Fixed Asset

What is Fixed Asset? Fixed asset, in accounting, is a long-term asset having lifespan > 1 financial year and value > capitalizing limit. They are typically bought to generate …

Capitalizing Assets

What is Capitalizing Assets? Capitalizing assets simply means you are carrying an asset to balance sheet. It indicates you purchased an asset, the life of which is more than …

Lease Vs Rent

Lease and rent both relate to utilizing an asset, belonging to a third party, to generate returns. However, leasing is different from renting. They differ from each other with …

Activity Based Costing

What is Activity Based Costing (ABC)? Activity Based Costing (ABC) is a 2 step method of costing whereby costs are first allocated to ‘identified activities’ of a business and …

Buy Vs Lease

Buy vs Lease dilemma is faced by most of the entrepreneurs. The decision on whether to buy or lease is dependent on number of factors such as duration for …

Equity Multiplier

What is Equity Multiplier (EM)? Equity Multiplier is a key financial metric which measures the level of debt financing in a business. In other words, equity multiplier is defined …

Cash Credit

What is Cash Credit? Cash credit is a facility to withdraw money from a current bank account without having credit balance but limited to the extent of borrowing limit …