Accounting

A closing entry, also known as a closing journal entry, is an entry made at the end of an accounting cycle in a manual accounting…

A temporary account is one that is closed at the end of each accounting period and restarted with a zero balance in the next period.…

Equity shares are the main source of finance of a firm. These shares are long-term financing sources for any company. It is issued to the…

Equity share capital remains permanently with the company. It is returned only when the company is wound up. Equity capital is paid after meeting all…

Benefits of equity share investment are dividend entitlement, capital gains, limited liability, control, claim over income and assets, right shares, bonus shares, liquidity, etc. Equity…

Preferred shares are securities that represent ownership in a corporation, and that have a priority claim over common shares on the company’s assets and earnings.…

Preference shares are issued by companies seeking to raise capital, combine the characteristics of debt and equity investments, and are consequently considered to be hybrid…

Preference shares are a mode for companies to raise capital on a regular basis. These are used by big corporate as a long-term source of…

The term “replacement cost” or “replacement value” refers to the amount of money a company must pay right now to replace an important asset, such…

Equity share is the foundation of the company as it raises funds. Since equity shares are non-redeemable, they serve as a long-term source of finance…

The term “full-time equivalent” (FTE) or “whole-time equivalent” (WTE) refers to the unit of measurement that is equivalent to one unit of work or school…

Share capital refers to the funds a company receives from selling ownership shares to the public. Share capital comprises capital that is generated from funds…