Author: Beena Wilson

Corporate tax and personal tax are two distinct types of taxation that apply to different entities: corporations and individuals, respectively. Corporate Tax: Definition: Corporate tax is a tax levied on the profits earned by corporations or businesses. It’s a direct tax imposed on the income or capital of companies. Entity: Corporations, including incorporated businesses, are… Continue reading Corporate Taxes and Personal Taxes

Term loans are a type of borrowing where a lender, typically a financial institution like a bank, extends a specific amount of money to a borrower for a predetermined period. The borrower agrees to repay the loan amount over a set period, along with interest, in regular installments. These loans can be short-term (usually up… Continue reading Term Loans

Debenture capital refers to the capital raised by a company through the issuance of debentures. Debentures are a type of debt instrument used by companies to borrow money from the public or investors. When individuals or institutions buy debentures, they essentially lend money to the company issuing the debentures. Unlike shares, debentures do not represent… Continue reading Debenture Capital

Deferred revenue, also known as unearned revenue or deferred income, represents money that a company has received in advance for goods or services that it has not yet delivered. It’s a liability on the balance sheet because the company still owes the customer the product or service for which it has been paid. Here’s a… Continue reading Deferred Revenue

Retained earnings represent the accumulated net profits or losses of a company over time that have not been distributed as dividends to shareholders. It’s a component of the shareholders’ equity on the balance sheet and reflects the company’s ability to reinvest its profits for future growth. The formula for retained earnings is quite straightforward: Retained Earnings=Beginning Retained Earnings+Net Income (or Loss)−DividendsRetained Earnings=Beginning Retained Earnings+Net Income (or Loss)−Dividends… Continue reading Retained Earnings

Realized gain or loss refers to the profit or loss that is actually incurred when an investment is sold or otherwise disposed of. It contrasts with unrealized gain or loss, which is the potential profit or loss on paper, based on the current market value of an investment. Here’s how to calculate realized gain or… Continue reading Realized Gain/Loss

Interest on receivables, also known as receivable interest or late payment interest, refers to the additional amount charged or earned when a customer or client delays payment for goods or services beyond the agreed-upon payment terms. In business transactions, it’s common for companies to provide credit terms to their customers, allowing them a certain period… Continue reading Interest on Receivable

Nonprofit accounting is a specialized branch of accounting that focuses on the unique financial reporting and management needs of nonprofit organizations, such as charities, foundations, religious organizations, and social service organizations. While many accounting principles apply to both for-profit and nonprofit entities, there are specific accounting practices and standards tailored to the nonprofit sector. Here… Continue reading Nonprofit Accounting