What is the Difference Between Capital and Non-Current Capital? When managing or analyzing a business, understanding different financial terms is crucial. Two commonly used terms in financial discussions are capital and non-current capital. While they may seem similar, they have distinct roles in the financial framework of a company. In this blog, we’ll break down… Read More »
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 »
Investor and a Creditor Difference Between Investor and Creditor Website Link Investor and a creditor: Investor and a creditor are both entities that provide capital to a company, but there are distinctions between the two: Nature of investment: An investor offers equity capital, meaning they acquire ownership in the company in exchange for their investment.… 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 »
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 »
What is a Preliminary Expense Preliminary Expense are the expenses that a company incurs before it starts its operations. These expenses are relate to the formation, registration, and organization of the company, such as legal fees, accounting fees, and other administrative costs. In accounting, preliminary expenses are treat as an intangible asset and are shown… 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 »
Financial Advisor A financial advisor can help you achieve your financial goals by providing personalized advice and guidance based on your individual needs and circumstances. Here are several ways in which a financial advisor can provide assistance: Several ways of financial advisor are: Developing a comprehensive financial plan: It can work with you to develop… Read More »
