A debenture is a type of bond or other debt instrument that is unsecured by collateral. Since debentures have no collateral backing, they must rely on the creditworthiness and reputation of the issuer for support. Both corporations and governments frequently …
Book value is equal to the cost of carrying an asset on a company’s balance sheet, and firms calculate it netting the asset against its accumulated depreciation. As a result, book value can also be thought of as the net …
Bonus Shares are shares distributed by a company to its current shareholders as fully paid shares free of charge. to capitalise a part of the company’s retained earnings for conversion of its share premium account, or distribution of treasury shares. …
A bill of exchange is a written order used primarily in international trade that binds one party to pay a fixed sum of money to another party on demand or at a predetermined date. Bills of exchange are similar to …
A balance sheet is a financial statement that reports a company’s assets, liabilities and shareholders’ equity at a specific point in time, and provides a basis for computing rates of return and evaluating its capital structure. It is a financial …
Bad debt is an expense that a business incurs once the repayment of credit previously extended to a customer is estimated to be uncollectible. Bad debt is a contingency that must be accounted for by all businesses who extend credit to …
Authorized share capital is the number of stock units (shares) that a company can issue as stated in its memorandum of association or its articles of incorporation. Authorized share capital is often not fully used by management in order to …
An assets is anything of value or a resource of value that can be converted into cash. Individuals, companies, and governments own assets. For a company, an asset might generate revenue, or a company might benefit in some way from …
An appropriation account shows how an organization’s funds are distributed among partners, shareholders, and departments. For companies, an appropriation account shows how the company’s profits are divided and retained. For partnership, it shows how profits are distributed among the partners. …
Depreciation, depletion, and amortization (DD&A) is an accounting techniques that enables companies to gradually expense various different resources of economic value over time in order to match costs to revenues. Depreciation spreads out the cost of a tangible assets over …