Nagasravan Tamma has Published 288 Answers

What is a triple column cash book and explain its format?

Nagasravan Tamma

Nagasravan Tamma

Updated on 18-May-2022 09:17:26

Triple column cash books have three columns on both the debit and credit side of the cash book. These cash books record cash transactions, bank transactions and discounts. Both cash and bank transactions of column cash books are balanced and totaled periodically; discount column of triple column cash books is ... Read More

What are the revenue receipts?

Nagasravan Tamma

Nagasravan Tamma

Updated on 18-May-2022 08:54:33

Revenue receipts are those through which, the funds are generated from business core activities and results in increase in total revenue. These are shown in the profit and loss account and not in the balance sheet. These funds are generated from sale of goods or by providing services to others. ... Read More

What is the capital expenditure and its factors?

Nagasravan Tamma

Nagasravan Tamma

Updated on 18-May-2022 08:49:39

Capital expenditures are the funds used by the company to improve, purchase or maintain the company’s long term assets. With these funds, the company improves its efficiency or increases the capacity. Long term assets include property, equipment, infrastructure etc.Types of capital expenditures include the following −Expenses incurred in maintaining the ... Read More

What are the capital receipts?

Nagasravan Tamma

Nagasravan Tamma

Updated on 18-May-2022 08:47:30

Capital receipts are a receipt, which creates a liability or decreases the assets of an organization or any business. They increase the total capital of the company.These can be debt receipts and non-debt receipts. These are shown in the balance sheet rather than the income statement. This is done because; ... Read More

What is free cash flow formula?

Nagasravan Tamma

Nagasravan Tamma

Updated on 18-May-2022 08:44:38

Free cash flows (FCF) is the cash that generated by company after cash flow to maintain their capital assets and its operations. In other words, FCF is the cash remaining after paying taxes, payrolls etc. FCF is the effective measurement to measure company’s performance and financial healthTypesFree cash flow to ... Read More

What is swap contract?

Nagasravan Tamma

Nagasravan Tamma

Updated on 18-May-2022 08:35:16

Before going for a swap contract, first let us know about SWAP. Swap is a derivative contract linking two parties which are involved in an exchange of cash flows of financial instruments at pre agreed rate. Applications of swap are risk hedging and to access new markets.A swap contract is ... Read More

What is the Acceptance and rules of valid and invalid acceptance?

Nagasravan Tamma

Nagasravan Tamma

Updated on 18-May-2022 08:28:09

According to the Section 2 (b) of Indian Contract Act 1872, an acceptance is defined as “when the person to whom the proposal has been made signifies his assent thereto, the offer is said to be accepted. Thus, the proposal when accepted becomes a promise”.In other words, an offeree to ... Read More

What are the differences between backwardation and contango?

Nagasravan Tamma

Nagasravan Tamma

Updated on 18-May-2022 08:26:25

The major differences between backwardation and contango are as follows −BackwardationIt refers to the prevailing conditions of the market, when future price of commodities (gold, silver etc.) trade lower than anticipated price.Usually takes place when value determined (spot price – futures price) is lower than cost of carrying.Spot price is ... Read More

What is a commodity future contract?

Nagasravan Tamma

Nagasravan Tamma

Updated on 18-May-2022 08:24:05

It is an agreement in which the seller will sell a predetermined amount of commodities to the buyer on a particular date at a specific price. The main difference from future contract and option contracts is that holder in future contracts has obligation to act. Commodity contracts include assets like ... Read More

What is the total return swap (TRS)?

Nagasravan Tamma

Nagasravan Tamma

Updated on 18-May-2022 08:22:32

Total return swap (TRS) is an agreement between the two parties in which they exchange returns on financial assets. One party will pay on a set rate and the other will pay on the total return of the underlying asset (bond, loan, equity interest etc.). In this swap, the party ... Read More

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