A grant is a sum of money awarded to your business from the government that you don’t have to pay back. It’s awarded to your business to assist in its development, often for a specific purpose. Is it right for …
General Reserve is the amount kept aside from the profit earned by the company during its normal course of the operation to meet future needs. I.e., like contingencies, strengthening the company’s financial position, increasing working capital, paying dividends to the …
A gain is a general increase in the value of an asset or property. A gain arises if the current price of something is higher than the original purchase price. For accounting and tax purposes, gains may be classified in …
At the time of preparing financial statements of a company, there are some fundamental accounting assumptions. In case if they are not mentioned, it will be presumed that these accounting assumptions are followed in the financial statements. So let us …
A fund is a pool of money that is allocated for a specific purpose. A fund can be established for any purpose whatsoever, whether it is a city government setting aside money to build a new civic center, a college …
Free reserves are the monetary reserves that a bank holds in excess of required reserves, minus reserves borrowed from the central bank. KEY POINTS Free reserves are the reserves a bank holds in excess of required reserves, minus reserves borrowed …
A forfeited share is a share in a publicly-traded company that the owner loses (or forfeits) by neglecting to live up to any number of purchase requirements. For example, a forfeiture may occur if a shareholder fails to pay an …
Financial instruments are assets that can be traded, or they can also be seen as packages of capital that may be traded. Most types of financial instruments provide efficient flow and transfer of capital all throughout the world’s investors. These …
A floating charge, also known as a floating lien, is a security interest or lien over a group of non-constant assets that may change in quantity and value. Companies will use floating charges as a means of securing a loan. …
A fixed charge is any type of expense that recurs on a regular basis, regardless of the volume of business. Fixed charges mainly include loan (principal and interest) and lease payments, but the definition of “fixed charges” may broaden out …