Circulating Capital.

Circulating capital is the portion of capital that is used to finance the day-to-day operations of a company. This includes money that is used to purchase inventory, pay employees, and cover other operating expenses. The goal of circulating capital is to keep the company running smoothly and efficiently. Circulating capital is different from non-circulating capital, … Read more

What Does Transparency Mean?

Transparency is a term used to describe the visibility or availability of information. In the business world, transparency is often used to describe the disclosure of information between companies and their shareholders. For example, a company may be required to provide shareholders with information about its financial performance, business activities, and governance practices. The goal … Read more

Current Cost of Supplies (CCS).

CCS represents the cost of supplies consumed during the current accounting period. This includes both direct and indirect costs associated with the production of goods or services. Direct costs are those that can be easily traced to the specific good or service being produced. Indirect costs are those that cannot be easily traced to the … Read more

Non-Controlling Interest.

A non-controlling interest is defined as the portion of a company’s equity that is not owned by the parent company. In other words, it is the portion of the company that is owned by shareholders other than the parent company. The non-controlling interest is also known as the minority interest. The non-controlling interest is important … Read more

Marginal Cost Of Funds.

The marginal cost of funds is the increase in the cost of borrowing additional funds to finance an extra unit of investment. In other words, it is the cost of borrowing the next unit of investment. The marginal cost of funds is often used as a measure of the true cost of borrowing, since it … Read more

Introduction to Corporate Resolution.

A corporate resolution is a formal document that is approved by a company’s board of directors or shareholders that outlines a specific action or course of action that the company intends to take. Resolutions are typically used to authorize major financial decisions, such as issuing new shares of stock, issuing bonds, or authorizing a merger … Read more

Back-Of-The-Envelope Calculation.

A back-of-the-envelope calculation is a quick and dirty estimate of a value or quantity, typically done without the benefit of extensive research or formal calculations. The term is often used in business settings to refer to quick estimates of the potential profitability of a new product or business venture. For example, a company considering launching … Read more

Accounting Explained With Brief History and Modern Job Requirements.

Accounting is the process of recording, classifying, and summarizing financial transactions to provide information that is useful in making business decisions. The term “accounting” is also used to refer to the profession of accountants. The history of accounting can be traced back to ancient times. The first known records of financial transactions date back to … Read more

Vendor Financing.

Vendor financing is a type of financing in which a company finances the purchase of its products or services by its customers. The company provides the customer with the financing, which the customer then uses to purchase the product or service. The customer then pays back the loan over time, with interest. Vendor financing can … Read more