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What are Shell Companies ? : While addressing the CA fraternity on the occasion of Chartered Accountants day on 1 July, Prime Minister Narendra Modi has hinted that stringent action would be taken on shell companies which are defunct when it comes to real operations. Following this, there was a massive crack down by the Ministry of … Read more
Typse of accounts: There are 3 types of Accounts i.e Personal account, Real Account, Nominal Account. The term “account” is always used in accounting / Book keeping to denote a specific record which stores all the debit and credit aspects related to that. Types of Accounts Meaning of Account : In accounting, the transactions that occurred … Read more
Lease – A lease is an agreement whereby the lessor conveys to the lessee in return for a payment or series of payments the right to use an asset for an agreed period of time. Leasing is a general contract between the owner and user of the asset over a specified period of time. The … Read more
The inventory turnover ratio is a common measure of the firm’s operational efficiency in the management of its assets. As noted earlier, minimizing inventory holdings reduces overhead costs and, hence, improves the profitability performance of the enterprise. Ideally the inventory turnover ratio would be calculated as units sold divided by units on hand. If you … Read more
Short Selling : The practice of selling a security that the seller does not own is called short selling. Short selling is trading strategy in which the sellers undertake the risk that the price of the security involved will come down and they will be able make profit by buying it at such lower price. Thus, … Read more
SEBI Overview: The Securities and Exchange Board of India was established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992. The first statutory regulatory body that the Government of India set up post the reforms of 1991 was the Securities and Exchange Board of India … Read more
Various Types of Lease, After providing A comprehensive Discussion on Lease Here we are providing complete details for Various Types of Lease. A lease agreement or a rental agreement is a vital legal document that should be completed prior to a landlord renting property to a tenant. If you like this article then please like us on Facebook … Read more
Supply Chain Management – Here we are providing full guide for Supply Chain Management (SCM). Find all details for Supply Chain Management like Definition, Advantages of having a supply chain management etc. Recently we provide complete details for Acid Test Ratio or Quick Ratio. If you like this article then please like us on Facebook … Read more
AS 5 – Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies. This Standard should be applied by an enterprise in presenting profit or loss from ordinary activities, extraordinary items and prior period items in the Statement of Profit and Loss, in accounting for changes in accounting estimates, and … Read more
What is Book Keeping and a comparison with Accounting. Find Everything related to Book Keeping, Here we are providing complete details for What is Book – Keeping and a comparison with Accounting like – activities involved in Book keeping, Book keeping ensures etc. Recently we provide complete details for What is Debit and credit explained … Read more
Accounting standard 28 Impairment of Assets: The objective of AS 28 is to prescribe the procedures that an enterprise applies to ensure that its assets are carried at no more than their recoverable amount. The asset is described as impaired if its carrying amount exceeds the amount to be recovered through use or sale of … Read more
Journal – Meaning: Process and Types of Journal Entries. Journal is the first stage of recording business transactions. It is called as “Book of original entry” After receiving the source documents related to business transactions entries are recorded in the journal, which is called Journalizing the transactions. Journal provides base for whole Accounting process by … Read more
Factoring How does it work – Factoring is an activity in receivables management system which facilitates a company to get the cash immediately on real time basis. If you like this article then please like us on Facebook so that you can get our updates in future ……….and subscribe to our mailing list ” freely … Read more
Reverse Book building: Reverse Book Building is a mechanism by which the Acquirer/Company offers to buy back shares from its shareholders. Securities and Exchange Board of India has issued the SEBI (Delisting of Equity Shares) Regulations 2009 providing for voluntary delisting of equity shares from stock exchanges along with the overall framework for voluntary delisting by … Read more
Debt Equity Ratio: The debt-equity ratio is an indication of the relationship between the contribution of the creditors and shareholders /owners in the capital employed in business. It’s one of important financial liquidity ratios among all that are used to assess the performance of a company. If you like this article then please like us … Read more
Institutional Placement Programme (IPP): This is one of such methods available to Indian listed companies for the purpose of complying with minimum public shareholding requirements by raising additional share capital. In the light of a guideline that mandates the listed companies to raise their public shareholding to 25% by limiting the promoter’s shareholding to a maximum … Read more
Rent Control Act has been enacted and implemented by all the State Governments to protect the legitimate rights of the tenants. Primarily it focuses on controlling the rent and protection of protect tenants from unauthorized eviction by landlords. Following are the key issues dealt by rent control act: 1. Rent control Act: Rent control acts … Read more
Fund flow statement also called as statement of “source and application of funds” which provides insight into the movement of funds and useful to understand the changes in the structure of assets, liabilities and equity capital And to analyze the flow of funds. If you like this article then please like us on Facebook so … Read more
High Frequency Trading is one of the specialized methods of algorithmic trading. As per the Securities and Exchanges Commission of the United States High Frequency Trading involves the following: The use of extremely sophisticated and high-speed computer programs for generating, routing, and executing orders The use of individual data feeds from exchanges as well as … Read more
Balance of payments (BOP) & Its components. The term “balance of payments” includes all payments and obligations made to outside countries against all payments and obligations received from outside countries. It’s a record of all financial flows in and out of a country from the rest of the world. Recommended Articles What is Franking How … Read more
Difference between trading account and demat account, Recently I have been asked by many people what is the difference between demat account and trading account ?. In fact there is a wrong notion among a vast number of people about the difference between the services rendered by these two. Here we are providing complete details regarding … Read more
Capital Structure: Find Capital Structure Definition and factors to be considered in its formulation process. In this article you can find complete details for Capital Structure like Meaning of Capital Structure, Capital Structure Gearing, Details for Highly geared companies, Low geared companies, Size of a company, Condition of economy, Condition of sales, Legal provisions etc. … Read more
What Is Debit Note and Credit Note: here we are providing complete details for Debit Note and Credit Note. In this article you can find all details related to Debit Note and Credit Note like Meaning or definition of debit note, when we issued debit note. Definition or meaning of Credit Note, When a credit … Read more
Employees Stock Option Plan (ESOP). Here we are providing complete details for ESOP (Employees Stock Option Plan). In this article you can find full details for ESOP Like Vesting Period, Perquisites etc. Check Details for Employees Stock Option Plan (ESOP) in India, we also try for providing Accounting Treatment, PPT Presentation etc in our next articles. Recently we have … Read more
AS 1 – Disclosure of Accounting Policies. This Standard deals with the disclosure of significant accounting policies which are followed in preparing and presenting financial statements. Disclosure of Accounting Policies To ensure proper understanding of financial statements, it is necessary that all significant accounting policies adopted in the preparation and presentation of financial statements should … Read more
Sub Fields of Accounting, Types or branches of accounting. Accounting is a system meant for measuring business activities, processing of information into reports and making the findings available to decision-makers. The documents, which communicate these findings about the performance of an organisation in monetary terms, are called financial statements. Find Everything you want to know … Read more
Acid Test Ratio or Quick Ratio.The basis for financial analysis, planning and decision making is financial statements which mainly consist of Balance Sheet and Profit and Loss Account. The profit & loss account shows the operating activities of the concern and the balance sheet depicts the balance value of the acquired assets and of liabilities … Read more
Double Entry System Advantages & Disadvantages: Any business transaction involves at least two accounts which we call as Debit and credit. As said above , double entry system assumes every transaction has two aspects Debit and credit. Both of these aspects should be recorded in books if accounts. It is considered as a scientific system … Read more
Accounting Standard 16 – Accounting for Borrowing Costs (AS 16). This Standard should be applied in accounting for borrowing costs. This Standard does not deal with the actual or imputed cost of owners’ equity, including preference share capital not classified as a liability. Exchange differences on foreign currency borrowings to the extent of the difference … Read more
What is Debit and credit explained with accounting equation. We often come across the words Debit and credit in many situations like while reading accounting theory or while applying this theory, means recording the accounting entries… If we ask someone about what’s a debit and what’s a credit then they may say that left had … Read more