What Are ESG Reporting Frameworks?
Companies need Environmental, Social, and Governance or ESG reporting frameworks to express their sustainability and ethical performance. The significance of sustainability in businesses and in responsible investing cannot be overstated. As a result, companies’ stakeholders, customers, and regulators demand that they disclose more about their ESG performance. Companies are able to secure a structured way […]
How AI is Making the Work of Accountants Easier
Artificial Intelligence is changing the face of industries in all directions, and accounting is definitely not excluded. Artificial intelligence can help accountants deal with large volumes of data easily, minimize human error, and improve overall productivity, from repetitive tasks to complex data insights. In this article, we have discussed some of the prominent ways in […]
Benefits of Issuing Debentures Rather than Shares
Companies raising capital to raise funds in order to expand are at liberty to opt for shares or debentures. While both can raise the needed capital, oftentimes debentures offer more benefits compared to shares, especially to businesses that require maintaining tight control and want to maintain costs. In this article, we have discussed a few […]
What is Economic Batch Quantity? With Example
Economic batch quantity (EBQ) is a crucial concept that determines the most cost-effective quantity of units to produce in a single batch or production run. By optimizing the batch size, businesses can minimize their overall production costs, considering factors such as ordering, setup, carrying, and unit costs. Understanding EBQ and Its Significance Economic Batch Quantity […]
Difference Between Net Profit and Gross Profit
Profit is one of the most significant measures of a company’s financial well-being, but profits differ. Two critical metrics—gross profit and net profit—serve distinct purposes when assessing a firm’s performance. Gross profit is the profit after excluding the direct costs of goods or services manufactured, whereas net profit is the actual profit after deduction of […]
What is the Going Concern Concept?
The going concern concept is a principle that assumes a business entity will continue operating for the foreseeable future, typically in the next 12 months. This signifies that the company doesn’t plan or anticipate ceasing operations, liquidating its assets, or significantly reducing its business scale. Why is the Going Concern Concept Important? This concept is […]
Liquidation of Companies | Meaning and Procedure
The liquidation of companies refers to the process of winding down operations and selling its assets to pay off its debts to external parties. It is essentially the process of dissolving a company and distributing its remaining assets to its creditors and shareholders. Reasons for liquidation There are several reasons why a company might be […]
What are calls-in-arrear and calls-in-advance?
Calls-in-arrear and calls-in-advance are related to the share capital of a company and how shareholders contribute to it. Here’s a breakdown: Calls-in-arrear Calls-in-advance: Key differences Conclusion Both calls-in-arrear and calls-in-advance are relevant to companies that issue shares in stages, calling for payments at different times. The legal framework regarding calls-in-arrear and calls-in-advance can vary depending on […]
What is the Difference Between Trading and Investing
In growing wealth in the financial market, two popular strategies are trading and investing. Though both require buying and selling of assets such as stock, bonds, or even cryptocurrencies, their methods, risk, and time frames are very different. Trading targets short-term price fluctuations, demanding frequent buying and selling and market analysis, while investing is a […]
Difference Between Fixed and Floating Rate of Interest
Interest rates form a vital aspect of the financial landscape. Whether you are considering taking out a loan for a major purchase or investing in a bond, understanding the difference between fixed and floating rates of interest is crucial. Let’s explore the difference between fixed and floating rates of interest, their advantages and disadvantages, and […]