ntial architectur

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Total assets minus total liabilites

  Simply we can say, EQUITY IS NOTHING BUT ITS ONLY A WAY OF COLLECTING CAPITAL through the investor in favor of a company. Equity is the capital amount which is raised or contributed by the members of the company. For example, if your home is worth $300,000 and you owe $100,000, you... »read more

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CAMEL rating methodology has adapted to perform global risk assessments of MFIs

  Financial transparency is about the production, testing, dissemination and use of information related to an MFI's financial performance. Beginning with an MFI gathering and reporting accurate information, the sequence extends to verifying the information, then to analyzing, comparing, and... »read more

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Palli Krama Sahayak Foundation

In recent years, micro credit, in its wider dimension known as microfinance, has become a much favored intervention for poverty alleviation in the developing countries and least development countries. There is scarcely a poor country and development oriented donor agency (multilateral,... »read more

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How is historical accounting better than alternatives?

Historical Cost Accounting is a traditional valuation method as it reflects only on the past cost of the asset, however in the contemporary business environment companies must remain flexible and transparent. This belief has lead to the creation of several other valuation methods, due to... »read more

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Explain the basis accounting unventories and describe the inventory cost flow methods

LIFO, which stands for "last in, first out," and FIFO, which stands for "first in, first out," are terms commonly used in inventory control, in cost accounting and in computer science. They all stand for literally the same phrases, but it means something different in each... »read more

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Deductive reasoning, or deduction, starts with a general case and deduces specific instances.

Deductive reasoning is one of the two basic forms of valid reasoning. While inductive reasoning argues from the particular to the general, deductive reasoning argues from the general to a specific instance. The basic idea is that if something is true of a class of things in general, this... »read more

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Basic Principles of Taxation

  The term “taxation” comes from Latin word “Taxation”. It means too determine he payable quantum on estimate. Taxing authority determines tax to be payable by the assesse. So Tax is the revenue collected by the Government from persons and organizations under... »read more

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The true liquidity refers to the ability of a firm to pay its short term obligations as and when they become due.

  The measurement of a firm's short run ability to pay its debts as they come due is a very important aspect of financial analysis. Most credit analysts use the current and quick ratios for this purpose. Many businesses find it necessary at some point to borrow funds. Lenders need to... »read more

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The Father of Accounting

Fra Luca Bartolomeo de Pacioli (sometimes Paciolo) (1446/7–1517) was an Italian mathematician and Franciscan friar, collaborator with Leonardo da Vinci, and seminal contributor to the field now known as accounting. The young Pacioli had always loved mathematics though, and he soon... »read more

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