Inventory meaning that Material or Items which are owned by the business for further production of goods and for sale. To understand the meaning of Inventory more simply, first we have to divide the business into two types. These are Read More …
Accounts Payable (AP) means that amount which will be payable to the vendor/Supplier against the credit purchase of goods and services from them. At the end of the financial year, the total amount of AP is shown on the balance Read More …
Accounts Receivable (AR) means that amount which will be received from the customer against the credit purchase of goods and services from the business. At the end of the financial year, the total amount of AR is shown on the Read More …
Current liabilities are a type of loan that must be repaid within one year (maximum 1 year). These loans are better known as short-term liabilities. This type of liabilities is taken to achieve the smooth operation of the business. In Read More …
Non Current liabilities are the type of debts which is payable over a term exceeding one year. These debts are better known as Fixed or long-term liabilities. These type of liabilities are taken to achieve the long term goal of Read More …
The liabilities are those valuable things that the business owes (Loans) someone else or other business and which have to pay in the future. These arise during the course of business operations. Example: – Debenture Mortgage Loan Long Term Loans Read More …
In accounting, Drawing means anything withdrawal by the owner from the business in cash or in-kind(any item). In other words, The owner or owners have all the rights on the business transactions but the drawing account is that account which Read More …
In accounting, capital means anything brought by the owner into the business in cash or in-kind(any item). In other words, capital means that balance amount of assets which is left after a subtracting amount of liabilities from total assets. It Read More …
Non-Performing Assets or NPA means those loan(Asset for the lender) provided by the Banks or financial Institutions which is not performing. It means these loans on which amount of interest, as well as the amount of principle, are not repaid Read More …
Those assets which cannot be touch, feel, and see are called intangible assets. in other words, all those assets which don’t have any physical existence are known as intangible assets. They don’t have any risk from the human being activities Read More …