What is the Capital Adequacy Ratio?
In finance, stability is a key determinant for keeping the public trust and economic activities smooth. One of the critical measures that regulators and banks rely on to measure such stability is the Capital Adequacy Ratio (CAR). Often called the backbone of prudent banking, this metric plays a significant role in determining a bank’s financial […]
What is Asset Management?
Asset management is a systematic process of developing, maintaining and selling assets to maximize their value and achieve organizational goals. The process involves the management of diverse types of assets: financial assets such as stocks, bonds, and real estate on one hand; equipment, buildings, infrastructure, etc, on the other. The main objective of asset management […]
Fintech: disruptive technologies transforming financial services
Fintech, an abbreviation for financial technology, is a term that encompasses the use of technology to deliver innovative and transformative financial services. Over the past decade, Fintech has gained tremendous traction and is now revolutionizing the financial services industry. Its disruptive technologies are challenging traditional business models, streamlining processes, and enhancing customer experiences. Fintech’s unprecedented […]
5 Important Types of Technical Analysis
Technical analysis serves as a vital tool in financial markets, providing investors with valuable insights to guide their decision-making process. Among the numerous approaches in technical analysis, understanding the different types and their significance is crucial for effectively managing the uncertainties of the market. Trend Analysis Trend analysis is a method of technical analysis used […]
What is Production Volume Variance?
Production volume variance is a measure of the difference between the actual cost of producing a certain number of units of output and the budgeted cost of producing that output. It is a type of overhead variance, which is a variance that arises from the difference between the actual cost of overhead and the budgeted […]
What Are Joint Products and By-Products?
In cost accounting, joint products and by-products are two types of products that are produced from the same manufacturing process. Joint Products Joint products are two or more products that are produced simultaneously from a common input or process, each having a significant relative sale value. They are also known as co-products or primary products. […]
What is Meant by Goodwill in Accounting?
Goodwill, within the context of accounting, is a somewhat intricate concept. From a conceptual standpoint, goodwill refers to the intangible value attached to a business entity, which encompasses reputation, customer loyalty, brand recognition, and other intangible assets. Goodwill is a term often used in the field of accounting, but its meaning may not be immediately […]
What is Abnormal Process Loss? Causes and Impacts
Process loss in manufacturing and production refers to the decrease of expected output due to wastage, defects, or other inefficiencies in the process at the time of production. This can result from many causes including the malfunctioning of machines, human error, or environmental conditions. Abnormal process loss is a specific kind of process loss wherein […]
Benefits of Issuing Shares as Source of Capital
In the world of business, having access to sufficient capital is crucial for growth and expansion. However, traditional methods of raising capital, such as taking on debt or securing loans, may not always be the most suitable or sustainable option for every business. That is where issuing shares comes to the forefront as a powerful […]
What are non-current assets? Meaning and Examples
In simple terms, non-current assets are resources owned by a company that are not expected to be easily converted into cash within the next year. These assets are typically held for a more extended period, generally over a year. They form a crucial part of a company’s long-term investment strategy and contribute significantly to its […]