Everyone is familiar with the term ‘costs’. In business, there are all sorts of costs – from the cost of goods sold and the cost of marketing and sales to the cost of employee benefits and the cost of occupancy. But what about transaction costs? Transaction costs are a unique …

The income statement details a company’s financial performance. This statement includes revenues and expenditures. Based on those items, it calculates several types of profits. However, it must categorize expenses into several categories depending on their nature. One of these classifications includes the cost of goods sold. What is the Cost …

Inflation is the scourge of the modern economy. In order for us to make wise decisions about where to allocate our precious resources, we need to have a good understanding of what inflation is and how it works. On the other hand, there are a number of economic indicators that, …

A corporation is a legal entity established by individuals or shareholders in order to generate profits. In other words, it’s an impersonal entity that possesses an existence that is separate from its owners. A corporation can own assets, borrow money, enter into contracts, hire employees, and much more. It is …

What is Market Cycle It is not a secret that every financial market including the stock market faces a lot of ups and downs. It can be seen in past years that these ups and downs are coming with frequent regularity, roughly about every 2-3 years. A lot of people …

When entering an item into the financial systems, companies must have a supporting document. In most cases, this document will differ based on the type of transaction. Once entered, companies cannot remove the entry. However, they can still reverse the impact through other journal entries. Nonetheless, the transaction will require …

Almost every security trader will rather go for a trading strategy that minimizes risks and increases chances of achieving success. And, the time-weighted average price (TWAP) is one such trade execution strategy. TWAP reduces the impact of large orders on the security market, making it a perfect choice for high-volume …

For most companies, external audits are mandatory. This process involves independent auditors assessing a company’s financial statements. Based on that, they conclude whether those statements include material misstatements. However, companies must also examine their internal processes. This process falls under internal auditing. Within that process, companies may conduct operational audits. …

No matter your trading strategy, there are some parameters you must get right to become a profitable trader. Beyond correct analyses and prediction, a good trader must also master good timing, accuracy, and precision. This will help to get trades on time and maximize market movements. However, it usually takes …

The term reserves describe resources kept or retained for future use. Usually, these resources are not available for immediate utilization. However, they can help in the future if required. This term has various meanings in every field. In accounting, it covers several areas. These include a portion of shareholders’ equity, …