Difference Between Interim and Final Dividend
Dividends are one of the most important means through which firms pay out profits to their shareholders, but dividends are not uniform. Firms can pay dividends at various times within the financial year, mainly as interim dividends and final dividends. Although both are meant to reward investors, they vary with respect to timing, approval procedure, […]
What is Goods and Services Tax (GST)?
Goods and Services Tax (GST) is a broad indirect tax charged on the supply of goods and services. It was brought in to provide a simplified taxation system by consolidating various indirect taxes, including excise duty, service tax, and value-added tax (VAT), into a unified tax regime. GST is aimed at facilitating transparency, curbing tax […]
What Are Stock Control Cards – Pros and Cons Explained
Stock control is a critical function of inventory management, allowing businesses to hold the necessary amount of stock to satisfy demand without excess stock or out-of-stock situations for critical items. Stock control card is one of the essential instruments utilized for effective inventory tracking. Stock control cards contains a complete record of the movement of […]
5 Legit Expenses That Reduce Tax in Books of Accounts
Tax planning is an important part of financial management for companies and individuals. One of the best means of minimisng tax burdens legally is claiming valid business expenses in books of accounts. These expenses reduce taxable income without contravening tax laws. Documenting such expenses and complying with tax rules is important to avoid legal consequences […]
Top 5 Theories of Dividend Decision
Dividend decisions play a very important role in corporate finance because they impact the valuations of a firm’s stocks, investor confidence, and financial strategy. Several theories attempt to explain how companies should decide on their dividend policies. In this post, we are going to learn about the top 5 theories of dividend decision and their […]
What is Weighted Average Cost of Capital?
The Weighted Average Cost of Capital (WACC) is a crucial financial metric that represents a company’s overall cost of financing its assets. It is used by businesses and investors to determine the minimum return required on an investment to maintain its financial health. WACC considers both equity and debt financing, weighting each component according to […]
What Does Mean Reconstitution of Partnership?
Reconstitution of partnership refers to a change in the existing structure or terms of a partnership firm while keeping its business operations intact. It takes place when the relationship between the partners changes, thereby changing their rights, obligations, or capital contributions. However, the name of the partnership firm remains unchanged. Reconstitution can be due to […]
What is Receipts and Payments Account?
A receipts and payments account is a type of financial statement, summarizing all cash and bank transactions of an organisation for an accounting period. Although it is often prepared by non-profit making organizations, clubs and societies, helps in recording cash inflows and outflows without emphasis on profit or loss. Its principal purpose is to offer […]
What are consolidated financial reports?
Consolidated financial reports are general statements of the parent company and all other subsidiaries in just one financial report. These statements serve to depict the consolidated position of a company overall, comprehensively describing its entire financial health, and encompassing all its different forms of entities and activities. Consolidated financial reports are most used by investors, […]
Key Differences Between Revenue and Income
Revenue and income are two common terms seen on the Profit and Loss account or income statement of a company. Most students non-accounting persons don’t usually understand the difference between both terms. These terms depict two different aspects of a company’s financial health for any person associated with finance or business management. While revenue and […]