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 …
Right shares are those shares which are issued to existing shareholders. According to section 81 of Indian company act 1956, “Company can issue right shares only after the two years of creation of company or one year of first issue …
The revenue reserve is the reserve that is created out of the profits of the company generated from its operating activities during a period of time and retained for the purpose of expanding its business or to meet out contingencies …