Tag Archives: #FinancialDecisionMaking

What is the difference between financial analysis, financial planning and financial management?

Financial analysis Vs planning Vs management Financial analysis Vs planning Vs management, Financial analyst, financial plannings, and financial management are three distinct concepts in the field of finance. It is refers to the process of evaluating the financial performance of a company or investment by analyzing its financial statements, ratios, and other financial indicators. It… Read More »

Is the provision for taxation a liquid asset or not?

Is the provision for taxation a liquid asset or not The provision for taxation is not considered a liquid asset. In financial terms, a liquid asset refers to an asset that can easily convert into cash without significant loss in value. While the provision for taxation represents an estimated amount set aside by a company… Read More »

Is share capital liability?

Share capital Liability Share Capital Liability, Is Share Capital Liability? When discussing the financial structure of a company, the term “share capital” frequently arises. It represents the funds raised by a company through the issuance of shares to shareholders. While share capital is an essential component of a company’s equity, its classification as liability… Read More »

What is the difference between capital employed and working capital?

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 »

Working capital vs Operating expenses?

Working Capital vs Operating Expenses Working capital and operating expenses are two different financial concepts in accounting that represent different aspects of a company’s financial performance. For more information to visit:https://www.mca.gov.in Working-capital represents the amount of money that a company has available to cover its day-to-day operations and short-term obligations. It is a crucial metric… Read More »

How to do business valuation calculation?

Business Valuation Calculation Business valuation Calculation refers to the process of determining the economic worth of a business, and there are various approaches available to calculate it. These approaches include: 1.Market Approach: This method utilizes comparable market data of recently sold businesses that are similar. By comparing the business with other similar businesses in the… Read More »

Why are prepaid expenses considered an asset?

Why are prepaid expenses considered an asset? Why are Prepaid expenses considered an asset, Prepaid Expenses are consider an asset because they represent a payment made by a company for goods or services that will be receive in the future. Even though the expense has been paid upfront. It has not yet been incur.… Read More »

Capital Exp. Vs. Working Capital: What is the difference between capital expenditure and working capital?

Capital Exp. Vs. Working Capital: Capital expenditure It refers to the money spent on long-term assets that are expected to provide benefits for more than one accounting period. These assets include property, plant, and equipment (PP&E), intangible assets, and investments. Capital expenditure is recorded on the balance sheet as an asset, and the cost… Read More »

How does a write-off affect net income and net account receivable?

Write-off affect net income and net account receivable Write-off affect net income and net account receivable: A write-off is an accounting term used when a company decides that a particular asset, such as an account receivable, is unlikely to be collected. This can occur due to various reasons, such as customer insolvency or prolonged… Read More »