Balance sheet example below shows various components of the key accounting document including assets, liabilities and owner’s equity. Balance sheet is the foundational accounting concept helping businesses understand their worth.
Investment asset classes explained in the below diagram including the three main asset classes that are equities (stocks), fixed income (bonds) and cash equivalent. There are other investment asset classes including real estate, land, commodities, cryptocurrencies and collectiables.
A chart of accounts is a listing of the names of the accounts for recording transactions in its general ledger. Chart of accounts (COA) is an organizational tool that provides a breakdown of all the financial transactions conducted during a Continue reading Chart of Accounts Accounting Explained
The Investment Risk Pyramid is an asset allocation framework for investors to choose different assets classes. This helps one to decide how to diversify a portfolio according to their risk tolerance and expected returns. The base of the investment pyramid Continue reading Investment Pyramid Managing Risk
Business Case Methodology: business cases are prepared to help a company decide whether to proceed with a given project. To start off, the preparation of the business case requires understanding of the key metrics or key drivers that help company Continue reading Business Case
Accounting Ratios are used to evaluate company’s performance and relevant standing against its competitors. The list of the key accounting ratios includes profit margin, gross margin, asset turnover ratio, current ratio, quick ratio and other ratios. Financial accounting ratios help Continue reading Accounting Ratios
Net Present Value (NPV): so how do you calculate net present value? NPV is calculated as a sum of cash flow through project life cycle adjusted to the discount interest rate. It is calculated to estimate the net benefit of Continue reading Net Present Value NPV
Supply and demand graphs is one of the most used tools in Economics. It depict the equilibrium between suppliers and consumers. The graph is an intersection of two curves mapped against quantity and price. Demand curve has a negative slope Continue reading Supply and Demand
