Asset valuation The value of an asset is determined by several factors, including supply and demand, the asset’s intrinsic characteristics, market conditions, and economic indicators. The most important factor in determining the value of an asset is the interaction between buyers and sellers in the marketplace. When there is a high demand for an… Read More »
Basic accounting terminologies 1.Assets: Resources owned by a business that has monetary value and are expected to provide future benefits. 2.Liabilities: Obligations of a business to pay debts or other financial obligations. 3.Equity: Equity refers to the ownership interest in a company or property, representing the residual value after all liabilities have been paid… Read More »
Private sector enterprises are businesses that are owned and operated by individuals or groups of individuals rather than the government. 1.Private Ownership: Private sector enterprises feature always own and control by private individuals or organizations. The owners bear the responsibility for the success or failure of the business. 2.Profit Motive: Private sector enterprises are driven… Read More »
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 »
Does Capital expenditure affect the financial statements of a business Capital expenditures are investments made by a business in long-term assets like property, plant, and equipment. These expenditures have important implications for a business’s financial statements: 1.Balance Sheet: Capital expenditures increase the assets of the business. Long-term assets, such as buildings, machinery, and equipment, are… Read More »
Company profitability from balance sheet While a company’s balance sheet provides useful information about its financial position, it may not provide a direct indication of profitability. To determine a company profitability, one should look at its income statement, which shows revenue, expenses, and net income. To visit https://www.gst.gov.in/ However, the balance sheet can provide some… Read More »
