Advantages of Trade Credit

Advantages of Trade Credit

Trade credit has various advantages, making it a favorite source of working capital for all levels for buyers and a promotional tool for suppliers.… Read Article
Relevant Costs

Relevant Costs

Relevant costs are defined as the costs that arise in the future and are different for different alternatives. The concept of relevant costs is… Read Article
Differential or Incremental Cost.

Differential / Incremental Cost

Differential Cost or Incremental Cost is the difference in total relevant cost between two alternatives. These alternatives are ‘make or buy,’ ‘two different levels… Read Article
Sources of Working Capital

Sources of Working Capital

Sources of working capital can be spontaneous, short term and long-term. Spontaneous working capital includes mainly trade credit such as the sundry creditor, bills… Read Article
Return on Equity (ROE)

Return on Equity (ROE)

Return on Equity or ROE is a profitability ratio specially meant for the equity shareholders. It is expressed in percentage (net profit/shareholder’s fund *… Read Article
Functions of Finance

Functions of Financial Management

Functions of financial management are guided by the ultimate aim of any business, i.e., profit and wealth maximization. If we broadly classify the functions… Read Article
Common Size Financial Statements

Common Size Financial Statements

Common Size Financial Statements express every financial statement item in terms of a percentage of one convenient base parameter. The base item for the… Read Article