Difference between Capital Employed and Working Capital In the world of finance and accounting, understanding key concepts such as capital employed and working capital is crucial for evaluating a business’s financial health and operational efficiency. While both terms relate to the funds used in a business, they serve different purposes and are calculated in distinct… Read More »
Nature of Capital Reduction Account Nature of Capital Reduction Account, It is a special type of account that is create when a company reduces its share capital. The nature of capital reductions accounts is to record the reduction in the company’s share capital, which typically occurs when the company buys back its own shares or… Read More »
Difference between capital and equity Difference between capital and equity What is Capital? Capital refers to the resources or assets that a business or individual uses to generate income or grow wealth. It can take various forms, such as: Cash: Money that is available for immediate use. Assets: Machinery, real estate, or other… Read More »
Financial Assets Financial assets refer to any asset that is primarily based on financial value and is expected to provide future economic benefits to the holder. Examples of these asset include stocks, bonds, bank deposits, mutual funds, exchange-traded funds, derivatives, and insurance policies. These assets can be trade on financials markets, and their value can… Read More »
