A capital commitment is the projected capital expenditure a company commits to spending on long-term assets over a period of time. It also refers to the securities inventory carried by a market maker. The capital commitment may also refer to …
Capital assets are significant pieces of property such as homes, cars, investment properties, stocks, bonds, and even collectibles or art. For businesses, a capital asset is an asset with a useful life longer than a year that is not intended …
Capital is a broad term that describes something that confers value or benefit for the possessor, such as a factory and its machinery, intellectual property like parents, or the financial assets of a business or an individual. While money itself may …
Called up share capital is shares issued to investors under the understanding that the shares will be paid for at a later date or in installments. Shares may be issued in this manner in order to sell shares on relaxed …
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 …