The accrued income meaning can often be confusing but is actually quite simple. It refers to any revenue that has been earned but is yet to be received. Many companies prefer this method of accounting since it serves as an alternative to cash accounting. Given the accrued income definition, this system of accounting is apt …
Post Type Archives: Glossary
Acquisition
Acquisition refers to the process of one company purchasing another company, either through buying its assets or its stock. For example, Flipkart acquired a 100% stake in Myntra, which was a significant deal in the e-commerce sector.
Add-on Credit Card
If you’re wondering what is an add-on credit card, the answer is simple. These cards are additional cards the card provider issues against a primary credit card. Through it, you, as a primary cardholder, can extend the main card’s benefits and limit to the immediate family members. These cards are available only when the main …
Advance Tax
Wondering what is advance tax? Before you get to the advance tax meaning, keep in mind that the Income Tax Department allows eligible individuals to pay tax in advance as per certain due dates. Generally, there are four dates during which you can pay advance tax. So, advance tax refers to the amount you pay …
Allotment
This term is usually used in the context of IPO and distribution of equity. An allotment is the number of shares given to underwriting companies by a firm. These are sold to the public during the initial public offering. However, the allotment may also be done to other entities, such as existing stakeholders, when a …
Amount Due
Amount due means the sum owed to a seller or service provider for goods or services rendered, including the applicable taxes. Sellers sometimes offer such goods or services on credit, resulting in accounts receivables. In this case, the amount due means the total value of outstanding invoices. Typically, it is the amount displayed at the …
Annual Return
Annual return, meaning yearly gain, is usually used in the context of an investment. It is depicted as an annual percentage. You can get these returns in the form of capital appreciation, returns on capital, or dividends. A positive annual return indicates that the investment has yielded profits, whereas a negative return suggests losses. Consider …
Annualised Returns
What Does it Mean? Knowing what are annualised returns is crucial because it represent the annual financial gains earned through investment over a specific period of time. It gives you the average gains earned through the investment for each year of the total investment period. Points to Remember How to Calculate Annualised Returns? Here’s the …
Annuity
An annuity is a financial plan that pays out a predetermined amount to you at pre-decided intervals for a specific duration or for the rest of your life. You can get a lump sum annuity or monthly or even annual annuity. An annuity is usually used in the context of insurance, where you invest a …
Asset
What does it mean? Any resource with an economic value can be termed as an asset. Assets entail future benefits and thus increase the value of the owner. Owners use assets in various ways. They are used to reduce expenses, facilitate cash flow generation or sales improvement. Assets must be logged in the balance sheet. …