Companies use assets to generate revenues. Sometimes, these assets can be long-term, which requires spreading the cost over various accounting periods. In contrast, some can also be short-term, spanning less than 12 months. In this case, the items may not require the same treatment. These assets can also fall into …

Leasing is a common way of financing the purchase of an asset – such as a car, piece of equipment, or property – in which the lessee pays for the use of the asset over an agreed-upon time. A combination lease is one of the most common types of leasing …

Financial statements are reports of a company’s financial position and performance. They provide an overview of a company’s operations over a specific period. Consequently, it allows stakeholders to analyze the company. However, these statements come as a part of a standard package stemming from accounting practices and principles. For some …

Most businesses around the world accept checks as a form of payment, but there is a limit to the length of time that it can be presented. Checks can get stale after a certain amount of time, and if this happens, it can cause the check to be rejected by …

Financial statements are written reports of a company’s financial performance and position. These usually consist of the top three ones, the balance sheet, the income statement, and the cash flow statement. As implied by their name, each provides a different aspect of the company’s performance or position. These financial statements …

The price of a bond is a crucial metric for investors to consider when making decisions about their investment. It represents the amount at which the bond gets bought or sold. However, it is not as straightforward to determine this price. Several factors play a role in establishing the bond …

When it comes to the stock market, certain events can cause significant volatility in the markets and can lead to major losses for investors. One of the major events that can cause these kinds of losses is a black swan event. The event can cause significant losses due to the …

Return is the income an investor receives on their investment. It can be in the form of fixed income generated from the underlying asset. For example, dividends and interest receipts are a form of fixed income on instruments. However, a return can also come as capital gains or losses. Companies …

Accounting standards require a company to record inventory when the risks and rewards associated with the goods get transferred to it. Sometimes, the company may not be in physical possession of those goods. However, they may still need to record the inventory they have not yet received. In most cases, …

Customer acquisition and retaining customers are top priorities for any business. One of the best ways to keep customers coming back is to provide them with everyday low pricing on their favorite products or services. Everyday Low Pricing or EDLP is a pricing strategy in which the same price is …