What is Ratio Analysis? Ratio analysis is a mathematical method in which different financial ratios of a company, taken from the financial sheets and
Financial Modeling in Excel
Financial modeling in Excel is the process of building a financial model to represent a transaction, operation, merger, acquisition, financial
CFA vs FRM
Differences Between CFA and FRM The primary difference between CFA vs. FRM is the topics that it covers. CFA, on the one hand, covers a broad range
FCFF (Free Cash Flow to Firm)
FCFF (Free cash flow to firm), also known as unlevered cash flow, is the cash remaining with the company after depreciation, taxes and other
Target Profit
What is Target Profit? Target Profit is the estimated amount of profit that the management hopes to achieve during an accounting period and is
Accounting for Sales Discounts
What is Accounting for Sales Discounts? Accounting for Sales Discounts refers to the financial recording of reducing the sales price due to early
Adjusted Working Capital
What is Adjusted Working Capital? Adjusted Working Capital refers to the measurement of the business's operational working capital as it considers
Correcting Entry
What is Correcting Entry? Correcting entries in accounting is used to rectify the mistakes made while recording the financial transactions in the
Construction Work in Progress
What is Construction Work in Progress? Construction work in progress refers to the cost related to the work in progress of each incomplete work
Discount Allowed and Discount Received
What is Discount Allowed and Discount Received? Discount allowed is a reduction in price of goods or services allowed by a seller to a buyer and is
Committed Cost
What is Committed Cost? Committed Costs are fixed or budgeted or confirmed payments to be made in future to the vendors for goods or services to be
Capital Maintenance
What is Capital Maintenance? Capital maintenance concept states that the business net worth is said to have maintained if net assets at the end of
Default Risk Premium
Default Risk Premium Definition The default risk premium is an additional amount of interest rates paid by a borrower to lender/ investor as a
