Surplus A surplus describes the amount of an asset or resource that exceeds the portion that’s actively utilized. A surplus can refer to a host of different items, including income, profits, capital, and goods. In the context of inventories, a …
It is the total amount receivable to a business for sale of goods or services provided as a part of their business operations. Trade receivables consist of Debtors and Bills Recieivables Trade receivables arise due to credit sales. They are treated as …
Trade Payable A trade payable is an amount billed to a company by its suppliers for goods delivered to or services consumed by the company in the ordinary course of business. These billed amounts, if paid on credit, are entered …
Substance Over Form Substance over form is the concept that the financial statements and accompanying disclosures of a business should reflect the underlying realities of accounting transactions. Conversely, the information appearing in the financial statements should not merely comply with …
A sinking fund is a fund containing money set aside or saved to pay off a debt or bond. A company that issues debt will need to pay that debt off in the future, and the sinking fund helps to …
A share may be issued at an amount more than the face value. It is the case of issue of shares at premium. For Example – a share whose face value is Rs. 10 may be issued at Rs. 20. …
For corporations, shareholder equity (SE), also referred to as stockholders’ equity, is the corporation’s owners’ residual claim on assets after debts have been paid. Shareholder equity is equal to a firm’s total assets minus its total liabilities. KEY POINTS Shareholder …
Share capital is the money a company raises by issuing common or preferred stock. The amount of share capital or equity financing a company has can change over time with additional Public offerings. The term share capital can mean slightly …
Secured Loan A secured loan is a lending agreement in which the borrower pledges an asset as collateral, which the lender can seize if the borrower cannot pay back the underlying loan. Advantages of a Secured Loan A secured loan …
Gross sales is a metric for the total sales of a company, unadjusted for the costs related to generating those sales. The gross sales formula is calculated by totaling all sale invoices or related revenue transactions. However, gross sales do …