Tag Archives: Finance
Mutual funds are a very popular form of investment these days. Most people already own mutual funds within their brokerage account or retirement plan. New investors should understand this type of investment and why a significant number of people prefer them.
Mutual funds are investment that will involve a group of investors that combine their money. They employ a portfolio manager that could invest their asset funds inside in the stock market or other securities. The manager will deal with researching and maintaining winning assets around the stock market.
When a company is fortunate enough to have excess cash sitting around it may invest in debt securities that are either issued by the government or other private entities. Similarly, a company in need of financing to improve its cash position may find it necessary to issue debt to investors who are interested in generating interest income in addition to any potential discount they can benefit from based on the face value of the bond.
This is a continuation of “The Basics and Pricing of Debt Securities” post. If you have not read that post / are unfamiliar with how bonds are priced, please do so before reading this article.
Evaluating a project’s performance can seem like an overwhelming task, but with the right tools in hand the process can become a lot more manageable. One very popular method used by many project managers is a concept called Earned Value. EV is used to look at how well or not so well a project is performing from the perspective of a single unit of measurement (money). It takes the two dimensions associated with project performance measurement, cost and time, and combines them so that even the project’s schedule performance (time) can be expressed in dollars.
Understanding the relationship between financial statements enable you to manage business operations better. The end products of an accounting information system are the four basic financial statements that can be produced. They are :
(1) The Income Statement (2) Statement of Owner’s (Shareholder’s) Equity (3) The Balance Sheet (4) The Statement of Cash Flows
While each statement tells its own story, all four of them are connected to each other directly or indirectly. Understanding the relationship between financial statements will allow you to validate the integrity of the information provided as well as allowing you to build a better foundation for more complicated financial analysis.
Looking for a step by step tutorial on how to calculate depreciation? You’ve come to the right place! In this tutorial, we will explore how to calculate depreciation using  the straight line method,  double declining balance method,  units of production method and finally  sum of the years digits method. Not only that, you will also see how accounting journal entries correspond to each method also.