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
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
Fictitious assets meaning/definition Fictitious assets are not an asset in reality. However, these assets are recorded in the balance sheet to reflect a true sense … Read more
Businesses generate revenue from rendering services and the sale of tangible products. Income generated from service rendered is referred to as service revenue. The transaction … Read more
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
Definition: Due diligence is the systematic and structured analysis of investment decisions to mitigate the risk. It’s performed with strategic, operational, and financial perspectives to … Read more
Definition Accumulated depreciation is the contra account created in the accounting record to offset the use/depreciation of assets. We do not directly reduce the cost … Read more
Five elements of financial statement include the balance sheet, income statement, statement of cash flow, statement of changes in equity, and the notes to the … Read 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
Definition: The corporation is a business structure that is separate from its owners. In the eyes of the law, the corporation is a separate legal … Read more
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 include efficient financial planning, effectively organizing, directing, and managing financial activities so that wastage of financial resources is minimized and the … Read 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
Notes receivable is the written promise to receive principal and interest in the future. In simple words, note receivable is a written, unconditional promise by … Read more
EAM and ERP are sophisticated resource management systems. As the business world is highly dynamic and requires active monitoring of the business processes to survive … Read more
Inventory management is crucial for the successful run of a business as it helps to control the cost and enhance profitability. Further, efficient management of … Read more
ERP is an advanced system of business management that integrates different operating modules and business intelligence. It helps in effective business management with real-time reports … Read more
The concept of materiality helps an accountant decide which account balances should be disclosed separately and which of the account balances should be merged. The … Read more
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
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