Contributed Capital vs Earned Capital – All You Need to Know
Equity is basically the amount that owners invest in a business. Equity primarily includes two components, one that owners directly invest and the other… Read Article
Promissory Note vs Loan Agreement
What do we mean by a Promissory Note and a Loan Agreement?A Promissory Note is a legally binding financial document for the repayment of… Read Article
Economic Investment vs Financial Investment – All You Need to Know
When we talk about investments, we never think about whether we are dealing with economic or financial investments. In the absence of this clarity,… Read Article
Call Spread vs Put Spread
Call and Put Spreads are popular options strategies. Under these strategies, an investor buys and sells an equal number of calls or puts option… Read Article
Real vs Nominal Exchange Rate – All You Need to Know
The exchange rate is, as we all know, the rate at which we convert one currency to another currency. There are two types of… Read Article
Direct Materials Quantity / Usage / Volume Variance
As the word implies, Direct Materials Quantity Variance refers to the deviation resulting from the difference in the expected and actual quantity of direct… Read Article
Fixed Budget – Meaning, Benefits, Drawbacks, and More
As the name suggests, a fixed budget remains fixed even when there is a change in the business activity. Or, we can say it… Read Article
Direct Labor Budget –Meaning, Benefits, Calculation, and More
As the word suggests, the Direct Labor Budget relates to the cost of direct labor involved in production/assembly or service. Specifically, this budget shows… Read Article
International Monetary System: Meaning, Evolution, Advantages, Criticisms and More
International Monetary System: MeaningInternational Monetary System (IMS) is a well-designed system that regulates the valuations and exchange of money across countries. It is a… Read Article
CLO vs CDO
Many who followed the 2008 financial crisis closely would know about CDO (collateralized debt obligations). They were a major reason triggering the financial crises.… Read Article
Compounded Annual Growth Rate vs. Internal Rate of Return
Meaning of CAGRThere are various metrics or indicators in the financial world to understand the return and quality of investment returns. Two such metrics… Read Article