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Corporate Accounting
What are Debentures and Why Are They Issued?
Debentures are a type of corporate bond that is created by companies. The money borrowed to create debentures is called the face value. In exchange for the mone
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Financial Accounting Concepts
What is Change in the Profit Sharing Ratio in Partnership Accounts?
A change in the profit-sharing ratio in partnership accounts refers to the alteration in the distribution of profits among the partners. This can occur for seve
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Financial Accounting Concepts
Straight Line Method of Depreciation – Benefits and Limitations
Under Straight Line Depreciation, a fixed proportion of the original cost of the asset (less residual value) is written off each year so that the asset account
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Financial Accounting Concepts
Differences Between Accounting Concepts and Conventions
Although to a layman, both accounting concepts and accounting conventions may sound similar, there are some fundamental differences between them. There are a fe
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Cost Accounting
What is Performance Budgeting?
The process of performance budgeting entails evaluating an organization’s performance within the context of the organization’s particular objectives
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Corporate Accounting
What are Different Types of Financial Statements?
Financial statements provide essential tools for understanding an entity’s health and performance from various angles, whether you are an investor, credit
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Corporate Accounting
What Are Sweat Equity Shares and Why Are They Issued?
Sweat equity shares are equity shares granted to employees of a company on favourable terms in recognition of their work. Sweat equity shares are one form of sh
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Corporate Accounting
What is the Procedure to Issue Shares for Capital?
Companies issue shares to raise capital to finance their operations, such as expanding their business, developing new products, or entering new markets. When a
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Corporate Accounting
What is Share Capital and How Does it Work?
A share is a unit of ownership in a company that represents a portion of that company’s total value and assets. Each share has a nominal or par value. A f
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Corporate Accounting
What are the benefits of business valuation?
Business Valuation A business valuation is a method for determining the value of a company and its assets. When deciding to sell their firm, the vast majority o