Notes Payable
Definition of Notes Payable When a company issues promissory notes, it maintains the records of the amount of promissory notes issued in a ledger account. Such account is termed …
Traditional Budgeting
Meaning of Traditional Budgeting Traditional budgeting is a method of preparation of the budget in which last year’s budget is taken as the base. Current year’s budget is prepared …
Activity Based Budgeting
Activity based budgeting is a budgeting method in which budgets are prepared using Activity Based Costing after considering the overhead costs. In simple words, activity based budgeting is management …
Zero Based Vs. Activity Based Budgeting
Zero Based Budgeting and Activity Based Budgeting are the most popular budgeting methods. The selection of preferred budgeting method depends on the functioning and suitability to an organization. Before …
Steps in Zero Based Budgeting
Zero-based budgeting (ZBB) is a management tool used to control the costs in an organization. It is a budgeting method where current year’s budget is prepared from the scratch …
Letter of Credit Discounting
Discounting of Letter of Credit (LC) is a short-term credit facility provided by the bank. In the Letter of Credit discounting process, the bank purchases the documents or bills …
Factoring
Definition of Factoring Factoring is a financial service in which the business entity sells its bill receivables to a third party at a discount in order to raise funds. …
Strangle
Strangle is a delta neutral trading strategy which pays off only with a large movement in the underlying market price. It consists of taking positions in call and put …
Zero Based Vs. Traditional Budgeting
Zero-Based budgeting and traditional budgeting are the two predominantly used budgeting techniques. These techniques help the companies to allocate capital to different departments. These methods of budgeting vary from …
Zero Based Vs. Incremental Budgeting
Zero-based budgeting and Incremental budgeting are the two most commonly used methods of budgeting that are implemented by most of the companies. Both the methods are unique and are …