Financial reporting refers to external financial reporting by business enterprises. Financial reporting includes financial statements & other means of communicating information that relates to the information provided by the accounting system, information about an enterprise’s resources, obligations, earnings etc. Management personnel may be required to communicate information to those outside the enterprise by means of [...]
Continue reading → One might argue that if appropriability of innovation can be ensured, it may help nascent entrepreneurs to overcome the financing problems. While this may be true, one cannot ignore the problem with the present systems of appropriability – namely patent, trademarks, etc. While, on the one hand, some degree of appropriability is being ensured, on [...]
Continue reading → Why are innovative nascent entrepreneurs financially constrained? This involves three main factors. The first factor is information asymmetries, which arise if the firm has better information about the returns occurring from their investment in intangible assets than do potential investors. Hence, “external finance may be expensive, if available at all, because of adverse selection and [...]
Continue reading → The problem of financial constraints seems to extend beyond the problem of appropriability or innovation. This third study tries to find the factors beyond the firm’s purviewthat may affect firm’s financial choices. It extends the study of capital structure of firms to accommodate regional financial characteristics that are generally discussed in the banking literature. Until [...]
Continue reading → The process of recording voucher details of a transaction in a Journal is called Journalizing and the record thus created is called a journal entry. Transactions are recorded in the Journal according to the type of accounts involved. For example, a journal entry can be made for a cash sale in the Cash Receipts Journal [...]
Continue reading → Consider the scenario, Larry Williams has identified the accounts that are to be either debited or credited. He needs to record this information in the books of accounts by creating journal entries. In practice, the books of accounts include the Subsidiary books or the Books of Original Entry i.e Purchase Book, Sales Book and the [...]
Continue reading → Consider the scenario, Larry Williams, the accountant, has identified the accounts involved in different transactions. He needs to apply the golden rules of accounting to identify, which account is debited and which account is credited. There are three golden rules or guidelines to be followed while recording a transaction. Each rule applies to a single [...]
Continue reading → All monetary transactions that occur while running a business must have accurate, accessible and periodically updated records. Monetary transactions include the payment of a supplier’s invoice, payment to an employee and receipt of payment from a customer. For easy transaction recording, it is advisable to use a company’s chart of accounts. This chart provides codes [...]
Continue reading → You have like enough heard the saying ‘if you fail to plan, you scheme to fail.’ This couldn’t be more true in the globe of trading. But it really is imperative to our progress as traders that we do this. ‘What quiet time,’ do you ask? Believe me, with a two month old, I masterV [...]
Continue reading → I love to trade options on stocks with a lot of momentum. What this provision is that I want to trade those stocks, Exchange Traded Funds or Indexes, that are in motion nimble and far. You may have attended my free webshop on Monster Momentum plays during which I introduce a couple of the technical [...]
Continue reading → There is no progress for those traders who have no previous formation. You want to have a mine trading system. An individual must have a collection trading system to gain bulls eye in stocks. They are essential when it concerns your vein trading career, and without a system, profit could be tough to come by, [...]
Continue reading → A common business conundrum is whether to purchase equipment outright or to lease it. To make such a decision, you figure the present value of both options and then compare the results, with the preferable option being the one that provides the lower present value. Assume that the purchased equipment has no market value at [...]
Continue reading → If you know the current interest rate that your bank offers for loans, when you want to have the loan paid off, and how much you can afford each month for the payments, you might then wonder what the maximum amount is that you can borrow under those terms. To figure out this, you need [...]
Continue reading → The prime motive for doing a business is to earn profit. It is necessary to record the financial transactions to know the profit earned or loss incurred. Financial accounting is an effective tool to record, classify and summarize transactions. According to the definition given by the American Institute of Certified Public Accountants, “ Accounting is [...]
Continue reading → Business decisions are a set of results arrived at after studying a set of comprehensive business reports generated by considering all financial transactions. Thus, automating the finance and accounting system ensures accurate calculation and analyses for the organization. The numbers generated by the automated system will help with better management of the financial process and [...]
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