An investment is an asset or item acquired with the goal of generating income or appreciation. Appreciation refers to an increase in the value of an asset over time. When an individual purchases a good as an investment, the intent …
An intangible asset is an asset that is not physical in nature. Goodwill, brand recognition and intellectual property, such as patents, trademarkes, and copyrights, are all intangible assets. Intangible assets exist in opposition to tangible assets, which include land, vehicles, …
Gross margin is a company’s net sales revenue minus its cost of goods sold (COGS). In other words, it is the sales revenue a company retains after incurring the direct costs associated with producing the goods it sells, and the …
Goodwill is an intangible asset that is associated with the purchase of one company by another. Specifically, goodwill is the portion of the purchase price that is higher than the sum of the net fair value of all of the …
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 …