Future Value Future value is the value of money that an investor will get after a specified period at a specific interest rate. For example, if Firm A invests $10,000 for 3 years at a 10% interest rate, the amount to be received by Firm A after 3 years will be the future value of …
Difference between present value and future value Read More »
Capital Asset Pricing Model is a tool to calculate the expected rate of return on an asset. There are three main factors of this model: Risk-Free Return Market Premium Sensitivity to market also known as Beta Risk free return is the rate of return expected to be generated with zero risk. Usually, the government treasury …
Although CA, CPA, and ACCA are all related to accounting and finance and have high recognition worldwide, there are significant differences in global recognition, course length, practical experience, educational requirements, specialization, and cost. CPA is highly recognized in the U.S. and globally, focusing on U.S. standards, while ACCA has broad international recognition and is designed …
PE ratio or PE multiple stands for Price to earnings ratio, which is computed by dividing the market price of a share by its earnings per share. It indicates how much an investor is ready to pay for each dollar of earnings of the company. For example, a PE multiple of 14 indicates that for …
Post-closing trial balance is prepared after making the closing entries in the accounts. Post-closing trial balance includes only the permanent accounts and it does not include any temporary accounts. This is because all the temporary accounts are closed by closing entries and their balances are transferred to permanent accounts. The temporary accounts are closed in …
Post Closing Trial Balance – Explanation with Example Read More »
An adjusted trial balance is the one that is prepared just after making the adjusting entries at the end of the period. This trial balance includes all the adjustments regarding deferral or accrual of the expenses or incomes. Let us understand this with the help of some examples of adjusting entries. Let us suppose that …
Adjusted Trial Balance – Explanation with Example Read More »
A trial balance can be referred to as a list of accounts that have a period-ending balance. Once the general ledgers are complete, the ending balance of each account is posted to the trial balance. It contains two amount columns one for all the debit balances and the other for all credit balances. The total …
Unadjusted Trial Balance – Explanation with Example Read More »
Closing entries Closing entries are made at the end of the accounting period to close all the temporary accounts by transferring their balance to permanent accounts. Temporary accounts are all the income statement accounts along with dividends. Permanent accounts are balance sheet accounts. First, all the income statement accounts are transferred to the income summary …
A Guide for Closing Entries in Accounting with Examples Read More »
Adjusting Entries Adjusting entries are made in the book at the end of the accounting period to reflect the correct balance of assets and liabilities. The main purpose of making adjusting entries is to record all the assets and liabilities at their true and fair value. For example, equipment is initially recorded at the original …
A Guide for Adjusting Entries in Accounting with Examples Read More »
Journal Entries The first step of the accounting cycle is identifying the financial transactions of a business. Once the financial transactions are identified, they are recorded in the accounting books by making journal entries. Therefore, journal entries can be defined as a process of recording financial transactions in the accounting books. The process of journal …
A Guide for Journal Entries in Accounting with Examples Read More »
We are committed to spreading financial awareness around the world through digital resources.
capinomics@gmail.com
Copyright 2023 capinomics.com All Rights Reserved
