Material Variance

Material Cost VarianceThe difference between the standard cost of direct materials specified for production and the actual cost of direct materials used in production… Read Article

Sources of Debt Financing

Meaning of Debt FinancingBusiness is in continuous need of funds for working capital needs or for incurring capital expenditures. In such scenarios, when the… Read Article

Sources of Equity Financing

Meaning of Equity FinancingEvery organization needs funds to function and it does so by raising capital. When the capital is raised by the sale… Read Article

Working Capital Turnover

Meaning of Working Capital TurnoverWorking capital turnover measures the revenue generated from every investment made in the form of working capital. The working capital… Read Article

Mortgaged Debentures

Meaning of Mortgaged DebenturesMortgaged debentures are debentures in which the company issues debentures to the applicants by keeping fixed assets as collateral security against… Read Article

Transferable Letter Of Credit

Definition of Transferable Letter of CreditTransferable Letter of Credit is a credit facility in which the first beneficiary has the right to pass on… Read Article

Standby Letter of Credit

Definition of Standby Letter of CreditA Standby Letter of Credit is a document that provides a guarantee to the beneficiary that, if due to… Read Article

Factoring Companies

Factoring is a type of financial service in which a business sells its accounts receivables to a third party called factor. The factor is… Read Article

Back-To-Back Letter of Credit

Back-to-Back Letter of Credit DefinitionBack-to-Back Letter of Credit is a negotiable instrument in which the seller gets a Letter of Credit from the buyer… Read Article

Specialized Factoring

When a business organization sells its accounts receivables to a third party called factor for a commission or fees in return, it is termed… Read Article