Purview: Working capital is an important metric for all business, regardless of their size. It is defined as the excess of current assets over current liabilities. It is also known as circulatory capital, fluctuating capital or revolving capital. In formula: W.C. = Current Assets – Current Liabilities Types of Working Capital: Working Capital can be … Continue reading Working Capital – Method and Uses
Author: Suraksha
An Overview on Partnership
Purview: A Partnership is an agreement in which two or more individual share the profits and liabilities of a business venture. The partners in a partnership may be individuals, business, interest based organizations, schools, governments or combinations. Various arrangements are possible: All partners might share liabilities and profits equally, or some partners may have limited … Continue reading An Overview on Partnership
Book-keeping – A process
Purview : Book Keeping is the recording of financial transactions and is part of the process of accounting in business transactions which includes purchases, sales, receipts and payments by an individual person or an organization/corporation. There are several standard methods of book keeping, such as the single-entry and the double-entry book keeping system, but while … Continue reading Book-keeping – A process
A prospective note on Capital Venture
Purview: Capital Venture is a type of equity, a form of financing that is provided to small, early-stage, emerging firms that are deemed to have high growth potential or which have demonstrated high growth (in terms of number of employees, annual revenue or both). Start-up companies with a potential to grow need a certain amount … Continue reading A prospective note on Capital Venture
Finance Leverage
Meaning : Financial Leverage in common way is understood as the use of debt to acquire additional assets. Financial leverage is also known as trading on equity. In general it is taken as:- Earning before Interest and Taxes Earning before tax Or, % Change in Earning Per Share % Change in Operating Income But, Financial … Continue reading Finance Leverage