions. The market is called Bull when the price index of … Read more
What is a performance guarantee in a contract? (Definition, explanation, example, and other aspects)
Definition Performance guarantee means the commitment to supply a certain level of service/supplies to satisfy the obligation agreed between the parties. Usually, banks offer performance … Read more
What is a demand loan?
Definition A demand loan is an informal type of loan that is to be repaid on the lenders’ call. There are no formal agreements and … Read more
What’s a budgeted balance sheet, and how to prepare it?
A Budgeted Balance Sheet is a report that tells the financial position of an entity for a future period. It is just like a normal … Read more
Short Term Finance Sources– (Definition, detailed concept, types. example, and more)
Definition: Short-term finance refers to a business’s need to raise funds for a period, not more than twelve months. Usually, short-term finance is used to … Read more
Internal sources of finance for business
Internal sources of finance refer to the money generated from internal business operations. It’s considered one of the safest sources of finance in terms of … Read more
Objectives of Financial Management in business
Objectives of financial management include efficient financial planning, effectively organizing, directing, and managing financial activities so that wastage of financial resources is minimized and the … Read more
What’s notes payable (Definition, explanation, journal entries, classification, examples, and more)
Definition Notes payable or promissory note is a promise in writing that a certain amount will be paid in the future. In other words, it’s … Read more
Mortgage loan
The mortgage loan concept is assets are given as security against receipts of the funds. Mostly, banks and other financial institutes provide loans of 80% … Read more
FICO Score
Fair Issac Corporations calculate FICO score. Different lenders used the FICO score of the borrower to decide on the extension and approval of the loans. … Read more
What is a good credit score? (United States)
A credit score from 670 to 829 is considered to be a good credit score. It also exhibits the fact that you’ve been the responsible … Read more