An imprest account is a type of account used to track and manage petty cash expenditures. The account is usually kept at a low level, with only enough cash to cover small, routine purchases. As expenditures are made, they are recorded in the account. When the account reaches a predetermined low level, it is replenished … Read more
In corporate finance, forced selling (forced liquidation) is the sale of assets by a company in order to meet its financial obligations. This is typically done when the company is unable to meet its debt obligations and is facing bankruptcy. Forced selling can also refer to the sale of assets by an individual in order … Read more
Capital accumulation is the process by which businesses reinvest profits back into the business in order to finance growth and expansion. This can be done through the reinvestment of profits, the issuance of new equity, or the taking on of new debt. The goal of capital accumulation is to finance the future growth of the … Read more
An asset quality rating is a measure of the creditworthiness of a company’s assets. It is used by lenders to assess the risk of lending to a particular company. The higher the asset quality rating, the less risk the lender is taking on. The asset quality rating is based on a number of factors, including … Read more
Circulating capital is the portion of capital that is used to finance the day-to-day operations of a company. This includes money that is used to purchase inventory, pay employees, and cover other operating expenses. The goal of circulating capital is to keep the company running smoothly and efficiently. Circulating capital is different from non-circulating capital, … Read more
Transparency is a term used to describe the visibility or availability of information. In the business world, transparency is often used to describe the disclosure of information between companies and their shareholders. For example, a company may be required to provide shareholders with information about its financial performance, business activities, and governance practices. The goal … Read more
. Paid-Up Capital: What It Is, How It Works, and Why It Matters. What is called up capital in accounting? In accounting, “called up capital” refers to the portion of a company’s share capital that has been issued and paid for by shareholders. This is also sometimes referred to as “paid up capital.” Called up … Read more
CCS represents the cost of supplies consumed during the current accounting period. This includes both direct and indirect costs associated with the production of goods or services. Direct costs are those that can be easily traced to the specific good or service being produced. Indirect costs are those that cannot be easily traced to the … Read more
A non-controlling interest is defined as the portion of a company’s equity that is not owned by the parent company. In other words, it is the portion of the company that is owned by shareholders other than the parent company. The non-controlling interest is also known as the minority interest. The non-controlling interest is important … Read more
The marginal cost of funds is the increase in the cost of borrowing additional funds to finance an extra unit of investment. In other words, it is the cost of borrowing the next unit of investment. The marginal cost of funds is often used as a measure of the true cost of borrowing, since it … Read more
