Found 242 Articles for Finance

It is hard to overstate the importance of saving for emergencies and creating investments. It is difficult to predict the future, therefore the best anyone can do is to prepare for uncertainty by saving and investing properly. There is a wide variety of investments available, from those with a high level of risk to those with a lesser level of risk, and from those with a long-term commitment to those with a shorter time horizon. An investor's decision on the investment type is driven exclusively by his risk tolerance and time horizon for recouping his initial investment. Typical ... Read More

An annuity is a financial product that comes with several advantages, such as interest accumulation, financial security, and wealth accumulation. Although annuities look like simple investments at the first glance, learning all the ins and outs of the contract may be challenging. Owner, annuitant, and beneficiary are all phrases that might be easily misunderstood, simply due to the fact that they are often used interchangeably even by those from the profession itself. However, their behavior changes when applied to annuities. Who is an Annuitant? An annuitant is a person who, under the terms of an annuity contract, is ... Read More

An organization's accounting and financial management systems are crucial to its success. Most companies are looking forward to the simplified interface and simplified duties. Thanks to the widespread availability of digital tools, businesses no longer have to rely on inefficient and time−consuming manual processes. To be sure, picking the best accounting software is no easy feat. Your business plan should consider several factors− viability, cost−effectiveness, efficiency, and appropriateness. ADP and QuickBooks are two of the most well−known names in the payroll software market. But what makes one provider's payroll services better than the other, and why should you use them ... Read More

Every firm, no matter how big or small must comply with legal requirements for reporting financial data and paying taxes. Therefore, in any form of business, it is not a luxury but a need to keep meticulous records of all money coming in and money going out. Depreciation, the slow but steady decline in the value of an item over time, is an inevitable cost of doing business. This expenditure arises independently of the worth of the firm's assets. As a result of this, it is vital to create a distinction between cumulative depreciation and the spending of depreciation. ... Read More

A company's profitability may be calculated by comparing two variables: income and expenditures. At some point in the accounting process, you will have to categorize some cash inflow or outflow as belonging to a specific time frame. Accrual and deferral procedures are utilized to achieve this result. After the adjustments have been made, the accounting records for accruals and deferrals will be created on an accrual basis rather than a cash one. This, in turn, guarantees that the genuine image of the firm is represented in the accounting records and practices, as required by the matching concept of accounting. ... Read More

Carbon Tax and Emission trading schemes are policies to reduce carbon emissions through alternative ways by using market incentives to reduce emissions. Carbon Tax and Emission trading schemes are opposite sides of the same coin.What is Carbon Tax?A carbon Tax is a tax that is levied on the carbon emissions required to produce goods and services. Under this, the government sets a price the emitters must pay for each ton of the greenhouse gas they emit.A Carbon Tax sets the price of carbon dioxide and enables the market to determine the number of emission reductions.What is Emission Trading Scheme?An emission ... Read More

Carbon Tax and Cap and Trade are policies to reduce carbon emissions through alternative ways by using market incentives to reduce emissions. Carbon Tax and Cap and Trade are opposite sides of the same coin.What is Carbon Tax?Carbon Tax is the tax that is levied on the carbon emissions required to produce goods and services. Under this, the government sets a price the emitters must pay for each ton of the greenhouse gas they emit.A Carbon Tax sets the price of carbon dioxide and enables the market to determine the quantity of emission reductions.What is Cap and Trade?Cap and Trade ... Read More

The provision of insurance is an essential component of both commercial and personal life. It acts as a buffer against the risks associated with one's financial situation. Because most of us cannot accurately predict what will occur in the future, it is necessary to have insurance firms that can pool money and pay out benefits to individuals in need of financial assistance. However, insurance firms are required to determine the dangers that are associated with the act of insuring a company or an individual. They consult with industry experts in order to ascertain the level of danger posed by the ... Read More

If the buyer wants to acquire stocks of the targeted company directly from selling to the shareholders, then that acquisition is called stock acquisition. In this, a buyer will get the ownership in both assets and liabilities of the business.In stock acquisition, the buyer sees a potential growth in a particular company’s stocks and hence, the buyer may feel that the current liabilities are manageable or minimum. Buyer will prefer stock sale without necessity of ownership transferring of each stock. This kind of acquisition is a strategic decision of corporate finance roles.FactorsThe factors to be considered in stock acquisition are ... Read More

Asset purchase agreement is the agreement between buyer and seller of an asset. It states the terms and conditions related to the purchase and sale of an asset. The asset may be a plant and machinery, goodwill, stock etc.PrerequisitesThe prerequisites for an asset purchase agreement are as follows −Sale and transfer of chosen asset/assets.Purchase price.Representations.Precedent.Conduct.Closing.Obligations (post – closing).Conditions.Compensation.Terms and termination.Other/miscellaneous.Requirements (Post completion)After completion of the asset purchase agreement, following are the requirements −Stamp duty and stamp duty land tax (if applicable).VAT payment (if applicable).Replacing old contracts.Administrative issues.Reasons for failureThe reasons for failure in this agreement are given below −Dealing with ... Read More