Capital Expenditure
What is Capital Expenditure (CAPEX) Following Key points will be discussed in this Article: What is Capital Expenditures? Capital Expenditure Formula Cash Flows to Capital Expenditures Can Capital Expenditure be Negative?…
Fixed cost Vs Variable cost
Fixed cost Vs Variable cost Companies generally have to bear cost of production. It can be divided in to two parts specifically. There are known as variable cost and fixed…
Difference between Trade discount And Cash discount
Difference between Cash discount And Trade discount Goal of each and every company in the market is to gain profit within a stipulated amount of time. In order to ensure…
FOB shipping Vs FOB destination
FOB shipping Vs FOB destination FOB stands for Free on Board In case of international trade, terms like FOB or Free on board shipping and FOB destination are noticed. It…
Book Value vs Market Value
Book Value vs Market Value For the purpose of investment, it is important to know the difference between book value and market value. There is no doubt in the fact…
After-tax cost of debt
After-Tax Cost of Debt There is a part in the WACC formula – r (D) × (1 – t) that stands for after-tax cost of debt. The debt holders must…
Cost of Equity
Cost of Equity The cost of equity is the rate of return required on the common stock of a company. This minimum rate of return is essential for the company to…
Revenue Expenditure
Revenue Expenditure Revenue expenditure refers to the cost that is obliged to spend immediately after the cost is earned. By following this matching principle, it is possible for a business…
Deferred Assets
What is a Deferred Asset? Deferred asset refers to that expenditure that is paid in advance, but is not yet spent. There can be two situations from where deferred asset…
Deferred Credit
What is deferred credit? Deferred credit indicates the money taken in advance prior to being earned like unearned revenue, customer advances or more familiar term of deferred revenue. Money taken…
Deferred Revenue
What is Deferred Revenue? Deferred revenue means the payment received by a company in advance for some products that are yet to be delivered or services that have not been…
What is Goodwill?
What is Goodwill? Goodwill of a company is considered as an intangible asset that reveals the reputation, customer connection and other relevant factors of the business. Goodwill represents the value…