Put and Call Options
In this article we look at what put and call options mean. We begin with a bit of a background study of futures transactions. We then move on to …
Net Income
Today let us discuss the Net income metric. As many would agree, revenue growth is vital to the growth of your business. However, a measure of revenue alone is …
Advantages and Disadvantages of Sole Proprietorship
There are many advantages and disadvantages of a sole proprietorship firm. Before getting into them, lets quickly understand what is a sole proprietorship firm. A sole proprietorship is the …
Statement of Stockholders Equity – Format, Example and More
Statement of Stockholders Equity (or statement of changes in equity) is a financial document that a company issues under its balance sheet. The purpose of this statement is to …
Cost Accounting Systems – Meaning, Importance And More
Manufacturers use cost accounting systems to keep a tab on the production activities using a perpetual inventory system. In simple words, the cost accounting system is meant for simplifying …
Advantages and Disadvantages of Corporations
To better understand the advantages and disadvantages of corporations, let’s understand it with the help of an example. Meet Sam. He is the owner of a retail chain that …
How To Calculate Retained Earnings – Formula, Example and More
Retained earnings is the amount that the business is left with after paying dividends to the shareholders. A business can either have a profit or a loss. When the …
Subsidiary Company
A subsidiary company is a business entity that is fully or partly owned by another entity. If an X company buys Y company, Y becomes the subsidiary company of …
Cash Flow Vs. Fund flow
Cash flow and fund flow are two different statements calculated for different purposes. Investors, financial analysts, and management use these statements to take important investment decisions regarding the company …
ROI vs ROE – All You Need To Know
Analysts across the globe use ratios such as Return on Equity (ROE) and Return on Investment (ROI) to identify the investment potential. Although both the metrics define the health …
