Important of Borrowing Terminologies

Important of Borrowing Terminologies What’s the Difference between those popular phrases – Pledge vs. Hypothecation vs. Lien vs. Mortgage vs. Assignment? In simpler terms, loans are of 2 types secured and unsecured loans. Lenders search for some sort of safety cushion or security before lending money. As a rule of thumb; the higher the lending … Read more

Difference Between Rent and Lease Agreement

Difference Between Rent and Lease Agreement Lease and lease terms are frequently used interchangeably. There is little to differentiate between the two conditions unless specified. In the real estate sector, both rent and lease agreements operate likewise without transferring the asset ownership to the second party. In corporate finance, both conditions can fluctuate significantly based … Read more

Floating Rate Bonds

What is Floating Rate Bonds? Bonds are debt instruments that come with fixed-interest rates traditionally. Floating rate bonds are a particular kind of bond which comes with adjustable or floating interest rates. For individual investors, these debt instruments resemble similar to floating-rate bank loans to you personally. Floating rate notes or bonds are issued with … Read more

Bonds vs Debentures

Bonds vs Debentures For simplicity and understanding, bonds and debentures could be contrasted to unsecured and secured loans. That’s the prime difference that can differentiate between a bond and a debenture. Both the bonds and debentures are issued by large corporations and Government institutes to raise funds. With some variation in characteristics, debentures are termed … Read more

Difference between mortgage and rent

Difference Between Mortgage and Rent Buying a home is another step for tenants who’ve lived in rented apartments. Even though there’s not anything wrong with living in rented flats, owning a home may be a significant accomplishment for some. However, owning a house doesn’t relieve the individual of the expenses. They still have to bear … Read more

Yankee Bonds

Yankee Bonds Accounting Yankee bonds will be delivered at the U.S. bond market by a foreign entity, and they are designated in U.S. dollars. Governments, associations, and unique entities provide Yankee bonds. They could likewise be coordinated with varying levels of risks, developments, or loan expenses. A Yankee bond is referred to as a foreign … Read more

Preferred Stockholders

Preferred Stockholders Preferred Stockholders that is also referred to as the favorite stocks are described as the stocks within the organization’s stock. These stocks have various dividends that are meant to be paid to the investors before the issuing of their stock volatility. If the business becomes insolvent, preferred stockholders have the right to have … Read more

Accounting Cycle

Accounting Cycle Accounting is a systematic process that starts with identifying & measuring transactions and ends with summarizing and reporting. As all the steps maintain a chain relationship with each other, the process is called the accounting cycle. The basic steps of the accounting cycle can easily be understood through this diagram:  Identifying and Recording … Read more

Accounting Equation

Accounting Equation   The two fundamental elements of business are what it owns and what it owes. Assets represent the resources of a business that a business owns. For example “Patrick & Sons” company has total assets of approximately $ 34.6 billion. And liabilities and owner’s equities are the rights and claims against the resources … Read more

8 Types of Audit Evidence

Types of Audit Evidence Auditors responsible to design and perform the auditing process in a way that enables them to obtain sufficient appropriate audit evidence to support their opinion. Audit Evidence refers to accounting, financial records and any other relevant information that auditor gathers during the auditing work. For example, supplier invoices, external confirmation, agreements, … Read more