Accounting

An acquisition cost likewise alluded to as the acquisition cost, is the absolute cost that an organization perceives for property or hardware in its books…

Retained earnings represent a business firm’s cumulative earnings since its inception, that it has not paid out as dividends to common shareholders. The cost of…

Concept of Cost of Retained Earnings The cost of retained earnings is the cost to a corporation of funds that it has generated internally. It…

In accounting, scrap value refers to an estimation of the worth of long-lived properties at the end of their useful life. It is the value…

The double declining balance (DDB) depreciation method, also known as the method of balance, is one of two traditional methods that a company uses to…

Accelerated depreciation is a method of depreciation that refers to any of several methods through which a company depreciates a fixed asset for ‘financial accounting’…

Weighted Average Cost of Capital (WACC) is calculated by multiplying the cost of each capital source (debt and equity) by its relevant weight and then…

Weighted Average Cost of Capital (WACC) is a calculation of a firm’s cost of capital in which each category of capital is proportionately weighted. Generally,…

Concept of Capital Budgeting Decision Capital Budgeting is the process of making investment decisions in fixed assets or capital expenditure. A capital budgeting decision is both…

Importance of Capital Budgeting Capital budgeting is a process that helps in planning the investment projects of an organization in the long run. It is the…

Pro-forma Invoice A pro forma invoice is a preliminary bill of sale sent to buyers in advance of a shipment or delivery of goods. It…

Funds from operations (FFO) are the cash flows generated by a company’s activities, typically a real estate investment trust (REIT). When determine the net FFO,…