A bias occurs when users use irrational preferences in their work. Usually, it happens unintentionally. Nonetheless, it can impact their work and decision-making significantly. Biases may exist in various areas of life. Some of these may apply when individuals select an item from a given population. In that area, two …

Nowadays, there are multiple ways to account for your business’s finances. Each of them is used for different purposes and serves a specific set of needs. Some people use one type of accounting over another simply because that is the way their accountant told them to do it. The two …

Climate risks are an important and growing concern for businesses and organizations of all sizes. Proactive risk management is essential to mitigating the potential impacts of climate change on your operations. This guide provides an overview of what climate risks are, how they can affect your business and steps you …

In the world of finance, there is a traditional system where banks act as intermediaries between lenders and borrowers. This system is often called centralized finance. However, a new model of finance has been emerging in recent years- decentralized finance, or DeFi for short. DeFi is built on the blockchain …

For many investors, there’s no better way to amass a large sum of money than by investing in the stock market. And if you’re looking for an investment that can give you instant returns with minimum risk, closed-end funds are one of the best options available. But before making any …

Companies and business report their performance for a period using financial statements. When preparing these statements, their management makes several claims. During the audit process, auditors must verify those claims. Based on this verification, they must reach a conclusion in the form of an audit opinion. This process relates to …

Information ratio is a strategy-independent performance measure that captures the excess return above a benchmark. In other words, it determines how much an investment outperforms or underperforms its benchmark over a while. The excess return is measured by finding the difference between the actual return and what would have been …

Companies offer credit sales, allowing customers to pay for products and services later. Companies record sales made on credit as accounts receivable. Later, they account for any repayments from customers as a reduction in that account. Sometimes, however, customers may also fail to repay their suppliers. In those cases, companies …

In order for us to have a clear idea of our compound growth rate, we must first understand the Time-Weighted Rate Of Return (TWR). Remember, compound growth is simply paying yourself a percentage of your earnings and then reinvesting those earnings to generate a larger return. In this article, we …

Companies attract customers through their products and services. In addition to those, companies also provide other packages or incentives. These incentives come through the provision of credit terms and incentives. On top of these, companies also offer discounts that promote more sales. Usually, companies provide two forms of discounts, namely …