Business

The meaning of Financial Accounting can be defined as a procedure of documenting, encapsulating, and reporting the multiple transactions resulting from trading operations over a…

The meaning of Cost Accounting can be defined as an accounting system that aspires to capture an enterprise’s costs of manufacturing by evaluating the input…

Definition of Cost Accounting – Cost Accounting is the field of accounting that is used to record, summarize, and report the cost information on a…

A Regulatory Capital (also known as capital adequacy) is the amount of capital a bank or another financial institution has to have as required by…

Economics is divided into two important sections, they are: macroeconomics & microeconomics Definition of Micro Economics – Microeconomics is the study of particular markets, and…

Capital Adequacy Ratio (CAR) is the ratio of a bank’s capital in relation to its risk-weighted assets and current liabilities. It is also known as…

The simple answer would be: Current balance = our actual balance Available balance = the amount we can draw on, meaning use For example, we…

Tier 2 capital includes a number of important and legitimate constituents of a bank’s capital requirement. It is designated as supplementary capital and is composed…

Definition of Compounding – When interest is earned on the principal and the entire amount is again invested to earn more money that is called…

Tier 1 capital is the primary funding source of the bank. It is the core measure of a bank’s financial strength from a regulator’s point…

A credit rating agency is a private company that looks at the creditworthiness of a large-scale borrower, such as a company or country. It is a…

Letter of Hypothecation is a written agreement, which authorizes a bank or lender to repossess and sell the pledged item in case of a default.…