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 may arise – Short-term consumption – For short term consumption, the purchased item is likely to be spent within few months after the expenditure is… Read More »
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 as deferred credit is not considered as income for the company. Usually, deferred credit is taken as a receipt from the customer in advance. In… Read More »
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 executed and yet to be performed. Therefore, deferred revenues are categorized as the liability of a company on its balance sheet rather than considering as… Read More »
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 of a business firm’s status. This value is not countable in the account book, but it can be realized if the business is ever sold… Read More »
What is Zero-Based Budgeting? The idea of zero-based budgeting was introduced in the year 1960. The concept was initially used for government and business organizations. It is the budget planning procedure for the revolution of the organization’s program and expenditures. Zero based budget definition What is zero-based budgeting? In management accounting, zero-based budgeting refers to… Read More »
Difference between Sunk Cost and opportunity Cost Basically, sunk cost is money that has been spent already. On the other hand, opportunity cost is certain amount of money from which you are not able to get returns. Due to investment of capital inappropriate manner, return is not received. Sunk Cost Example If 1000 shares are… Read More »
Sunk Cost Vs Opportunity Cost Due to confusion in finance related issues, you can be stuck at one point for extended amount of time. It is certainly not a good thing. Difficulty is often faced in order to move forward. Therefore, few factors must be looked at before taking a decision on the occasion. According… Read More »
Lease or Buy Decision for Business In order to run a business, diverse kinds of equipment are required. To fulfill the requisite, it is not necessary to buy each and every item. Therefore, decision must be taken adequately on the issue of lease and buy. Based on need, goal and budget, choices are made mostly.… Read More »
How to choose retirement income fund? Research properly while selecting a fund Confusion is often noticed among the retiree during selection of retirement income fund. Jitter among the retiree is quite common on the occasion. Investors are quite concerned about influence of the stocks on their lifestyle. Risk tolerance may not be enough at the… Read More »
Income Funds A Source of Stress Free Income for Retiree To avoid worries regarding allocation of asset, retirement income fund has been considered as the best option. Level of risk tolerance is matched perfectly in due course. Balance is retained perfectly. Best possible rate is guaranteed through the withdrawal rate. Professionals generally work behind these… Read More »