Forum: Accounting and Taxes

The basic objective of accounting is to provide information to the interested users to enable them to make business decisions. The necessary information, particularly in the case of external users, is provided in the basic financial statements: Profit and loss statement and Balance sheet. Besides...

Accounting records relate to the past transactions, which provide fairly good account of the economic activity of the business enterprise. However, from decision-making viewpoint we need information, which relates not only to past but also about present and future. Financial accounting makes...

Qualitative characteristics of financial statements • Understandability • Reliability • Comparability • Relevance • True and Fair View/Fair Presentation

Accounting entity assumption states that the activities of a business entity be kept separate from its owners and all other entities. In other words, according to this assumption business unit is considered a distinct entity from its owners and all other entities having transactions with it. For...

Book keeping usually involves only the recording of business transactions (transactions) and is therefore, just one part of the accounting process. Accounting on the other hand, involves the entire accounting process, i.e. identification, measurement, recording, and communication. Now-a-days, much...

These financial terms definitions are for the most commonly used UK financial terms and ratios. They are based on UK Company Balance Sheet, Profit and Loss Account, and Cashflow Statement conventions. Certain financial terms often mean different things to different organizations depending on...

In a financial planning context the word 'budget' (as a noun) strictly speaking means an amount of money that is planned to spend on a particularly activity or resource, usually over a trading year, although budgets apply to shorter and longer periods. An overall organizational plan therefore...

• Barter System – a system of exchange which involves the swapping of goods between individuals. • Capital Goods – goods used to produce other goods, such as tools, equipment and machinery. • Consumers – individuals who use or ‘consume' goods and services to satisfy their needs and wants. •...

Fiscal Inflation occurs when there is excess government spending. This occurs when there is a deficit budget. For instance, Fiscal inflation originated in the US in 1960s at the time President Lydon Baines Johnson. America is also facing fiscal type of inflation under the presidentship of George W....

Inflation affects both the economy of a country and its social conditions, as well as the political and moral lives of its inhabitants. However, the economic effects of Inflation are stated and described below: * Price inflation has immense effect on the Time Value of Money (TVM). This acts...

A company may have many different types of shares that come with different conditions and rights. There are four main types of shares: * Ordinary shares are standard shares with no special rights or restrictions. They have the potential to give the highest financial gains, but also have the...

An economy consists of the economic system of a country or other area, the labor, capital and land resources, and the economic agents that socially participate in the production, exchange, distribution, and consumption of goods and services of that area. A given economy is the end result of a...

For an investment to be worthwhile, the expected return on capital must be greater than the cost of capital. The cost of capital is the rate of return that capital could be expected to earn in an alternative investment of equivalent risk. If a project is of similar risk to a company's average...

his is the first collection on historical and contemporary black business in Africa and the American diaspora, as well as transatlantic business between the United States and Africa. The contributors, all internationally recognized in their fields, provide African and non-African perspectives on...

The Currency Fix: The invisible hand doesn't mean that profiteers get to reach into your pocket with every trade. Yet, that's the economy we've built: one where you bear a collective responsibility for the decisions of bankers, beancounters, and other borrowers. Why? Because you have to invest,...

* Vehicles are on balance sheet. * Risk of vehicle resale value lies with user. * No capital allowances for user.

• It offers fixed rate financing; you pay at the same rate monthly. • Leasing is inflation friendly. As the costs go up over five years, you still pay the same rate as when you began the lease, therefore making your dollar stretch farther. (In addition, the lease is not connected to the success of...

The accounting process is a series of activities that begins with a transaction and ends with the closing of the books. Because this process is repeated each reporting period, it is referred to as the accounting cycle and includes these major steps: 1.Identify the transaction or other...

Money is one of the most extraordinary of human inventions. As a means of exchange it makes modern commerce possible and is one of the most beneficial of institutions. As an instrument of power it can support the most insidious and destructive of tyrannies, particularly when the processes of its...

There is a single plausible explanation that politicians and bankers alike have fallen back to, whenever challenged as to why the global investment banking system was left to its business, up to the point of it's near freefall collapse. Financial innovation is what banks cared most about, when...