Asset valuation refers to the process of determining the present value of an asset using various valuation models. Asset valuation is generally performed when a company or an individual plans to sell, insure or take over the said assets. This valuation process is common to various assets, such as investments, including stocks, bonds and options; …
Post Type Archives: Glossary
Bad Debt
What does it mean? Bad Debt is debt that is not likely to be settled either due to failure in repayment by the borrower or due to no action to recover the debt from the collector. Bad Debt is mostly written off as uncollectible, which can impact the borrower’s credit score drastically. Points to remember …
Balance Sheet
A balance sheet is a financial statement that includes a company’s assets, liabilities, equity and debt for a specific time. The assets and liabilities heads of a balance sheet should always tally, as any transaction would affect both sides. This sheet provides information about the financial position of the company. It is also used as …
Bankruptcy
Bankruptcy or insolvency refers to a situation when a person or company is unable to repay debt. In India, the procedures related to this are listed under the Insolvency and Bankruptcy Code, 2016. During insolvency, a person can sell their assets to repay dues to creditors or lenders. To apply for bankruptcy, you will have …
Beneficial Interest
Usually used in context of trusts, beneficial interest refers to a person’s right to get benefits on shares not held by them but by someone else. For instance, a trust set by parents for a child, allows the child to receive beneficial interest on an account of which the child is not the owner.
Bill of Exchange
A bill of exchange is a written, legal and unconditional order stating that one party agrees to pay the other party a certain sum of money at either a specific date or on demand. A bill of exchange may be either used to adjust debt or get money from a bank through discounting. Let’s say …
Billing Statement
If you are a new credit card user, you must be wondering what is billing statement. A billing statement refers to a monthly report that includes all your transactions for the mentioned time period, the minimum due amount, the full amount that you owe and other details. You may receive these statements online, in your …
Bombay Stock exchange (BSE)
What is BSE? The Bombay Stock Exchange (BSE) is the first stock exchange to start operations in the country. It’s also one of the most extensive securities markets in India, with about 6,000 companies listed. The securities listed in BSE include: Points to Remember How does the Bombay Stock Exchange work? It allows investors to …
Books of Account
Books of account are a record of daily financial information or transactions of either a business enterprise or an individual. They contain balance sheets categorising expenses as well as assets and liabilities. Books of account are required to follow conditions listed in the IT Act, Companies Act and GST Act. Examples of Books of Account: …
Bridge Loan
As the name suggests, a bridge loan helps in bridging financial gaps. The bridge loan meaning is simple to understand – imagine a short-term credit solution that allows individuals or businesses to meet urgent needs before a more fitting solution is found. For instance, consider this bridge loan example: Say your friend wants to buy …